Sally - Per our conversation, attached is the list of questions that Peoples 
Energy Risk Management personnel have prepared regarding the risk management 
policy and operating procedures of the Chicago Office.  There is a meeting 
scheduled for next Wednesday from 1-4 with Peoples to discuss these 
questions.  Vlady Gorny and Ted Murphy are scheduled to be in attendance.  At 
this time, I am expecting that the ground rules for the meeting will be that 
Peoples has the right to ask any question and Enron reserves the right to not 
answer any specific items that are proprietary/confidential and respond only 
in terms of a general framework.  We will then discuss alternatives for 
satisfying their needs such as independent audit.  Thanks for your assistance 
in reviewing this list and providing feedback.  If you could also let me know 
your schedule, along with whoever will be able to attend the meeting, over 
the next few days I will get an internal meeting setup to discuss these 
issues prior to Wednesday.

Thanks,

Gregg
312-541-1229