Subject: Energy Trading Paper
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Wed, 1 Nov 2000 14:34:00 -0800 (PST)

FYI. This is a pretty paper on legal/risk aspects of power trading. I think 
it would help in training future lawyers/staff.

Alan
----- Forwarded by Alan Aronowitz/HOU/ECT on 11/01/2000 10:32 PM -----

	Jane McBride@ENRON
	10/16/2000 02:43 AM
		 
		 To: Alan Aronowitz/HOU/ECT@ECT, Mark Evans/Legal/LON/ECT@ECT, Joseph P 
Hirl/AP/ENRON@ENRON, Michael Grimes/AP/Enron@Enron, Nicholas 
O'Day/AP/Enron@Enron, Darren Delage/AP/Enron@Enron, Mark 
Crowther/AP/Enron@Enron
		 cc: 
		 Subject: Energy Trading Paper

I have received this note (for free) from Baker & McKenzie, which was 
prepared by one of their US offices.
Feel free to distribute this to anyone within Enron who you think find it 
interesting.
Jane

----- Forwarded by Jane McBride/AP/Enron on 10/16/2000 04:41 PM -----

	[email-masked]
	10/16/2000 03:53 PM
		 
		 To: [email-masked]
		 cc: 
		 Subject: Energy Trading Paper

Dear Jane,

Further to our discussions on Friday, I attach a copy of the Energy Trading
Paper prepared by our Washington office.

The paper is relevant to what we are focussing on now with EPSA, and 
discusses:
what is happening in the US and English markets, the legal issues in merchant
power sale contracts, the EEI agreement (on which Enron's EPSA is largely 
based,
or was it vice versa), and compliance issues.

A few of points I found particularly interesting:

* The way in which many of the risks are born seems to be reasonably
settled in the US market/EEI form.  The issue is to what extent Japan
will/should follow the same allocation, on which subject the Enron EPSA seems 
to
be setting the pace, at least for the moment.

* We cannot discount the danger that some of the counterparties in Japan
will in fact become insolvent or choose not to perform.  We have attempted to
cover this in EPSA.

* The treatment of force majeure, particularly non-performance by the
back-to-back supplier/customer, will need more attention as specific fact
situations arise.

* The need for a commercial/legal response system to be in place to
immediately address any failures.

I hope you find the paper useful and, as discussed, I rely on you to 
distribute
it to other persons within Enron who are likely to be interested.

Best regards

Paul Davis
 <<Energy Trading Paper.doc>>

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 - Energy Trading Paper.doc