Hi Carol - It was good to hear from you. I have heard that they are keeping
you pretty busy over there with Broadband and Power! With regard to
Reliant's comments:

Mid-Calculation language: Our comment/thought on this was made because we
did not recall that this concept was  ever approved by the Working Group.

Current Mark-to-Market Value: I withdraw my comment. I have thought about
it further and it is not relevant here.

LC Evergreen language: I guess I would say that most of the time, the form
LC we send to counterparties has this language in since it makes sense if
the parties are going to have an ongoing trading relationship. I think that
the Enron form has evergreen language too.  It is more of an administrative
hassle if it is not there but I don't have a strong feeling either way
since we can just keep using our own form. I don't recall the discussion on
this point and thus don't know if it was one person objecting or several.

I hope this answers the questions. Thanks for doing all this work.

Sincerely,

Shari


Senior Counsel
Reliant Resources, Inc.
1111 Louisiana, Ste. 4300
Houston, TX  77002
Tel.:713-207-5233
Fax: 713-207-0116
Email: sstack@reliant.com


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                    "St. Clair,
                    Carol"                 To:     <SStack@reliant.com>
                    <Carol.St.Clair@       cc:     "Sager, Elizabeth"
                    enron.com>              <Elizabeth.Sager@enron.com>
                                           Subject:     Collateral Annex
                    10/05/2001 09:42
                    AM






Shari:
Hope all is well with you.  I agree with all of your comments.  On
Current Mark-to-Market Value why did you delete the "mid" calculation
language?  Also, I am not sure that  understood your question about a
party's credit rating.  On the LC, I took out the evergreen language in
response to a comment from someone.  I need to put in at least
expiration date language.  Do you feel strongly about having evergreen
language?

Carol St. Clair
EB 4539
713-853-3989 (phone)
713-646-8537 (fax)
281-382-1943 (cell phone)
8774545506 (pager)
281-890-8862 (home fax)
carol.st.clair@enron.com



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