enovate issue of the day

Hello everyone. More fun issues from Chicago. I would like to discuss the
different options available for giving parent guarantees to third parties.
As everyone knows, to date we have had two third party transactions requiring
parent guarantees. In the Trunkline transaction, each parent issued separate
guarantees for 1/2 of the requested amount, negotiated by respective
counsel. In the Alliance transaction, Enron issued a guarantee for the
entire amount and Peoples has presented us with a reimbursement agreement
which we are reviewing. Peoples' Board meets next Wednesday, Oct. 4, to
approve the risk management policy. Assuming the policy is approved, deal
flow should begin to increase and I would like to discuss how these
guarantees can best be handled going forward. My thought was an hour or so
next Monday, Oct. 2, to the extent everyone is available, with a follow up
meeting with Peoples perhaps Wednesday. Let me know how your calendar looks
and I will coordinate the meeting.

Jeff & Kay: Although this has been initially focused on parent guarantees,
this is part of a larger issue regarding negotiations of enovate contracts in
general. For instance, we have agreed to templates for a Master Purchase and
Sale Agreement and a GISB Agreement. However, who is authorized to make
changes and negotiate on behalf of enovate? We can discuss any suggestions
for handling these situations as well.

Thanks,

Gregg