I'm OK with the language, but I want to make sure everyone is OK on the concept. When we left this (unless there have been subsequent conversations with ECS that I wasn't a part of) we rejected Courtney's proposal to reduce our up front payment by $500,000. He was to come back and propose a monthly quantity of gas to be paid over the term of the contract that would equate to the $500,000, but I don't recall that we agreed to it. Did we intend to leave the issue open for more horsetrading on the amount of a haircut ECS should take or were we content to cover ECS at 100 cents on the dollar? I am advised that the Btu number in the letter would allow ECS to get the full $500,000 of up front value. Rod and Steve--this one is up to you and I think its totally a question of
Answer: Supplement to Gas Letter
We reached a conceptual agreement with the government representatives on Sunday night. The main points are: 1. Rationing losses: Defined methodology giving distribution companies recovery over the next 36 months of rationing losses realised from June 01 until the end of rationing in 02. Recovery includes financial compensation. Immediate funding of 80% through BNDES, with Brazilian government funds. Loans liquidated over the 3 year period as tariff increases are realised. Funding scheduled by December 15th. Elektro Ebitda impact of approximately R$191million or US$ 73 million. 2. April/May MAE settlement : Market will settle under current rules due to pre-rationing conditions, confirming the procedures used on Elektro's books. Impact of approximately R$ 18 million or US$ 7 million. 3. Parcel "A" for the future: All non-controlable costs to which LDC's are subjected to including power purchases, sector charges, are passed through to final tariffs either using a tracking account mechanism or by aligning adjustment dates with the LDC tariff revision date. Tracking account will be subject to financial compensation from the date costs are incurred until the effective pass through and collection , eliminating a major risk for the distribution sector. Elektro Ebitda impact 2002 forward of R$ 60 million or US$ 19 million, as had been considered in the 2002 plan. This methodology represents major risk mitigation going forward, as the initial power supply contracts are renewed starting in 2003. 4. Parcel A from the past: Min Parente has agreed to the concept recovering non controllable that were not passed through to tariffs since late 1999 using the same methodology agreed to for future recoveries and has a dedicated team from the Federal Attorney General's office targeting a final solution in ten days. Elektro impact is R$145 million or US$ 55 million in 2001. The proposed mechanism for recovery is after the 36 months for the rationing losses. We are currently finalising a memo of understanding and the government team is winding up the settlement with the generators in order to finalize the terms of the overall agreement. Min Parente has committed to resolving the open issues affecting investors in the power sector. These agreements represent a major step forward, significantly improving the value of our businesses. By solving the pending issues for the rationing losses, thus eliminating the Annex 5 controversy the MAE should function normally, allowing us to operate Eletrobolt and settle against the pool. Total amounts for the sector represent about R$ 10 billion or US$3.8 billion at the current rates. Our team has led the sector negotiations for months since the rationing, and have been instrumental in convincing the government of the need for implementing these changes.
Answer: ESA government negotiations
Dear Power Outage Database Customer, Attached you will find an excel document. The outage contained within is a forced outage. Your daily delivery will still contain this outage. Any questions please let me know. Thanks.
Answer: MAIN (Collins 03)
Susan: This may look confusing! It contains all of our "choices" for preparing the documents. See Part 2 (Tax Reps) and the end of the document which has our "choices" of tax forms. I thought it might be helpful to be very basic about withholding issues, etc., why we need the tax reps, and what questions we could ask upfront about a party that would help us select an appropriate tax module. We tend to not "think" and expect a party "fill in the blank" when we are preparing draft documents.
Answer:
Copy of ISDA Schedule (internal "form")