As part of our updating of Enron's risk management policies and procedures, a new draft of which will be submitted to the Enron Corp. Board in August, we'd like to be able to briefly summarize the credit policies for PGE.  This project is not to identify any specific issues with those policies, but simply to be able to describe how we are managing credit risk across Enron and its subsidiaries.  Rod Hayslett suggested the best way for us to understand any differences in your policies and procedures vs. the Enron Corp. Credit Policy is to provide you with a copy of this policy, and then have each of you discuss with Bill Bradford, VP-Enron Corp. Credit Risk Management, the overall credit risk management practices that you employ. 

Enron Corp.'s existing credit policy is included to provide you a frame of reference to compare to your own policies.  Mercy Gil, Bill Bradford's assistant, will be calling to set up a time next week to discuss.  Bill Bradford and I will then go over with Rod Hayslett the verbiage we intend to include in the Enron Corp. consolidated risk management policy.  The policy must be completed by next Thursday, so thank you in advance for your prompt attention.

 

Regards,
Cassandra Schultz
VP - Enron Corp. Risk Assessment & Control
713-853-0429