RE: P&L Impact of Volumetric True-Up ,
 John -

FYI.  From what I vave seen thus far I think it will be difficult getting a=
nything accurate or timely out of Evan Hughes' group.  This is the group th=
at is responsible for billing and settlements - the weakest link in our rec=
onciliation problems.  Unlike ENA Power, Retail has Deal Capture and Risk A=
nalysis under Sally Beck and the Settlements process under EES (Evan Hughes=
).  All three of these functions need to work together and feed into Wade S=
tubblefield (Wes Colwell) in order to get an accurate and timely reconcilia=
tion.  Dave has wanted to keep Billing and Settlements because of the "Cust=
omer Touch" they want to maintain.  I think this approach is delaying our g=
etting control of and resolving the issues that are keeping us from monthly=
 reconciliations and cash to actual liquidations.  I think EES needs to be =
given an ultimatum to 1) either provide us with a Settlements function that=
 allows us to flash and reconcile or 2) get out of the way.  We can provide=
 them with the bill and they can lick it.

Rogers=20

=20
---------------------- Forwarded by Rogers Herndon/HOU/ECT on 05/22/2001 08=
:01 AM ---------------------------


Wade Stubblefield@EES
05/22/2001 07:57 AM
To:=09Rogers Herndon/HOU/ECT@ECT
cc:=09=20
Subject:=09RE: P&L Impact of Volumetric True-Up  =20

Rogers,

I'll wait for Mike's response, but these should all be forward volume adjus=
tments as a result of truing up the volumes based on actual data received. =
 The past activity difference is captured in our potential flash to actual =
adjustment that we have pegged at a rough $75MM right now.  One of the diff=
iculties we have in reconciling flash to actual is the difference in actual=
 volumes versus volumes liquidated from the books/batch models.  With respe=
ct to how much more exists, this is one of the key items, I think, that the=
 Project Phoenix team will want to get from Evan Hughes' group to get the f=
orecasted volumes right.  My suspicion is that we need volumetric true-ups =
on many of our deals.

Again, let's verify the above with what Mike's response is.

Wade



Rogers Herndon@ECT
05/22/2001 07:43 AM
To:=09Michael Kim/HOU/EES@EES
cc:=09Wade Stubblefield/HOU/EES@EES, John J Lavorato/Enron@EnronXGate, Kevi=
n M Presto/HOU/ECT@ECT=20
Subject:=09RE: P&L Impact of Volumetric True-Up  =20

Michael -

Are these changes in the forward volumes (unrealized losses).  Can you expl=
ain the reason for these adjustments?  How much more exists that we need to=
 address?

Thanks,
Rogers






From:=09John J Lavorato/ENRON@enronXgate on 05/22/2001 07:28 AM
To:=09Rogers Herndon/HOU/ECT@ect
cc:=09=20
Subject:=09RE: P&L Impact of Volumetric True-Up

20 Million !!!!!!  Is this back money or forward money.  Why did the volume=
s change so much.

 -----Original Message-----
From: =09Herndon, Rogers =20
Sent:=09Monday, May 21, 2001 6:53 PM
To:=09Lavorato, John; Presto, Kevin
Subject:=09P&L Impact of Volumetric True-Up

FYI


---------------------- Forwarded by Rogers Herndon/HOU/ECT on 05/21/2001 06=
:52 PM ---------------------------

=20
Wade Stubblefield@EES
05/21/2001 05:35 PM
To:=09Rogers Herndon/HOU/ECT@ect
cc:=09=20
Subject:=09P&L Impact of Volumetric True-Up

FYI
---------------------- Forwarded by Wade Stubblefield/HOU/EES on 05/21/2001=
 05:35 PM ---------------------------



 =09Enron Energy Services  From:  Michael Kim                           05/=
21/2001 03:20 PM Phone No: 713-853-1902=09
=09=09





To:=09Neil Hong/HOU/EES@EES, Meredith M Eggleston/HOU/EES@EES, Wade Stubble=
field/HOU/EES@EES, Don Black/HOU/EES@EES
cc:=09=20
Subject:=09P&L Impact of Volumetric True-Up

We have re-priced Suiza, Packaged Ice, and Arch of Chicago with updated vol=
ume information from our billing system.  The impact is as follows:

=20

The impact will be recognized on the DPR and G/L, pending Accounting Depart=
ment's "green light."

Thank you.

Best regards,

MSK













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