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Enron Mail |
All fixed priced deals (esp. Calpine) have their risk assigned to the Price
Book. Dutch Quigley confirmed that these deals were more than likely hedged (although it is difficult to hedge 20 year deals since we are one of the few playing out that far). If we are under the assumption that we will be able to transfer all hedges along with the deal(s), then these deals are not underwater. However, there will be some costs associated with transferring the hedges. When I get a better idea of these costs I will relay them to you. Dave Enron North America Corp. From: Brenda F Herod 08/25/2000 06:26 PM To: Patrick Wade/HOU/ECT@ECT, Thomas A Martin/HOU/ECT@ECT, Edward D Gottlob/HOU/ECT@ECT, Jim Schwieger/HOU/ECT@ECT, Brian Redmond/HOU/ECT@ECT, Jim Coffey/HOU/ECT@ECT, Wes Colwell/HOU/ECT@ECT, Steve Jackson/HOU/ECT@ECT, David Baumbach/HOU/ECT@ECT cc: Sally Beck/HOU/ECT@ECT, Yvette G Connevey/Corp/Enron@ENRON Subject: Project Triple Lutz To date, my primary duties have been to oversee the internal valuation of the contracts, and their unwind costs in our Risk books. I have also been involved with the Entex contract valuation. Dave Baumbach has been the real key to providing the data, and has all of the information. Steve Jackson is talking with Ed McMichael of Structuring on Monday to get some additional eyes and resources looking at this also. I feel we have done a thorough job, but we do need everyone thinking of "what if's." Our risk books are complex, with many hand-offs internally. Obviously our goal is to ensure that all of the stones have been turned, and there are no surprises at the end of the day. I think Structuring will really be helpful in this arena. After our meeting yesterday, I believe everyone is much more comfortable in our approach. There were a couple of things that Dave was going to follow-up on (Fixed-price deals, especially Calpine). FYI: I will be out of town on another project all of the week of 8/28 - 9/1, and Tuesday, 9/5 and Wednesday, 9/6. I have made arrangements to ensure that I am in Houston on Thursday, 9/7 and Friday, 9/8 for the first visit to the Triple Lutz data room. In my absence next week, I want to reiterate to each of you that I am available, and will have the Triple Lutz data with me. If any issues come up that you feel I can be helpful, please contact yvette Connevey @ 713-853-5953, and she will get in touch with me. Once again, DO NOT HESITATE TO CALL ME!!! I do not want anything falling through the cracks!
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