Message-ID: <18184783.1075861785660.JavaMail.evans@thyme> Date: Thu, 1 Nov 2001 08:27:48 -0800 (PST) From: m..presto@enron.com To: frank.hayden@enron.com Subject: RE: Market sees Enron paying a premium with bids Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Presto, Kevin M. X-To: Hayden, Frank X-cc: X-bcc: X-Folder: \KPRESTO (Non-Privileged)\Presto, Kevin M.\Sent Items X-Origin: Presto-K X-FileName: KPRESTO (Non-Privileged).pst No. We buy and sell where we see value. We don't even look at the other exchanges. -----Original Message----- From: Hayden, Frank Sent: Thursday, November 01, 2001 10:21 AM To: Presto, Kevin M.; Belden, Tim; Arnold, John Subject: Market sees Enron paying a premium with bids Is this true? And how large are premiums? Do we see this in gas? Thanks, Frank Market sees Enron paying a premium with bids Enron is being forced to pay a slight premium for forward contracts in the power market in what may be a reflection of concerns about its creditworthiness, according to a number of traders. The higher price the giant marketer is bidding on its EnronOn-line platform is either a credit premium, traders said, or the result of Enron being short and needing to bid higher than other players to cover its forward positions. There were other signs yesterday that worries continue about Enron's financial condition. Traders said while most shops are still trading with Enron, many are continuing to closely monitor their positions with Enron and limit their exposure by balancing out their positions and limiting transactions to purchases only. Traders echoed what market sources have been describing as a reluctance to risk contributing to Enron's problems. "It's 'business as usual' with Enron," one said, "and even if it weren't, I couldn't tell you. I can't say nothin' on this one."