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Enron Mail |
Thank you for your email and I apologize for my delay in responding. For
just over a year now, we have been working with multiple areas within EES to develop opportunities on two fronts: 1) transferring EES's weather exposure into the weather derivatives market place and 2) developing products for EES to offer to its clients and/or that allow EES to bid more aggressively. We are very excited about the changes that have taken place at EES and are hopeful that we can now begin a mutually beneficial working relationship. As you will see from the attached two documents, we are actively engaged with Gordon Savage's group and have a number of individuals within the weather group who are familiar with EES. The Harrah's opportunity originated by Ken Rubeli appears to have the most immediate potential to provide an EES client with a weather hedge. After the changes, Mallik Avs contacted us to start an initiative to hedge volume risk with weather derivatives. On the weather desk, we are currently very interested in getting long Cooling Degree Days ("CDDs"), i.e. hot weather in southern California and the desert southwest. Our currently long position there has done extremely well and we will be capping out on those positions shortly. We believe that if EES were to directly approach the weather market place for CDD Calls or swaps you could obtain positions that we are unable to i.e. we would like EES to sleeve for the weather desk. Again, we are excited about the new management team and structure at EES and look forward to an opportunity to work with you and your people. -----Original Message----- From: Dietrich, Janet Sent: Tuesday, May 15, 2001 9:32 PM To: Tawney, Mark Cc: Shankman, Jeffrey A.; McConnell, Mike Subject: Weather product focus for EES Hey Mark. I've talked with both Jeff and Mike, and everyone agrees that we need to ensure we can bring weather risk management and products into the EES distribution channel. I'd like to know how we can leverage your group, its knowledge and capability to maximize the opportunities we have to move weather products into our sales channels. Also, I understand we are currently working weather products into several deals. Harrah's Entertainment is one that is a high priority for us. Please let me know if I can help facilitate taking these discussions/ideas and turning them into executable products. I'd appreciate your thoughts on the above items at your earliest convenience. Thanks!
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