Elizabeth:
I had a question about a recurring provision that I have seen in your Power 
Contracts.  Looks like our credit group accepts a Guaranty from a 
Counterparty's Credit Support Provider as a form of Performance Assurance to 
satisfy any collateral posting requirements.  On the financial side, 
Guarantys always supplement the colateral requirements such that we require 
them to post cash or LC's to us even if we are holding a parent Guaranty.  
Why is there a different approach on the power side?  Alos, how does credit 
value a parent guaranty?  For example, if the parent's financial condition 
worsens, does the value of the Guaranty drop?  Let me know what you think.


Carol St. Clair
EB 3889
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com