Subject: FW: Commercialization of back office competitor - Aquilla
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Wed, 29 Aug 2001 09:10:20 -0700 (PDT)

FYI. Aquilla's plan is described below.  

I talked with Martin Chavez at Kiodex and he confirmed as well.

I think the bigger issue is that other enterprises are starting to try to build businesses around their systems and operations.  I think we have a good head start with CommodityLogic and Kiodex but we have to run even faster now.

GP

 -----Original Message-----
From: 	Richter, Brad  
Sent:	Wednesday, August 29, 2001 10:25 AM
To:	Piper, Greg
Subject:	FW: Commercialization of back office competitor

FYI
 -----Original Message-----
From: 	Pacheco, Leonardo  
Sent:	Wednesday, August 29, 2001 9:21 AM
To:	Richter, Brad
Subject:	RE: Commercialization of back office competitor

Brad,

You are right, Aquila's Risk180 is similar to Kiodex's offering. It is a web-based Reporting and Valuation Tool (no software downloads are needed). The difference is that Risk180 focuses on reporting and valuation. In other words, Risk180 does not offer Pricing Calculators as does Kiodex's. It seems to me that Kiodex's Risk Workbench is a more robust solution because it provides decision tools to price opportunities before transacting while Risk180 is "after the fact" reporting and transacting. It looks to me that when Commodity Logic launches its Risk Valuation modules  it will become more of a direct competitor to Risk180. 

In its initial phase, Risk180 is offering services to the Gas market only. Soon, they will offer the tools for the power markets.

Risk180's products:
OTC Trade Preview - details of transactions as entered into system
Daily/Monthly Futures and Forwards Reports - position exposures and daily Pal's based on mark-to-market accounting
Options Valuation Report - measures exposures due to options plus volatility calculations (i.e. Greeks)
Daily / Monthly Total Position Summary - total picture of risk exposure in the portfolio

Risk180's target market:
Similar to Commodity Logic's market. They will target medium to small shops that do not have the technology, staff, or resources to run sophisticated reporting and valuation in-house.

Let me know if you have any questions.

Leonardo

 -----Original Message-----
From: 	Richter, Brad  
Sent:	Tuesday, August 28, 2001 3:45 PM
To:	Pacheco, Leonardo
Subject:	FW: Commercialization of back office competitor

See below.  Could you take 10 minutes and go to the Risk180 site and give me a brief download on what they're offering?  It seems like a "Kiodex-lite" product (talk to Brandon is you don't know Kiodex) but I want to make sure we're not in the same space.

Thanks,
Brad

 -----Original Message-----
From: 	Piper, Greg  
Sent:	Tuesday, August 28, 2001 3:10 PM
To:	Richter, Brad; Webb, Jay; Gros, Thomas D.; Beck, Sally; Pickering, Mark
Subject:	FW: Commercialization of back office competitor

Your opinions on this?

GP
 -----Original Message-----
From: 	Kitchen, Louise  
Sent:	Tuesday, August 28, 2001 3:09 PM
To:	Piper, Greg; Whalley, Greg; Beck, Sally
Subject:	Commercialization of back office competitor

Monday August 27, 10:58 am Eastern Time 
Press Release
SOURCE: Aquila, Inc. 
Aquila Launches Cost-Effective Energy Risk Management Service
KANSAS CITY, Mo.--(BUSINESS WIRE)--Aug. 27, 2001--Aquila, Inc. (NYSE: ILA <http://finance.yahoo.com/q?s=ila&d=t> - news </n/i/ila.html>), one of the largest North American wholesalers of natural gas and electricity and risk management organizations, today launched Risk180(SM), a product that provides clients with full-service management of their commodity transactions, delivered to them daily, weekly or monthly via the Web. 
Risk180 will be marketed to utilities, municipalities, energy aggregators and small energy marketers, as well as large industrial firms. These clients typically are low-volume traders that use spreadsheets to manage their energy transactions. The product was designed to meet the deal capture and portfolio valuation needs of clients who do not wish to purchase or build an expensive, enterprise-wide risk management software system. 
Using a password-protected Web-interface, clients send Aquila their transactions or trades, which are then processed through the company's proprietary system. The client then receives daily, weekly or monthly risk analysis and deal pricing reports. 
``What we are doing is making it possible for these clients to have access to a highly sophisticated trading organization, its skills and most important, its collective knowledge,'' said Jennifer Fisher, Aquila vice president and head of the Radius Group. 
Aquila's Radius Group jointly developed Risk180 with SunGard Trading and Risk Systems, a leading energy risk management software firm. A key component of the Risk180 package is its use of SunGard's Epsilon software for risk analysis and client reporting. 
Risk180 will initially handle only natural gas transactions. Power transaction capabilities will be added in the near future. Data available to clients includes detailed portfolio valuation, evening over-the-counter trade previews, mark-to-market income reports, total position reports as well as forward curves, deal capture and value-at-risk calculations. Additional information is available at www.aquila.com <http://www.aquila.com>, or www.risk180.com <http://www.risk180.com> 
Based in Kansas City, Aquila is one of the top wholesalers of electricity and natural gas in North America and is an innovative provider of risk management products and services. The company also owns and controls a diverse portfolio of merchant assets, including power plants, gas storage, pipeline, and processing facilities, and other complementary merchant infrastructure facilities. Outside North America, Aquila provides wholesale energy services in the United Kingdom, Scandinavia and Germany. Aquila is 80 percent owned by UtiliCorp United (NYSE: UCU <http://finance.yahoo.com/q?s=ucu&d=t> - news </n/u/ucu.html>), a multinational energy company based in Kansas City with more than 4 million customers. It operates in the United States, Canada, New Zealand and Australia. 

Louise Kitchen
Chief Operating Officer
Enron Americas
Tel:  713 853 3488
Fax: 713 646 2308