Subject: Re: 12/5 Limit Violations and Notifications - Comments
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Thu, 7 Dec 2000 01:42:00 -0800 (PST)

Dear Cassandra,

In looking at the comments below there are several errors made buy us, one in 
the template itself, and some suggestions.  At your request, we have started 
to prepare this in addition to the normal word violation/notification memos 
and our other work.  As you have certain requests and requirements, it would 
be helpful for someone in your group to review it before it went out to 
ensure it meets your requirements.

Please let me know if this is workable and who the reviewer should be.

Thanks,

Shona

To: Michael Benien/Corp/Enron@ENRON, Chris Abel/HOU/ECT@ECT, Shona 
Wilson/NA/Enron@Enron, Daniel Falcone/Corp/Enron@ENRON
cc: Veronica Valdez/HOU/ECT@ECT 

Subject: 12/5 Limit Violations and Notifications - Comments

I realize this has already gone out, but I see a few errors that we should 
correct  - and actually, I think we should call Skilling and Lay's (and 
Buy's) assistants (Veronica will handle this) and see if we can just hand 
deliver to them a corrected version early this morning, e-mail is OK for Ted, 
David and I. I have a few other suggestions on format/reporting changes as 
well.

The NA Power VaR of $51MM was not 105% over its VaR limit of $50 - that would 
have been $52.5 to require a report to Skilling, (but if we had had to report 
it, don't use "WSCC", try to spell out or just don't use)
UK Gas's VaR limit is not $4, it's $7.5MM
I can't tie in UK Gas' QTD and YTD P/L - shouldn't it be what's on the DPR, 
adjusted for the portion of the structured derivatives that is gas - call 
over to that Yeo person and get the info. from them please
The 2nd item for NA Gas shouldn't be listed like that as it looks like 
another violation - the comment re: the VaR increase was mean to go at the 
bottom under RAC comments
The Finance Committe Chairman notification for Agg. VaR is not 100%, it's 
115% (notification requirement box)
EES had a VaR violation - $7.5 vs. 7 - that is a Skilling level violation
Let's have the "Re:" say "Limit Violations and Notifications for December 5, 
2000"
Let's number them all sequentially rather than starting over at each level

Veronica will call you to coordinate re-distribution.

Going forward, we need to increase our level of review for these as they're 
getting a lot of scrutiny given market dynamics and our increasing risk.

Thank you,
Cassandra.

---------------------- Forwarded by Cassandra Schultz/NA/Enron on 12/07/2000 
07:38 AM ---------------------------

Michael Benien
12/06/2000 07:08 PM
To: Kenneth Lay/Corp/Enron@ENRON, Rosalee Fleming/Corp/Enron@ENRON, Jeff 
Skilling/Corp/Enron@ENRON, Sherri Sera/Corp/Enron@ENRON, Rick 
Buy/HOU/ECT@ECT, Karen K Heathman/HOU/ECT@ECT
cc: Cassandra Schultz/NA/Enron@Enron, Ted Murphy/HOU/ECT@ECT, David 
Port/Market Risk/Corp/Enron@ENRON, Chris Abel/HOU/ECT@ECT 

Subject: 12/5 Limit Violations and Notifications