Spreadsheet: kay_mann__19271__Business Status
Sheet: Sheet1

 | Midwest Energy Hub L.L.C.
 | Business Setup Items
Lead | Project | Updated | Description | Status
 | Legal Documents
RR-GP | Hub Agency Agreement | 2000-07-06 00:00:00 | MEH - PGL. MEH agent for existing PGL Hub. $50,000/month admin fee, 20% of profits.  LLC termination at either Member's election after June 25 if no executed agreement.  Needs to be submitted to ICC for approval. If satisfactory ICC approval is not received by 12/31/00, either member may elect to terminate the LLC. | Met 6/14.  Made significant progress on legal and commercial issues.  Enron counsel turning next draft on behalf of MEH week of 7/10.  Commercial meeting scheduled for 7/10 to resolve outstanding issues.
TH-GP | PERC Peaking Agency Agreement | 2000-07-06 00:00:00 | MEH - PERC. MEH agent for PERC Peaking facility. Share profits equally (Enron/Peoples Energy) beyond transfer price. | No draft yet. Peoples will prepare first draft.
TH-GP | Transfer Price Side Letter | 2000-07-06 00:00:00 | MEH - PEC.  Transfer price arrangement for Enhanced Hub Services. | Evaluating multiple alternatives for documenting transfer price.
RR-CC | Third Party Master [NAME] and Sale Agreement | 2000-07-06 00:00:00 | MEH - Third Parties.  Preferred agreement for physical transactions. | Completed as to general form.  Need resolution on financial statements and parent guarantee information.  Preparing list of customers for mailing along with general marketing brochure.
RR-CC | GISB Agreement | 2000-07-06 00:00:00 | MEH - Third Parties.  Agreement for physical transactions with third parties that won't execute Master [NAME] and Sale Agreement | Sent 6/21 to PEC legal for review,
RR-CC | ISDA Agreements | 2000-07-06 00:00:00 | MEH - Third Parties.  Agreement for financial transactions. | No draft yet. Peoples and Enron counsel will work on form of agreement.  Need appropriate credit provisions
RR-GP | Affiliate Master [NAME] and Sale Agreement | 2000-07-06 00:00:00 | MEH - PGL. Blanket filing with ICC for physical transactions. Individual transactions will be attached as confirmations. | Draft agreement prepared by Peoples.  Enron legal reviewing document and similarity to Nicor arrangement.  Agreement will be similar to Master [NAME] and Sale agreement executed b/w PGL and EMW for Trunkline deal.
TH-GP | Confidentiality Agreements | 2000-07-06 00:00:00 | CA's for employees working in the LLC. | Enron counsel presented draft CA to Peoples.
GP | LLC Loan Facility Agreement | 2000-07-06 00:00:00 | Potential need for an agreement covering the cash management procedure and intercompany loans from Enron to LLC. | Prepared term sheet of cash management services provided by Enron Treasury along with guidelines.  Waiting for input from various parties this week.  Legal to draft formal document based on term sheet.
 | Policies and Procedures
PB-GP | Risk Management Policy | 2000-07-06 00:00:00 | Overriding risk policy establishing limits, notifications, approved traders, etc.  LLC termination option at either Member's election until approved. | Peoples has turned draft 7/06.  Several key issues remain open.
PB-GP | Risk Procedures and Control Guidelines | 2000-07-06 00:00:00 | Transaction process from deal inception to collection of receivable.  LLC termination option at either Member's election until approved. | Presented preliminary document to Peoples on 6/27 for their input.  Need to schedule follow-up meeting week of 7/10.
PB-GP | Credit Policy | 2000-07-06 00:00:00 | Approved counterparties, credit limits and ongoing credit process management.  LLC termination option at either Member's election until approved. | Credit meeting took place in Houston 6/29.  Feedback indicates good progress was made and a draft will be prepared week of 7/10.
 | Administrative
GP | Setup and fund bank account | 2000-07-06 00:00:00 | Establish LLC bank account and make initial funding of $100,000 each. | LLC account has been setup at Citibank.  Expect funding to occur closer to operational date.
GP | Cash management | 2000-07-06 00:00:00 | Establish cash management procedure for LLC.  Enron to manage working capital needs under revolver arrangement. | Enron cash management proposal sent to various individuals at both Enron and Peoples for their review and input prior to preparing legal form.
PB-GP | Accounting | 2000-07-06 00:00:00 | Establish financial reporting, including variance explanation, process, resolve any MTM issues, document audit procedures, etc. | Enron and Peoples accounting met 6/23.  Several action items were agreed to including EMW financials for June.
PB-GP | Tax | 2000-07-06 00:00:00 | Confirm tax treatment of LLC given anticipated business processes. | Need final tax review once business processes have been established.
GP | [NAME] | 2000-07-06 00:00:00 | [NAME] to conduct business in Midwest states. | Completed in Illinois.  Need to verify status of Indiana and other any states.
LP-CC-SR | Marketing materials | 2000-07-06 00:00:00 | Prepare LLC marketing materials describing business, products and potential contracts. | Obtained and reviewing competitor materials.  [NAME] to coordinate effort with MEH marketing representatives.
RM | Final name of LLC | 2000-07-06 00:00:00 | Decide if LLC will retain MEH name or change before contracts, marketing materials, etc are prepared. | Too late to change.  MEH will be the official name.
TH-GP | Marketing representative handout | 2000-07-06 00:00:00 | Section 6.7.2 (c) of MEH Operating Agreement.  Restricted activities for marketing reps. | Need to prepare.
SR-CC | Prepare schedules A & B | 2000-07-10 00:00:00 | Section 6.7.2 (d) of MEH Operating Agreement.  Grandfathered transations.  If not approved by 6/25, either member may elect to terminate the LLC . | Schedule B (Peoples) - PEC third draft completed and distributed for comments and/or changes, if any.  Schedule A (Enron) - Need to prepare.
GP | Appoint officers, Commercial Development Manager, Business Development Manager, alternate Board Members. | 2000-07-06 00:00:00 | Need to put names with titles in MEH Operating Agreement.  Determine need for officers and appointment of alternate board members. Name any designees for risk, credit or other reporting and control needs. | Need to complete.
RT-SR | Existing book of business | 2000-07-06 00:00:00 | Enron review of PGL hub and PERC transactions outstanding to date.  Peoples review of Enron MW transactions. | Summarizing details of existing PERC and Hub deals and proceeding with Enron personel via Houston to input into Enron risk management system.
RT | Assess value of underlying assets | 2000-07-06 00:00:00 | Examine rights and associated value of underlying assets, MTM issues, limits, etc.  Review and confirm treatment with PEC. | [NAME] structuring resource to perform this function.
 | Initial Budget | 2000-07-06 00:00:00 | Prepare operating budget and related marketing and operating plans by August 1st per MEH Operating Agreement.  Determine cash flow requirements of LLC.
KR-PB | Back Office Support/Booking | 2000-07-06 00:00:00 | Confirm readiness of back office functions, including risk management, logistics, and accounting, to support transaction processes. | Deals are in Enron systems for NSS, ITS and EMW hub activity.  Working with the accountants to recognize P&L from our books and prepare June financials.