Online Derivatives Trading with Regulated Utilities

Would you like to respond?!
---------------------- Forwarded by Tana Jones/HOU/ECT on 10/12/99 01:32 PM
---------------------------

From: Bob Shults 10/12/99 10:15 AM

To: Tana Jones/HOU/ECT@ECT
cc:
Subject: Online Derivatives Trading with Regulated Utilities

Does this mean that we have 10 utilities that are approved to trade? What
are we doing with the other 30-40?
---------------------- Forwarded by Bob Shults/HOU/ECT on 10/12/99 10:14 AM
---------------------------
To: Louise Kitchen/LON/ECT@ECT
cc: Tana Jones/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, William S
Bradford/HOU/ECT@ECT, David Port/LON/ECT@ECT, Bob Shults/HOU/ECT@ECT, David
Forster/LON/ECT@ECT, Sara Shackleton/HOU/ECT@ECT
Subject: Online Derivatives Trading with Regulated Utilities

We have not decided "to prevent any regulated utility from completing any
financial transactions" online. If we have already satisfactorily concluded
the necessary due diligence with respect to a particular utility, they will
be approved. It is only with respect to those utilities which have not yet
been researched that we are withholding approval. The due diligence required
involves asking the utility for certain information concerning their
organization and regulatory situation, hiring local counsel in the relevant
state and having research done into the laws and regulations in place there
and into any public utility commission orders respecting the particular
utility in question, and on occasion requesting an opinion letter from the
utility's counsel. We usually begin that process only when a trader believes
there is a likelihood of a sufficient volume of trading with the utility to
justify the time and expense. FYI, the due diligence process has in the past
revealed circumstances which prevented the utility from trading derivatives
or required actions to authorize such trading which had not been taken.

A recent count showed about 10 executed master agreements and another 30 to
40 in one stage or another of the due diligence/negotiation process.

Louise Kitchen
10/06/99 02:46 PM
To: Mark E Taylor/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT
cc: Debbie R Brackett/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT, David
Port/LON/ECT@ECT, Bob Shults/HOU/ECT@ECT, David Forster/LON/ECT@ECT
Subject: Customer Data

On Friday we will be receiving the remaining customer list from credit, due
to the timescales I am asking for turnaround on the customer matrix and
master agreement review by the end of play Tuesday 12th October.

Any problems with this please notify me immediately as we are now running up
against very tight deadlines in terms of getting all of the information in
the system for the launch schedule.

Thanks

Louise

Mark,
On another note we are requesting a review of the blanket decision which has
been made to prevent any regulated utility from completing any financial
transactions, if we are not prepared to do the due diligence on which ones
can transact and which ones can not - is this our responsibility or theirs?
ie their decision whether to trade or not.
Louise