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Enron Mail |
=20 BUSINESS HIGHLIGHTS Weather Risk Management The Weather Desk is please to announce the completion of a large transactio= n in Europe designed to protect construction workers from lost wages on day= s when construction is halted due to adverse weather conditions. Enron com= pleted this deal with a European bank that in turn is selling this protecti= on to a fund manager for construction workers. Under the terms of this tran= saction, Enron will pay the bank when the number of "frost days" reaches a = predetermined amount outlined in the contract. Frost days are calculated wh= en the hourly temperature falls below the strike temperature. This innovati= ve transaction is the first of its kind and presents many possibilities for= future contracts with companies whose earnings are dependent on the weathe= r. This transaction originated in the London office and was structured in the = Houston office. Please call Sandeep Ramachandran at (713) 853-0964, Paul Mu= rray at +44 (207) 783-4769 or Sanjeev Khanna at (713) 853-3849 for further = information. Enron Net Works - Organizational Changes Beth Perlman, currently CIO for EA Systems, will work closely with Mark Pic= kering on a number of key projects for Enron Net Works. Additionally, Beth= plans to explore various commercial opportunities within Enron. Replacing= Beth in her current role will be Steve Hotte, currently CIO for EGS. Anthony Dayao will continue as CIO for EES Systems. In addition to his cur= rent responsibilities, Anthony will assume responsibility for creating a co= mbined Wholesale/Retail Power Trading and Risk Management system. Jeff Johnson will move into the new role of CIO for EGM/EIM Systems. John Paskin will transfer to the Houston office from London to take up the = new role of CIO for Corporate Systems. His group will include the ISC, Ente= rprise Portal, Intranet Solutions, CRM strategy, Treasury Systems, Developm= ent Support and will matrix into HR IT Systems. Continuing in their current positions are Inja Chun, CIO for EBS Systems; P= aul Freeman, CIO for Enron Europe; Jay Webb, CIO for eCommerce, which now i= ncludes Commodity Logic Systems; and Jenny Rub, CIO for Infrastructure. All of the above positions report into to Mark Pickering in the Office of t= he Chairman for Enron Net Works. Transitions into their new positions will= begin within the next two weeks and should be complete by the end of the y= ear. The search for a CIO for EGS and an individual to lead the Enterprise Frame= work group are ongoing. IN THE NEWS "It's easy for the market to kick a company when it's down, but these chall= enges do not last for a solid company, and we think Enron is one." =20 by David Howard Sinkman; October 22, 2001 from Reuters English News Service= . WELCOME New Hires EIM - Janet Clements, Marcus Mays EWS - Arnie Stifel Transfers (to or within) EWS - Kathy Bass, Ofelia Morales, LaDonna Finnels-Neal, Edith Cross, Berney= Aucoin, Brian Butler, Oliver Jones, Brad Morse, Narsimha Misra, Robert Bow= en, Anna Santucci, Devon Williams, Kevin Ashby Robert Gerry, Angela Finnels= , Rogers Herndon EIM - Marvin Carter, Angel Tamariz EGM - Richard Kottke, Dimitri Tagaropulos =20 EnronOnline Figures Below are the latest figures for EnronOnline as of October 24 * Total Life to Date Transactions < 1,600,000 * Life to Date Notional Value of Transactions < $ 885 billion Enron Wholesale Services Best Practice Tips IBuyit Office Supplies Ordering Use the Catalog to select office supplies. Purchasing will reject all offi= ce supply requests entered as non-catalog items. The most frequently purch= ased office supply items from Corporate Express and Lee Stationery & Office= Supply Co. are in the eProcurement Catalog. If you are unable to locate a= n office supply item, use the Product Request feature from the Advanced Sea= rch screen, and include your name and contact information in the Comments f= ield. You may also contact the iBuyit Catalog team (ibuyit.catalog@Enron.co= m <mailto:ibuyit.catalog@Enron.com<) or Mark Hudgens at 713-345-6544 to add= the item. Timesaving Tip: If you are referencing the hard copy catalog while searchi= ng the eProcurement Catalog, please take note: ?=09Corporate Express: Drop the first 3-alpha characters from the MFG#. For= example, search for MFG# MMM2018 by entering 2018. ?=09Lee Stationery & Office Supply Co.: Drop the first 3-alpha characters a= nd remove any dashes from the Product No. for example, search for Product N= o. MMM 6539-YW by entering 6539YW. INFORMATION TOOLS YOU CAN USE experienceENRON ...Your partner in optimizing customer visits. =20 Don't let the opportunity to get your customer to Enron result in only a me= eting with a tour or two. Give them an experience that will have them leav= e knowing there's no other company to partner with then Enron! Utilizing e= xperienceENRON's proven process and resources can minimize your sales cycle= and maximize your overall numbers. For more information, call or visit ou= r website.