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Our group happened to meet with Credit this noo hour and the issue we
discussed this a.m. was discussed. Obviously, Tanya has the same concerns as Brent mentioned. Just wanted you to have a heads-up since Tanya sent this to Mark. ---------------------- Forwarded by Bob Bowen/HOU/ECT on 10/23/2000 03:45 PM --------------------------- From: Tanya Rohauer 10/23/2000 03:43 PM To: Bob Bowen/HOU/ECT@ECT cc: Subject: EGM Bank Account info ---------------------- Forwarded by Tanya Rohauer/HOU/ECT on 10/23/2000 03:36 PM --------------------------- From: Tanya Rohauer 10/23/2000 03:27 PM To: Mark Taylor/HOU/ECT@ECT cc: Subject: EGM Bank Account info I would appreciate your thoughts on the legal implications of netting. Thanks!! ---------------------- Forwarded by Tanya Rohauer/HOU/ECT on 10/23/2000 03:19 PM --------------------------- From: Tanya Rohauer 10/23/2000 03:26 PM To: Nancy Haralson/NA/Enron@ENRON cc: Debbie R Brackett/HOU/ECT@ECT, Rebecca Ford/HOU/ECT@ECT, Kim S Theriot/HOU/ECT@ECT Subject: EGM Bank Account info Nancy, When did you leave EBS? When you have a few minutes, I'd like to discuss how we are breaking out internal business groups activity. Specifically, my concern is with using separate bank accounts for different commodities that are settled financially within Enron North America Corp (legal entity). We met with the financial settlements group today to discuss credit issues surrounding settlements, and this emerged as one of the more important issues. As you may be aware, the ISDA document calls for all payments that are due on the same day to be netted together. If we use separate bank accounts, this cannot happen. There are two credit issues with not adhering to this: 1) if we send payment to a cp for one commodity but do not receive the payment that may be owed to us for another commodity, we have lost the ability to net those payments, and will be at risk for the outgoing amount, and 2) in a default situation, our position on close-out netting may be compromised if we have not been netting in practice. I am not sure how often this occurs in reality due to different settlement dates for different products. I also need to speak to Mark Taylor to determine the likelihood of our legal position in court being compromised. Can you help me to understand why we need to have different bank accounts? I understand that for internal reporting purposes, we need to use different ledger accounts, but I would not think we would need to extend this to the physical movement of cash. Thanks for your help, Tanya ---------------------- Forwarded by Tanya Rohauer/HOU/ECT on 10/23/2000 03:05 PM --------------------------- Rebecca Ford 10/23/2000 03:02 PM To: Debbie R Brackett/HOU/ECT@ECT, Tanya Rohauer/HOU/ECT@ECT, Bob Bowen/HOU/ECT@ECT cc: Subject: EGM Bank Account info Just FYI - The note below indicates that all of the weather transactions that are settling out of 0364 will now be settling out of 0460, thus using the new bank account that has been set up for 0460. Thank you, Becky ---------------------- Forwarded by Rebecca Ford/HOU/ECT on 10/23/2000 02:59 PM --------------------------- From: Scott Tackett@ENRON on 10/23/2000 02:19 PM To: Rebecca Ford/HOU/ECT@ECT cc: Subject: EGM Bank Account info Here are the accounting changes I received from Nancy for the migration of the Weather group over to EGM. Do you think it is possible for us to have all the changes made (in UNIFY, GCP, etc...) so we are ready by the end of the first week in November? ---------------------- Forwarded by Scott Tackett/Corp/Enron on 10/23/2000 02:08 PM --------------------------- Nancy Haralson 10/23/2000 02:06 PM To: Scott Tackett/Corp/Enron@Enron, Laurel Adams/HOU/ECT@ECT, Julia.sengele@enron.com cc: Angeles.beltri@enron.com, thomas.myers@enron.com, Maya.beyhum@enron.com Subject: EGM Bank Account info Scott/Laurel/Julia, The cash services company for EGM is 1021. The following bank accounts currently exist: GL Acct Description Account # Routing 12805077 GP Cash Svc CIDE 38616564 031100209 12805078 GP Cash Svc CINY 30420778 021000089 12805079 GP Cash Svc BATX 3751443308 111000012 All cash that is received and paid from ENA's cash services account related to EGM will need to be redirected to the applicable account above and coordinated with the any Global Counterparty changes as well. There is also a BATX account on co 460. The information is as follows: GL Acct Description Account # Routing 12805051 ECT IES BATX Bank Acct 375143337 111000012 Receipts for EGM that went directly to co 364 should be redirected to co 460. Laurel also mentioned a Japanese Yen acct, a EURO acct, and Sterling acct that exist on co 530 that will be transferred to EGM (co 1Y2?) EGM will also require a CAD account to be set up (co 1Y2?) Thanks Nancy ---------------------- Forwarded by Nancy Haralson/NA/Enron on 10/23/2000 10:43 AM --------------------------- Nancy Haralson 10/20/2000 05:18 PM To: Scott Tackett/Corp/Enron@Enron, Laurel Adams/HOU/ECT@ECT cc: Angeles Beltri/HOU/ECT@ECT, Thomas Myers/HOU/ECT@ECT Subject: EGM settlements In order to segregate EGM's business activity, it will be necessary to record transactions related to EGM's business unit on entities within its own reporting rollup. Currently, there is EGM settlement activity being booked to the following companies that are outside EGM's rollup: Co 364 - Weather Trading,Emissions Co 54N - Emissions Trading Co 967 - Weather Trading, Emissions Trading, Agricultural Trading, Interest rate, FX Going forward (effective November), monthly activity on Co 364 related to EGM will be recorded on co 460, Co 54N on Co 460, and Co 967 on Co 1Y2. In order to make this a smooth transition, but still make the change in an timely fashion, please give me your feedback on this as soon as possible. Please let me know your issues concerning A/R, A/P, Cash, Global Counterparty and any other areas I may be leaving out. I'll contact you on Monday to discuss further and see if this is feasible. It is also our intent to move ytd September balances related to EGM's business to entities with in our own rollup. This will probably be done at the CS/Hyperion level. Since there are October transactions already recorded, we will probably make a general ledger reclass for October income statement activity to EGM's rollup. Please let me know if you have issues with this as well. Thanks! Nancy
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