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Enron Mail |
This was not clear and the only thing I agreed to was a premium for 2001.
-----Original Message----- From: Marshall, David Sent: Tuesday, June 19, 2001 10:28 AM To: Presto, Kevin M. Subject: RE: New Albany Insurance Premium Kevin, The policy term runs through 4/1/02. The deal reached with underwriters gives them 12 assets and a set premium which serves as a minimum for the risk. They realize that the business plan is to sell assets (each foreign asset in the mix is also for sale) but the only way they would agree in light of the loss experience across our power book is if they were guaranteed a floor price for the buydown. As the asset mix changes, there's no credit below this minimum. I'm sorry if this wasn't clear and we did attmept to to include a credit feature in anticipation of asset sales, but the market just wouldn't accept it. -----Original Message----- From: Presto, Kevin M. Sent: Tuesday, June 19, 2001 10:11 AM To: Marshall, David Cc: Zisman, Stuart Subject: RE: New Albany Insurance Premium Your kidding right? What's the term? Remember, I only agreed to the terms for 2001 only. -----Original Message----- From: Marshall, David Sent: Tuesday, June 19, 2001 10:05 AM To: Presto, Kevin M. Subject: RE: New Albany Insurance Premium This premium is fixed for the term and cannot be terminated -----Original Message----- From: Presto, Kevin M. Sent: Tuesday, June 19, 2001 9:36 AM To: Marshall, David Subject: RE: New Albany Insurance Premium I concur. You know we are likely selling New Albany this week and I am assuming ENA's premium obligation can be terminated in the event of the sale of the asset. -----Original Message----- From: Marshall, David Sent: Tuesday, June 19, 2001 9:18 AM To: Presto, Kevin M. Subject: New Albany Insurance Premium Kevin, We spoke some time ago about a proposal to buy down deductibles for our power assets and I recall receiving your authorization to proceed as respects the New Albany plant. To recap, the deductibles under the Enron Corp property and business interruption policy were increased at the last renewal from $500,000 per occurrence to $5 million per occurrence effective March 1. We were shopping a number of options to buy this deductible down to $1 million for property damage and 30 day waiting period for business interruption. This coverage was bound effective June 12 (the reason for the time lag is extreme volatility in the insurance market for power assets) at an allocation of $345,000 for New Albany. I also checked with Stuart and he sees no transactional issues relative to the buydown. I understand that you have also purchased the dual trigger BI policy that effectively mitigates this initial 30 day waiting period exposure, so the BI coverage under the corporate program applies as a further risk mitigant for the catastrophic event. Since it's been awhile since our last conversation, I did want to reconfirm the buydown option and premium charge with you. Please give me a call with any questions David 3-6847
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