|
|
Enron Mail |
I am ok with it for the spot deals. Mark
Michelle Blaine/ENRON@enronXgate 03/16/2001 01:48 PM To: Mark E Haedicke/HOU/ECT@ECT cc: John Novak/SA/Enron@Enron, Sami Arap/SA/Enron@Enron, Rob Walls/ENRON@enronXgate, Robert C Williams/ENRON@enronXgate Subject: FW: arbitration for Brazilian PPAs Hi Mark, Sami Arap, John Novak & I are in the process of developing a new matrix for arbitration in Brazil on certain types of trading contracts for your approval. Until that is complete, however, Sami & John have identified the following spot market contracts as needing immediate approval for dispute resolution clauses agreeing to ICC administered arbitration in Sao Paulo or Rio. As you are aware, this is somewhat contrary to our traditional policy for out of country ICC arbitration. The counter parties in these transactions will not agree to arbitration outside Brazil. Given the nature of these contracts, I believe ICC administered arbitration in Brazil is an acceptable means for dispute resolution. I've discussed this with Rob and he is in agreement subject to your approval. Regards, Michelle From: Arap, Sami [mailto:IMCEAEX-_O=ENRON_OU=NA_CN=RECIPIENTS_CN=NOTESADDR_CN=8DA5AE3C-E6301033 -862568E0-To: Subject: arbitration for Brazilian PPAs Importance: High Michelle; Our commercial guys are negotiating a number of PPAs in Brazil (spot market deals) and we need to close these deals before the Brazilian Wholesale Power Market (MAE) starts accounting and settling the long & short differences among all players (LDC's, Genco's, marketers etc). There are deals which were "closed" last year ("closing" meaning that price, MWh volume, term, power profile, center of gravity etc were agreed upon between the contracting entities). Some of these MWh's have already been physically traded but MAE haven't yet calculated the system's settlement. Karla and I are currently working on the below listed deals: Moema-2: 10-year PPA to purchase 8MW; PV of apprx US$5,130,000.; MTM value of US$1,200,000. Sgu?rio: 2-year PPA to purchase 0.5MW; TBD Furnas Collar: 2-year PPA to purchase 20-90-130MW (collar concept); PV of apprx US$37,696,000.; MTM value of US$12,534,000. Cofepar: 15-year term to purchase 200MW; PV of apprx US$171,014,000.; MTM to be defined. CSN: 14-month PPA to purchase 13.4MW (10,000MWh/month); PV of apprx US$5,865,000.; MTM value of US$786,000. Eletropaulo Metropolitana: 60-day PPA to purchase 7,000MWh/month; TBD Gerasul/Pactual: 24-month PPA to purchase 29,57MW; PV of apprx US$19,096,000.; MTM value of US$4,235,000. CEMAT/Pactual: 13-month PPA to purchase 46MW; PV of apprx US$12,201,000.; MTM value of 6,107,000. Celtins: 30-day PPA to sell 80MWh during peak hours; TBD Cemat: 30-day PPA to sell 950MWh during off-peak hours; TBD SINOP: 10-month PPA to purchase 8MW; PV of apprx US$8,850,000; MTM value of US$1,723,000. AES Sul: 4-month PPA to purchase 33,6MW; PV of apprx US$2,470,000.; MTM value of US$866,000. We are not (yet) working under "umbrella" type of agreements where Enron and the counterparty will execute a General Terms and Conditions (GTC) with several Annexes, each of them related to a specific deal. Each contract is to be treated as one single deal. Some of the above listed deals are 1QTR commercial priorities and I need to know if you would be OK with Enron's Marketing Co (ECE) using ICC-administered or FIESP-administered (as a second alternative) arbitration under ICC Rules in S?o Paulo as the PPA's dispute resolution mechanism. Although I am schedule to meet with Tozzini, Freire this week, I doubt I will have time to get their legal opinion, discuss it internally, prepare a recommendation to Jim Derrick etc etc. I've already talked to some of the counterparty's in-house counsellors and none of them is willing to accept offshore arbitration. Our counterparties' position has been arbitration in Brazil under int'l rules OR local courts. Rgds, Sami
|