Message-ID: <8491058.1075852335680.JavaMail.evans@thyme>
Date: Wed, 24 Oct 2001 06:04:46 -0700 (PDT)
From: s..bradford@enron.com
To: greg.whalley@enron.com, ben.glisan@enron.com
Subject: Entergy- Koch
Cc: rick.buy@enron.com
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I spoke with Troy Martin at Entergy-Koch this morning and have proposed the following bilateral collateral matrix to Master Netting Agrements which we are negotiating.  He will propose this structure to David Sobotka, the President of Entergy-Koch, and will let us know.

			US			Europe
BBB+/Baa1		$30mm			GBP20mm		Original lines were $60mm and GBP30mm
BBB/Baa2		$15mm			GBP10mm
BBB-/Baa3		$10mm			GBP5mm
BB+/Ba1 and below	$0			0

US Master Netting Agreement covers Master Agreements for phyiscal gas, physical power, and financial swaps.
UK Master Netting Agreement covers Master Agreements for UK physical gas and UK physical power.

Our current exposure (as of 10/23/01) is as follows:

			US			Europe
			$(43mm)		~$(40mm) or ~GBP(27mm)

Total collateral outstanding is as follows:
			
			US			Europe
			$8.5mm (incoming)	GBP20mm
			$15mm (outgoing)

Net impact is we post additional $6.5mm in US and will be able to reduce our L/C in Europe by GBP13mm.

Regards,
Bill
