Susan,

 I just spoke to Mary Klyasheff at People's Energy.  She is ok with all 
changes except State of Texas.  She has suggested New York as a neutral 
state.  Seeing that Enovate is a joint venture between ENA and People's, can 
we accept New York law on their guaranty.

 Give me your thoughts.

Thanks,
Ted
X-37952






Susan Scott
11/10/2000 02:25 PM
To: Ted Chavez/GPGFIN/Enron@ENRON
cc:  

Subject: Re: PEC Guaranty  

Ted, I made one addition.





Ted Chavez
11/07/2000 10:14 AM
To: Susan Scott/ET&S/Enron@ENRON
cc:  

Subject: PEC Guaranty

Susan,

 Please review the following guaranty sent to us by Peoples Energy Corp 
(PEC).  PEC and ENA will each guaranty 50% of the obligations of Enovate ( I 
think the guaranty may have a different name- I'll fix it).

 Please review and let me know if it is acceptable or make necessary changes.

Thanks,
Ted
X-37952