Weather Products

yours?
---------------------- Forwarded by Mark A Taylor/EFS/EES on 12/05/2000 08:21
AM ---------------------------

Kevin Meredith@ENRON
12/04/2000 06:10 PM

To: Michael Nguyen/HOU/ECT@ECT, Mark A Taylor/EFS/EES@EES
cc: Robert B Cass/HOU/ECT@ECT, Melba Lozano/HOU/ECT@ECT
Subject: Weather Products

The following products have been created in Test. Please review and advise.

US Wthr CDD Swap HNG KNG 100/20K Jun01 USD/CDD
A US Weather (Cooling Degree Day) Financial Swap Transaction with Enron North
America Corp., under which the Seller is obliged to pay the Payment Amount to
the Buyer where the Floating Amount is above the Strike Amount, or where the
Buyer is obliged to pay the Payment Amount to the Seller where the Floating
Amount is below the Strike Amount. The Strike Amount is the amount in
Cooling Degree Days submitted in the "price" field by Counterparty via the
website. The Notional Amount is the product of the quantity submitted by
Counterparty via the website and the Pay Unit. The Payment Amount is the
product of (i) the Notional Amount and (ii) the absolute value of the
difference between the Floating Amount and the Strike Amount.
The Calculation Period is from and including the Effective Date of 01 Jun
2001 to and including the Termination Date of 30 Jun 2001.
The Calculation Period shall commence at 12:01am on the Effective Date and
conclude at 12:00am on the Termination Date at the relevant Reference Weather
Station or Fallback Reference Weather Station. The Reference Weather Station
is Hong Kong Observatory, WMO Station Number 45005. The Fallback Reference
Weather Station is King's Park, WMO Station Number 45004. Reporting Service,
Reporting Agency and Data Source all mean the Hong Kong Observatory 134A
Nathan Road, Kowloon, Hong Kong or its successor organisation. Reference
Time means 12.01 AM LST.
The price is quoted in US Dollars per unit of volume, which will be the
Contractual Currency.
CDD shall mean Cooling Degree Day.
The Reference Basis is 65 Degrees Fahrenheit and the Reference Degrees are in
Fahrenheit.
The Pay Unit shall be 100USD.
The Maximum Payout Limit shall be 20000USD, multiplied by the quantity
submitted by the Counterparty via EnronOnline.

US Wthr HDD Swap HNG KNG 100/20K Jan01 USD/HDD
A US Weather (Heating Degree Day) Financial Swap Transaction with Enron North
America Corp., under which the Seller is obliged to pay the Payment Amount to
the Buyer where the Floating Amount is above the Strike Amount, or where the
Buyer is obliged to pay the Payment Amount to the Seller where the Floating
Amount is below the Strike Amount. The Notional Amount is the product of the
quantity submitted by Counterparty via the website and the Pay Unit. The
Strike Amount is the amount in Heating Degree Days submitted in the "price"
field by Counterparty via the website. The Payment Amount is the product of
(i) the Notional Amount and (ii) the absolute value of the difference between
the Floating Amount and the Strike Amount.
The Calculation Period is from and including the Effective Date of 01 Jan
2001 to and including the Termination Date of 31 Jan 2001.
The Calculation Period shall commence at 12:01am on the Effective Date and
conclude at 12:00am on the Termination Date at the relevant Reference Weather
Station or Fallback Reference Weather Station. The Reference Weather Station
is Hong Kong Observatory, WMO Station Number 45005. The Fallback Reference
Weather Station is King's Park, WMO Station Number 45004. Reporting Service,
Reporting Agency and Data Source all mean the Hong Kong Observatory 134A
Nathan Road, Kowloon, Hong Kong or its successor organisation. Reference
Time means 12.01 AM LST.
The price is quoted in US Dollars per unit of volume, which will be the
Contractual Currency.
HDD shall mean Heating Degree Day.
The Reference Basis is 65 Degrees Fahrenheit and the Reference Degrees are in
Fahrenheit.
The Pay Unit shall be 100USD.
The Maximum Payout Limit shall be 20000USD, multiplied by the quantity
submitted by the Counterparty via EnronOnline.