Thanks Jeff.

 -----Original Message-----
From: 	Hodge, Jeffrey T.  
Sent:	Sunday, October 28, 2001 1:04 PM
To:	Crady, Ned E.
Subject:	FW: TEAC

Ned:

Per my telephone message.

Jeff

 -----Original Message-----
From: 	Garberding, Michael  
Sent:	Thursday, October 25, 2001 1:30 PM
To:	Hodge, Jeffrey T.
Subject:	FW: TEAC



 -----Original Message-----
From: 	Muhl, Gil  
Sent:	Tuesday, October 23, 2001 3:15 PM
To:	Diamond, Russell; Garberding, Michael; Edmonds, Marcus
Subject:	FW: TEAC

Russell / Mike / and Marcus - here's the e-mail I just got from Teac with their updated numbers.  I'm reviewing the Gas Purchase Agreement.  Let's update our numbers and discuss at the earliest convenience sometime today.

Thanks - Gil

 -----Original Message-----
From: 	"Norman, John E" <john.e.norman@bankofamerica.com>@ENRON  
Sent:	Tuesday, October 23, 2001 11:29 AM
To:	gmuhl@enron.com
Subject:	TEAC

Gil,

Initial Mirant offer was at 199 BP over 5 year UST.  They are coming in at
high 180BPS.  Also, surety is only for $50MM and we may have need somewhat
in excess of that.  We have asked bond counsel if the opinion as to tax
exemption of the bonds would be intact if we substituted a (i) the second
place bidder or (ii) a prior bidder that failed to clear the tax exempt
hurdle rate but that now was offering to adjust their bid to that level.
Accordingly, TEAC has asked that we canvass current thinking of Enron and El
Paso.  The supplier selection is once again competitive. Therefore, the
higher your discount factor, acceptance of the basic form of the documents
as presented, and ability to perform on a timely basis, then the greater the
likelihood that you may be selected to complete the transaction.

*	Below is a spreadsheet that shows current volumes.  Market prices
are current (10/22) for NYMEX but must be adjusted to Tennessee 500 Zone 1.

*	 Also attached is the Gas Purchase Agreement.  It has been amended
to provide for cures in the event of a termination event, and that should
make the GPA more appealing to surety bond providers. Another draft is due
out shortly.  We would expect to agree in substance within a week, and enter
into the GPA by just after Thanksgiving.

*	Please disregard the Surety Bond form attached to the GPA and refer
to the separate surety bond form attachment below. This basic form has been
approved by at least one surety provider.

Please give me a call at your earliest convenience to discuss where your
current pricing would be and the time that you might be expect to perform
within.  Thanks,  JN

 <<TEAC2001 Numbers to Supplier 10-22-01.xls>> 	 <<TEAC2001 GPA Oct 17 Clean
Generic.doc>> 		 <<TEAC2001 Surety Chapman 10-18-01 Clean.pdf>>


 - TEAC2001 Numbers to Supplier 10-22-01.xls << File: TEAC2001 Numbers to Supplier 10-22-01.xls >> 
 - TEAC2001 GPA Oct 17 Clean Generic.doc << File: TEAC2001 GPA Oct 17 Clean Generic.doc >> 
 - TEAC2001 Surety Chapman 10-18-01 Clean.pdf << File: TEAC2001 Surety Chapman 10-18-01 Clean.pdf >>