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Enron Mail |
Brian:
This insurance is purchased on a portfolio basis with payment to underwriters at inception of the coverage. Values are adjusted annually at renewal. The premiums are allocated to the participating entities as part of the budget process and insignificant additions and deletions of assets do not normally result in premiums additions or refunds. In the event that we discontinue premiums to North America for HLP, we have no mechanism to allocate that premium to the other assets that continue to be insured. In the event of a significant divestiture, underwriters may consider a refund, however, the values discussed below would not likely be significant when compared to Enron's values as a whole. Additionally, Enron's adverse loss experience affects the underwriters ability to return premium for small divestitures. At renewal, 4/01/02, North America's revised property values will be declared to underwriters as part of Enron's overall values and your premium allocation will adjust depending upon your values and loss experience as compared to the rest of Enron. Regards, Paul -----Original Message----- From: Redmond, Brian Sent: Monday, October 08, 2001 5:31 PM To: Coffey Jr., Jim; Clayton, Paul; Azore, Jacquelyn Cc: Whiting, Greg; Gruesen, Karen; Helton, Susan; Koehler, Anne C.; Kitchen, Louise Subject: RE: Replacement Cost Values Paul: Please confirm that ENA will not bear any insurance costs for the HPL assets for the second half of 2001 and the balance of years going forward? If this is not the case, then we need to meet and discuss why this is not the case. Thanks, Brian -----Original Message----- From: Coffey Jr., Jim Sent: Monday, October 08, 2001 5:25 PM To: Clayton, Paul; Azore, Jacquelyn Cc: Redmond, Brian; Whiting, Greg; Gruesen, Karen; Helton, Susan; Koehler, Anne C. Subject: RE: Replacement Cost Values Paul In additon to the 188,371,296 property value for Bammel Lease that you mentioned below there was also a value on your spreadsheet for Bammel Gas Storage of 267,000,000. Requirements to insure both of these amounts should be with AEP not Enron and thus the 2002 Plan Premium Allocations of $754,096 on the Bammel Gas Storage 267,000,000 value and $924,433 on the Bammel Lease value of 188,371,296 should not be needed. Jackie Please remove these amounts from the ENA-HPL 2002 Plan. -----Original Message----- From: Clayton, Paul Sent: Monday, October 08, 2001 5:10 PM To: Coffey Jr., Jim Subject: RE: Replacement Cost Values Jim: As discussed for the purposes of the 2002 Insurance Budget, we will delete the Bammel Lease (1409) property values of $188,371,296. We will advise the insurers effective this past June to delete these assets and will attempt to receive a refund. However, as respects asset divestitures, insurers have not been inclined in the past to refund premiums for comparatively small divestitures in view of our adverse loss experience. However, if we are successful in receiving a credit, we will refund the premium. I will discuss with Karen and Brian the other remaining assets. Regards, -----Original Message----- From: Clayton, Paul Sent: Monday, October 08, 2001 2:13 PM To: Coffey Jr., Jim Subject: Replacement Cost Values Jim: Please update accordingly. Thanks, << File: ENAREPLACEMENT COSTS 2001.xls <<
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