Subject: FW: Weather Positions
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Tue, 19 Feb 2002 16:25:15 -0800 (PST)

Dominic:

I would like for you to work on this. Please see me tomorrow.

Alan

 -----Original Message-----
From: 	Craig, Braedi   On Behalf Of Sweeney, Kevin
Sent:	Tuesday, February 19, 2002 4:27 PM
To:	Aronowitz, Alan
Subject:	FW: Weather Positions

Braedi Craig
Asst. To Kevin Sweeney
EIM Mid & Back Office
Enron Networks LLC
Phone: (713) 345-4493

 -----Original Message-----
From: 	Sweeney, Kevin  
Sent:	Thursday, February 14, 2002 8:57 AM
To:	Smida, Ed
Cc:	Apollo, Beth
Subject:	FW: Weather Positions

Ed,

These are positions in the Weather group that are part of the EGM summary that you have which Mark is looking to get some movement on prior to the 28th of Feb.

Kevin
 -----Original Message-----
From: 	Apollo, Beth  
Sent:	Wednesday, February 13, 2002 6:06 PM
To:	Sweeney, Kevin
Cc:	Hall, Bob M
Subject:	FW: Weather Positions

Kevin -- can we get together on these  -- are you aware of all of these potential  settlements
 -----Original Message-----
From: 	Tawney, Mark  
Sent:	Wednesday, February 13, 2002 2:12 PM
To:	Apollo, Beth
Subject:	Weather Positions

Beth,

As Greg Asaf has mentioned to you, we believe that there are some weather positions that require prompt attention. I am especially concerned that we get moving on the curve validation and position understanding prior to the group leaving on February 28th. The following is a list of those positions: 

Goldman Sachs Puts
These trades have all been terminated as of December 4, 2001. We believe that there is between $31 million and $36 million of value to Enron in these transactions.  These are extremely large relative to the market and will require special attention to negotiate out of. 

ABN/AMRO (London) Calls
This short call position is part of the largest transaction ever executed in the weather market.  Accordingly, this is also a potentially difficult negotiation. In discussions with ABN/AMRO they have expressed a willingness to let us out of these flat and are sending me a letter to that effect.

Cargill (Europe) Portfolio
We are out of the money to Cargill about $300K, but to avoid the hassle of managing the positions Cargill would just like to let us out flat.  They have been trying to reach someone to help them.

Sacramento Municipal Utility District ("SMUD") and related put options
The precipitation put options hedging this transaction are held by Enron Re which is going into voluntary liquidation.  The contracts with the insurance companies require that we maintain a weather station at the site.  The group responsible for managing the sites no longer exists.

AIG Put Options
This curve needs to be validated and our value independently confirmed. Again, there are unique attributes to this transaction that should be worked out while we are still here.

Enron Re
In addition to the puts held by Enron Re, we have a $4 million receivable with Enron Re.

Mark.