QSE Liability Query

Jean -- Could you please determine how (if at all) the Protocols will treat
these specific circumstances: When a QSE becomes unable to pay its
obligations to the ERCOT ISO, does the ERCOT ISO have any ability (or is
there any guidance anywhere on whether it will have any ability) to impose
liability on the remaining functioning QSEs to cover dollar liabilities of
the defaulting QSE not satisfied by the defaulting QSE's credit support?
Mike Curry said a while ago that he understood the the new CFO in ERCOT to be
gearing up to address/resolve this issue. For purposes of the QSE agreements
Enron Power Marketing, Inc. is trying to complete with customers, we are
seeking as much information on this as possible, when and as available. I
understand that in California the ISO sought to impose such liabilities on
the remaining healthy scheduling entities, which authority remains in
dispute. Please call Mike or me to discuss if the substance of this query if
not clear.

Thanks,
David Portz
ENA Legal (tel.: 713-853-9239)