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Enron Mail |
The Cristobal Prep Meeting (preceding Enron's hosting of the Alliance membe=
rs=20 on Friday, February 4, 2000) to review Enron's plans for participation in t= he=20 Alliance RTO is scheduled for Tuesday, February 1 from 9:00a-11:00a in EB= =20 49C3. The agenda will be as follows: Review JV analysis based on new inputs (Alliance wires and pipes) provided = by=20 Alliance members (Lehman Brothers) Address JV structural issues (see discussion below) Review synergy presentation planned to be presented to the Alliance members= =20 on the 4th (see discussion below) Confirm steps and outcomes for the meeting on the 4th Please call me if you have any questions or comments. Thank you, Ron. JV Structural Issues --=20 Description: ENE to outline/summarize details re: all structural issues an= d=20 send to Alliance Partners prior to the 2/4 meeting in Houston. Responsible Parties: Mike Moran, Steve Van Hooser, and LeBouef (Steve will= =20 be extending an invitation to LeBouef for the 1st) Issues are as Follows =01) o Structure (refers to Joint Venture Diagram) ? Does our structure address the criticisms outlined in FERC=01,s Order ? What is the appropriate corporate entity form =01) Limited Partnership or= =20 Limited Liability Corporation ? Structure Keys are a balance of -- _ Independence _ Value _ Control ? Is stock contribution advantageous and does it present issues for both GP= G=20 and Alliance entities o Approval Rights (Reference both the Alliance Order and the summary prepar= ed=20 by LeBouef) ? FERC=01,s conditional order took exception to the Rights outlined in the= =20 Alliance Proposal (it should be noted that some of these rights are differe= nt=20 then those proposed by Enron =01) see LeBouef table outlining the two propo= sals=20 on p. 25.) ? Provide cites from approved structures o By-Laws o Directors/Managing Partners ? Focus on election of Directors with goal of maintaining independence o Officers (a business issue) o Stakeholder Groups o Native Load o Market Power Value Proposition/Synergies -- Purpose: Identify synergies (value) in both cost savings, revenue enhanceme= nt=20 and financial engineering at NewCo/TransCo. Timing and Responsible Parties: Synergy Categories Value Definitions=09Pipes to Pipes=09Pipes to Wires=09Wires to Wires Cost Savings=09ENRON/PWC (2/4)=09ENRON/PWC (2/4)=09ALLIANCE/AA (1/28) Revenue Enhancements o Product/Tariff Offerings o Expansion=09ENRON/PWC (2/4)=09ENRON/PWC (2/4)=09ALLIANCE/AA (1/28) Financial Engineering (i.e., re-capitalization)=09ENRON/PWC (2/4)=09ENRON/P= WC (2/4)=09ALLIANCE/AA (1/28)
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