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----- Forwarded by Elizabeth Sager/HOU/ECT on 06/06/2001 01:47 PM -----


	"Andy Katz" <AKatz@eei.org> 06/06/2001 01:36 PM 	   To: <elizabeth.sager@enron.com>  cc:   Subject: Fwd: Collateral Annex	



Two of two comments received.

Andrew S. Katz, Director Industry Legal Affairs
Edison Electric Institute
701 Pennsylvania Avenue, N.W.
Washington, D.C.  20004
Voice:  202-508-5616
Fax:     202-508-5673
e-mail:  akatz@eei.org
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From: Lou Vitale <LouV@acespower.com>
To: "Andy Katz (E-mail)" <andykgc@eei.org>
Subject: Collateral Annex
Date: Tue, 5 Jun 2001 14:10:10 -0500
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Andy

Perhaps we could clarify the following issues at our next meeting:

*	Is there a difference between credit assurances and performance
assurances?
*	Is a guarantee considered a credit assurance or a performance
assurance?
*	In sections 8.1 (c) and 8.2 (c), I am not sure that a margin call is
clearly defined. I believe that initial performance/credit assurance such as
a guarantee to support a collateral threshold should be excluded from this
definition, otherwise you would be reducing the overlimit amount by the
amount of the guarantee posted at the time of contract execution.

Your comments would be appreciated.

Regards

Lou Vitale
ACES Power Marketing LLC
Ph:  317- 344-7111
Fax: 317- 344-7001
Cell: 317- 696-9466
email: louv@acespower.com


 - Andy Katz.vcf