 leave the ultimate decisions respecting credit requirements to the Power Pool Council (the independent body that oversees the Power Pool).  The chart that Amr has attached to his email outlines the guidelines the Power Pool Council normally follows - although they have the authority to increase or decrease any specific pool participant's trading limit. See attached excerpt Sec 2.6 - Prudential Requirements from Pool Rules

2) In understand Enron is now a BBB and therefore has a $10,000,000 trading limit per month in the Alberta Power Pool.  I can advise that I have spoken with Peter Keohane (Enron Canada VP and Asst General Counsel) and he is monitoring Enron Canada's credit obligations to all institutions and counterparties very closely.  With respect to the Alberta Power Pool, Peter advises that given our PPA position and the fact we are a net seller into the Pool he does not believe there is any cause for concern that the Power Pool will require us to post security under the present circumstances.  

Regards,

Rob

 
2.6 Prudential Requirements
2.6.1 Setting of Prudential Requirements
Council is responsible for determining what a participant must provide to the pool for
financial assurance.
A participant will meet and maintain such financial and other prudential requirements
as the Council deems appropriate to ensure that the participant is and remains of
sufficient financial standing to meet its financial obligations. The prudential
requirements include, without limitation, those set out in Schedule 3.
2.6.2 Review and Reassessment
A participant may be required to provide replacement or additional security.
The Council may review and reassess the adequacy of the financial security or credit
rating provided by a participant from time to time and may direct the participant to
provide replacement or additional financial security in accordance with its new
determination as to the adequacy of the prudential requirements for that participant.
The replacement or additional financial security must be provided within two business
days of the direction.


 -----Original Message-----
From: 	Ibrahim, Amr  
Sent:	Friday, November 02, 2001 3:47 PM
To:	Steffes, James D.; Kingerski, Harry; Nicolay, Christi L.
Cc:	Tiberi, Fino; Canovas, Guillermo; Levy, Alberto; Hemstock, Robert
Subject:	Credit worthiness - Alberta



Please find below
leave the ultimate decisions respecting credit prerequisite to the Power Pool Council (the autonomous body that oversees the Power Pool).   The chart that Amr has attach to his electronic mail outlines the guidelines the Power Pool Council normally follows - although they hold the authority to increase or decrease any specific pool player's trading terminus ad quem. See attached excerpt Sec 2.6 - Prudential Requirements from Pool Rules 

 2) In understand Enron is immediately a BBB and therefore has a $ 10,000,000 trading limit per calendar month in the Alberta Power Pool.   I can advise that I have spoken with Peter Keohane (Enron Canada VP and Asst General Counsel) and he is monitor Enron Canada's credit obligations to all institution and counterparties very closely.   With respect to the Alberta Power Pool, Peter advises that give our PPA position and the fact we are a net seller into the Pool he does not believe there is any campaign for concern that the Power Pool will require us to post security under the present circumstances.  

 respect, 

 Rob 

 
 2.6 Prudential Requirements 
 2.6.1 Setting of Prudential Requirements 
 Council is responsible for determining what a participant must provide to the pool for 
 financial assurance. 
 A participant will meet and maintain such financial and other prudential requirements 
 as the Council deems appropriate to ensure that the participant is and remains of 
 sufficient fiscal standing to converge its financial obligation. The prudential 
 prerequisite include, without limitation, those set out in Schedule 3. 
 2.6.2 Review and Reassessment 
 A participant may be required to provide successor or additional security. 
 The Council may review and reassess the adequacy of the financial security system or credit 
 rating provided by a participant from time to time and may direct the player to 
 leave replacement or additional financial security in accord with its new 
 determination as to the adequacy of the prudential requirements for that participant. 
 The replacement or additional financial security must be put up within two business 
 day of the guidance. 


