Message-ID: <17723225.1075841441946.JavaMail.evans@thyme> Date: Mon, 24 Dec 2001 08:29:27 -0800 (PST) From: m..presto@enron.com To: dana.davis@enron.com Subject: RE: Proposal for 2002 Purchase Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Presto, Kevin M. X-To: Davis, Mark Dana X-cc: X-bcc: X-Folder: \ExMerge - Presto, Kevin M.\Sent Items X-Origin: PRESTO-K X-FileName: kevin presto 2-7-02.pst 175k/yr. Wow - you get em. -----Original Message-----=20 From: Davis, Mark Dana=20 Sent: Mon 12/24/2001 7:39 AM=20 To: Presto, Kevin M.=20 Cc:=20 Subject: FW: Proposal for 2002 Purchase Looks like you pissed him off. I guess he doesn't understand the how these= confirms are governed. IDIOT -----Original Message----- From: Tricoli, Carl=20 Sent: Saturday, December 22, 2001 10:56 AM To: Presto, Kevin M.; Portz, David; Miller, Don (Asset Mktg) Cc: Sturm, Fletcher J.; Davis, Mark Dana Subject: RE: Proposal for 2002 Purchase Thanks - that's what I needed to know. I'm still not sure if it is a two-w= ay termination (yes I know the difference) because there's no language that= indicates we'd be paid if we're in the money in a termination. There is a= provision that allows us to cease delivery "by reason of ... significant c= hange in operating condition"; if we don't deliver, there's an LD calculati= on, which if positive, we have to pay. There doesn't appear to be any lang= uage that causes WEPCo to pay us if we don't deliver and we're in the money= . (Hence my question to David) Otherwise, the only way to terminate is wit= h one year's advance written notice - there are no Event of Default provisi= ons and remedies, such as for bankruptcy. (Which I'm assuming you know sinc= e you're familiar with the contract). What I didn't know was your longer t= erm view of the market - this obviously matters in evaluating their offer i= f the contract is one way and we are unhedged. In any event, for now they = can either pay us the $1.2 million or we'll plan on delivering in January. = I'll call them onWed and let you know so we can schedule delivery is neces= sary.=20 =20 -----Original Message-----=20 From: Presto, Kevin M.=20 Sent: Sat 12/22/2001 8:33 AM=20 To: Tricoli, Carl; Portz, David; Miller, Don (Asset Mktg)=20 Cc: Sturm, Fletcher J.; Davis, Mark Dana=20 Subject: RE: Proposal for 2002 Purchase Wisconsin's offer is a joke. =20 =20 Carl - This is is clearly a two-way termination or they would have no offer= at all (I'm assuming you understand the difference). We can buy Cal-02 C= om-Ed under $30/Mwh all day long. This is a position we will deliver on t= o preserve the in-the money value. I would make it clear to Wisconsin tha= t we intend on delivering in January and every single month thereafter beca= use it creates positive cash flow for the estate. We also have broker quo= tes that show the market is 28 at 29 for Cal 02. I would accept nothing l= ess than $1.2 million. =20 Thanks. -----Original Message-----=20 From: Tricoli, Carl=20 Sent: Fri 12/21/2001 2:42 PM=20 To: Portz, David; Presto, Kevin M.; Miller, Don (Asset Mktg)=20 Cc:=20 Subject: FW: Proposal for 2002 Purchase This contract is for 50Mw peak into COMED, Seller's Daily Choice, Cal '02 @= $34.75/MWh. Our MTM is $1,244,412; their offer is $663,000. It appears t= o be a one-way contract, but it's hard to tell given the brevity of the con= tract. David - what happens if we don't serve the load - do we get nothing= ? We need to decide if we want to begin serving the load and negotiate a b= etter price - they want to have done by 12/28. =20 =20 Carl Tricoli Cell: 713 826-1439 -----Original Message----- From: Klarer.Jeff [mailto:Jeff.Klarer@wepco.com] Sent: Friday, December 21, 2001 1:32 PM To: Tricoli, Carl Cc: Splinter.Donald; Abood.Gerald; Kiesling.Don; Cummings.Chuck Subject: Proposal for 2002 Purchase Carl,=20 Attached is Wisconsin Electric's proposal for closing out the purchase Wisc= onsin Electric made from Enron for 2002. As I mentioned to you earlier, Wi= sconsin Electric is looking to finalize any agreement by December 28th. If you have any questions, you can contact me at (414) 221-4350 through the= close of business today (December 21st).=20 The appropriate person to contact the week of December 23rd is Mr. Don Spli= nter at (414) 221-4650.=20 Sincerely,=20 Jeff Klarer=20 Power Trader=20 <>