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Enron Mail |
Edie,
I have left the following (in part) on Roger Ondreko's voice mail last week. Here is the wrap-up for the remainder of Q'4. Chicago-/Origination/Hub/Trading - $1.7MM (down from $2.8MM) Two transactions have been terminated as follows: 1) QNT Management with PGL/NS - Proceeds mark to market were to be $480,000 to Enron. Due to recent filing with the Illinois Commerce Commission on affiliate transactions, it was deemed that this transaction may bring too much scrutiny to enovate. For 2000, approximately 80% of business to PGL/NS are being transacted with either ENA, EMW or enovate. Net loss $480,000 mark-to-market with potential accrual value in the $100,000 to $500,000 range. 2) LS Power Plant - At execution stage for fuel balancing for combined cycle power facility with both Williams and LS who were both deemed as counterparties on transaction. Williams' board of directors did not approve the purchase of facility and LS has now sold to NRG (November 7, 2000). Transaction now becomes a 2001 deal with high probability of closure. Net loss of 4th quarter mark-to-market $1.5MM and accrual upside. 3) Off-Balance Sheet Financing/Gas Supply Receivable - Due to cash short fall for PEC, ENA was to extend $50MM of receivables for 2 months under the ENA/PGL gas supply agreement through an Enron Global Finance off-balance sheet vehicle. ENA was to receive 200 basis points of origination, netting $165,000 to Chicago, with no negative cash flow or balance sheet implications to Enron. Storage Monetization - Move to 1st Quarter 2001 Peoples Energy received short term financing to get them through their end of year cash flow issues, which pushes the transaction to 2001. On the positive, the Peoples Board of Directors approved capital spending for oil and gas properties of $60MM for 1st quarter 2001 and our structure on the monetization provides them competitive off-balance sheet financing. Higher gas prices in years 2 and 3 due to greatly diminishing backwardation in Chicago basis and Nymex have increased the value of the transaction approximately $12MM in the past two weeks. Value to Enron in 2001 $5MM to $25MM. The numbers must be looked at in entirety for Chicago and not broken down Origination/Trading on the receipt to Houston. The $1.7MM is the gross Enron number for Chicago for 4th quarter, 2000. In the $1.7MM, there will be mid-market transactions and trading, with the trading number daily reflecting the risk associated with a trading P&L. In respect to the overall Chicago numbers, please ensure you are picking up enovate books and Chicago origination which are granted via 1) central desk 2) EMW and 3) East Origination. Please contact me if you have further questions or need further clarification. Edie Leschber@ECT 12/12/2000 05:16 PM To: Laura Luce/Corp/Enron@Enron cc: Janet R Dietrich/HOU/ECT@ECT, Susan Helton/HOU/ECT@ECT Subject: Hot List Items Laura, Just wanted to touch base on your Hot List Items for East Origination for 4Q 2000. We currently still have listed the following: Chicago - Hub Gas Management - 4 Deals $2,800,000 Manlove Storage Monetization $10,000,000 To date, we have booked the following origination amounts: October $141,555 November $ 90,786 Total $232,341 Could you give me an update on the status of the $2.8 million gas management items as well as the Storage Monetization? (i.e. Do we still plan to make the $2.8 Million and is the $10.0 million Storage Monetization still feasible for 4Q?) Your input will be appreciated. Thanks, Edie
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