Spreadsheet: sally_beck__36195__summary of issues05212001
Sheet: Detailed summary

GLOBAL STANDARDS
Summary of Exception Reporting
as of May 21, 2001
Location-Commodity |  | Issue |  | Status
Canada - Gas and Power
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 48 hours |  | No issues to report.
Deal not confirmed with Counterparties within 48 hours |  | 45 confirmations outstanding with 22 counterparties.  Significant counterparties are HydroQuebec and [NAME].  Hydro Quebec has 5 outstanding, with 4 of them from 11/00 and awaiting the trader's approval.  [NAME] has 5 outstanding outstanding confirmations from 9/00 to 1/01due to negotiating an ISDA with legal in ENA.  All Power Ex deals has been verbally confirmed, however. |  | Credit, legal and commercial are working with Hydro Quebec and [NAME].
Confirmation not executed within 7 days |  | 617 confirmations outstanding with 99 counterparties.  Significant counterparties are:  [NAME] with 37 unexecuted confirmations from 7/00 to 3/01, Morgan with 43 unexecuted confirmations from 3/00 to 3/01 and PG&E with 47 unexecuted confirmations from 2/99 to 12/00. |  | Credit, legal and commercial are all working with [NAME].  Enron is in litigation with PG&E.
Disputes greater than 30 days |  | Total amount disputed is $22.7 million with 12 counterparties.  [NAME] disputes is with PG&E ($21.6 million). |  | PG&E receivables in litigation.
Americas - Gas
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 24 hours |  | Not reporting.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | Not reporting.
Confirmation not executed within 7 days |  | Not reporting.
Disputes greater than 90 days |  | Not reporting.
Americas - Power
Deal capture issues |  | None to report.
Deal not confirmed with [NAME] within 24 hours |  | Not reporting.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | Not reporting.
Confirmation not executed within 7 days |  | Not reporting.
Disputes greater than 90 days |  | Not reporting.
Southern Cone - Gas and Power
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 24 hours |  | N/A - not standard to confirm deals in Southern Cone region.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | N/A - not standard to confirm deals in Southern Cone region.
Confirmation not executed within 7 days |  | N/A - not standard to confirm deals in Southern Cone region.
Disputes greater than 90 days |  | No issues to report.
EES - Gas and Power
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 24 hours |  | N/A - don't use brokers.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | Has several deals with ENA that have not been confirmed.  Generally, EES is waiting for ENA to book the deal. |  | Generally, these deals get resolved within a week.  Just a timing issue.
Confirmation not executed within 7 days |  | No issues to report.
Disputes greater than 90 days |  | $34.3 million greater than 90 days with 546 counterparties.  Significant balances with Conopco, Inc. ($1.8 million), Defense Energy ($724k), TRW, Inc. ($1.5 million), and University of California ($919k). |  | Collection is not expected to be an issue.  These are just slow payers.
UK and Continental Power
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 24 hours |  | 3 confirms not sent from 3 different counterparties from 2/21 (Continental Power).
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | 2 outstanding confirms from 11/00 and 12/00.  Awaiting legal approval for both.
Confirmation not executed within 7 days |  | 1957 confirmations outstanding on Continental with 102 counterparties.  Significant counterparties are:  EDF Trading Limited (396), [NAME]), EnBW Gesellschaft fur Stromhandel mbH (73), Entrade B.V. (182) and Hamburgische Electricitats-Werke AG (216).  For all of these counterparties, we are awaiting a master agreement.  612 confirmations outstanding on UK Power with 29 counterparties.  Significant counterparties are:  TXU Europe Energy Trading Ltd (90), Scottish and Southern Energy plc (102) and British Energy Power & Energy Trading Ltd (53).  British Energy had a name change, and Scottish and TXU are being chased, just very slow in responding. |  | UK Power is 90% NETA deals.  Counterparties are still getting systems and communications in place.  Continental Power - 25% of outstandings are with RWE, Sempra, [NAME] and EDF, all with whom confirms are exchanged and are covered by a master agreement.  All brokered deals are checked against broker statements on or before T+1 (nonbrokered power deals is 25%).  Most counterparties are having trouble keeping up and clear up outstandings in batches.  Plan of action is:  (1) reconciliation of positions with all large counterparties (with sign-off letters agreeing underlying terms - master, industry standard agreement, GTCs); (2) increase in contact with counterparties re: outstanding confirms; and (3) long term - auto-matching of deals (auto confirms next generation).
Disputes greater than 90 days |  | Outstanding balances of $2.0 million with 57 counterparties.  No significant balances with an individual counterparty.
UK and Continental Gas
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 24 hours |  | No issues to report.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | 12 confirmations that have not been sent with 4 counterparties since 11/00.  Largest counterparty is Distrigaz SA.  Distrigaz will not sign our confirmation, waiting for CP's confirmation.
