Q: We just got the executed ISDA Master and guaranty in with the referenced counterparty, a subsidiary of Hydro-Quebec (you may have noticed my email). The Counterparty wants to trade with us online immediately. Can we get them on as an amended counterparty on Monday's list, and can we get them opened to trade financial on Monday?
Propose a subject line
A: H.Q. Energy Services (U.S.) Inc.

Q: Dave, I have attached the above sample form for your review. I have been unable to find any documentation where we act as an agent for the shipper and contractually agree to remarket their unused capacity. As soon as I find some language, I will forward same to you. As we discussed, the major concerns that I have concerning the Energy Marketing Services Agreement form that Kaiser provided relates to the duties of the Marketer thereunder. ENA is in the business of buying and selling natural gas for its own account and as such any services it agreed to provide relating to most of the items under Articles III and IV would be subject to claims of abuse or violation of fiduciary duties. Specifically, ENA should not agree to perform the items under Article IV, Section A. Parts 1-8, 11; Article IV, Section B. Parts1-2, 4, 6; Article IV, Sections C, E, and F. Otherwise, ENA sales obligations should be patterned in the manner set forth in the Enfolio Contract which provides safeguards for both parties in the event of a default by either. Therefore, we need to work from our Enfolio contract and I will get you some agency language for the confirm to address how we would share any transportation savings that we were able to obtain for them during the term of our sales transaction with them. Please call me after you have had a chance to review the contract.
Propose a subject line
A: Sample Enfolio Contract Form Attached

Q: Steve, I think you may have heard a request last week re working closely with Dynegy. I think we just need to treat them like other counterparties. Basically, West Power would like to enter into arms length physical power and service transactions with Dynegy. My understanding is that Dynegy is a separate, unrelated party until the merger closes. Therefore, we can not "collaborate" with them commercially and our transaction policy is dictated by customary credit, legal and risk management procedures. Is this correct? If so, how do you feel about the following? An Enron customer wants to buy power and related services for one year. The customer requires Enron to post collateral. Enron does not want to post collateral but suggests that Enron can provide the product/services to Dynegy and Dynegy can then sell to the customer. The Enron marketer calls the Dynegy marketer and proposes a "back to back" transaction. Dynegy adds a small service fee, the Enron/Dynegy contract is executed and a Dynegy/Customer contract is executed. This type of deal happens frequently - it is usually driven by the third party having better credit, transmission access or a complementary service. We could do this with anyone, but the obvious choice is Dynegy - customers think it makes sense, and ultimately if we merge we have retained a customer. Do you think this works? Regards,
Propose a subject line
A: Potential Dynegy Transactions

Q: EPMI's request to participate in the 29 Oct 01 FERC conference was granted. I will be on one of two panels and I will be given 5 minutes to give a statement. Please review the attached draft statement / talking points for EPMI and PGE and get me comments by COB Monday. One question is whether we need to change what PGE is proposing to say in light of our position (rule certainty, make any changes to caps consistently accross the WSCC). I will be meeting with the West Desk folks on Tuesday morning (schedules permitting). Please let me know if you want to participate in that meeting. Here is who I think will be on these panels thusfar: California Rep. Anna Eshoo (D Atherton) Pacificorp Allegheny Supply (anybody know who might be speaking for them?) Powerex/TGF Richard Tabors (note that Enron is a member of TGF but has made it clear it is not funding this effort) PGE Mike Naeve EMPI Alan Comnes CAISO Puget Energy - Kimberly Harris and 5 other parties BPA and WPTF will not be speaking. I was told Commissioners "may" be present. Alan Comnes
Propose a subject line
A:
29 Oct 01 FERC Conference on Westwide Mitigation