Re: follow-up to EBR

As discussed.
m
---------------------- Forwarded by Mike McConnell/HOU/ECT on 10/18/2000
10:10 AM ---------------------------
From: Doug Leach on 10/17/2000 10:31 AM
To: Mike McConnell/HOU/ECT@ECT
cc:
Subject: Re: follow-up to EBR

Just to give you an example of the requests that came up one day last week
within Enron directed to me.

1) The Panama office (EGE-MINSA) called with budget help and need forward
Panama Parity prices for Bunker C and MDO for the next 15 months. There is no
forward Panama Parity market, but we have been able to produce a forward
curve by updating the historical PP prices. This process helps the Panama
City office be able to deal with the local regulators and get dispatched
more.
2) Ecoelectrica in Puerto Rico called and needed historical NYMEX NX3 natural
gas prices back to 1993 due to a dispute with their power purchaser because
their contract is poorly written. Knowledge of these numbers will help them
make a better case with their customer.
3) The Buenos Aires office called and needed help with their EOL rollout and
hedge prices tied to NYMEX crude for a crude producer in Argentina.
4) The Guatemala office (PQPC) called with a sulfur issue on the latest cargo
delivery. This lead to numerous discussions with the independent inspectors
and fuel supplier. The issue is of particular importance at PQPC because of
the recent financing of the project and the scrutiny regarding the emissions
at the plant.
5) Mariella Mahan's group called looking for help on physical and financial
resid into Nicaragua regarding their bid/negotiation with ENEL on the
privatization of some power plants in Nicaragua. The plants currently buy
from Esso and we hope to improve their fuel prices by up to a $1/barrel. That
would create an annual savings of over $1.5MM per year. This involved a
lengthy conference call, existing contract review and several forward curves.
6) The weather group was looking for historical propane prices for a new
product to be offered to Conoco.
7) The San Paulo office called looking for a twenty year forward curve for
crude and three grades of resid to help them with an LDC project them
operate.
8) The Metgas office in India called looking for a one year naphtha hedge
tied to crude.
9) ENA called to talk about using jet fuel instead of low sulfur diesel in a
proposed peaker in Florida. I went through a cost/benefit analysis with them
and they went back to using the LS diesel curve for the project.
10) Rob Bradley called looking for help with the Enron Washington, DC office
who was fighting off a challenge from the NYMEX who wants EOL regulated like
an exchange. We were able to provide Chris Long numerical data that helped
Enron's case and ultimately Enron got the initial ruling they were looking
for.

All of the above were in addition to our normal daily duties (battles) with
the five EI power plants and their fuel deliveries, along with the new
business ventures we are involved in. If you want specific big money savings
for other Enron entities or projects I would refer you to the previous memos
I have sent you regarding India, Guatemala and Panama which exceeded $20MM.
Hopefully, the daily requests that we service for other Enron groups leads to
better projects with better actual returns and less overall problems.

If you need additional information I would be glad to provide it.