Enron Mail

Subject:FERC question 1 re: Enron OnLine
Date:Mon, 18 Jun 2001 13:53:00 -0700 (PDT)

---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 06/18/2001
08:43 PM ---------------------------

From: Christi L Nicolay 06/18/2001 07:17 PM

To: Elizabeth Sager/Enron@EnronXGate, Jeffrey T Hodge/Enron@EnronXGate, Mark
cc: Lisa Yoho/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON, James D
Steffes/NA/Enron@Enron, Mark E Haedicke/Enron@EnronXGate, Richard
Shapiro/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON, John J
Lavorato/Enron@EnronXGate, Louise Kitchen/HOU/ECT@ECT, Richard B

Subject: FERC question 1 re: Enron OnLine

ENA legal -- Kim Bruno is one of the FERC staff that visited the Enron gas
and power trading floors last week. Can you provide us with a response to
his questions? I'll set up a conference call if necessary to discuss before
we respond. I talked with Kim today and told him that we would be responding
within several days and he is fine with that. Thanks.
---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 06/18/2001
07:11 PM ---------------------------

"Kim Bruno" <kim.bruno@ferc.fed.us< on 06/14/2001 05:19:01 PM
To: <Christi.L.Nicolay@enron.com<

Subject: Enron OnLine

In providing an answer to our questions regarding risk assessment or
management, would you please provide an explanation to the following? We
understand that EOL requires that a counter party, before accessing EOL to do
business with Enron North America, must undergo a credit worthiness
evaluation. When a counter party executes or clicks on a price, EOL does an
instant credit check before confirming the transaction.

However, Enron may not only buy from a counter party, it may sell. What sort
of creditworthiness standards must Enron provide to a counter party utilizing
EOL to purchase from Enron?

Are there industry standard creditworthiness agreements regarding counter
party credit risk that Enron uses? If yes, may we have copies? If Enron
utilizes its own agreements, please provide us with a copy.

Thank you.

Kim Bruno
Market Oversight and Enforcement
Office of the General Counsel
888 1st Street, NE, Room 92-19
Washington, DC 20426
(202) 208-0770 (office)
(202) 208-0057 (fax)