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Enron Mail |
Go go go....!!
Show us how the retail/wholesale business should work together. Great job! Regards Delainey -------------------- Forwarded by David W Delainey/HOU/ECT on 01/05/2001 09:38 PM --------------------------- Rob Milnthorp 01/05/2001 05:16 PM To: David W Delainey/HOU/ECT@ECT, John J Lavorato/Corp/Enron@Enron cc: David Pope/CAL/ECT@ECT Subject: Enron Direct Canada-First Deal fyi...1st deal of many. Regards Rob ---------------------- Forwarded by Rob Milnthorp/CAL/ECT on 01/05/2001 04:14 PM --------------------------- David Pope 01/05/2001 04:01 PM To: Harold G Buchanan/HOU/EES@EES cc: Rob Milnthorp/CAL/ECT@ECT Subject: Enron Direct Canada-First Deal Harold; We have today closed our first retail transaction that is a five year exclusive gas supply arrangement with Boardwalk Equities, the largest apartment building owner in Alberta. We will be serving 20,000 apartment suites with an annual consumption of 1.5 bcf. The 5 year margin will be approximately $1.5 million. As a result of our direct instructions, Boardwalk lobbied the government to provide them with $2.8 million dollars in rebates over the next 4 months to shield them from the higher gas prices. These rebates will be paid through Enron Direct as the retailer for Boardwalk. The gas begins flow on March 1. We are working on other large building owners and restaurant chains and expect to close 2 or 3 more deals for flow of March 1. Cadillac Fairview is committed to working with us on a gas contract within the next 2 weeks. We now have a strong platform to grow quickly, from a standing start one month ago. Although the government effectively delayed the opening of the retail power market for one year through a price cap, we have been able to grasp a first mover advantage on retailing natural gas in Alberta. We expect to have a strong retail delivery organization built by mid year, with 35 staff managing a significant number of commercial customers. The current pricing environment creates a large opportunity to sell 5 year fixed price product with significant margins. Atco, the gas utility is getting bad press for not offering hedging instruments, and are cooperating with us to assist us in getting established as a retailer. This has been a very large effort in the last month, as we needed to get licensed, and get legal agreements in place where there were no precedents to look at. We are excited at the prospects for a substantial business developing very quickly here in Alberta. The Enron Canada analytical, risk management, regulatory and legal staff have provided great assistance to allow us to execute this transaction in a short period. Regards. Dave
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