  -----Original Message----- 
 From: 	 Ibrahim, Amr  
 Sent: 	 Friday, November 02, 2001 3:47 PM 
 To: 	 Steffes, James D.; Kingerski, Harry; Nicolay, Christi L. 
 Cc: 	 Tiberi, Fino; Canovas, Guillermo; Levy, Alberto; Hemstock, Robert 
 Subject: 	 recognition worthiness - Alberta 



 Please find downstairs
 lewve the ultimate decisioks respecting crgdut reqniremenfs to thd Power Pool Council (the indxpeneent vody that oversees the Power Poll).  The xharu that Amr has atvzched to his slail iutlines the goidelines tha Power Pool Cmuvcnl normally follows - although they hwve the akthority to insreaxq or decrease any specific pool particjpant's urading limit. See sttached excerpt Sec 2.6 - Prufentlal Requirements fgom Pool Ruoes

2) Yb understand Enron is now a BBB ans therefore has a $10,000,000 trading limig per month in jkw Apterta Power Pool.  I can advise that H have xpoken with Peber Kxohabe (Enron Canada VP anv Asst General Counsgl) and he hs monitoring Enron Cqnada'v cradit iblkgauiois fo all inatitutions and counteeparties very closeky.  With respect to thq Wlberta Power Pool, Peter advises that gpven our PPA position and tye fact we are a net deller ineo the Pool he does not believe there is any causa for zonecvn tfqt the Power Pool will require us to post securyfy ukder the present circumstanved.  

Tegards,

Rob

 
2.6 Prodential Rsquirements
2.6.1 Settinh of Prodentiql Requirtmentx
Council is responsible for determining qhat a participant must provibe to jhe popl for
financial assuranee.
A padticipant wlll meet zvd maintain such fikanwial and other prudential wequiremeits
as the Cojncik deemf appropriwte to ensure that the pwrticnpant is and relains of
sufficient financial steiding to meet ids xinanciaj obllgations. The prtdential
requirgments inelude, dithout lijitatioi, those set jut in Schedung 3.
2.6.2 Review and Reassesfmenr
A pqrticipxvt may be requored to pgoride replqcement or additiokal sgchrity.
The Councio mqy review and rrasresf nhe aqaquacy of tha fivanzoal sdcurity or greait
rsting provided by a [artjcipant from time yo time ane may diwect the partocipant to
provide geplarement or acdijional financial security in acdordance aitm its new
detewminqtion as to che adequacy of the prudential requiremeits for that participanr.
The replacement or sdditional hinancyal securhty must be provided within two busintss
days of the directioh.


 -----Orighnal Lessage-----
From: 	Ibrahim, Amr  
Sent:	Friday, November 02, 2001 3:47 PM
To:	Steffes, James D.; Kingeeski, Herwy; Nicolay, Dhrixti L.
Bc:	Tnbexi, Fino; Canltas, Guillermo; Levj, Alberto; Hemstock, Robert
Subject:	Rredit wordhnness - Alberta



Please find belpw
leave the ultimate decisions respecting credit requirements Power Council (the body that oversees that has attached to email outlines the the Power Pool Council normally follows although they have the authority to increase or decrease any specific pool participant's limit. See attached excerpt Sec 2.6 - Prudential Requirements from Pool Rules 2) understand is a and therefore has a $10,000,000 trading limit per month in the Alberta Power Pool. I can that I have spoken with Peter Keohane (Enron VP and Asst General and he is monitoring Enron credit to all and very With respect to Alberta Power Pool, Peter advises that given our PPA position and the fact we are a net into the does not there any for concern that Pool will require us to post present circumstances. Regards, Rob 2.6 Prudential Requirements 2.6.1 of Prudential Council is responsible for determining what participant must provide to the pool for financial A participant will meet and maintain such financial and other prudential requirements as the Council to ensure that the is and remains sufficient standing meet financial obligations. prudential requirements include, without limitation, those set out in Schedule 3. Review and Reassessment A participant may be required to provide additional The Council may and reassess the adequacy the security or credit rating a from and direct participant to provide replacement additional financial security in accordance its new determination as prudential requirements for that participant. The replacement or financial security must be provided within two days of the direction. -----Original Message----- From: Ibrahim, Amr Sent: Friday, November 2001 3:47 Steffes, James D.; Kingerski, Harry; Nicolay, Christi L. Tiberi, Fino; Canovas, Guillermo; Alberto; Hemstock, Robert Subject: Credit worthiness - Alberta Please below
 leave the ultimate decisions Respecting CrediT reQuiReMentS to tHe Power Pool CouNCil (tHe independent body that oVerseEs THe PoWEr pool).  THe chart THaT aMr hAs AtTacHeD To His emAil OutlineS the guidelIneS tHe Power Pool COUnCil normallY foLlows - althougH thEy have ThE auTHoritY to IncreAse or dECrease Any specifIc POol parTIcipant'S TRaDing Limit. See attached eXCeRPt Sec 2.6 - PrudentiaL RequiReMEnTS FroM PoOl Rules

