I would appreciate your thoughts on the legal implications of netting.  
Thanks!!
---------------------- Forwarded by Tanya Rohauer/HOU/ECT on 10/23/2000 03:19 
PM ---------------------------
   


From:  Tanya Rohauer                                                          
   10/23/2000 03:26 PM	
	
	
	                           
	

To: Nancy Haralson/NA/Enron@ENRON
cc: Debbie R Brackett/HOU/ECT@ECT, Rebecca Ford/HOU/ECT@ECT, Kim S 
Theriot/HOU/ECT@ECT 
Subject: EGM Bank Account info

Nancy,

When did you leave EBS?

 When you have a few minutes, I'd like to discuss how we are breaking out 
internal business groups activity.  Specifically, my concern is with using 
separate bank accounts for different commodities that are settled financially 
within Enron North America Corp (legal entity).  We met with the financial 
settlements group today to discuss credit issues surrounding settlements, and 
this emerged as one of the more important issues.  

As you may be aware, the ISDA document calls for all payments that are due on 
the same day to be netted together.  If we use separate bank accounts, this 
cannot happen.  There are two credit issues with not adhering to this: 1) if 
we send payment to a cp for one commodity but do not receive the payment that 
may be owed to us for another commodity, we have lost the ability to net 
those payments, and will be at risk for the outgoing amount, and 2) in a 
default situation, our position on close-out netting may be compromised if we 
have not been netting in practice. 

 I am not sure how often this occurs in reality due to different settlement 
dates for different products.  I also need to speak to Mark Taylor to 
determine the likelihood of our legal position in court being compromised.  
Can you help  me to understand why we need to have different bank accounts?  
I understand that for internal reporting purposes, we need to use different 
ledger accounts, but I would not think we would need to extend this to the 
physical movement of cash.

Thanks for your help,
Tanya
---------------------- Forwarded by Tanya Rohauer/HOU/ECT on 10/23/2000 03:05 
PM ---------------------------


Rebecca Ford
10/23/2000 03:02 PM
To: Debbie R Brackett/HOU/ECT@ECT, Tanya Rohauer/HOU/ECT@ECT, Bob 
Bowen/HOU/ECT@ECT
cc:  
Subject: EGM Bank Account info

Just FYI - 

The note below indicates that all of the weather transactions that are 
settling out of 0364 will now be settling out of 0460, thus using the new 
bank account that has been set up for 0460.

Thank you,
Becky
---------------------- Forwarded by Rebecca Ford/HOU/ECT on 10/23/2000 02:59 
PM ---------------------------
From: Scott Tackett@ENRON on 10/23/2000 02:19 PM
To: Rebecca Ford/HOU/ECT@ECT
cc:  
Subject: EGM Bank Account info

Here are the accounting changes I received from Nancy for the migration of 
the Weather group over to EGM.

Do you think it is possible for us to have all the changes made (in UNIFY, 
GCP, etc...) so we are ready by the end of the first week in November?


---------------------- Forwarded by Scott Tackett/Corp/Enron on 10/23/2000 
02:08 PM ---------------------------


Nancy Haralson
10/23/2000 02:06 PM
To: Scott Tackett/Corp/Enron@Enron, Laurel Adams/HOU/ECT@ECT, 
Julia.sengele@enron.com
cc: Angeles.beltri@enron.com, thomas.myers@enron.com, Maya.beyhum@enron.com 

Subject: EGM Bank Account info


Scott/Laurel/Julia,

The cash services company for EGM is 1021.  The following bank accounts 
currently exist:
GL Acct  Description   Account # Routing
12805077 GP Cash Svc CIDE  38616564 031100209
12805078 GP Cash Svc CINY  30420778 021000089
12805079 GP Cash Svc BATX  3751443308  111000012 

All cash that is received and paid from ENA's cash services account related 
to EGM will need to be redirected to the applicable account above and 
coordinated with the any Global Counterparty changes as well.

There is also a BATX account on co 460.  The information is as follows:
GL Acct  Description   Account # Routing
12805051 ECT IES BATX Bank Acct 375143337 111000012

Receipts for EGM that went directly to co 364 should be redirected to co 460.

Laurel also mentioned  a Japanese Yen acct, a EURO acct, and Sterling acct 
that exist on co 530 that will be transferred to EGM (co 1Y2?)  EGM will also 
require a CAD account to be set up (co 1Y2?)

Thanks Nancy
---------------------- Forwarded by Nancy Haralson/NA/Enron on 10/23/2000 
10:43 AM ---------------------------


Nancy Haralson
10/20/2000 05:18 PM
To: Scott Tackett/Corp/Enron@Enron, Laurel Adams/HOU/ECT@ECT
cc: Angeles Beltri/HOU/ECT@ECT, Thomas Myers/HOU/ECT@ECT 

Subject: EGM settlements

In order to segregate EGM's business activity, it will be necessary to record 
transactions related to EGM's business unit  on entities within its own 
reporting rollup.  Currently, there is EGM settlement activity being booked 
to the following companies that are outside EGM's rollup:

Co 364 - Weather Trading,Emissions 
Co 54N - Emissions Trading
Co 967 - Weather Trading, Emissions Trading, Agricultural Trading, Interest 
rate, FX

Going forward (effective November), monthly activity on Co 364 related to EGM 
will be recorded on co 460, Co 54N on Co 460, and Co 967 on Co 1Y2.  In order 
to make this a smooth transition, but still make the change in an timely 
fashion, please give me your feedback on this as soon as possible.  Please 
let me know your issues concerning A/R, A/P, Cash, Global Counterparty and 
any other areas I may be leaving out.  I'll contact you on Monday to discuss 
further and see if this is feasible.

It is also our intent to move ytd September balances related to EGM's 
business to entities with in our own rollup.  This will probably be done at 
the CS/Hyperion level.  Since there are October transactions already 
recorded, we will probably make a general ledger reclass for October income 
statement activity to EGM's rollup.  Please let me know if you have issues 
with this as well.


Thanks!

Nancy