Message-ID: <31676391.1075851748458.JavaMail.evans@thyme>
Date: Wed, 17 Jan 2001 08:54:00 -0800 (PST)
From: veronica.espinoza@enron.com
To: tanya.rohauer@enron.com, jason.williams@enron.com, russell.diamond@enron.com, 
	brant.reves@enron.com, darren.vanek@enron.com
Subject: Tenaska
Cc: debbie.brackett@enron.com, james.copeland@enron.com
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There are several outstanding issues currently with Tenaska--the most 
significant being their change in ownership.  They are no longer an 
affilitate/sub of Illinova Corp. (As Illinova has been acquired by Dynegy), 
but have now seperated into the entities Tenaska Energy, Inc. and Tenaska 
Energy Holdings (their financials are combined).  The Guarantor is 
collectively both entities.

I'm currently working on amending the Master Swap Agreement, as the credit 
support provider has changed.  Preliminary revised thresholds are between 
$5-10MM.  ENA has not Mac'd the counterparty b/c the Illinova's gty, etc. 
will remain acitve until April 01.  Nontheless, we need to amend accordingly 
ASAP.  Our current Financial MTM is $9MM.  I will also contact the physical 
legal group to have a new contract issued out (as we have an old 91 Master 
Physical Gas contract).

On the physical side, attached below is a breakdown of our positions.  Please 
note that we have formal gas netting agreements for the ENA business:



As you can see, the majority of the exposure is with the Canadian sales to 
their Canadian affitliate.  Also note that all of this business is still 
gty'd by Illinova until April 01.  

An important note here is that I received a gty from the new guarantors today 
in the amount of $20MM, covering Enron Corp and all of its' subs.  It covers 
the physical business of Tenaska Marketing Ventures, Tenaska Marketing 
Canada, a Division of TMV Corp., and Tenaska Gas Storage, LLC.  Tenaska is 
also doing business with EES.  Once the ISDA is amended, the new financial 
gty's will be issued out accordingly.  Also, I'm working with Global 
Counterparty to change the system accordingly.

I will keep you all updated on any changes/progress.   Please let me know if 
I've left anything out.

Veronica