=20 =09Contacts: =09=09http://experience.enron.com =09Carrie Robert=09=09713-853-3522 =09Jennifer Brockwell=09713-345-7358 Enron Business Here is the revised link to Enron Business, which is on desktops now at htt= p://home.enron.com/pubs/enronbiz/2001/vol4/index.htm and coming soon by mai= l. If you live in the U.S., you'll find it in your mailbox at home and if = you're outside the U.S., it should be coming to your office. In this issue: * =09Get to know Greg Whalley and Mark Frevert a little better *=09Our internal communications survey results -- what you told us and what= we're going to do *=09How employees around the nation responded to Sept. 11 *=09The Analyst/Associate program -- holding some of Enron's future stars *=09Crude -- more than just a drop in the barrel *=09The Insider -- what is bid week and how does it work? *=09Extreme Enron -- martial artist, orchid chaser, hydroplane racer, ultra= marathoner and more NEWS FROM THE GLOBAL FLASH Update on France=20 During 2001 the French team has traded 30 TWh of power and closed about 2,4= 00 bilateral trades with various counterparties (26 trading counterparties = and 9 origination counterparties, including French industrials). This is a = huge 3,000% increase compared to last year, making France the second larges= t power trading market in the Continent. Since French power was launched on= EnronOnline in April 2001 it has seen more than 800 trades totaling 4TWh, = and so far Enron is the only company to trade French power online as a mark= et-maker. We currently quote online Peak and Baseload products, day-ahead,= weak-ahead, month-ahead, calendar years 2002, and 2003.=20 Power trading conditions have significantly improved in France since the Fr= ench grid operator (RTE) introduced Programme Responsible Contracts at the = end of 2000, allowing counterparties to trade blocks on the grid. Liquidity= has been increasing dramatically, as RTE has created an intra-day market, = and has auctioned interconnector capacity, notably France-UK, and France-It= aly. Also the EC has asked EdF to auction 6,000MW of virtual capacity pro= ducts, and Enron successfully participated in the first 1,200MW auction in = September. Enron will also participate in the Powernext spot exchange mark= et for 1MW day-ahead peak and baseload products, along with 12 French and f= oreign counterparties, when it is launched in early November. A balancing = market showing referenced market prices for balancing services in France is= expected to be implemented Q1 2002. France's size and geographical position will make it a natural hub for trad= ing on the Continent. The increase of physical, but also financial trading,= the sale of more Interconnector capacity and VPP products, and improved fu= ture market mechanisms will contribute to the further development of the ma= rket.=20 Congratulations to the French Team for this tremendous success! Enron Signs Ground-Breaking Coal Deals in Korea and China In a landmark deal, Enron has become the first ever trading company to win = a coal supply contract into Korea. This is a watershed event in the Pacific= market, as all previous Korean coal tenders have required mine ownership f= or participation. Japanese industry newsletter Tex Report noted the signif= icance of this event, writing: "This is the first supply by Enron to one of= the electric utilities of South Korea. Taking this opportunity, Enron see= ms to be planning to commence thermal coal exports in earnest to the Asian = region, including Japan, from now on." Under the contract, Enron's coal te= am will deliver 250,000 tonnes of steam coal to Korea Southern Power Ltd, o= ne of the five semi-autonomous generating companies created when the nation= al company, KEPCO, split up last year. Coal Group Vice President Stuart St= aley said, "Same trend, different country. As we've learned in Europe and = the US, electricity deregulation necessitates change in fuel procurement pr= actices. Korea is one of the world's largest markets for sea-borne steam c= oal, and this seems to mark the beginning of a fundamental change in their = approach."=20 In a related deal, Enron has signed a multi-year purchase agreement with Ya= nkuang Group, a major Chinese mining company. This coal will not only be u= sed to meet Enron's Asian supply obligations (including the Korean deal abo= ve), but some of it may even reach Europe as a result of plummeting freight= rates. Sydney-based Manager Jez Peters said, "This is big. China is going= to be the single largest factor affecting the international coal market, a= nd this deal, along with our relationships with the other major Chinese exp= orters, gives us great strategic placement." =20 Enron's European Weather Risk Management Team Signs Biggest-Ever Weather De= rivatives Deal in Europe =20 Enron's European weather risk management team led by Paul Murray has sold a= five-year call option to a Dutch counterparty in Europe's largest ever wea= ther derivatives transaction - which to Enron is worth a total of 50 millio= n Dutch guilders (USD 20,600,000) in notional value. A handful of other we= ather derivatives traders were known to have gained pieces of the deal. Th= e overall