Re: PEC Guaranty

Susan,

I just spoke to Mary Klyasheff at People's Energy. She is ok with all
changes except State of Texas. She has suggested New York as a neutral
state. Seeing that Enovate is a joint venture between ENA and People's, can
we accept New York law on their guaranty.

Give me your thoughts.

Thanks,
Ted
X-37952

Susan Scott
11/10/2000 02:25 PM
To: Ted Chavez/GPGFIN/Enron@ENRON
cc:

Subject: Re: PEC Guaranty

Ted, I made one addition.

Ted Chavez
11/07/2000 10:14 AM
To: Susan Scott/ET&S/Enron@ENRON
cc:

Subject: PEC Guaranty

Susan,

Please review the following guaranty sent to us by Peoples Energy Corp
(PEC). PEC and ENA will each guaranty 50% of the obligations of Enovate ( I
think the guaranty may have a different name- I'll fix it).

Please review and let me know if it is acceptable or make necessary changes.

Thanks,
Ted
X-37952