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Enron Mail |
I have set up a conference call at 11:30 on Monday to discuss.
Christian Yoder 10/27/2000 12:15 PM To: Elizabeth Sager/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Richard B Sanders/HOU/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT cc: Subject: Puget Sound requests NW price caps In the days immediately before the application for a price cap, Puget came to us and asked us to enter into several put options. We did so. I am advised by the traders that if this price cap were to actually be in effect, our put option transactions would not make sense for us economically and we would never have entered into them had we known of their intention to make this filing. I am under some pressure to explain two things: (i) whether the fact that they knew they were going to file for the cap when they did the options is some kind of fraud, and (ii) whether the WSPP Agreement or our ISDA swap agreements have any clauses in them to address this kind of thing,ie. is this some kind of "illegality" issue? I am working on the second issue and have discussed it with Mark Taylor, but on the first issue, I need advice from Richard and anyone else who can help.----cgy ---------------------- Forwarded by Christian Yoder/HOU/ECT on 10/27/2000 09:59 AM --------------------------- Mary Hain 10/27/2000 09:50 AM To: James D Steffes/NA/Enron@Enron, Marcie Milner, Joe Hartsoe@Enron, Sarah Novosel/Corp/Enron@ENRON, Richard Sanders, Christian Yoder/HOU/ECT@ECT, Portland West Desk cc: Subject: Puget Sound requests NW price caps Puget Sound has filed a complaint against all jurisdictional sellers of wholesale energy and/or capacity in the Pacific Northwest, including parties to WSPP agreement. Puget Sound requests FERC to impose price cap on wholesale sales of energy and capacity in the Pacific Northwest equal to the lowest price cap "established, ordered, or permitted by the Commission for wholesale purchases by the Cal ISO or Cal PX . . . ." Puget requests an effective date of December 25,2000.
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