One clarification -P/L associated with that VaR is also reported on the DPR, as Enron reports Return on VaR to senior management and the Board.

Cassandra.

 -----Original Message-----
From: 	Gorny, Vladimir  
Sent:	Thursday, August 02, 2001 1:25 PM
To:	Hayslett, Rod; Sayre, Frank; Schultz, Cassandra; King Jr., Frazier; Tweed, Sheila; Hartsoe, Joe
Subject:	Regulatory Businesses Reporting

The new version of the Risk Management Policies extends coverage to the regulated businesses (at the present time, PGE and ETS only). As a result, a dual limit structure has been developed that covers the "arbitrage trading" and "regulatory-hedging" activities of these business units. 

Thus, we are proposing the following reporting guidelines:

"Arbitrage trading" Activities

- Aggregated into the Enron-wide Daily Position Report (DPR) by the Global Operations Group that is responsible for reporting corporate-wide activities (reporting to Sally Beck).

- The following information is reported on the Enron DPR:

	PGE VaR		$xxx
	ETS VaR		$xxx

- The report is distributed to each Enron's Business Unit Head

"Regulatory-hedging" Activities

- Reported on a Regulatory DPR, compiled by employees of PGE/ETS

- Distributed to PGE/ETS Management, RAC (Corporate group), and the Enron CEO

- see the report template below

 << File: Reg DPR.xls >> 
Vlady.