Edison Mission Marketing & Trading, Inc.

We have a # of counterparties whom credit will allow daily trading and/or balance of month trading (with no forward trading). It would be much more efficient for the trading organization and the counterparties to have functionality within EOL that allowed for better credit screening. We have moved away from the broker markets, and the current screening mechanism forces us to trade in the broker market with credit limited counterparties.

I would like to get this changed ASAP, if possible.

Thanks.
---------------------- Forwarded by Kevin M Presto/HOU/ECT on 05/10/2001 11:24 AM ---------------------------
From: Edward Sacks/ENRON@enronXgate on 05/10/2001 10:55 AM
To: Kevin M Presto/HOU/ECT@ECT
cc: William S Bradford/ENRON@enronXgate, Tom Moran/ENRON@enronXgate
Subject: Edison Mission Marketing & Trading, Inc.

Kevin

As I mentioned to you, due to some recent success in obtaining additional security, we are extending credit to Edison Mission Marketing & Trading, Inc. to transact on the day ahead and balance of week markets only. We will not be granting them execution rights on EOL due to the lack of controls/functionality for daily transactions. EOL, unlike ICE, has tenor function set by months versus number of days. As a result, in the case of Edison Mission, if we set EOL for one month, Edison would have access to balance of the month plus next month. It seems to make this work for Edison and perhaps other potential counterparties, it would either require reengineering of the system or possibly coming up with dividing the products to incorporate daily transactions. If you would like to discuss further, please call.

Ed