Enron North American

Daren Farmer

1400 Smith Street

Houston, Texas 77002

Thank you for your bid. CPS is currently evaluating all bids. Part of this
process includes (where needed) clarification/confirmation of the bids. We
emphasize we are not seeking nor can we accept any change of bids. Our
understanding of the your bid reflects (in part):

*	unbundled gas supply, 5 year term:

	- to Waha, Agua Dulce, or Thompsonville; up to 15,000 MMBtu/d, at
stated bid prices; firm baseload (no nomination)

*	bundled gas supply, 5 year term:

	- to CPS-Karnes or CPS/El Paso; up to 15,000 MMBtu/d, at stated bid
prices; firm baseload (no nomination).

CPS needs clarification of total volumes available combining maximum
unbundled and bundled gas supply. We may have other questions as we continue
our evaluation. We look forward to your response. Please respond via email
to me and all parties in the "Cc" box above, or by fax to Ms. Trisha Wiatrek
at 210-353-3060 and copied to Barry Williams. Again, thank you for your bid.

Sincerely,

Barry S Williams
Geologist
City Public Service
PO Box 1771/145 Navarro
San Antonio, TX 78296
210-353-2876