To All:

This update clarify's our trading position with the Sempra relationship on 
EOL and over the phone:
-All Sempra entities on EOL should maintain their term of 36 months.  This is 
approved as a result of the credit controls of EOL.
-Trading over the phone is OK inside 12 months and should be managed between 
12 and 36 months accordingly based on the transaction, counterparty current
exposure, contract collateral rights and credit reserve, if any. 
-Exposures should be monitored daily by all members of the credit group.

SDG&E Update:
Short Term Power transactions are OK via phone transactions only.


Russell




---------------------- Forwarded by Russell Diamond/HOU/ECT on 02/05/2001 
01:18 PM ---------------------------
   


From:  Russell Diamond                                                        
     02/05/2001 10:27 AM	
	
	
	                           
	

To: William S Bradford/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Tanya 
Rohauer/HOU/ECT@ECT, Nidia Mendoza/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT, 
Russell Diamond/HOU/ECT@ECT, Tracy Ngo/HOU/ECT@ECT, Lesli 
Campbell/HOU/ECT@ECT, Molly Harris/HOU/ECT@ECT, Paul Radous/Corp/Enron@ENRON, 
Edward Sacks/Corp/Enron@Enron, Tom Moran/HOU/ECT@ECT, Wendi 
LeBrocq/Corp/Enron@Enron, Veronica Gonzalez/HOU/ECT@ECT, Darren 
Vanek/NA/Enron@Enron, Martin O'Leary/HOU/EES@EES, Andrew 
Greer/NA/Enron@Enron, Jane Wilhite/NA/Enron@Enron, Walter 
Guidroz/NA/Enron@Enron, Veronica Espinoza/Corp/Enron@ENRON, Jason R 
Williams/NA/Enron@ENRON, Rudwell Johnson/NA/Enron@ENRON, Wendy 
Conwell/NA/Enron@ENRON, Tim Davies/LON/ECT@ECT, Oliver Harrison/LON/ECT@ECT, 
Lee Munden/LON/ECT@ECT, Neil R Anderson/LON/ECT@ECT, Anna Reich/LON/ECT@ECT, 
Claire Viejou/LON/ECT@ECT, Karolina Moran/LON/ECT@ECT, Cecile 
Fleury/LON/ECT@ECT, John Suttle/HOU/ECT@ECT, Rod Nelson/LON/ECT@ECT, Sonya 
Clarke/LON/ECT@ECT, Diana Higgins/LON/ECT@ECT, Allan 
Ford/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:  
Subject: Sempra and San Diego Gas & Electric Trading Policy

To All:

Per myself, Jason Williams and Bill Bradford, we have set forth a near term 
trading policy with Sempra and SDG&E in light of the California Power 
concerns. Please see below:

Sempra trading relationship:
Maintain all trading (any commodity) with in one year.  Transactions outside 
of one year need to be approved on a one off basis with due analysis and 
credit reserve if necessary.

San Diego Gas & Electric (SDG&E):
Financial and Physical Gas- limit trading to inside three months, no 
transactions outside of this term.
No Power transactions.

These relationships will be reviewed and updated once the California 
Legislature finalizes its Power bid's.


Regards,
Russell