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 buying from or selling to them non-firm energy.  Enron Canada will contact us each morning to inquire about possiblities for export and import.  We should be familiar with the Alberta Power Pool forecast and be aware of the conversion 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 nearly every hour to obtain non-firm transmission.  If this is an unwise practive 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 their energy they have asked to be able to contact WWP, IPC or TransAlta after 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 damage to customer relations.  If we are in contact with Enron Canada before hand (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 NW 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 Canada improve.  Personal experience and observation has us not communicating with them as closely as possible and typically only speaking with their real-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 Canada and Enron North America.  This is counterproductive for both of us for obvious reasons.  Providing a bid/offer and being prepared to act on it is a change in our relationship with Enron Canada.  This should force a renewed emphasis on communication and market fundamentals that should only be beneficial.  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