Confirmation not executed within 7 days |  | 1299 outstanding confirmations for 51 counterparties.  Significant counterparties are:  Accord Energy Ltd. (130), [NAME] (301), TotalFinaELF Gas and Power Limited (133), and TXU Europe Energy Trading Ltd. (272).  [NAME] has an outstanding issue with confirm language and the remaining confirms are just being received back slowly. |  | UK and Continental Gas - all unconfirmed deals verbally confirmed week before delivery month.   All brokered deals are checked against broker statements on or before T+1 (nonbrokered gas deals is 10%).  Most counterparties are having trouble keeping up and clear up outstandings in batches.  Plan of action is:  (1) reconciliation of positions with all large counterparties (with sign-off letters agreeing underlying terms - master, industry standard agreement, GTCs); (2) increase in contact with counterparties re: outstanding confirms; and (3) long term - auto-matching of deals (auto confirms next generation).
Disputes greater than 90 days |  | Credit of ($3.5) million.  Credits primarily related to Risk Management and Trading Corp. RMTC-Global Markets and E.ON Energie AG.  Largest receivable balances relate to Access Energy B.V., N.V. Nuon Energie Levering and TXU Europe Energy Trading BV.
Oslo
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 24 hours |  | No issues to report.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | No issues to report.
Confirmation not executed within 7 days |  | No issues to report.
Disputes greater than 90 days |  | $904,408 with 5 counterparties.  Largest customer is internal - Risk Mgmt Trading Corp ($775k)
 |  | .
London - Credit
Deal capture issues |  | Currently no feed to RisktRAC.  IT to develop feed from valuation system.
Deal not confirmed with [NAME] within 24 hours |  | N/A - does not use brokers.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | No issues to report.
Confirmation not executed within 7 days |  | 21 confirms outstanding with 13 counterparties from 11/00 and earlier.
Disputes greater than 90 days |  | $658,497 outstanding, with 16 counterparties. Largest counterparty is ECT.
EIM
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 24 hours |  | No issues to report.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | No issues to report.
Confirmation not executed within 7 days |  | No issues to report.
Disputes greater than 90 days |  | $350k outstanding with 58 counterparties.  No significant issues identified.
EGM - Global Products - Houston - Physical
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 24 hours |  | 1 deal with Dynegy. |  | Legal reviewing.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | 49 deals with 22 counterparties.  Significant counterparties are Vitol (6) and [NAME] (6). |  | Waiting for counterparty to send the confirmation.
Confirmation not executed within 7 days |  | 86 unexecuted confirmations with 59 counterparties.  Significant counterparties are Equiva (4), Shell (5) and [NAME] (6). |  | All deals were sent to the trader.
Disputes greater than 90 days |  | $43 million with 72 counterparties.  Significant counterparties are Smith/Enron Cogeneration Limited ($17 million), Enron Power Marketing, Inc. ($5 million) and Enron Gas and [NAME] ($10 million).
EGM - Global Products - Houston - Financial
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 24 hours |  | Not reporting.  Just learned that the Financial info was not included with Physical reporting.  Contacted [NAME] to discuss.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | Not reporting.  Just learned that the Financial info was not included with Physical reporting.  Contacted [NAME] to discuss.
Confirmation not executed within 7 days |  | Not reporting.  Just learned that the Financial info was not included with Physical reporting.  Contacted [NAME] to discuss.
Disputes greater than 90 days |  | Not reporting.  Just learned that the Financial info was not included with Physical reporting.  Contacted [NAME] to discuss.
EGM - Global Products - International
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 24 hours |  | 2 confirms outstanding with 2 brokers.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | 199 confirms outstanding with 82 counterparties.  Significant counterparties are TotalFina (12), Kuwait Petesp (18) and Continental Oil (20). |  | Primarily new deals.
Confirmation not executed within 7 days |  | 979 unexecuted confirms with 183 counterparties.  [NAME] counterparties include Cargill, Duke, ECT, Jaron and [NAME]. |  | For most of these, have been sent to counterparty, just waiting for counterparty signature.
Disputes greater than 30 days |  | $443 million with 170 counterparties.  $320 million is internal.  $45 million with [NAME] S.L..
EGM - Financial
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 24 hours |  | Not reporting.  [NAME] a new system in June, and will start reporting then.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | Not reporting.  [NAME] a new system in June, and will start reporting then.
Confirmation not executed within 7 days |  | Not reporting.  [NAME] a new system in June, and will start reporting then.
Disputes greater than 90 days |  | Not reporting.  [NAME] a new system in June, and will start reporting then.
EBS
Deal capture issues |  | No issues to report.
Deal not confirmed with [NAME] within 24 hours |  | No issues to report.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | No issues to report.
Confirmation not executed within 7 days |  | No issues to report.
Disputes greater than 90 days |  | Not reporting.
Enron Metals
Deal capture issues |  | Please see [NAME] audit findings.
Deal not confirmed with [NAME] within 24 hours |  | Please see [NAME] audit findings.
Deal not confirmed with Counterparties within 24 hours or incoming confirmations not received within 48 hours |  | Please see [NAME] audit findings.
Confirmation not executed within 7 days |  | Please see [NAME] audit findings.
Disputes greater than 90 days |  | Please see [NAME] audit findings.