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Enron Mail |
Peter:
This is a tough battle. It may be worse because your clients are either th= e same ones or geographically very close. I would try to address it by poi= nting out the limitations of the simplier forms and as a fallback emphasize= the increased risk (legal and otherwise) when using the shorter forms. Mark -----Original Message----- From: =09Keohane, Peter =20 Sent:=09Monday, August 20, 2001 12:22 PM To:=09Haedicke, Mark E.; Elbertson, Janette Subject:=09Canadian Retail and Wholeale Issues Mark, on the "retail" front, I did not want to get into all of the detail a= round what is happening in Canadian Retail in the Legal Committee call (did= not realize Vicki et al. are now joining our calls), but I am meeting with= Vicki later today (4:00 pm central) to review Canadian Retail. Do you wan= t to join? The major "retail" issue is the commercial pace to transact out= stripping the pace at which we can catch up legally to certain aspects of t= he business - not so much for transacting between us and the counterparties= - but more in terms of understanding and mitigating "distribution" risks w= ith and behind the LDC under applicable tariffs, T&Cs, policies and procedu= res. On the related but "wholesale" front, I would also like to talk to you for = 5-10 mins. to get your thoughts on transacting within the cross-over betwee= n "retail" and "wholesale". More precisely, wholesale traders/originators = have more and more pressure to transact at or behind the LDC rather than ar= ound a wholesale "hub" - particularly when it comes to power or Eastern gas= . This introduces "retail" type issues into the wholesale transacting proc= ess, with implications for our transacting/forms procedures. Since the dis= tinction here between retail and wholesale has developed around commercial = "turf", and not the nature of the counterparty, the wholesale traders/origi= nators are looking more and more at transactions that are "retail" in natur= e. The result is the wholesale traders/originators pushing to use the "sim= pler" or less rigorous contracting procedures and forms developed for our "= retail" market for these "wholesale/retail" deals, which I am not sure is a= lways appropriate, but for which I am having difficulty drawing the line. = I have an idea, which is to create wholesale products under our Master Agre= ements which address "retail" type issues. The problem is where to draw th= e line and the resistance to what is perceived by wholesale traders/origina= tors as a more rigorous standard, as compared to both internal Enron Direct= "competitiors" and external competition. Peter. =20 ____________________________________ Peter C.M. Keohane Vice President, Assistant General Counsel and Secretary Enron Canada Corp. Phone:=09(403) 974-6923 Fax:=09(403) 974-6707 E-mail:=09peter.keohane@enron.com
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