Message-ID: <25154354.1075861059167.JavaMail.evans@thyme> Date: Tue, 19 Feb 2002 16:25:15 -0800 (PST) From: alan.aronowitz@enron.com To: dominic.carolan@enron.com Subject: FW: Weather Positions Cc: sara.shackleton@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: sara.shackleton@enron.com X-From: Aronowitz, Alan X-To: Carolan, Dominic X-cc: Shackleton, Sara X-bcc: X-Folder: \Sara_Shackleton_Mar2002\Shackleton, Sara\Inbox X-Origin: Shackleton-S X-FileName: sshackl (Non-Privileged).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.