Please see below comments from Northern States Power Company regarding credit sections and advise. 

-----Original Message-----
From: Tucker, Patrick 
Sent: Wednesday, November 14, 2001 5:07 PM
To: Perlingiere, Debra
Subject: FW: ENFOLIO Master Firm Purchase/Sale Agreement with Northern
States Power Company


Debra, how are things coming with this?  Would like to give the customer an update tomorrow.  

Thanks!
Patrick Tucker


-----Original Message-----
From: Tucker, Patrick 
Sent: Friday, November 09, 2001 11:02 AM
To: Perlingiere, Debra
Subject: FW: ENFOLIO Master Firm Purchase/Sale Agreement with Northern
States Power Company


Debra,

Jeff said that you would be the proper person to review NSP's comments.  Please let me know what else I need to be doing to help the process continue.  Thanks!

Patrick Tucker
x3-3055

-----Original Message-----
From: Bransgrove. Alan [mailto:Alan.Bransgrove@xemkt.com]
Sent: Friday, November 09, 2001 9:34 AM
To: Tucker, Patrick
Cc: Carter, Tim; Ishee, Jeff
Subject: ENFOLIO Master Firm Purchase/Sale Agreement with Northern
States Power Company


Patrick:

At long last I have been able to get input from others within our company
such that I can provide comments our your drafts of the above-referenced
Agreement for Northern States Power Company ("NSP").  I apologize for the
delay.  Our comments are as follows:

Northern States Power Company Agreement

Disparity of Dollar Levels related to Credit Issues.  We request in Section
4.1 that the $50,000,000 dollar level be applicable to each of our
companies.  We further request that the collateral trigger level in Section
4.7 be increased to $25,000,000 as to each of our companies. 
   
2.4 Confirmations.  In the second line, please change "may" to "shall".  We
need to have written confirmations of gas transactions in our files for
regulatory purposes.  We also request on the Confirmation form Exhibit that
the confirms issued to reflect telephonic transactions likewise be signed
and returned, in the same manner as indicated on the form for Section 2.21
Transactions.    

3.5 Netting and 4.4. Offset.  We cannot agree to the netting of payments in
the normal course of business under these contracts.  Amounts due to and
from a counterparty must be tracked separately for regulatory purposes,
especially with respect to any sales proceeds that we might realize when NSP
acts as the Seller to Enron in a Transaction.  Accordingly, we propose that
the provision allowing monthly netting of amounts due between the parties be
deleted from the contract and that the right of Offset be limited to be
applicable only in connection with the occurrence of a Triggering Event and
the calculation of any Termination Payment due under the Agreement.    

4.1 Early Termination.  I am concerned that the date to be established for
termination of Transactions is without definition.  I would prefer to see
the language in subpart (i) modified to state that the Notifying Party may
"establish a date, which shall be not less than two (2) nor more than ten
(10) Business Days following the date of such notice."

4.2 Triggering Event.  In the 8th line down, I don't understand the
inclusion of the phrase "or deemed to be repeated".  Unless I am missing
something, it doesn't make sense with the rest of the sentence.  Please
delete this phrase in the Agreement.     

4.1 and 4.5 References to Affiliates.  In numerous places throughout the
Agreements and, in particular, in Sections 4.1 and 4.5, reference is made to
Affiliates.  For regulatory reasons, we cannot intermingle the account
status of our affiliated companies.  Moreover, NSP is not authorized to
contractually bind its Affiliates in the manner indicated.  Please delete
all references to Affiliates of NSP in the respective Agreement.  

Article 5. Force Majeure.  The language in this Article is not typical of
most Force Majeure provisions, which allow a Party to claim Force Majeure
for the duration of a Force Majeure event and place no limitation on the
ability to claim Force Majeure within a given time period.  The language in
your draft can be read to allow a Party to claim Force Majeure one time
only, for a duration of up to 60 Days, after which time Force Majeure no
longer applies to any of the obligations under the Agreement.  In other
words, Force Majeure could not be claimed later for an unrelated occurrence
involving a separate and independent Transaction.  This is not acceptable.
We therefore request that you substitute your language with more standard
Force Majeure provisions consistent with these comments.

Section 8.1. Notices.  Prior to the language in the parenthetical, please
insert "provided that receipt thereof has been confirmed electronically".

Section 8.2.  Transfer.  We would prefer that this language be revised to
the more traditional language requiring the consent (rather than approval)
of the other Party, "which consent shall not be unreasonably withheld".
Please modify this provision accordingly.  

Section 8.3.  Limitation of Remedies.  We are in general agreement with this
provision, however we cannot agree to a disclaimer of implied warranties of
merchantability or fitness for the ordinary use.  The gas sold and purchased
under the Agreement should be of merchantable quality and fit for the
ordinary use to which it is intended.  Please modify this Section
accordingly.  

Definition of Confirm Deadline in ENFOLIO General Provisions.  The GISB
Standard contract and all other contract forms that we use have a 2 day
confirm deadline, rather than 24 hours as reflected in your definition.  We
request that you revise this Agreement to be consistent with this industry
standard. 

Definition of Material Adverse Change.  This definition needs to be expanded
beyond a review of the level of each company's credit rating.  Please
replace your definition with the following:  

	"Material Adverse Change" with respect to a Party means (i) any
downgrading of any unsecured, long-term senior debt of such Party 	or
any entity that has provided a guaranty or other form of credit
support for the obligations of such Party (each such entity being a
"Credit Support Provider" for such Party) such that such debt is
rated below "BBB-" or its equivalent by Standard & Poors or below
"Baa3", or its equivalent, by Moody's Investor Services, Inc.; 	provided,
that if a Party or its Credit Support Provider does not have 	any
unsecured, long-term, senior debt that is rate by either 	Standard &
Poors or Moody's Investor Services, Inc., then a 	Material Adverse
Change shall mean the occurrence of one or more 	events which, in the
reasonable judgment of the exposed Party 	constitutes a material
adverse effect on the creditworthiness, 	financial responsibility, or
ability of such Party or its Credit Support 	Provider, as applicable, to
perform its obligations in connection 	herewith.   

Definition of Replacement Price Differential.  Although we are in general
agreement with your definition of Replacement Price Differential, it seems
preferable that where the Minimum Monthly Quantity is applicable, cost of
cover should be the difference between the contract price and a 30 or 31 day
average of Spot Prices for the Month in which the deficiency occurred.
Please modify your definition accordingly.  

Please make changes to the Northern States Power Company Agreement
consistent with our comments as set forth above.  Should you have questions
or wish to discuss any of our requested changes, you may contact me via
return e-mail or at the phone number listed below.     

Thank you for your consideration.  I look forward to working with you to
finalize this Agreement.