Enron Mail

To:jeff.skilling@enron.com, ben.glisan@enron.com, david.gorte@enron.com,greg.whalley@enron.com, john.lavorato@enron.com, lance.schuler-legal@enron.com, cris.sherman@enron.com, brian.redmond@enron.com, christopher.calger@enron.com, jake.thomas@enron.com
Subject:Late Modification of Southwest Power LLC Divestiture DASH
Cc:lisa.bills@enron.com, sheila.tweed@enron.com
Bcc:lisa.bills@enron.com, sheila.tweed@enron.com
Date:Fri, 15 Jun 2001 03:16:00 -0700 (PDT)

Late last night, BKH requested ENA to guaranty the indemnification
obligations of TLS Investors, a wholly-owned subsidiary of ECT and the Member
Manager of Southwest Power LLC. The guaranty will be capped at the adjusted
purchase price, presently expected to be in the range of $205 million to $220
million, and will remain in place for 18 months from the Closing Date.

RAC's view is that exposure under such a guaranty would not be materially
different from exposure under a direct indemnity provided by ENA if ENA were
the actual legal entity selling Southwest Power LLC. RAC supports the
issuance of such guaranty to facilitate completion of the divestiture.


Chip Schneider
VP-Commercial Underwriting
3AC 1418