Tracy and Sara, please provide with an update of what you know about this 
transaction at your earliest convenience.

Thank you

Christopher









William S Bradford
10/19/99 03:32 PM
To: Christopher Smith/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT, Tracy Ngo/HOU/ECT@ECT, Patricia 
Cini/HOU/ECT@ECT 
Subject: Re: Aquilla Muni Deal  

Christopher,

I believe Tracy Ngo has begun to look at it from a credit perspective.  I 
don' have any of the details.  Aquila Energy Corp. is the guarantor for 
Aquila trading subs and is not anywhere near the equivalent credit quality of 
Enron Corp.  We need to be careful of how much incremental risk we take with 
Aquila without collateral because of our significant trading positions with 
them.  Please advise when you find out more details about the structure.

Regards,
Bill



To: Sara Shackleton/HOU/ECT@ECT
cc: William S Bradford/HOU/ECT@ECT 
Subject: Re: Aquilla Muni Deal  

I have not heard anything about this transaction.  Do you have a transaction 
diagram and/or a term sheet or any memoradum that describes anything about 
what they are trying to do?

Christopher 





Sara Shackleton
10/15/99 02:03 PM
To: Christopher Smith/HOU/ECT@ECT
cc:  
Subject: Aquilla Muni Deal

Did Chris call you about this?  SS
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 10/15/99 02:02 
PM ---------------------------
   
	
	
	From:  Chris H Foster                           10/15/99 01:53 PM
	

To: Sandra McDonald/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Dale 
Rasmussen/HOU/ECT@ECT
cc: Frank W Vickers/HOU/ECT@ECT 
Subject: Aquilla Muni Deal

I spoke to Todd Busby.  He said he is trying to set this up as a transaction 
where we could directly link the two swaps.  It is my understanding that this 
would simplify the transaction in that the credit/contracting process would 
be fairly straightforward.  He said that he needs to get his internal ducks 
in a row before he is prepared to take a step forward with us.  He will call 
me if and when this occurs.   So, this might not come to anything.  I will 
let you know if and when he surfaces so we can decisde what we should do next.

Thanks!!

Chris