Re: Empresa Distribuidora de Energia Norte

Just curious, did this ever go anywhere?
---------------------- Forwarded by Brent Hendry/ENRON_DEVELOPMENT on
28/07/99 09:21 AM ---------------------------

From: Patricia Cini@ECT on 11/06/99 02:51 PM CDT

To: Federico Cerisoli/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Rodolfo Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Don
Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brent
Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, William S
Bradford/HOU/ECT@ECT
Subject: Re: Empresa Distribuidora de Energia Norte (Document link: Brent
Hendry)

Fede-

I am reviewing this counterparty's financial statements and will advise. We
also need to run a credit reserve for this transaction you have outlined
below.

Regards,

Pat

To: Sara Shackleton@ENRON_DEVELOPMENT
cc: Patricia Cini/HOU/ECT@ECT, Rodolfo
Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Don
Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brent
Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Marie
Heard@ENRON_DEVELOPMENT
Subject: Re: Empresa Distribuidora de Energia Norte (Document link:
Patricia Cini)

Sara,
We are working with the customer on the subject on the transaction outlined
below. We need your help putting together the MSA. Pat will surely contact
you with the credit information. Thank you very much. Federico.

Rodolfo Freyre 05/31/99 04:55 PM
(Embedded image moved to file: pic11719.pcx)

To: Patricia Cini/HOU/ECT@ECT
cc: Federico Cerisoli/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Don
Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Re: Empresa Distribuidora de Energi Norte (Document link: Federico
Cerisoli)

Pat,

EDEN is a power LDC, owned mainly by AES. We have basically offered them a
financial product that works as described below:
Attached is a one page description of the structure.

(See attached file: Structure.ppt)

Terms and Conditions of the agreement:
Volume: 20MW x 7 days a week x 24 hours a day
Term: 3 years, 1999
Start Date: August 1st.
Index: Simple hourly average Monomic at Ezeiza
Structure: "Collar" (Enron sells and EDEN buys):
- Cap: @$20.15/MWh
- 1st year, floor: @$18.14/MWh
- 2nd year, floor: @18.05/MWh
- 3rd year, floor: @17.96/MWh
Zero-cost call option (Cap) for Enron: @$22.16/Mwh. (Enron buys and EDEN
sells).

Example:
When Index is between $22.16 and $20.15, Enron pays to Eden. If Index is
above $22.16, Enron keeps on paying $2.01 (Difference between $22.16 and
$20.15).
When Index is between $20.15 and the floor (different every year), no
payments are involved.
When Index is below the floor price, Eden pays to Enron whatever Index minus
Floor is.

Pending issues:
Credit approval
Master Swap Agreement in place
Finalise negotiations. There is a high probability of this deal happening.
Timing for closing is close to 10 days.

If you have any questions, let me know.

Rolo

To: Rodolfo Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: Empresa Distribuidora de Energi Norte

Rodolfo-

I received your fax of the financial statements.

Will you please advise on the details of this deal.

Thank you,

Pat Cini

- pic11719.pcx - Structure.ppt