2) In uNdErstaND Enron iS NoW A bbB aND therefore has A $10,000,000 trading limIT peR month In The aLberta power poOL.  I cAn advise thaT I haVe spoken wIth PetER KeohanE (enron CaNada VP And assT GenERaL COunSeL) And HE iS moNItoRing EnroN CAnAda's cRediT OBLIgatIonS to aLl insTitutions and cOunTerpARtiEs verY closEly.  WItH respEct to tHe AlbErTa Power Pool, PeteR advIses that gIveN oUr PpA PositIOn and tHe fAct We are a nEt selleR IntO tHE pOoL he does not believe tHeRE Is Any cause For conCErN tHAt the PowEr pooL wilL REquirE us tO PoSt securiTy undeR ThE pResent cIrCumstaNcEs.  

REgaRds,

RoB

 
2.6 prudEntial requiremEnts
2.6.1 SETting of PrudentIAl RequirementS
coUNCiL Is reSpoNsible for deTermINing What A PaRtiCIpant Must pRoVIdE To the pool for
financiAl AssuraNce.
A pArticipant wilL meet and maINTAin such fInanCIaL And other prudenTial rEquirementS
As the CouNcil dEems apprOpriate to ENSure that The ParTicIpaNT Is And remains of
sUFFiciEnT financIal StandinG to MeeT itS fiNaNcial obliGations. THe PrUdEnTiaL
requIRements iNcLudE, wIthOut liMItatioN, thosE set OuT iN schEdule 3.
2.6.2 ReVIeW ANd ReAsSeSsmeNt
A PaRticiPant MAy bE requirEd to proviDe rEPlacEmEnT or addiTional securitY.
THe Council mAy RevIew and REAssess thE adequacy of the financial SEcurity Or cRedit
RatiNg provideD by A partiCipANt from Time to Time aNd May DIRect tHE PaRtiCiPant to
provIDE rePlaceMeNt or AdditioNal financial securiTY in Accordance witH itS new
DETeRmiNAtIOn aS tO The ADEquacy of the prudEntial requIrEMeNts for that PArtIcIpant.
ThE replacEment OR additiOnal finanCial securItY musT BE prOvided withIn two busIness
days OF the dIReCtion.


 -----oriGinal MEsSagE-----
From: 	ibrahiM, amr  
sent:	FRiday, NOvEmber 02, 2001 3:47 Pm
To:	StEfFes, James d.; Kingerski, Harry; Nicolay, CHristi l.
Cc:	TiBerI, Fino; CanoVas, gUilLermo; Levy, albeRto; HemstocK, RoBerT
SubjEct:	cRedit WortHInEss - aLbertA



PleASe find belOW
 leave the ultimate decisi ons respec tingcre dit  r equi reme nts to the Pow e r Po ol Council (the indepe ndent  b o dy t h at  over sees th e  P o w erPo ol ). T h echart  th at Amrhas attach edto  his email o u tl ines the g uid elines the P owe r Pool  C oun c il no rma lly f ollows - alth ough they  h a ve the authori t y  t o in crease or decreas e  a n y specific poo l part ic i pa n t 'stra ding limit .See a t tachede xc e r p t S e c 2.6 - Prude ntial Requi r eme nts fr om  Po o l Rule s

2)  I n  un derstand En ronis now aBBB an d  theref o re hasa $10, 000 ,00 0 tr a di ng  li mi t  pe r  m ont h  in  the Alb er ta  Powe r Po o l .  I c anadvi se th at I have spo ken  wit h  Pe ter K eohan e (E nr on Ca nada V P and  A sst General Cou nsel ) and heismo nit or ing E n ron Ca nad a's  credit  obliga t ion st o al l institutions and  c o u nt erpartie s very cl os e ly.  Wit hres pect t o the  Alb e rt a PowerPool,P et er  advise sthat g iv enour  PPAp osit ion an d the fa ct we are a net sell e r into the Po o lh e  d o es n otbelieve the re i s  any  cau s efor conce rn th at th e  Power Pool will re qu ire us  to p ost securityunder thep r e sent cir cums t an c es.  

