Message-ID: <1359872.1075843954110.JavaMail.evans@thyme> Date: Thu, 10 May 2001 08:55:00 -0700 (PDT) From: per.sekse@enron.com To: jeffrey.shankman@enron.com, mike.mcconnell@enron.com Subject: Entergy options purchased for Contingent Call Option Book Cc: david.hoog@enron.com, joana.bekerman@enron.com, john.best@enron.com, banu.ozcan@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: david.hoog@enron.com, joana.bekerman@enron.com, john.best@enron.com, banu.ozcan@enron.com X-From: Per Sekse X-To: Jeffrey A Shankman, Mike McConnell X-cc: David Hoog, Joana Ryan Bekerman, John Best, Banu Ozcan X-bcc: X-Folder: \Mark_McConnell_June2001\Notes Folders\Notes inbox X-Origin: MCCONNELL-M X-FileName: mmcconn.nsf FYI. As part of our business plan to manage the power price risk for the contingent call option book we purchased the following options from the desk yesterday. It was not the most cost effective way to hedge ($40 for a $200 call with underlying around $100), but it keeps us on track executing the business plan. As the portfolio becomes larger and we move to using swaps as well as options to hedge, we'll be better positioned to minimize our hedging costs. We had a good meeting with Berkshire this morning on the reinsurance piece of the book. I'll have a syndication report prepared for you with status on Friday. Per ---------------------- Forwarded by Per Sekse/NY/ECT on 05/10/2001 03:57 PM --------------------------- From: Harry Arora/ENRON@enronXgate on 05/09/2001 03:38 PM To: David Hoog/NY/ECT@ECT, Hai Chen/ENRON@enronXgate cc: Subject: Entergy options David We dealt on the following EPMI LT Options sold to you 200 DC in July01 & Aug01 Entergy (On peak, financially settled against MW Daily) - 20 MW for upfront premium of $ 40 per MWhr 200 DC in June01 Entergy (On peak, financially settled against MW Daily) - 20 MW for upfront premium of $ 9 per MWhr We need to setup a counterparty to put these in our books. If you can kindly let us know the name of the entity which is going to be our counterparty (I am hoping it is a 100% Enron Wholesale entity) we can put these in our books. Regular confirm can follow. Hai Chen from our group will be calling you to book this deal. Thanks Harry Arora