Ben:  Because of the short time frame I am just forwarding the questions from 
our broker (representing the surety) concerning your request for bid bond.   
Very valid questions and also will impact your performance bond should you 
win and need one.  Please try and get back to me asap as this is a very short 
time frame for the bond.  Thanks.
---------------------- Forwarded by Teddy Ward/HOU/ECT on 03/08/2000 07:11 AM 
---------------------------


"Phil Bair" <pbair@jwortham.com> on 03/08/2000 06:52:45 AM
To: Teddy Ward/HOU/ECT@ECT
cc:  
Subject: Enron North America/Rochester Generator Project 



Teddy-We are preparing the bid bond based on the request received yesterday 
evening.  The bid specifications indicate liquidated damages in the amount of 
$2,375,000 PER DAY.  I assume Enron will not accept damages at this level.  
Please check to determine if the bid will be qualified in this area-and what 
alternative damages may be offered.  Due to the unusual size of the penalty 
relative to the contract value, this could have an impact on reinsurance.

The contract indicates a normal one year warrenty from the contractor.  The 
charge for this warrenty is included in our standard performance bond rate.  
I have bonded a number of generator contracts similar to this, and frequently 
there is an option for the contractor to offer an extended warrenty up to 5 
years.  Since this would impact the premium charged, you may want to check to 
see if this option exist so we can get the pricing correct in your estimate.

Thanks.
3/8/00

Philip N. Bair
713-346-1378 (Telephone)
713-520-1260 (Telefax)