NHEC ICAP and Energy Sale

FYI in case you hadn't already heard

---------------------- Forwarded by Elizabeth Sager/HOU/ECT on 03/29/2000
02:05 PM ---------------------------

John Llodra@ENRON
03/28/2000 04:41 PM
To: Paul Racicot/HOU/ECT@ECT, Mark Dana Davis/HOU/ECT@ECT, Elizabeth
Sager/HOU/ECT@ECT, Edward D Baughman/HOU/ECT@ECT, Tracy Ngo/HOU/ECT@ECT
cc:
Subject: NHEC ICAP and Energy Sale

All:

I wanted to give you a heads-up that we have been shortlisted to negotiate
with New Hampshire Electric Coop (NHEC) on supplying their load requirements
from Sep-00 through May-01. Attached is a table that sets forth the monthly
quantities and our indicative pricing (will be refreshing pricing based on
updated forwards). They have decided not to go with the purchase for Jul-Aug
at this time. They seem to have gotten their act a little better together
this time around with pre-approvals internally, but any deal they do would
still need to be approved by the NHPUC.

Here's the scoop on timeline:

They will send to us a draft contract this Friday for review/comment. We
need to have our comments back to them by Weds Apr 5th. Elizabeth, does this
fit your schedule OK?
They plan to hold negotiations with us and other parties via phone on Monday
Apr 10th, and hope to close a deal that same day. Again, this deal would be
subject to NHPUC approval, so we need to get a feel for the risk of NHPUC
disapproval.
Tracy - as you know, they are not so attractive from a credit standpoint.
Is letter of credit sufficient in their case? Can we talk about what we need
to put in place for the transaction.

I will be in Houston on Weds-Fri of this week (Elizabeth and Tracy -- I'll be
sure to swing by and introduce myself). Thanks much and I'll forward the
contract when I get it.

Regards,
John