Subject: RE: Weather product focus for EES
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Thu, 31 May 2001 06:58:00 -0700 (PDT)

Thank you for your email and I apologize for my delay in responding.  For 
just over a year now, we have been working with multiple areas within EES to 
develop opportunities on two fronts: 1) transferring EES's weather exposure 
into the weather derivatives market place and 2) developing products for EES 
to offer to its clients and/or that allow EES to bid more aggressively.

We are very excited about the changes that have taken place at EES and are 
hopeful that we can now begin a mutually beneficial working relationship.  As 
you will see from the attached two documents, we are actively engaged with 
Gordon Savage's group and have a number of individuals within the weather 
group who are familiar with EES.  The Harrah's opportunity originated by Ken 
Rubeli appears to have the most immediate potential to provide an EES client 
with a weather hedge. After the changes, Mallik Avs contacted us to start an 
initiative to hedge volume risk with weather derivatives.

On the weather desk, we are currently very interested in getting long Cooling 
Degree Days ("CDDs"), i.e. hot weather in southern California and the desert 
southwest.  Our currently long position there has done extremely well and we 
will be capping out on those positions shortly.  We believe that if EES were 
to directly approach the weather market place for CDD Calls or swaps you 
could obtain positions that we are unable to i.e. we would like EES to sleeve 
for the weather desk.

Again, we are excited about the new management team and structure at EES and 
look forward to an opportunity to work with you and your people.

 -----Original Message-----
From:  Dietrich, Janet  
Sent: Tuesday, May 15, 2001 9:32 PM
To: Tawney, Mark
Cc: Shankman, Jeffrey A.; McConnell, Mike
Subject: Weather product focus for EES

Hey Mark. I've talked with both Jeff and Mike, and everyone agrees that we 
need to ensure we can bring weather risk management and products into the EES 
distribution channel. I'd like to know how we can leverage your group, its 
knowledge and capability to maximize the opportunities we have to move 
weather products into our sales channels. 

Also, I understand we are currently working weather products into several 
deals. Harrah's Entertainment is one that is a high priority for us. Please 
let me know if I can help facilitate taking these discussions/ideas and 
turning them into executable products.

I'd appreciate your thoughts on the above items at your earliest convenience. 
Thanks!