Dan,

With regards to the Master negotiations with City Public Service, I am OK to 
increase the collateral threshold to $15MM for both counterparty's.

Sorry for the delay,

Russell.







Dan J Hyvl
01/02/2001 04:32 PM
To: Russell Diamond/HOU/ECT@ECT
cc:  
Subject: FW: FW: Enfolio Contract with CPS

The contract is attached,  Please ignore their requested changes cause I did 
not agree to them. The credit worksheet was prepared by Russell Diamond as of 
10/01/99.  
----- Forwarded by Dan J Hyvl/HOU/ECT on 01/02/2001 04:28 PM -----

	"Pfister, Christian W." <CWPfister@cps-satx.com>
	12/15/2000 05:48 PM
		 
		 To: "'Dan.J.Hyvl@enron.com'" <Dan.J.Hyvl@enron.com>
		 cc: 
		 Subject: FW: FW: Enfolio Contract with CPS


Mr. Hyvl,

There was one change that you did not make that I requested.  It was
difficult to tell since only a single word was bolded.

APPENDIX "1"  FINANCIAL MATTERS  BILLING, INVOICE DATE, CHARGES AND PAYMENT

"Buyer shall remit any amounts due on the 25th day of the Month in which
Seller's statement was received.  If the due date for any payment to be made
under this Agreement is not a Customer's Business Day, the due date for such
payment shall be the following Customer's Business Day."

There are very few instances where our Business Day would be different from
your business day.  However, as an example, the day after Thanksgiving is a
CPS holiday.  This year, we had a gas payment due on that date which we sent
on the following Monday.  This is probably the only holiday CPS has that
your company may not have.

-----Original Message-----
From: Dan.J.Hyvl@enron.com [mailto:Dan.J.Hyvl@enron.com]
Sent: Friday, December 15, 2000 4:57 PM
To: CWPfister@cps-satx.com
Subject: RE: FW: Enfolio Contract with CPS



Christian,
     Attached is the modified contract with the changes you requested.
Please print off 2 originals and have them signed.  Please fill in the
purchase order number information on the invoices section of Exhibit A.  If
the number is not available, them please delete the information requiring
the number from the billing and payment provision.  Forward the signed
copies to me or Janet Wallis and we will proceed with execution by ENA.
(See attached file: CITYPublicServiceSanAntonio.doc)




                    "Pfister,

                    Christian W."         To:     "'Dan.J.Hyvl@enron.com'"

                    <CWPfister@cps        <Dan.J.Hyvl@enron.com>

                    -satx.com>            cc:

                                          Subject:     RE: FW: Enfolio
Contract with CPS
                    12/15/2000

                    04:16 PM









Unfortunately, we don't have a purchase order issued yet so I can't give
you
a number.  I know that would make it easier for you guys, but I don't think
we can issue one until right before the first gas purchase.  First, a
purchase requisition needs to be issued.  Then, a purchase order will be
released following approvals by the various individuals authorized to sign
off on them.

-----Original Message-----
From: Dan.J.Hyvl@enron.com [mailto:Dan.J.Hyvl@enron.com]
Sent: Friday, December 15, 2000 4:13 PM
To: CWPfister@cps-satx.com
Cc: Janet.H.Wallis@enron.com
Subject: RE: FW: Enfolio Contract with CPS



Christian,
     If the purchase order number will be the same for all deals under the
contract, can you give me the number so that I can include it as a part of
your address for Invoices.



 - CITYPublicServiceSanAntonio.doc