Please be sure to copy Jim Wood on all correspondence relating to bonds- from a product management standpoint, I think Jim needs to be aware of these issues as failure to maintain bonds will significantly impact our business. . I still think that we would want to have a single person responsible for reporting all potential situations that may cause a default /bad pr situation and notify the EES office of the chairman in a manner that would allow plenty of opportunity to cure ( i.e., before it is a crisis). Gloria and Denise, will you take that on?




From: Rogers Herndon/ENRON@enronXgate on 11/14/2001 02:44 PM
To: Gloria Ogenyi/ENRON@enronXgate
cc: Mary Grisaffi/ENRON@enronXgate, James D Steffes/ENRON@enronXgate, Harry Kingerski/ENRON@enronXgate, Denise Furey/ENRON@enronXgate, Jeff Richter/ENRON@enronXgate, Vicki Sharp/HOU/EES@EES
Subject: Bond Requirement

Gloria -

Could you please help us gather the facts on what the $12 MM Surety Bond currently being requested (#6131506) is for - is this PG&E?. Mary informed me that funds ($36,000) may not be available, is this correct?

It is my understanding that Credit, Services and Regulatory will be monitoring and processing bond requirements. As such, I would like to know how this would impact EES' business and definitely want to be aware of any default situation prior to reading about it in the press.

Thanks,
Rogers