EOL -Enserco Energy

FYI
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 04/20/2000
06:07 PM ---------------------------

From: Russell Diamond
04/20/2000 12:23 PM

To: Brant Reves/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT
cc: Debbie R Brackett/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Veronica
Espinoza/Corp/Enron@ENRON, Susan Bailey/HOU/ECT@ECT
Subject: EOL -Enserco Energy

Brant, Tom

Enserco Energy busted on line today. Although we are collateralized with
L/C's, our exposure is increasing due to the size of the on line volume they
have been doing. ENA sent an ISDA draft to them a few weeks ago, with no
response. Today I spoke to their Credit Manager, Don Perkins, and informed
him that we can not take on additional volume unless we have an executed
ISDA. He is going to review, with his legal, the contract and will get back
to me. At this point I feel we should not take on any further transactions
until the ISDA is signed. Please let me know your thoughts.

Russell

Please forward this e-mail on to the appropriate EOL people so they are aware
of Enserco's status.