Stephanie, I reviewed the Confid. Agreement. The attached riders need to be added to the agreement and the term should not exceed 2 years. Let me know if you want to discuss or have questions.
Answer: Kern River CA
We have received an executed Assignment and Novation Agreement dated 8/16/00 where EOL commodity swap Deal No. 267025, transacted 6/23/00 originally between Amoco Canada ("Amoco Canada") Petroleum Company and Enron Canada Corp. The trade has been assigned as follows: Amoco Canada assigned its interest in the trade to BP Amoco Corporation ECC assigned its interest in the trade to ENA. Copies will be distributed.
Answer: BP Amoco Trade Assignment
We currently have $21.4 million in reserve for potential Northwest refunds. $10 million currently sits in the LTCA book and $11.4 currently sits in the LTNW book. During the summer, FERC initiated an investigation into the potential of unjust and unreasonable spot prices in the northwest from December of 2000 through June of 2001. Seatlle City Light, Tacoma City Light, Eugene Water and Electric Board, and Sacramento Municipal Utility District all filed claims at FERC for refunds from EPMI. The claims totaled close to $100 million. However, many of these claims were, on their face, spurious. For example, Eugene Water and Electric Board filed for refund of forward purchases which was clearly outside the scope of FERC's proceeding. We hired consultants from Charles River Associates (CRA) to help us with this process. One of their tasks was to apply the CAISO competitive benchmark pricing methodology to the Northwest market. That is, CRA attempted to reverse engineer the CAISO's methodology in order to estimate our Northwest risk. I was informed by our litigation team that EPMI's realistic potential exposure using this methodology was roughly $30 million. We decided to reserve roughly 2/3 of this amount which came to about $21 million. In September a FERC Adminitrative Law Judge heard the case and submitted a draft decision to the FERC. The draft decision recommended against any refunds. This draft decision is supposed to come in front of the FERC commissioners for approval before the end of the year. If this draft decision is approved, it would be appropriate to remove these reserves.
Answer: Northwest Reserves
I gather that Bob will be spending most of his time on the securities litigation. Is it still possible to get a litigation manager to handle EES matters. I would hope we could use one of the EWS litigators, as we discussed earlier. Having someone on the floor would be a definite plus as well. I had talked to Andy but never finalized because of the crisis situation we are in. My main concern is that the EES business not be allocated among numerous litigators so that we do have accountability or take a back seat to other assignments. Thanks.
Answer:
Retail litigation