Contact Details & Re: About to trade Weather on Thursday

---------------------- Forwarded by David Minns/ENRON_DEVELOPMENT on
04/13/2000 09:32 AM ---------------------------

Raymond Yeow
04/13/2000 09:15 AM
To: Heidi Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul
Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark Tawney@ECT, Allan
Ford/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul
Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Contact Details & Re: About to trade Weather on Thursday

Dear Heidi,

Paul Quilkey is at Allen Center x 67939 c/o Ann Brown & Hyatt Room 2616
Christian & I are at EB level 32, you can call us on x 33238 c/o Lucy Ortiz.
I am Hyatt room 2726.

thx very much to David & Heidi for the prompt reply,
looking like have ENA transact with say SG usa,
then for the portion of Sydney risk, En Aust transacts with ENA
for same % of premium & risk.

Thx, Raymond 12 april

Heidi Mason
04/13/2000 08:35 AM
To: Raymond Yeow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul
Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark Tawney@ECT, Allan
Ford/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul
Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Re: About to trade Weather on Thursday

Raymond

I am meeting with Susan Musch (APACHI's tax expert) and we will get back to
you on the tax issues. Immediately I can tell you that back to back deals
(with no spread) will not work. This raises transfer pricing issues. If the
deal is SocGen on Melbourne temperatures, why is the counterparty not SocGen
Aust? Is the deal pure trading, or is it being done to hedge a real exposure
for Soc Gen. If the deal is being treated in any way as 'insurance' there can
be issues with the cross border nature.

I am in 2014 in 3AC if you are around and want to chat about it tonight.

Heidi

Raymond Yeow
13/04/2000 08:24
To: David Minns/ENRON_DEVELOPMENT
cc: Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark Tawney@ECT, Heidi
Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Allan
Ford/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul
Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: About to trade Weather on Thursday

Dear David,

We are about to do a weather trade with SocGen or Aquila on Melbourne
temperature
Expected trade date is Thursday - 13 April.
Steven Vu, Head Weather trader in Houston will transact with above thru a
broker in US.

Premium approx 700k AUD.

What is the best way in terms of regulations and tax - assume limits in place
!
Houston is to take a portion of the deal too.

(a) ENA trades with SG USA, then back to back transact between ENA & En Aust ?

(b) ENA trades with SG USA, then gives p&L to En Aust ?
can this P&L be real income or shadow only ?

© En Aust trades with SG Usa ( thru Oz arm of US broker or thru US broker)

or any other suggestions ???

Pls revert :o)
Thx, Raymond
12 April