Message-ID: <24512621.1075840006026.JavaMail.evans@thyme>
Date: Mon, 18 Jun 2001 18:45:38 -0700 (PDT)
From: bill.williams@enron.com
To: kate.symes@enron.com
Subject: Enron Canada
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X-From: Williams III, Bill </O=ENRON/OU=NA/CN=RECIPIENTS/CN=BWILLIA5>
X-To: Symes, Kate </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Ksymes>
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Kate, take a quick look at this would you?

Group,

Going forward we will be transacting with Enron Canada Corp on an over-the-=
counter basis.  We will provide them with a bid and an offer suitable for b=
uying from or selling to them non-firm energy.  Enron Canada will contact u=
s each morning to inquire about possiblities for export and import.  We sho=
uld be familiar with the Alberta Power Pool forecast and be aware of the co=
nversion from CDD to USD.  The lead or NW trader will provide Enron Canada =
with their estimate or feel of the market.  Enron Canada will be trying nea=
rly every hour to obtain non-firm transmission.  If this is an unwise pract=
ive from a risk-reward standpoint based on our understanding of the market,=
 WE need to tell them, as they are losing $6.40 per mw CDD on unused tranny=
 with zero chance for return.  Further, Enron Canada wants the opportunity =
to transact with other counterparties at the BC Border.  If we cannot use t=
heir energy they have asked to be able to contact WWP, IPC or TransAlta aft=
er giving us first look to attempt to recoup some of their loss.  I do not =
see a need for this and think there is potential for embarrassment and dama=
ge to customer relations.  If we are in contact with Enron Canada before ha=
nd (start of the day, top of the hour, etc.) we should be able to get them =
the best price for their energy.  Be very clear in your dealings with the N=
W counterparty that the energy is non-firm.  Determine a book-out price if =
necessary to solve problems with physical flow.  We are basically buying a =
put or a call.  Finally, I would like to see the communication with Enron C=
anada improve.  Personal experience and observation has us not communicatin=
g with them as closely as possible and typically only speaking with their r=
eal-time group at the bottom.  I feel we can do better.  I want to prevent =
a repeat of this weekend (ECC selling/buying from a counterparty in the US =
without our knowledge) and do not want the NW being scoured by both Enron C=
anada and Enron North America.  This is counterproductive for both of us fo=
r obvious reasons.  Providing a bid/offer and being prepared to act on it i=
s a change in our relationship with Enron Canada.  This should force a rene=
wed emphasis on communication and market fundamentals that should only be b=
eneficial.  If you have questions or ideas regarding the relationship with =
Enron Canada please let me know.

To be sent to John Zufferli (equivalent of Tim B in Canada)
and Portland Shift