IN: This is an email
Effective Monday, November 19, Mark Haedicke will office in the new building. His location will be: ECS 06788 (sixth floor, office number 788). My new location will be ECS 06785 (just outside Mark's office). Our telephone numbers and fax number will remain the same.

What is the subject?

OUT: Move to Enron Center South

IN: This is an email
Rod: There are 2 open issues on Dresdner Bank: 1. Netting - they are saying that operationally they cannot net across product lines. Are you okay with this? 2. Calculation Agent - they want to be the Calculation Agent. Since we have no CSA with them, this means that they would be doing all of the calculations required under each transaction that we enter into with them. Specifically, the CA does the following: - calculates the Floating Price and the Floating Amount, Fixed Amount or Cash Settlement Amount payable - gives notice of Settlement and Payment Dates - determines whether a Market Disruption Event has occurred Also, my notes indicate that we agreed to increase the Guaranty cap to $25,000,000 from $15,000,000. Is that okay with you? They had initially requested no cap. On Reliant Energy Services, Inc., you were going to think about the following credit issues: 1. Specified Transaction - they want to include physical energy deals. You were going to think about this and whether we needed a cap. They wanted to amend the definition of Specified Indebtedness to deal with this, but I think you and I felt taht it should be dealt with in the definition of Specified Transaction. 2. Cross Default threshold - is 3% of equity okay? 3. On Credit Event Upon Merger, they want to define "materially weaker" as either (1) being below investment grade by either S&P or Moody's or (2) being failed to be rated by either S&P or Moody's. 4. On setoff, they did not have the "affiliate" language. 5. In the CSA, they want the collateral that is posted to secure both financial deals and physical gas and power deals entered into between ENA and Reliant Energy Services, Inc. 6. In the collateral threshold, they have proposed a matrix of S&P and Moody's ratings, with the threshold amount being the lower of the 2 ratings. AA-/Aa3 and above $20,000,000 A-/A3 to A+/A1 $15,000,000 BBB/Baa2 to BBB+/Baa1 $10,000,000 BBB-/Baa3 $5,000,000 Also, they have defined MAC to be going below BBB- by S&P or below Baa3 by Moody's or a failure to be rated by either S&P or Moody's. 7. In the LC provisions, they have different cure periods for each of the types of Letter of Credit Defaults that can occur. Here is a summary of the events and the time periods for transferring substitute colateral: - If issuer's credit rating is downgraded - 1 business Day after written demand by the Secured Party - if issuer fails to comply with its obligations under the LC or disaffirms or rejects the LC - 1 Business day after the pledgor receives notice of dishonor - if LC fails to be in full force and effect or issuer declares bankruptcy - 3 Business Days after written demand by Secured Party In our form, we require substitute collateral to be posted within 2 Business Days of the occurrence of the above events, except for a downgrade where the time period is 5 Business Days On SG Interests, you were going to talk to them about certain credit issues. Please let me know when you can where you stand on the above. Thanks. Carol

What is the subject?

OUT: Dresdner Bank, Reliant, SG Interests

IN: This is an email
FPL, Entergy Merge in $7 Billion Deal NEW YORK (Reuters) - FPL Group Inc., the parent of Florida Power & Light Co., said on Monday it would merge with Entergy Corp. in a stock deal worth $7 billion to create the largest U.S. power generating company. The combined company would have a total enterprise value of more than $27 billion, consisting of $16.4 billion in equity market capitalization and $10.7 billion in debt and preferred stock, the companies said. The merger is expected to immediately boost earnings for both companies. Under the terms of the agreement, FPL shareholders would receive one share of a new holding company for each FPL share held. Entergy shareholders would get 0.585 of a share of the new holding company for each Entergy share. Based on the companies' closing stock prices, the deal would value Entergy at its market value of $7 billion, or about $30.89 per share. FPL shares closed Friday at 52-13/16, off a year high of 56-5/8 but up from a low of 36-3/8. Entergy stock ended at 30-5/16, off a high of 31-3/16 but up from a low of 15-15/16. SHAREHOLDERS' APPROVAL REQUIRED The combination must be cleared by shareholders as well as federal regulators. FPL and Entergy said they hope to complete the transaction within 15 months. ''The merger combines two strategically aligned, financially healthy companies into an organization that has no equal in the industry,'' said J. Wayne Leonard, Entergy chief executive. Leonard will serve as president and chief executive of the combined company while FPL's chief executive, James Broadhead, will serve as chairman. The deal was billed as a merger of equals but gives FPL shareholders 57 percent of the combined company and eight of 15 seats on the board of directors, the companies said. Once combined, the new company is expected to see annual cost savings of $110 million to $150 million in its regulated businesses derived from eliminating duplicate corporate and administrative positions and programs. Competitive businesses should see annual cost savings and revenue enhancements of $40 million to $125 million and capital expenditure savings of $50 million to $100 million, the companies said. FPL and Entergy said they will seek to ''minimize workforce effects of the merger'' through a variety of unidentified efforts. In addition, both FPL and Entergy have authorized stock buyback plans, together worth $1 billion. FPL plans to repurchase $570 million shares while Entergy is looking to buy back $430 million in stock, the companies said.

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OUT:
FPL/Entergy merger news article