Carol & Jeff -

I received the below email from Priscilla Hamic regarding Southern Company Services.  It appears that they are not going to pay for November delivered gas, as they want to unwind/net across entities.  We don't have any cross-company netting agreements with Southern Company, so they don't have the right to do this. 

Do we need to send them a letter advising the same?  What should we do with respect to this?  


Thanks,

JRW

 -----Original Message-----
From: 	Hamic, Priscilla  
Sent:	Wednesday, December 19, 2001 4:32 PM
To:	Dhont, Margaret
Cc:	Williams, Jason R (Credit)
Subject:	Southern Companies Services

Southern Company Services will not be paying their invoiced amount because they want to unwind forward deals and net across entities.  They sent letters to terminate yesterday and will be faxing me a copy for my files.

Priscilla Hamic
Enron North America Corp.
Tel: 713-345-3736
Fax: 713-646-8420
E-mail: priscilla.hamic@enron.com