RE: Proposal for 2002 Purchase

175k/yr. Wow - you get em.

-----Original Message-----=20
From: Davis, Mark Dana=20
Sent: Mon 12/24/2001 7:39 AM=20
To: Presto, Kevin M.=20
Cc:=20
Subject: FW: Proposal for 2002 Purchase

Looks like you pissed him off. I guess he doesn't understand the how these=
confirms are governed. IDIOT
-----Original Message-----
From: Tricoli, Carl=20
Sent: Saturday, December 22, 2001 10:56 AM
To: Presto, Kevin M.; Portz, David; Miller, Don (Asset Mktg)
Cc: Sturm, Fletcher J.; Davis, Mark Dana
Subject: RE: Proposal for 2002 Purchase

Thanks - that's what I needed to know. I'm still not sure if it is a two-w=
ay termination (yes I know the difference) because there's no language that=
indicates we'd be paid if we're in the money in a termination. There is a=
provision that allows us to cease delivery "by reason of ... significant c=
hange in operating condition"; if we don't deliver, there's an LD calculati=
on, which if positive, we have to pay. There doesn't appear to be any lang=
uage that causes WEPCo to pay us if we don't deliver and we're in the money=
. (Hence my question to David) Otherwise, the only way to terminate is wit=
h one year's advance written notice - there are no Event of Default provisi=
ons and remedies, such as for bankruptcy. (Which I'm assuming you know sinc=
e you're familiar with the contract). What I didn't know was your longer t=
erm view of the market - this obviously matters in evaluating their offer i=
f the contract is one way and we are unhedged. In any event, for now they =
can either pay us the $1.2 million or we'll plan on delivering in January. =
I'll call them onWed and let you know so we can schedule delivery is neces=
sary.=20
=20
-----Original Message-----=20
From: Presto, Kevin M.=20
Sent: Sat 12/22/2001 8:33 AM=20
To: Tricoli, Carl; Portz, David; Miller, Don (Asset Mktg)=20
Cc: Sturm, Fletcher J.; Davis, Mark Dana=20
Subject: RE: Proposal for 2002 Purchase

Wisconsin's offer is a joke. =20
=20
Carl - This is is clearly a two-way termination or they would have no offer=
at all (I'm assuming you understand the difference). We can buy Cal-02 C=
om-Ed under $30/Mwh all day long. This is a position we will deliver on t=
o preserve the in-the money value. I would make it clear to Wisconsin tha=
t we intend on delivering in January and every single month thereafter beca=
use it creates positive cash flow for the estate. We also have broker quo=
tes that show the market is 28 at 29 for Cal 02. I would accept nothing l=
ess than $1.2 million.
=20
Thanks.

-----Original Message-----=20
From: Tricoli, Carl=20
Sent: Fri 12/21/2001 2:42 PM=20
To: Portz, David; Presto, Kevin M.; Miller, Don (Asset Mktg)=20
Cc:=20
Subject: FW: Proposal for 2002 Purchase

This contract is for 50Mw peak into COMED, Seller's Daily Choice, Cal '02 @=
$34.75/MWh. Our MTM is $1,244,412; their offer is $663,000. It appears t=
o be a one-way contract, but it's hard to tell given the brevity of the con=
tract. David - what happens if we don't serve the load - do we get nothing=
? We need to decide if we want to begin serving the load and negotiate a b=
etter price - they want to have done by 12/28. =20
=20
Carl Tricoli
Cell: 713 826-1439
-----Original Message-----
From: Klarer.Jeff [mailto:Jeff.Klarer@wepco.com]
Sent: Friday, December 21, 2001 1:32 PM
To: Tricoli, Carl
Cc: Splinter.Donald; Abood.Gerald; Kiesling.Don; Cummings.Chuck
Subject: Proposal for 2002 Purchase

Carl,=20

Attached is Wisconsin Electric's proposal for closing out the purchase Wisc=
onsin Electric made from Enron for 2002. As I mentioned to you earlier, Wi=
sconsin Electric is looking to finalize any agreement by December 28th.

If you have any questions, you can contact me at (414) 221-4350 through the=
close of business today (December 21st).=20

The appropriate person to contact the week of December 23rd is Mr. Don Spli=
nter at (414) 221-4650.=20

Sincerely,=20

Jeff Klarer=20
Power Trader=20

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