Message-ID: <26214697.1075845012959.JavaMail.evans@thyme> Date: Fri, 3 Nov 2000 05:53:00 -0800 (PST) From: mark.haedicke@enron.com To: greg.johnston@enron.com Subject: Re: Canadian Form of Physical Power Master Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Mark E Haedicke X-To: Greg Johnston X-cc: X-bcc: X-Folder: \Mark_Haedicke_Oct2001\Notes Folders\All documents X-Origin: HAEDICKE-M X-FileName: mhaedic.nsf I appreciate the extra work. Thanks. Mark Greg Johnston 11/02/2000 04:43 PM To: William S Bradford/HOU/ECT@ECT, Aleck Dadson/TOR/ECT@ECT, Derek Davies/CAL/ECT@ECT, Paul Devries/TOR/ECT@ECT, Chris Gaffney/TOR/ECT@ECT, Bill Greenizan/CAL/ECT@ECT, Peggy Hedstrom/CAL/ECT@ECT, Robert Hemstock/CAL/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Mark Powell/CAL/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT, Dianne Seib/CAL/ECT@ECT, Laura E Scott/CAL/ECT@ECT, Andre Templeman/CAL/ECT@ECT, Garrett Tripp/TOR/ECT@ECT, John Zufferli/CAL/ECT@ECT cc: Rob Milnthorp/CAL/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT, Peter Keohane/CAL/ECT@ECT Subject: Canadian Form of Physical Power Master Further to the landslide of e-mails I have sent relating to this agreement, I hope that this will be the last as far as asking for input. Over the last few days, the form of the paper pursuant to which Enron Canada will trade physical power in Canada has been reviewed and (I think) finalized by legal in Calgary and Houston and the commercial people in Calgary. We have determined that it is in the best interest of Enron to jointly promote the Edison Electric Institute (EEI) form of master which, as I described in my e-mail of yesterday, consists of a standardized base contract with an amending section, much like the ISDA form of financial master. However, as the current form of the EEI master is a US document, containing many US specific provisions that have no application in Canada, commercially it has been identified as a concern that, with respect to counterparties that are not sophisticated trading companies, selling a US document with a Canadian addendum will be difficult if not impossible. Therefore, we are going to proceed to finalize the form of "industrial master" that I have drafted and sent out numerous times for review, a copy of which I enclose in both a clean and black-lined version (black-lined to the most recent draft distributed to you) in what I now believe is, in fact, final form. Our commercial people can use this form, together with the form of GTC I distributed to most of you earlier today, to market power in Alberta to counterparties who will not accept the EEI form. We will immediately begin the process of supporting the use of the EEI form in Canada but will propose that a Canadian form of base contract be agreed to and implemented, thereby eliminating the problem of using a US document as the base contract for Canadian transactions. I will begin the process of trying to create a first draft of this base contract which, other than with respect to removing US references and incorporating specific Canadian principles, will be identical to the US form. I will also commence the process of preparing what Enron believes the form of addendum to this Canadian base contract should be. Sorry for the lengthy e-mail, but I wanted to ensure that everyone was completely up-to-date with the status and process. I believe that this solution will address everyone's concerns without jeopardizing commercial transactions in Alberta. Thanks Greg