Kevin, Rogers, and Dana -- We do not have to do or say anything since, per NEPOOL, Enron is in compliance.  However, if you feel that NEPOOL participants are not trading with us and we need to make some statement, we can (if ok with legal).  Let us know. Thanks.

 -----Original Message-----
From: 	Allegretti, Daniel  
Sent:	Tuesday, November 27, 2001 1:40 PM
To:	Nicolay, Christi L.
Subject:	nepool financial assurance



I got a call today from Ed McKenna, the ISO-NE treasurer.  He is getting a large volume of calls from NEPOOL Participants concerned about Enron Corp's credit rating.  He is telling these Participants that his office only monitors whether NEPOOL members EPMI and EES are in compliance with the NEPOOL Financial Assurance Policy, which they are, and does not monitor Enron Corp.  Ed suggested that when PG&E experienced difficulties PG&E drafted a short notice, which ISO-NE circulated, explaining how its subsidiaries were not affected by the credit rating of the parent.  The ISO is offering us the same opportunity to draft and circulate something similar if we wish.

What may be going on here is a concern by NEPOOL Participants that we are using a parent guaranty to meet the Financial Assurance Policy.  My recollection, however, is that we have instead posted surety bonds from AA agencies to meet NEPOOL credit requirements.  If we disclosed this to the NEPOOL Participants it might allay their credit concerns.  We may however, not want to disclose this if we are employing parent guarantees elsewhere, lest we be asked to post surety bonds everywhere.  Can you discuss this with the traders and see what they want to do?