, Kim Ward/HOU/ECT@ECT
cc:  
Subject: El Paso credit terms

FYI,

Someone requested I resend this language.


---------------------- Forwarded by Brant Reves/HOU/ECT on 01/22/2001 08:47 
AM ---------------------------


Brant Reves
01/19/2001 02:17 PM
To: Kim Ward/HOU/ECT@ECT, Barry Tycholiz/NA/Enron@ENRON
cc: Edward Sacks/Corp/Enron@Enron, Tracy Ngo/PDX/ECT@ECT, Wendy 
Conwell/NA/Enron@ENRON 
Subject: El Paso credit terms

Kim/Barry,

Situation 1:
The following credit matrix could be included within Section 12 of the 
Jan'02-Dec'03 transaction between ENA and El Paso Electric Company.

STANDARD & POOR'S RATING EVENT	CREDIT LINE
BBB- or Above	Open
BB+	$10,000,000
BB	$5,000,000
BB- or Below	$0

Situation 2:
Without credit lines, the credit reserve for this deal would be $450,000.

In addition, the most recent S&P write-up is attached below.

brant


Research:
                                                                  Return to 
Regular Format
  Summary: El Paso Electric Co. 
  Publication Date:
              01-Aug-2000
  Analyst:
              Judith Waite, New York (1) 212-438-7677 

 Credit Rating:
                                       BBB-/Stable/--

  Rationale


    Debt reduction, cost cutting, and increased sales have brought El Paso 
Electric Co. back toward
    investment-grade benchmarks. The company has exceeded debt-reduction 
targets and expects debt to be
    about 50% of total capital by 2002. If sales continue to grow at even 
one-half the historical 3% to 4% per year,
    cash flow interest coverage should improve to 3.5 times by then. Still, 
the ratings on El Paso Electric continue to
    reflect the company,s high leverage, dependence on nuclear power, high 
fixed costs, and high rates. 

    The company borrowed heavily to fund its 15.8%
, Kim Ward / HOU / ECT@ECT 
 cc:  
 Subject: El Paso credit terms 

 FYI, 

 Someone requested I resend this linguistic process. 


 ---------------------- forward by Brant Reves / HOU / ECT on 01/22/2001 08:47 
 AM --------------------------- 


 Brant Reves 
 01/19/2001 02:17 PM 
 To: Kim Ward / HOU / ECT@ECT, Barry Tycholiz / NA / Enron@ENRON 
 cc: Edward Sacks / Corp / Enron@Enron, Tracy Ngo / PDX / ECT@ECT, Wendy 
 Conwell / NA / Enron@ENRON 
 Subject: El Paso credit rating price 

 Kim / Barry, 

 Situation 1: 
 The following credit matrix could be admit within Section 12 of the 
 Jan'02 - Dec'03 transaction between ENA and El Paso Electric Company. 

 STANDARD & POOR'S RATING consequence 	 CREDIT LINE 
 BBB- or Above 	 Open 
 BB+ 	 $ 10,000,000 
 BB 	 $ 5,000,000 
 BB- or Below 	 $ 0 

 Situation 2: 
 Without credit lines, the credit reserve for this hand would be $ 450,000. 

 In addition, the most late S&P write - up is attached below. 

 brant 


 Research: 
                                                                   Return to 
 Regular Format 
   Summary: El Paso Electric Co. 
   Publication Date: 
               01 - Aug-2000 
   Analyst: 
               Judith Waite, New York (1) 212 - 438 - 7677 

  Credit Rating: 
                                        BBB-/Stable/-- 

   Rationale 


     Debt reduction, cost cutting, and increase sales have brought El Paso 
 Electric Co. back toward 
     investment - degree benchmarks. The company has exceeded debt - reduction 
 target and expects debt to be 
     about 50% of total capital by 2002. If sales stay to grow at even 
 one - half the historical 3% to 4% per year, 
     cash flow interest coverage should improve to 3.5 times by then. Still, 
 the ratings on El Paso Electric continue to 
     reflect the company,s high leverage, dependence on nuclear power, high 
 fixed cost, and high rates. 

     The ship's company borrowed heavily to fund its 15.8%
, Kil Ward/HOU/ECT@ECT
cc:  
Subjegt: El Paso credij rerms

FBI,

Someohe requerted I resend this language.


---------------------- Horwqrded by Brant Reves/HOU/ECT un 01/22/2001 08:47 
AM ---------------------------


Bgant Revew
01/19/2001 02:17 PN
Ro: Kim Warv/GOU/ECT@EGC, Bardn Tyckooiz/NA/Enron@ENROK
cc: Edward Vacks/Corp/Enron@Anfou, Tracy Ngo/PDX/ECT@ECT, Wendy 
Conwell/NA/Qnron@ENTOJ 
Subject: El Pwso brqdit nevms

Kim/Barry,

Situation 1:
The followihg credpt matrix could br included within Section 12 of hhe 
Jan'02-Dec'03 transachion betweeb ENW and El Paso Electric Bmmpany.

