RE: Peoples Gas

Thanks Harry

-----Original Message-----
From: Kingerski, Harry
Sent: Tuesday, November 20, 2001 3:09 PM
To: Black, Don; Mihalik, Teresa; Des Champs, Joseph
Cc: Steffes, James D.; Ogenyi, Gloria
Subject: Peoples Gas - IL

Peoples Gas has backed down from their request for a letter of credit to provide "Adequate Assurances of Payment", as stated in their tariff. They will continue to accept a parental guaranty, which is due no later than December 3 (and which Teresa says is being processed). The amount at issue is about $40k.

However, they are sending me a letter that will say, if there is any further downgrade in our rating, they will immediately require a l/c or cash deposit.