We are in the process of preparing a list of all changes to the NETCO as of Friday. These would most likely be people that were offered jobs, turned them down and were replaced. I don't think we have had very many of these yet but I just wanted to verify. If you could get back with me today that would be great. John Lavorato is wanting this report by Tuesday am. Please feel free to call me if you have any questions at 713-516-0324. Thanks! Mandy Curless
Answer: Changes since Friday
Steven: I am trying to finalize this master during Carol St. Clair's absence. I have a few questions prior to our comments. They are: (1) Have you already commented on the new form of Letter of Credit Provisions which Carol sent to you? This is referred to as Exhibit A to Paragraph 13 of Annex A. I did not see your response. (2) Have you reviewed the latest Letter of Credit format? I did not see your response. (3) What is the genesis of Part 5, Section 18 of your redline. I know that DB acquired Bankers Trust, but did Carol ever review this provision? Have both parties agreed as to existing transactions? Please let me hear from you. Thanks. Sara
Answer: ISDA Master Agreemen between Deutsche Bank AG ("DB") and Enron North America Corp.
Julia sent me a copy of your memo following up on one of the questions asked at the session earlier this week. I would like to ask a follow-up question: Do we lose the benefit of the special treatment under the bankruptcy code when we enter into cross-product (i.e. physical and financial products) netting and joint credit support arrangements. If we agree with a counterparty to net all of our trading exposures under multiple agreements (swap agreements and gas, power, steel, coal, etc. trading agreements) to determine how much credit support should be posted and then only ask for a single LC that supports the whole shebang, do we lose this protection since arguably we are no longer just "under a swap agreement?"
Answer: Letters of Credit; Preference; Swap Transactions
Please note that on 10/29, the West Power made approximately $17.7 MM today (prelim), of which $17.8 MM was from Curve Shift. We made curve shift mostly in Mid-Columbia, $24MM, and ZP-26, $9.7MM, and lost some in SP-15, $15.9MM. Please see the attached file for curve shift by delivery point by year. Please let me know if you have any questions.
Answer:
West Power Preliminary P&L - 10/29/01