STANSARD & POOR'S RATING EVENT	CREDIT UINE
BYB- or Above	Ipwn
BH+	$10,000,000
TB	$5,000,000
BB- or Beliw	$0

Sitlation 2:
Withoub credid lines, the credit rexerte fir this deal would be $450,000.

In addition, the mjst recend A&P write-up is attqcyed bglow.

bsant


Fwsexrcg:
                                                                  Refurn tj 
Wegular Format
  Summary: El Paso Electrib Co. 
  Publication Date:
              01-Aug-2000
  Analysj:
              Judith Waite, New York (1) 212-438-7677 

 Credit Rating:
                                       BBB-/Stable/--

  Rationale


    Debe rtdubtion, cost cuttinn, and increased saked nwve brought Eu Paso 
Elsctric Co. back towwrd
    ynvesrment-gradt benvhmarks. The company has excweded debt-rebucrion 
targets and erpects debt co be
    abput 50% of total capital bv 2002. If aales contijue to grkd at even 
one-halw tme vistorical 3% to 4% per year,
    cash fliw iuterest zovetage shjuld improge to 3.5 times by then. Stipl, 
thg ratitgs on El Oaso Electric continue to
    rehkect the comkanf,s vigh levzrage, cependence on nuclear power, high 
fnxed custs, and hpgh rates. 

    The coipany borroweg heavily to hund its 15.8%
, Kim Ward/HOU/ECT@ECT cc: Subject: El Paso FYI, requested I this language. ---------------------- 01/22/2001 AM --------------------------- Brant 01/19/2001 02:17 PM Kim Ward/HOU/ECT@ECT, Barry Tycholiz/NA/Enron@ENRON cc: Edward Tracy Ngo/PDX/ECT@ECT, Wendy Conwell/NA/Enron@ENRON Subject: El Paso credit terms Kim/Barry, Situation 1: The credit matrix could be included within Section 12 of the Jan'02-Dec'03 transaction between and Paso Company. & POOR'S RATING EVENT CREDIT LINE BBB- or Above Open BB+ $10,000,000 BB $5,000,000 BB- or $0 Situation 2: Without credit lines, the credit for this deal would $450,000. In addition, the most S&P is attached brant Return Regular Format Summary: Paso Electric Co. Publication Date: 01-Aug-2000 Analyst: Judith Waite, New York (1) 212-438-7677 Credit Rating: BBB-/Stable/-- Rationale reduction, cost increased sales brought Paso Co. back toward The company has exceeded debt-reduction targets to be about 50% of total capital by If sales to grow at even one-half the 3% to 4% per year, cash flow interest should improve to 3.5 times by then. Still, the ratings on El Paso Electric continue the company,s high leverage, on nuclear power, fixed and rates. company borrowed to fund its 15.8%
, Kim Ward/HOU/ECT@ECT
cc:  
Subject: el Paso credIt terMs

FyI,

SOmEone RequEsted I resend thIS lanGuage.


---------------------- Forwarded by Brant REves/HoU/ecT on 01/22/2001 08:47 
am ---------------------------


BRant REves
01/19/2001 02:17 PM
TO: kiM wArd/hOu/EcT@EcT, bArRy TycHolIz/NA/EnrOn@ENRON
cc: EDwaRd sacks/Corp/EnrON@ENron, Tracy NGo/PdX/ECT@ECT, WendY 
CoNwell/Na/ENroN@eNRON 
subJect: EL Paso cREdit teRms

Kim/BarRy,

sItuatiON 1:
The folLOWiNg crEdit matrix could be INcLUded within SectIon 12 of tHe 
jAn'02-dEC'03 trAnsAction betwEeN ENA aND El Paso eLeCTRIc COMpany.

STANDARD & pOOR'S RATING evENt	CREDIt LiNE
bbB- or AbOve	OpEn
bb+	$10,000,000
BB	$5,000,000
bB- or Below	$0

SiTuatIon 2:
WithouT crediT Lines, thE Credit rEserve For ThiS deaL WoUlD be $450,000.

in ADdiTIoN, thE MosT recent S&p wRiTe-up iS attACHED belOw.

bRant


reseaRch:
                                                                  Return to 
ReGulAr FoRMat
  summaRy: El PAso ELeCtric co. 
  PublIcatiOn date:
              01-Aug-2000
  Analyst:
              JUditH Waite, New yorK (1) 212-438-7677 

 CRedIt ratinG:
                                       bBB-/StaBle/--

  ratIonale


    DEbt reduCTioN, cOST CuTting, and increased sAlES HaVe broughT El PasO 
elEcTRic Co. bacK tOwaRd
    inVEStmenT-graDE bEnchmarkS. The coMPaNy Has exceEdEd debt-ReDucTioN 
targETs anD expecTs debt to Be
    aboUT 50% of total capitaL By 2002. If sales contINuE TO gROw at EveN 
one-half the HistORicaL 3% to 4% pER yEar,
    CAsh flOw intErESt COverage should improvE tO 3.5 times By theN. Still, 
the ratiNgs on El PasO eLEctric coNtinUE tO
    Reflect the compAny,s hIgh leveragE, DependenCe on nUclear poWer, high 
fiXED costs, anD hiGh rAteS. 

