Re: energy exchange in Germany

Just out of curiosity, who is Thomas Geisel? I assume he is an Enron=20
person. Do we already have a lawyer responsible for these issues? I seem =
to=20
remember that Robert and Justin were handling the IPE and Martin and Mark=
=20
Elliott the NordPool and ELEX issues. It might make sense to have one pers=
on=20
be the go-to guy for exchange issues with another designated for each=20
exchange. What do you think? It worries me a little to have only business=
=20
people involved - particularly if this is an early stage where we may have=
=20
our best hope for effective legal input.

Scott Sefton
01/06/99 07:54 AM
To: ECT London European Trading
cc: =20
Subject: energy exchange in Germany

See the note below regarding efforts to create an exchange traded electrici=
ty=20
contract in Germany. As you will see, one of the efforts involves NYMEX.
---------------------- Forwarded by Scott Sefton/LON/ECT on 06/01/99 13:50=
=20
---------------------------

Thomas Geisel
05/01/99 10:08
To: Jay Fitzgerald/LON/ECT@ECT, Peter Styles/LON/ECT@ECT, Scott=20
Sefton/LON/ECT@ECT, John Thompson/FRA/ECT@ECT, Joe Gold/LON/ECT@ECT, Peter=
=20
Kreuzberg/LON/ECT@ECT, Christopher McKey/LON/ECT@ECT
cc: Mark Schroeder/LON/ECT@ECT=20
Subject: energy exchange in Germany

With regard to the energy exchange projects in Germany the following meetin=
gs=20
have been scheduled:

1. Concerning the D_sseldorf project we will meet with Mr. Elberskirch,=20
general manager of the D_sseldorf B"rse, on Tuedsday, Jan. 12, between 9:00=
=20
and 12:00 in the morning. Mr. Elbersbusch will be accompanied by two McKins=
ey=20
consultants, probably Dres. Hirse and Schrader. They will discuss with us t=
he=20
feasibility study that McKinsey will present at the next "B"rsenratsmeeting=
"=20
on Jan. 13 (the day following our meeting). As the study has not yet been=
=20
finalized Mr Elberskirch will not forward any copies or drafts to us before=
=20
the meeting. I have indicated that from our side Jay (possibly), Joe, John,=
=20
Chris and myself would participate in the meeting.

2.The initiators of the Hannover project will meet with representatives of=
=20
NYMEX on Jan. 12 at 9:30 a.m. in London. According to Mr. Hagena, who is in=
=20
charge of the project on behalf of the state government of Lower Saxony,=20
representatives of the "Stromwirtschaft", i.e. of the major electricity=20
companies (in particular Preussen Elektra) will also participate in this=20
meeting. After this meeting, i.e. between 15:00 and 17:00, Mr. Hagena and M=
r.=20
Wudy (Commerzbank Frankfurt) would like to meet with us. One of the issues=
=20
that will probably be raised is whether Enron would be prepared to become a=
=20
shareholder in the exchange company ("Tr,gergesellschaft"); it is planned=
=20
that the initial capital contributions of the shareholders (Stammkapital)=
=20
will amount to DM 20 Mio.=20
Participants in the meeting on our side would be the same as in the meeting=
=20
with the D_sseldorf people.

3. The "consensus talks" on the German energy exchange project are now=20
scheduled for January 26, 1999 in the offices of the Commerzbank in=20
Frankfurt. The meeting will be chaired not by the Minister of Ecomics, Mr.=
=20
M_ller, but by Mr. Tacke, who is State Secretary in the Ministry of Economi=
cs=20
and who has been Federal Chanceler Schroeder=01%s most important economic=
=20
adviser for the last couple of years. Tacke is likely to be a strong=20
supporter of the Hannnover project (he served under Schroeder in Lower=20
Saxony).
Invited to the meeting are representatives of the large electricity compani=
es=20
(which have supposedly all already accepted the invitation), seven major=20
industrial consumers, natural gas companies (Ruhrgas, Wintershall/Wingas,=
=20
BEB), electricity traders (such as VASA and us) and banks (in particular th=
e=20
Commerzbank and the Norddeutsche Landesbank). The invitation to Enron will =
be=20
addressed to Jay Fitzgerald.=20

TG