David, Have you received any guidance on this from Jean yet?  - Mike

 -----Original Message-----
From:  Portz, David  
Sent: Wednesday, May 16, 2001 11:35 AM
To: Ryall, Jean
Cc: Curry, Mike; Day, Smith; Miller, Jeffrey; Sager, Elizabeth
Subject: QSE Liability Query

Jean -- Could you please determine how (if at all) the Protocols will treat 
these specific circumstances:   When a QSE becomes unable to pay its 
obligations to the  ERCOT ISO, does the ERCOT ISO have any ability (or is 
there any guidance anywhere on whether it will have any ability) to impose 
liability on the remaining functioning QSEs to cover dollar liabilities of 
the defaulting QSE not satisfied by the defaulting QSE's credit support?  
Mike Curry said a while ago that he understood the the new CFO in ERCOT to be 
gearing up to address/resolve this issue.  For purposes of the QSE agreements 
Enron Power Marketing, Inc. is trying to complete  with customers, we are 
seeking as much information on this as possible, when and as available.  I 
understand that in California the ISO sought to impose such liabilities on 
the remaining healthy scheduling entities, which authority remains in 
dispute.  Please call Mike or me to discuss if the substance of this query if 
not clear.  

Thanks,  
David Portz 
ENA Legal (tel.: 713-853-9239)