Louise, you had asked us to alert you immediately of any counterparty that makes noises consistent with an alteration of their trading policy with us.  

I've just spoken with Wisconsin Gas (the state's largest gas LDC), and they told me that the February basis transaction (20 contracts--Enron the buyer) we had come to basic agreement upon last week had been put on hold.  As the customer put it, "We had a risk management meeting at the end of the week, and we've decided to put that transaction on hold.  We'll let you know when we're able to move forward on that".  

We had reached agreement on Wednesday, but at that time my counterpart said that he would be out of the office for a couple of days and would wait until Monday to close the deal.  After not hearing from him during the morning, I called to close the transaction and was told that they could not go through with it.  

WIGas has continued to trade <30 day physical gas with us on EOL--seven trades so far today.  

Please let me know if there is any additional information you need or if there are any further actions you'd like me to take.  Thanks.

Patrick Tucker
x3-3055