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Enron Mail |
I had a good "clear the air" talk with Art yesterday. We came up with a
couple things that will improve the process. 1. Citizens needs to subscribe to EOL so that Art can execute trades without calling me or anyone else at Enron. This will improve execution. Sean, please make this a priority. Call the 800 number and make it happen. Call me if you need help. 2. Kim Ward will be the point person for gettting NYMEX and Basis quotes. Kim's number is 713/853-0685. I will be helping Kim, but she is in a better position to execute trades as she is on the desk. 3. Citizens should consider getting swap contracts in place with counterparties other than Enron (and Enron as well) so that you can do fixed price deals with others in the event that you can obtain more attractive pricing than what Enron is offering at any point in time. Please let me know if you want further follow-up re: your e-mail below. Also, please push forward on the 2 contracts (gas contract amendedment and power contract master). Thanks Chris Enron Capital & Trade Resources Corp. From: "Sean Breen" <sbreen@czn.com< 12/28/2000 03:21 PM To: "Chris Foster" <cfoster@enron.com< cc: Subject: Fw: NYMEX fixed prices obtained from Enron Chris: Would you kindly call me next week (Tues/Weds is best) to discuss.? Thanks ----- Original Message ----- From: Art Gelber To: Sean Breen Sent: Thursday, December 28, 2000 4:10 PM Subject: NYMEX fixed prices obtained from Enron Sean, ? As we discussed on the telephone today, I have a concern surrounding the pricing Enron gave us?while establishing NYMEX fixed pricing for the months of April 2001, May 2001, June 2001, July 2001 and August 2001. ? Today, we first contacted Enron to obtain market quotes at 10:58 am cst.? In every month we requested a quote on NYMEX, Enron gave a quote that was no less than two cents higher than the offer on the floor of the NYMEX.? Gelber questioned the quotes as being outside the market.? Gelber chose to end the telephone call after questioning the quotes.? At 11:08 am, Gelber called Enron again.? The election was made to proceed with execution of the necessary positions.? For the months of April, May, June, and August we received prices that were at the offer side of the NYMEX bid/offer spread.? However, on the month of July the price received was not only outside of the then current NYMEX bid/offer range but was indeed higher than the NYMEX high for the day on the July contract.? Specifically, the Citizen's Arizona Gas price received for July 2001 from Enron is $5.340, the high for the day on NYMEX was $5.290. ? I do not currently feel comfortable with Enron's pricing methods.? My assessment after today's transactions is only partially favorable.? It is my understanding that Citizen's compensates Enron in other parts of your business relationship and their should be no need for them to mark prices up when executing either NYMEX, basis, or a combination of the two. ? Citizen's may want to consider pursuing alternative mechanism's?for securing fixed pricing via other accessible markets. ? Sincerely, ? Art Gelber Gelber & Associates agelber@gelbercorp.com 713/655-7000 ?
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