Performance Bond

We are contemplating taking a performance bond as collateral to secure our
position with Duke. I would like you to review the language of the
performance bond from a legal perspective upon receipt. My concerns are the
claim process will be slow and will be subject to legal interpretation. I
would like to discuss with you the risks associated with this type of
security.

Thanks,
Bill

---------------------- Forwarded by William S Bradford/HOU/ECT on 12/07/2000
07:13 PM ---------------------------

rsbaker@duke-energy.com on 12/07/2000 05:15:58 PM
To: william.s.bradford@enron.com
cc:
Subject: Performance Bond

Bill,
My corporate insurance people are working diligently on a form of
performance bond that will be acceptable to the insurance companies.
The insurance companies involved, so far, are Fireman's Fund and Traveler's
(both rated S&P: "AAA" and AM Best: "A++"). I say "so far" because we
contemplate needing to have those two insurance companies "agent" a deal
that will involve more names. As soon as I have those names, I will let
you know.

This matter is top priority in Charlotte.

Thanks,
Randy