Sara: Thanks for your voice mail message. David Dupre and I have not done all that much to date. He is in the process of compiling information for all counterparties (online and offline) who are not signing confirms. I have asked him to group these counterparties according to total outstanding exposure so that we can priortize our efforts. I think that the main issues to cover on Friday involve: 1. The effect of not getting signed confirms when we have our standard langugae in the confirm or in the ISDA and whether it makes adifference as to whether NY or Texas law applies. 2. Possible alternative approaches that we can suggest to counterparties. For example, in some cases, a counterparty is sending us a letter attaching a list of the deals that they have done with us and stating that they agree with the terms of such deals. I'll have David D. send up a sample. 3. Whether our concerns are greater or lesser when we do trades online. I'm available anytime to talk about the above. Carol
Q: What is a potential subject line for this email?
answer: Confirms Issues
While recent events have dramatically impacted Enron's travel volume, Alliance Worldwide (formerly Travel Agency in the Park) wanted to contact you regarding the Enron Travel Program. Since 1984, our company has been a strategic business partner with Enron and has provided a complete scope of services from booking, ticketing, ticket delivery, customer service, reporting, management of ClickTrip, to facilitating preferred vendor arrangements with airlines to benefit Enron. These services have been provided on a management fee basis from Alliance to Enron. As of December 1, 2001 the management fee has been suspended during Enron's period of reorganization. We are continuing to provide the turnkey travel services to Enron and forego the management fee and simply charge a time of ticketing fee per ticket. To provide you with a brief history of our arrangement, Enron and Alliance approached the airlines a couple years ago and negotiated deep upfront discounts for Enron's business travel. These discounts are available only through Alliance and are given at time of ticketing. All commissions were stripped from the price of the discounted ticket and returned to Enron, in exchange for Enron paying Alliance a contracted management fee. This management fee was paid monthly and allocated back to each Enron cost center based on the total number of transactions. This travel program provided Enron over $8.6 million in airline savings on $55 million spent in the year 2000 and over $5.2 million on $33 million spent for the first 3 quarters of 2001. These savings are after the payment of the travel agency management fee. The effect that the reduced travel volume will have on discounts provided by the airlines cannot yet be determined. We have contacted the airline companies and most of Enron's preferred carriers have agreed to extend the contracts through April 2002. You may utilize these discounts through Alliance by calling 713 650-8080 or 1 800 962-0248. In March, Enron and Alliance will begin evaluating Enron's volume and travel patterns, and determine any changes that are to be made to the discounts or fee structure. As mentioned earlier, Alliance is implementing a time of ticketing fee in lieu of a management fee. These fees are reimbursable to Enron employees through normal expense report procedures. Specifically, the new fee structure is based on zero-commission contracts for tickets purchased from Enron's preferred carriers. The fee schedule for all airline tickets for Enron travel is as follows: $30 - Domestic tickets with or without upfront discount $30 - International tickets without upfront discount 25% of Savings, capped at $175 - International tickets with upfront discount $15 - Southwest Airlines and ClickTrip Reservations, Hotel/Car Only Bookings The savings to Enron on a per ticket basis more than covers the nominal fees that are charged. For example, Enron's average ticket prices are $589 domestic and $2207 international (after discounts). Enron's average savings are $144 domestic and $587 international (before fees). The savings are more than three times the per ticket fee!
Q: What is a potential subject line for this email?
answer: Travel Services
Hi Piper: The email I sent on Friday to Scott McNealy's address (listed below) got bounced back to me. Just wanted to make sure that you folks received the materials. Best,
Q: What is a potential subject line for this email?
answer: Background for Enron Solution to California's Electricity Crisis--Follow up from Meeting on 5.10.01
Last week, the WSPP drafing group met in sunny California to continue the slow and steady march towards a standardized, "national" agreement. Schedule C , the service schedule for firm transactions, was the primary topic and the following is a summary of where the group is headed. After much discussion, we proposed that the group consider the definition of firm energy that Tim, Christian and others have been considering. The following is proposed language (the base was EPMI's version) that the WSPP group is currently reviewing: Firm Power is power that is sold and scheduled in accordance with applicable reserve requirements for which the only excuse for the failure to deliver or recieve are those set forth in Schedule 3.9 of the WSPP Agreement. Seller shall take steps necessary for the power to be considered Firm Power under this definition. Schedule 3.9 only allows interruption if (i) within agreed recall time, (ii) due to an Uncontrollable Force or (iii) power is need for native load; provided, however it was agreed that a party would neverless be liable for LDs if it interrupts due to native load requirements (this last point is a major accomplishment that apppears to have uniform agreement and will be implemented in the next draft - the group claimed that the "optics" are necessary to help traditional utilities). As a further note, the group agreed to do away with all references to C1 and C2 and have just one Schedule. Changes from EPMI's proposed definition where the result of the following discussions: 1. Generated vs. Sold - "Sold" was elected over "generated" because the group thinks that it is the receiving control area that determines the generator's reserve requirements. 2. "Schedule" was added to bolster the scheduling requirements. 3. "Reserves" instead of "Operating Reserves" was used because the group thought the word operating may be too restrictive. 4. "WSCC reserve requirements" was replaced with "applicable" reserve requirements because the group thinks that the WSPP Agreement is national in scope and should not be limited to WSPP. 5. References to Non-firm supply as being excluded from Firm Power was excluded because the group thought it was redundent - no control area would accept a non-firm supply as being firm. 6. Power rather than energy is being used only bacause that is the decision that has already been made. This defintion will be further discussed at the next meeting on Aug 20th in Denver. Prior to that time, I would like to get your thoughts on how this is shaping up and what additions/deletions are appropriate. I look forward to hearing your thoughts. Thanks.
Q: What is a potential subject line for this email?
answer:
WSPP - Definition of Firm Energy