Spreadsheet: sally_beck__36195__summary of issues05212001
Sheet: Summary

GLOBAL STANDARDS
Summary of Exception Reporting
as of May 21, 2001
Issue |  | Group |  | Comments |  | Status
Deal Capture Issues |  | London - Credit |  | No feed to RisktRAC.
Deal not confirmed with counterparties within 24 hours or incoming confirmations not received within 48 hours |  | Canada - Power and Gas |  | 45 confirms outstanding with 22 counterparties.  Significant counterparties are  HydroQuebec and [NAME]. |  | Commercial, legal and credit are working with the counterparties.
 |  | EGM-Global Products-Houston-Physical |  | 49 deals with 22 counterparties.  Significant counterparties are Vitol (6) and [NAME] (6). |  | Waiting for counterparty to send the confirmation.
 |  | EGM - Global Products - International |  | 199 confirms outstanding with 82 counterparties.  Significant counterparties are Total Fina (12), Kuwait Petesp (18) and Continental Oil (20). |  | Primarily new deals.
Confirmation not executed within 7 days |  | Canada - Power and Gas |  | 617 confirms outstanding with 99 counterparties.  Significant counterparties are [NAME], [NAME] and PG&E. |  | Commercial, legal and credit are working with [NAME].  In litigation with PG&E.
 |  | Continental Power/UK Power |  | Continental Power has 1957 outstanding confirms with 102 counterparties.  [NAME] counterparties are EDG Trading Limited, Hamburgische Electricitats-Werke AG and Entrade B.V.  UK Power has 612 outstanding confirms with 29 counterparties.  Significant counterparties are Scottish and Southern Energy plc, TXU Europe Energy Trading Ltd., and British Energy Power and Energy Trading Ltd. |  | 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).
 |  | UK Gas/Continental Gas |  | 1299 outstanding confirms with 51 counterparties.  Significant counterparties are [NAME], TXU Europe Energy Trading Ltd and TotalFINAELF Gas and Power Limited. |  | 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).
 |  | EGM - Global Products - Houston - Physical |  | 86 unexecuted confirms with 59 counterparties.  Significant counterparties are Equiva (4), Shell (5) and [NAME] (6). |  | All deals were sent to the trader.
 |  | EGM-Global Products-International |  | 979 unexecuted confirms with 183 counterparties.  Significant counterparties include Cargill, Duke, ECT, Jaron and [NAME]. |  | Awaiting counterparty signature.
Disputes greater than 90 days |  | Canada - Power and Gas |  | Significant dispute with PG&E ($21.6 million). |  | In litigation with PG&E.
 |  | EES - Power and Gas |  | $34.3 million with 546 counterparties.  Significant balances with Conopco, Inc. ($1.8 million), Defense Energy ($724k), TRW, Inc. ($1.5 million) and University of California ($919k). |  | Slow payers.
 |  | EGM-Global Products-Houston-Physical |  | $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 - International |  | $443 million greater than 30 days with 170 counterparties.  $320 million is internal.  $45 million with [NAME]
 |  | Overall |  | Largest outstanding balances for all groups is another Enron related entity.
Other |  | EES |  | Significant changes between the prelim and final DPR numbers.
 |  | UK Power |  | Working on reconciling between RisktRAC VAR and spreadsheet VAR
 |  | Global Risk Ops |  | Working on standardizing & documenting the hierarchy for RisktRAC.
 |  | Global Risk Ops |  | Working on revamping broker fee reporting (currently not gathering all info properly).
 |  | Metals |  | Inventory tracking system is broken and there are significant manual overrides.
 |  | Metals |  | Numerous integration issues.
 |  | Metals |  | Significant deals that are not in the credit system due to missing counterparty information. |  | Credit and RAC are working together to get these deals identified and into the system.
 |  | Groups not reporting |  | Americas Power and Gas confirmation and settlement information, EGM Financial confirmation and settlement information, EGM-Global Products-Houston-Financial confirmation settlement information and EBS settlement information. |  | EGM Financial group is undergoing a system conversion in the confirmation and settlement group, and will start reporting after the system conversion.  EGM-Global Products-Houston-Financial - just notified them of reporting requirements.  Will start reporting in the next couple of weeks.