transaction, brokered by ABN Amro, is a capital markets transacti= on on behalf of a Dutch company which is hedging itself against 'frost days= ' when the weather is too cold for construction workers to be able to do an= y building work - but still need to be paid - as is their right under Dutch= law. The counterparty, which does not wish to be named, examined a number of alt= ernatives to hedge their risk before deciding that a weather derivative wou= ld suit their purposes best. This indicates just how robust the European w= eather market has become as a year ago a deal such as this was just would n= ot have been possible." Enron Signs Swiss Trading Joint Venture =20 On 1 October 2001 ewz, Switzerland's leading municipal power company of Zur= ich, and Enron announced the creation of a trading joint venture that will = be located in Zurich and will go into operation at the end of October 2001.= =20 The JV will be equally managed by ewz and Enron and will focus on electrici= ty trading, portfolio management and power plant optimization in the wholes= ale markets in Switzerland and neighboring countries. The JV combines ewz'= s long-established extensive knowledge of the Swiss market and Enron's trad= ing and risk management expertise.=20 "This is a groundbreaking deal for Enron on the continent as the JV will be= an ideal platform for additional partnerships in Switzerland and abroad. T= his venture is also highly valuable because it will allow Enron to enter in= to complex deals based on the JV's hydro-production/pump storage capabiliti= es and intraday trading," said Peter Kreuzberg who is commercially in charg= e of the risk and optimization aspects of the JV. Although Switzerland has no energy law yet, the market is extremely importa= nt on the continent because of its central location between Europe's larges= t net exporter - France -- and its largest net importer - Italy - and its p= osition south of Germany, which has the most liquid market. "Switzerland's = large interconnector capacities makes it the ideal geographical location fo= r trading," said Peter Heydecker, who will be Enron's co-CEO in the new JV.= "Most importantly, this JV will build trust towards Enron in the market a= nd will make us part of the 'the 'inner circle of the utility club'." This deal was the result of a great team effort, with substantial contribut= ions from Lars Athenhofer, Michael Schuh, Mauro Renggli, Martin Bloch and C= rispin Leick. Dry Bulk Freight Group Steaming Ahead Enron's global dry bulk freight group, headquartered in the London office, = trades physical shipping freight capacity for dry commodities such as steel= , iron ore, grain and coal as well as offering financial derivatives to hel= p counterparties manage their risk exposure to this volatile market. Physi= cal and financial freight capacity is bought and sold as either 'time chart= er' (think 'car hire for ships') or 'voyage contract' (more like a sea taxi= service). Enron is the only true market maker in 'Forward Freight Agreeme= nts' (shipping options) and trades both on the phone and through EnronOnlin= e. The growth of the group's traded volumes has been exponential. From a stand= ing start in April 2000, the team has now traded more than 25 million tonne= s of physical freight capacity with more than 40 million tonnes in OTC trad= e ytd (2001). Compare this to six million tonnes OTC the year before. To = help drive this growth the team has grown over the past 12 months to a tota= l of 5 commercial people. The group expects to top 120 million tonnes of total freight contracts trad= ed (physical and financial) by year-end. Among an increasing number of new = counter parties are the likes of RWE, EDF trading, TXU, Innogy, EON, Billit= on, BHP and RAG. Innovations being launched by the dry bulk team include: Floating rate contracts for ship-owners, which are very attractive in the c= urrent flat market, as rates are expected to pick up next year. Pooling the requirements of ship-owners and cargo-owners that allow both gr= oups to optimise their physical flows while decoupling them from price risk= .=20 Interchangeability on time charter contracts, which allows owners to change= ship during an existing contract route, which is one of the key routes. Ad hoc structures based on freight derivatives for financial institutions. "All these new initiatives are designed to increase flexibility for our cou= nterparties and drive liquidity into the shipping market," explains Pierre = Aury, head of Enron's global dry bulk freight team. "Our activities in the= dry bulk shipping sector present a classic example of how Enron's entry in= to a historically inefficient market brings in new players, increases optio= ns for trading, reduces transaction costs and of course, generates new reve= nue streams for both ourselves and our customers." LEGAL STUFF The information contained in this newsletter is confidential and proprietar= y to Enron Corp. and its subsidiaries. It is intended for internal use onl= y and should not be disclosed. <Embedded Paintbrush Picture<
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