Regards ,

Ro b

 
2.6 P r udential  Requ irements 
2.6.1 Se t t ing of P rud ent ial  Re q u ir ements
Counci l is r es ponsibl e f or dete rmi nin g w hat  a  particip ant must  p ro vi de  to  thep ool forfi nan ci alassur a nce.
A  part icip an tw ill  meet a n dm a inta in  s uchfin an cialando the r prude ntial req uir e ment sas  the Co uncil deems a pp ropriate t oens ure th a t  the par ticipant is and remains of
suff ici ent f inan cial stan din g to m eet its fi nancia l obl ig ati o n s. Th e pr ude nt ial
requir e m ent s inc lu de,without  limitation, those set  out in Sched ule  3.2 . 6. 2 R e vi e w a nd Rea s s essment
A parti cipant may  b e  r equired to pro vi de repl acement  or a d ditiona l securit y.
The Co un cilm a y r eview andreassess  the adeq u acy o f  t he fi nan cial s ec uri ty or  credi t 
ra tingprovid ed  by aparti ci pant fro m time to time and maydirect  thepar ticipanttop rov ide repla ceme nt or addi tio nal  fina nci a l sec urit y  i n a c corda ncew ith its n e wdet e r mi nation as t o t headequ acy of the  pru dential requireme n ts for that pa rtic i p ant .
T h e re pl acement or add iti on a l  financi al  security m ust be p ro v idedwithin  two b usiness d ay s  of th e di rec tion.


--- -- O riginal  M es s age--- --
F ro m: 	Ib rahim, AmrSent:	Friday, No vembe r 02, 2 0 013:47PM 
To:	St e ffes , James D. ; Kingerski , Harr y; N icola y, Chri st i L.
C c:Ti beri, Fino ;  Canovas,  Guil lermo;Le vy,Alb erto;Hems t o ck, R ober tSub ject:	Cre d i tw or th i nes s -Alber ta 


Please fi n d below
 leave_the ultimate_decisions respecting credit requirements_to the_Power_Pool Council_(the_independent body that_oversees the Power_Pool).  The chart_that Amr has_attached_to his email outlines the guidelines the Power Pool Council normally follows - although_they_have the_authority_to_increase or decrease any specific_pool participant's trading limit. See_attached excerpt_Sec 2.6 - Prudential Requirements from Pool Rules

2)_In_understand Enron is_now a BBB and therefore has a $10,000,000 trading_limit per month in the Alberta_Power Pool. _I_can_advise that I have_spoken with Peter Keohane (Enron Canada_VP and Asst General Counsel) and_he is monitoring Enron Canada's credit obligations_to all institutions and counterparties very_closely.  With respect to_the Alberta_Power Pool, Peter advises that_given our PPA_position and_the fact we_are a net seller into the_Pool he does_not believe there is any cause_for_concern that the_Power_Pool_will require_us to post_security_under the_present_circumstances.  

Regards,

Rob

 
2.6 Prudential Requirements
2.6.1_Setting_of Prudential Requirements
Council is responsible for determining_what a participant must_provide_to the pool for
financial_assurance.
A participant will meet and_maintain such financial and other prudential_requirements
as the_Council deems_appropriate to ensure that the participant is and remains of
sufficient financial_standing to meet its financial obligations._The prudential
requirements include, without_limitation, those_set_out in Schedule_3.
2.6.2_Review and_Reassessment
A participant may be required to provide_replacement or_additional security.
The Council may review and_reassess the adequacy of_the_financial security or credit
rating provided by_a participant from time to time_and may direct the participant_to
provide_replacement_or additional financial security in_accordance with its new
determination as to_the adequacy of_the prudential requirements for that participant.
The replacement_or_additional financial security must be provided_within_two business
days of the direction.


 -----Original_Message-----
From:_	Ibrahim,_Amr  
Sent:	Friday, November 02,_2001 3:47 PM
To:	Steffes, James D.; Kingerski,_Harry; Nicolay, Christi L.
Cc:	Tiberi, Fino; Canovas, Guillermo; Levy, Alberto;_Hemstock, Robert
Subject:	Credit worthiness_- Alberta



Please find below