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Enron Mail |
A possible scenario may be to release to Huber (with ENA still on the hook if
Huber defaults) and once credit is approved by the banks, ENA would be released from any financial obligation. CIG would have to agree to do this. Further, we presumably would have a credit reserve until ENA is removed (we should check with the other Chris to run the credit trap). Mark - I don't quit understand Steve's comments regarding the release. This is a long-term release at what CIG considers the same a s maximum rate. Huber will be the pre-arranged bidder. No one else has a right to trump. ??? Do you want me to talk to Steve? chris x31666 From: Mark Whitt@ENRON on 11/02/2000 04:42 PM MST Sent by: Mark Whitt@ENRON To: Gerald Nemec/HOU/ECT@ECT, Chris Meyer/HOU/ECT@ECT, Paul T Lucci/NA/Enron@Enron cc: Subject: Huber WIC capacity assignment I spoke with Steve Saye at WIC today and he said that they interpret the tarrif to read that a release done at the full negotiated contract rate is the same as the maximum rate. Therefore we can release at the $.12 rate. He also stated that he would begin the approval process with the banks for the release but thought that there would be no problem with Huber's credit. He did state that the bank approval timing was out of his control but he would try to expedite it. In addition, he felt that the best way to do the release was to do it with the first bidder meeting minimum terms and have Huber ready to take it. He said that it would not have to be noticed ahead of time so noone would know that it was going to hit the board. My question is, can we get the contract with Huber signed prior to receiving the bank approval for the WIC peice? Mark
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