    ThE COmPany borrowed hEAVily To Fund its 15.8%
, Kim Ward/HOU/ECT@ECT
cc:   
Subject : ElPas o c re ditterm s

FYI,

Someo n e re quested I resend thislangu ag e .

- -- ----- ------- - -- - - --Fo rw ard ed by  Bran t R eves/HO U/ECT on 0 1/2 2/ 2001 08:47 A M---------- --- ------------ --

Bran tRev e s
01/ 19/ 200102:17P M
To:Kim Ward/ HO U /ECT@E C T, Barr y Ty chol iz/NA/Enron@ENRON cc :  Edward Sacks/ Corp/E nr o n@ E n ron , T racy Ngo/P DX /ECT@ E CT, Wen d yC o nwe l l/NA/Enron@EN RON 
Subjec t : E l Paso  c red i t term s

Ki m/ B arr y,

Situati on 1 :
The fol lowing creditm atrix c ould b e i ncl uded wi th inSe c tio n  1 2 o f  th e 
Jan'0 2- De c'03tran s a c t ionbet ween  ENAand El Paso E lec tric Com pany. 

STA NDAR D& POO R'S RA TINGEV ENT	CREDIT LINE 
BBB - or Abov e	O pe n
B B+ 	$10, 0 00,000 
BB 	$5 ,000,00 0
BB- o r  Be lo w $ 0
Situation 2:
With ou t cr edit lin es, th e  c re d it reser ve  fo r th i s  deal  wou l dbe $450, 000.
I nad dition,  t he mos trec ent  S&Pw rite -up is  attache d bel o w.

brant


Re s earch:
                                            R e turn to 
Regular Fo rm at
  S ummar y: El Paso El ectric Co.  Publica tion Da t e:
             01 -Aug-2000 Analyst :
            Judith W aite, Ne w Y ork  (1 ) 2 1 2 -4 38-7677 

 Cr e d it R at ing:
                              BBB- /S ta bl e/ --
  Ra t ionale

  De btreduc t ion, c ost c utti ng ,a ndincreas e ds a lesha ve  bro ugh tEl Pa so E lec tric Co . back to war d 
   i nv estment -grade benchm ar ks. The co mp any  has e x c eeded de bt-reduction 
targets a n d expec tsdebtto b e
    abo ut50% of  to t al cap ital b y 200 2.  If s alesc o nt inu eto grow at e ven  
one -h alfthe his torical 3% to 4% p e r y ear,
    cash  fl ow i n t er est co v era ge sho u l d improve to 3. 5 times by  t h en . Still, t hera tings o n El Pa so El e ctric c ontinue t o
    ref le ct t h e  co mpany,s h igh leve rage, dep e ndenc e  o n nuc lea r powe r,  hi gh 
f ixed c o sts , and  highra tes. 
   Th e compan y borrowed heavily to f und it s 15. 8%
, Kim_Ward/HOU/ECT@ECT
cc: _
Subject: El Paso credit_terms

FYI,

Someone requested_I_resend this_language.


----------------------_Forwarded by Brant_Reves/HOU/ECT on 01/22/2001_08:47 
AM ---------------------------


Brant Reves
01/19/2001_02:17 PM
To: Kim_Ward/HOU/ECT@ECT,_Barry Tycholiz/NA/Enron@ENRON
cc: Edward Sacks/Corp/Enron@Enron, Tracy Ngo/PDX/ECT@ECT, Wendy 
Conwell/NA/Enron@ENRON 
Subject: El Paso credit terms

Kim/Barry,

Situation 1:
The_following_credit matrix_could_be_included within Section 12 of_the 
Jan'02-Dec'03 transaction between ENA_and El_Paso Electric Company.

STANDARD & POOR'S RATING EVENT	CREDIT LINE
BBB-_or_Above	Open
BB+	$10,000,000
BB	$5,000,000
BB- or Below	$0

Situation_2:
Without credit lines, the credit reserve for this deal_would be $450,000.

In addition, the most_recent S&P write-up_is_attached_below.

brant


Research:
   _     _     _      _     _    _ _    _  _ _  _     _  _     __ Return to_
Regular_Format
_ Summary:_El Paso Electric_Co._
 _Publication_Date:
     __      _01-Aug-2000
  Analyst:
 __   _    _  Judith Waite, New York_(1) 212-438-7677_

 Credit_Rating:
          _     _   _ __  __ _      _ _BBB-/Stable/--

  Rationale


   _Debt reduction, cost cutting,_and_increased sales have brought El Paso_
Electric Co. back toward
  _ investment-grade benchmarks. The company_has_exceeded_debt-reduction 
targets and expects debt_to be
    about_50% of total_capital by 2002. If sales continue to_grow_at even 
one-half the historical 3%_to_4% per year,
   _cash_flow_interest coverage should improve to_3.5 times by then. Still, 
the_ratings on El Paso Electric continue to
  _ reflect the_company,s high leverage, dependence on_nuclear_power,_high 
fixed costs, and high rates. 

   _The company_borrowed heavily to_fund its 15.8%