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Date: Fri, 8 Feb 2002 10:46:12 -0800 (PST)
From: lamoss@duke-energy.com
To: chris.germany@enron.com
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Sheet 516 of TETCO tariff.


                                                        3.4  Upon notification by Pipeline that a
                                                   Customer has failed to satisfy the credit
                                                   criteria
                                                             or subsequently during the term of the
                                                   service agreement no longer satisfies the credit
                                                             criteria, such Customer may still
                                                   obtain credit approval by Pipeline if it pays any

                                                             outstanding balances due Pipeline for
                                                   service rendered or has complied with Section
                                                             10.6 of the General Terms and
                                                   Conditions with regard to such balances and
                                                   elects to
                                                             provide one of the following:

                                                              (A)   an advance deposit;

                                                              (B)   a standby irrevocable letter of
                                                   credit;

                                                              (C)   security interest in collateral
                                                   found to be satisfactory to Pipeline; or

                                                              (D)   a guarantee, acceptable to
                                                   Pipeline, by another person or entity which
                                                   satisfies
                                                                    credit appraisal.

                                                              Such advance deposit, standby
                                                   irrevocable letter of credit, security interest
                                                   or
                                                              guarantee should at all times equal
                                                   the amount equal to three (3) months of highest
                                                              estimated usage during the term of the
                                                   service agreement.  If Customer's credit
                                                              standing ceases to meet Pipeline's
                                                   credit requirements during the period of service,

                                                              then Pipeline has the right to require
                                                   security or prepayment as specified herein.  If
                                                              security or prepayment is not tendered
                                                   in a time period as reasonably determined by
                                                              Pipeline, then Pipeline is not
                                                   required to continue service.  If Customer is
                                                   unable to
                                                              maintain credit approval, the executed
                                                   service agreement shall terminate as of the
                                                              first day of the month following
                                                   written notice to Customer.