Re: Aquilla Muni Deal

Tracy and Sara, please provide with an update of what you know about this
transaction at your earliest convenience.

Thank you

Christopher

William S Bradford
10/19/99 03:32 PM
To: Christopher Smith/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT, Tracy Ngo/HOU/ECT@ECT, Patricia
Cini/HOU/ECT@ECT
Subject: Re: Aquilla Muni Deal

Christopher,

I believe Tracy Ngo has begun to look at it from a credit perspective. I
don' have any of the details. Aquila Energy Corp. is the guarantor for
Aquila trading subs and is not anywhere near the equivalent credit quality of
Enron Corp. We need to be careful of how much incremental risk we take with
Aquila without collateral because of our significant trading positions with
them. Please advise when you find out more details about the structure.

Regards,
Bill

To: Sara Shackleton/HOU/ECT@ECT
cc: William S Bradford/HOU/ECT@ECT
Subject: Re: Aquilla Muni Deal

I have not heard anything about this transaction. Do you have a transaction
diagram and/or a term sheet or any memoradum that describes anything about
what they are trying to do?

Christopher

Sara Shackleton
10/15/99 02:03 PM
To: Christopher Smith/HOU/ECT@ECT
cc:
Subject: Aquilla Muni Deal

Did Chris call you about this? SS
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 10/15/99 02:02
PM ---------------------------

From: Chris H Foster 10/15/99 01:53 PM

To: Sandra McDonald/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Dale
Rasmussen/HOU/ECT@ECT
cc: Frank W Vickers/HOU/ECT@ECT
Subject: Aquilla Muni Deal

I spoke to Todd Busby. He said he is trying to set this up as a transaction
where we could directly link the two swaps. It is my understanding that this
would simplify the transaction in that the credit/contracting process would
be fairly straightforward. He said that he needs to get his internal ducks
in a row before he is prepared to take a step forward with us. He will call
me if and when this occurs. So, this might not come to anything. I will
let you know if and when he surfaces so we can decisde what we should do next.

Thanks!!

Chris