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Enron Mail |
Mary, sorry for not getting back to you soooner.
Of the three concepts, only (i) Market Opening condition is proving sellable, and then only on the basis the it is bilateral and for physical transactions. The other 2 concepts: (ii) modified Market Disruption; or (iii) suspension of obligations if Enron is subject to judicial/regulatory/legislative action (intended to address Project Stanley), are proving to be unworkable concepts. I believe these latter 2 issues and Market Opening Risk for financials will be resolved commercially as something that will be lived with. The traders/marketers have all three concepts however. With repsect to the summary of deals that may be subject to Market Disruption as a result of changing legislation or Pool Rules, as we previously discussed, I am not sure where that work product was going, other than somebody (I believe Lavo) wanted the summary for information purposes (i.e. as the deals were already done, the risk is what it is). If there is some other impetus for your report and I need to do something further, please let me know. Many thanks for all of the hard and thoughtful work. Peter. MARY COOK 12/04/2000 08:46 AM To: Jeffrey T Hodge/HOU/ECT@ECT, Peter Keohane/CAL/ECT@ECT, Greg Johnston/CAL/ECT@ECT, Mark Powell/CAL/ECT@ECT, Derek Davies/CAL/ECT@ECT cc: Mark Taylor/HOU/ECT@ECT Subject: Canadian Power Confirms Attached is a redraft of the three proposed points for inclusion in each of financial and physical power confirms. Please review and advise of any further comments or thoughts. It is my understanding that it has been decided that Canada wants to negate Market Disruption concepts on the basis of changes to EUA or Pool rules. I have also negated force majeure claims on the same basis (typically not apt in financial--however, since it could be argued I added it in the financial confirm language as well). Question: Would we also want to add "any other excuse of performance" to this concept? Such language would afford a broader sweep in respect of various claims, however, (i) the sweep may be too broad in light of it covering any change in the EUA or Pool rules and (ii) ultimately, we may want some flexibility to argue other points. Advise. Under Performance Suspension the intent is to carve out the "trade" for suspension, while leaving the other aspects of the masters/gtcs in place, such as bankruptcy and other termination events. Mary Cordially, Mary Cook Enron North America Corp. 1400 Smith, 38th Floor, Legal Houston, Texas 77002-7361 (713) 345-7732 (phone) (713) 646-3490 (fax) mary.cook@enron.com
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