Message-ID: <17702486.1075848203536.JavaMail.evans@thyme> Date: Wed, 7 Feb 2001 08:29:00 -0800 (PST) From: mark.schroeder@enron.com To: john.sherriff@enron.com, michael.brown@enron.com, steven.kean@enron.com Subject: EdF/EnBW decision Cc: peter.styles@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: peter.styles@enron.com X-From: Mark Schroeder X-To: John Sherriff, Michael R Brown, Steven J Kean X-cc: Peter Styles X-bcc: X-Folder: \Steven_Kean_June2001_4\Notes Folders\Europe X-Origin: KEAN-S X-FileName: skean.nsf While the conditions relating to approval of EdF's merger with EnBW are not strong enough for Enron (they never are!), I did want to call to your attention the concessions/remedies the European Commission Merger Task Force will require of EdF, which is SOLELY, in my view, attributable to the efforts of Enron, and in particular efforts lead by Peter Styles. You will see below that EdF must make available, on a "virtual" (hence "VPP") basis capacity in some of its facilities (something I think they once accused us of "dreaming" about when we asked for it). It may not make for a fully vibrant and competitive market, but it is a start which could not have been made without this effort. let Peter or me know if you need more. thanks mcs ---------------------- Forwarded by Mark Schroeder/LON/ECT on 07/02/2001 16:27 --------------------------- Nailia Dindarova 07/02/2001 15:41 To: Philip Davies/LON/ECT@ECT, Viviana Florio/FRA/ECT@ECT, Bruno Gaillard/EU/Enron@Enron, Paul Hennemeyer/LON/ECT@ECT cc: Mark Schroeder/LON/ECT@ECT, Peter Styles/LON/ECT@ECT Subject: EdF/EnBW decision Please see attached the Commission's press release (EN, FR and DE). We need to look into the full text of the decision (not yet available in the Official Journal) to judge any changes to the terms and conditions of VPP auction in reflection of our comments/criticism. So far the news are: EdF makes available 6,000 MW (instead of 5,000!) to competitors, out of which 5,000MW are released via VPP, 1,000 through PPAs. This is meant to constitute 30% of eligible market. This undertaking is limited to 5 years - subject to Commission's review upon expiration - possibility of prolongation if compet. market will not have evolved EdF renounces its voting rights in CNR + withdrwa representatives in the Board of CNR + EdF won't be involved in CNR's commercial policy and market conduct (until we see detailed conditions difficult to judge whether any additional restrictions have been added since we saw the text of this undertaking alst time) EnBW divests its shareholding in WATT (we have to see whether any ring-fencing conditions were added) Let's discuss later.