Subject: RE: Master Netting agmt.: AEP
From: [email-masked]
To: credit <[email-masked]>, [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked]
Date: Mon, 5 Nov 2001 13:00:41 -0800 (PST)

Jason -- Please note that (1) there is a 1/1/98 GISB in effect between AEP Services, Inc and ENA following assignment of such GISB by Columbia Energy Marketing to ENA under a Nov. 22, 1999 Purchase and Sale Agreement.  Such GISB is referenced in the current draft Netting Agreement currently under AEP's review.  (2) The wholesale power trading masters identified and referenced in the current draft Netting Agreement are a Power Sales Agreement dated as of September 29, 1997  providing for sales of wholesale electric power by EPMI to AEP, and a Service Agreement dated as of March 30, 1998 under the AEP Companies' Wholesale Market Tariff, providing for sales of wholesale electric power by AEP to EPMI.  (3) You indicated below that ENA trades (using GTCs) physical coal and physical synfuel with American Electric Power Service Corporation.  These relationships would be pulled in by the Master Netting Agreement's catch-all Recital defining "Other Agreements"  unless Credit determines with AEP that these trading relationships are to be excluded, and language is added to that effect. -  David   

 -----Original Message-----
From: 	Williams, Jason R (Credit)  
Sent:	Saturday, November 03, 2001 4:14 PM
To:	Heard, Marie; Portz, David
Cc:	Hodge, Jeffrey T.; Keohane, Peter
Subject:	Master Netting agmt.:  AEP

AEP relationship:

AEP Energy Services, Inc.
	Financial trading with ENA (ISDA:  96021110)
	Physical natural gas business with ENA (GTCs)
	Physical natural gas business with ECC (GTCs) 
	Physical liquids business with EGLI (GTCs)

	Guaranties:	Incoming
			$150 MM incoming from American Electric Power Company Inc.
				Covers physical and financial natural gas transactions with ENA, ENA Upstream, and ECC
			$1 MM incoming from American Electric Power Company Inc.
				Covers physical liquids transactions with EGLI
			35 MM Pounds incoming from American Electric Power Company Inc.
				Covers physical transactions of all commodities with ECTRIC, ECTRL, and Enron Coal Services Limited
			
			Outgoing
			$15 MM outgoing from Enron Corp.
				Covers financial trading with ENA
			$5 MM outgoing from Enron Corp.
				Covers physical trading of all commodities with ECTRL
			$6 MM outgoing from Enron Corp.
				Covers financial trading with ECTRIC
			$20 MM outgoing from Enron Corp.
				Covers physical natural gas trading with ENA Upstream Company, ECC and ENA

American Electric Power Service Corporation
	Financial power trading with ENA (GTCs)
	Physical power trading with EPMI (???)
	Physical coal trading with ENA (GTCs)
	Physical synfuel trading with ENA (GTCs)

	Guaranties:	Incoming
			None

			Outgoing
			$35 MM outgoing from Enron Corp.
				Covers financial trading with ENA
			$250 MM outgoing from Enron Corp.
				Covers physical trading of power with EPMI

Credit terms to follow.

JRW