Subject: Duke Situation
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Tue, 13 Nov 2001 09:41:08 -0800 (PST)

Greg,

ACTION - PLEASE CALL TODD REID AT DUKE

BACKGROUND:
Below is the situation with Duke and subs:
						Exposure	Line		Cash		L/C	
Duke Energy Marketing LP / ECC		($43mm)	$10mm		$52.35mm	$20.5mm
Duke Energy Trading & Marketing / ENA		($56mm)	$5mm		$61mm
Duke Energy Trading & Marketing / EPMI		($260mm)	$20mm		$171mm	$100mm

The expiration of the letters of credit are 11/30/01.  Duke believes that since these L/C's have less than 20 days to expiry their value should be zero and are asking for additional cash collateral.  Our view of the contract is that these L/C's are good collateral until expiry and should be counted in our outgoing collateral.

The roll of the letter of credit has been delayed as Haedicke/Mintz get comfortable with the reps under the L/C facility.

Duke credit guys are saying that Todd Reid has not received a return call from you and this holding up a resolution.

Bill and Louise