FW:

The NYISO has asked for replacement performance assurance for both EPMI and EES. Since Enron Corp.'s credit rating has dropped below the Creditworthiness requirements (article 8; minimum senior unsecured of BBB or Baa2), the NYISO has asked for either a letter of credit or surety bond (see formats below) to replace the Enron Corp. guarantees currently out to the NYISO for EPMI and EES.

Please advise as to which is preferred. I think we should also find out what commercial needs/priorities are.

Current guaranties outstanding for EPMI:
Energy Market ==< $5,000,000
ICAP Market ==< $3,000,000
Tranmission Congestion ==< $20,000,000 (they can accept only $10,000,000)

Current guaranties outstanding for EES:
Energy Market ==< $1,000,000
ICAP Market ==< $500,000

Thanks,
Tracy

-----Original Message-----
From: ChristineMaLossi@nyiso.com [mailto:ChristineMaLossi@nyiso.com]
Sent: Monday, November 19, 2001 1:31 PM
To: Ngo, Tracy
Cc: MMackles@nyiso.com; PGootee@nyiso.com; Radous, Paul
Subject:

Tracy,

Attached are acceptable formats for a Letter of Credit and a Performance
Bond:

(See attached file: letter of credit.doc)(See attached file:
PerformanceBond.doc)

Christine MaLossi
Credit Administrator
NYISO
(518) 356-7644