This is the content of an email: After meeting with Larry Joe Hunter, we will not be granting tagg access to his group. They were wanting access to change deals that were booked to the wrong counterparty. The problem here lies in that they were wanting to do these changes in the afternoon while we were calcing. This is not an option. Therefore, the resolution is we are responsible for these corrections. We must get the deals entered into the system with the correct counterparty initially. Our credit risk exposure is the bottom line. If we do not have all the deals to the right counterparty each day, we may not be receiving enough money on Letter of Credit from CP's. FYI, this is going to be a highly visible area for us to make mistakes. If we continue to make these mistakes, we as a group will catch severe fire. To help us do this correctly, Bianca will be handing out a revised and updated counterparty list on a monthlly basis. We will still have emails sent denoting CP name changes, I reccomend writing these down on your sheets to keep for future reference. If all else fails and there is something you are not sure about, please call Bianca Ornelas at 5-3782. If you have any questions, please give me a shout. Thanks. PL

Subject: Counterparty names

This is the content of an email: Dear Stacey and Kristin- I have attached the 2000 Doorstep report for UK and Continental Power. Unfortunately, Gas, EGM and EIM are also co-mingled in this report. I apologize. I will bring to the planning meeting their responses and status of these findings (I unfortunately, cannot email these). Stacey - FYI, I kinda discussed this with Kristin. But RAC is no longer going to play an active role in the doorstep process. We are going to use their business expertise and concerns during the planning meeting, but other than that, they have agreed to be available on a "consulting" basis after that. I am working with Paul Day (Andersen Sr. Mgr in London) and Paul Bromley (London EAS) on either getting an Andersen deal tester for you all or just substituting Andersen's deal testing for ours. Additionally, EAS has performed a Client Self Assessment (similar to a "what could wrong" or control analysis form). I am trying to get a copy of that prior to you all leaving for the doorstep. I hope to have more info by next week, but wanted to pass this along. Thanks, Christy

Subject: UK and Continental Power DS Report

This is the content of an email: On the list for 6/6/00, NRG Energy Inc. was previously not approved for physical power trading and we are not opening them up at this time. Per my discussions with Credit, they are coming thru as an amendment to open them up for US power and emissions. This counterparty is not showing up on the FERC approved marketers list, and Leslie Hansen is contacting the counterparty to determine what records they have, if any, that show they have been approved by the FERC to trade power. Until we are provided that info, we cannot open them up for power. US emissions has been opened. P.S. If Utilicorp. need to be approved when I am out Monday and Tuesday, talk to Carol St. Clair, the attorney working on the ISDA Master, or Susan Bailey, the paralegal working on the contract.

Subject: Counterparty Approvals for 6/6/00 and 6/7/00

This is the content of an email: David - I haven't had a chance to look at this yet but thought I ought to send it on to you. I will be out of the office (vacation) until the 27th and didn't want to lose the entire week. Mark ps - I lost all of my voice mails the other day and I think there was one from you regarding a possible conflict - my understanding is that we're just assigning a bunch of transactions over from one party to another and in that case I tend to think there's no problem.
Subject: ETA Amendment