Subject: EES risk quantification and mitigation
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Fri, 18 May 2001 01:50:00 -0700 (PDT)

Rick:
The internal design and testing of EES risk quantification and mitigation is 
now in a stage complete enough to be rolled in.  The process is cooperative 
in nature between URM (utility risk management), GA in Houston, and GA in the 
regions.  Harry, Stella, Pat, and I shall start communicating this process to 
the colleagues, each in his/her regions shortly.    

Please let me know if you have any comment and/or advise.  Furthermore, 
please advise if you want me to walk through the process with you to 
demonstrate its abilities and output.

Best regards

AI   
----- Forwarded by Amr Ibrahim/ENRON_DEVELOPMENT on 05/18/2001 08:40 AM -----

	Amr Ibrahim
	05/17/2001 05:39 PM
		 
		 To: Stella Chan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Patrick 
Keene/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron
		 cc: Alberto Levy/SA/Enron@Enron
		 Subject: 

Here it is guys including the new text in blue. 

Stella Chan and Pat Keene are currently streamlining the process of providing 
Government and Regulatory support to URM (Utility Risk Management) to include:
Curve validation Process, 
Quantifying of Regulatory Risks/Change, 
Coordination of Strategy Development, and 
Coordination of Strategy Implementation.  
A description of these functions are as follows:
Curve Validation Process:  This process aims at reviewing, and validating, 
every 90 days, the regulatory inputs of: a) the largest 60 curves in Enron's 
books, and b) the new deals that are under approval during the review 
period.  The curve validation process is currently in progress and  GA 
personnel in Houston and the regions are already  involved.  
Quantification of Regulatory Risks/Change:  This process aims at quantifying 
dollars terms--the impact of the change in the regulatory inputs on a 
specific position.  The model is now in place, and test is in progress.  This 
process will involve initiation by GA regional personnel (also possibly by 
URM) with potential regulatory changes that may impact EES positions.  The 
quantification exercise will be done jointly by URM and GA.   
Coordination of Strategy Development:  The outcome of curve validation and 
quantification of regulatory risks--functions 1, and 2 above--will likely 
call for a group of regulatory measures and action items. The function of 
Stella and Pat is to coordinate and facilitate strategy sessions in 
association with the owner of the curve in URM, and her/his counterparts in 
Midwest/Midsouth, Atlantic Seaboard, the Western Region, and Texas & Oklahoma 
Ercot, and SPP.   The strategy sessions shall come up with suggested action 
items, probability of success, and likely associate costs for 
implementation.  Stella and Pat shall be responsible for seeking the buy-off, 
and approval, of  the strategy from URM and securing the needed budget, if 
necessary.
Coordination of Strategy Implementation:  Once the strategy is approved, it 
shall enter the implementation stage.  The role of Stella and Pat is to 
coordinate between URM requests/positions and their counterparts in the 
regions.  As the case now, they shall continue supporting the regions in the 
implementation as needed.   

To facilitate these functions Stella and Pat shall emulate the coverage lines 
of the URM.  Stella shall coordinate the Eastern Region, while Pat shall 
coordinate the Western Region.  These regions do not follow the conventional 
wisdom, and need to be specifically defined.  They are:
 Eastern Region:  ME, NH, VT, NY, MA, RI, CT, NJ, PA, MD,  DE, VA, WV, NC, 
SC, GA, AL, TE, KY, and FL. 
 Western Region:  The remaining states (including OH in the east).

From the Regional perspective, the process will naturally be overseen by the 
Regional Managers (i.e., Steve, Janine, Jean, and Paul), meanwhile, Harry 
shall oversee it from Houston side.  The process, however, is designed to be 
as autonomous as possible and shall make the least possible demand on the 
time and work load of the regional managers (usually in the final sprint for 
approvals).  

Stella, Pat, and Harry shall visit you shortly to discuss the details of the 
processes outlined above and listen to your comments and advise.