I've gone back through the ISDA Credit Support Annex and the "green book" and my conclusion is that unless we modify the standard form, we have to give an Independent Amount back to the counterparty when we go out of the money far enough (note that the definition of Exposure results in a negative number when we are out of the money reducing the Credit Support Amount below the Independent Amount). The theory there is that as the market moves against us, we are cushioned by our "out-of-the-moneyness" and will be able to ask for support as the market moves back in our favor before we are actually in the money. I'm afraid that Credit has been operating under the assumption that we get to keep Independent Amounts until the Transaction terminates. We need to set up a system with Credit so we all know what is meant on the credit work sheets -- i.e. whether a cushion or up-front amount should be
Answer: Independent Amounts
ED: EWEB has requested a blackline of the ISDA and is ready to sign next week. Your MAC references the "Electric System" which is defined in the Bond Indenture which I sent to you earlier today. It looks to me like the Electric System includes physical and intangible assets acquired by the Board as a separate utility system, including generating and transmission facilities and the Trojan Project (not sure what this is). I've asked Stephanie to revise our docs to incorporate these definitions. Please review the CSA when Stephanie sends it to you (and comment) and I can send first thing on Tuesday. Thanks. Sara Stephanie: Please send Ed a copy of the blacklined CSA when you are done.
Answer: EWEB MAC
Bruce, I work with Phillip Allen in West Gas Trading and he talked to Greg Piper about the letter attached below, and Greg told us to forward it to you. Mr. Chase Belew and Mr. Carleson, with E*Steel, would like to meet with you to discuss market opportunities in the global steel market. I would like to have Mr. Belew call you to set up a time to meet with you. Would this be a problem? Please call me to discuss. Sincerely,
Answer: Meeting with Enron Networks
At this time it appears that I will be going to NYC on Wednesday, returning Friday afternoon or possibly Thursday night. I'll miss the Turbopark closing dinner, which is not all bad, as it will save me a lot of calories and a headache. I will miss getting the pat on the back. I didn't want to miss Michael's open house, though, as that was more important. As you know, things are subjec to change. Kay
Answer:
Next week