Just out of curiosity, who is Thomas Geisel?  I assume he is an Enron 
person.  Do we already have a lawyer responsible for these issues?  I seem to 
remember that Robert and Justin were handling the IPE and Martin and Mark 
Elliott the NordPool and ELEX issues.  It might make sense to have one person 
be the go-to guy for exchange issues with another designated for each 
exchange.  What do you think?  It worries me a little to have only business 
people involved - particularly if this is an early stage where we may have 
our best hope for effective legal input.




Scott Sefton
01/06/99 07:54 AM
To: ECT London European Trading
cc:  
Subject: energy exchange in Germany

See the note below regarding efforts to create an exchange traded electricity 
contract in Germany. As you will see, one of the efforts involves NYMEX.
---------------------- Forwarded by Scott Sefton/LON/ECT on 06/01/99 13:50 
---------------------------


Thomas Geisel
05/01/99 10:08
To: Jay Fitzgerald/LON/ECT@ECT, Peter Styles/LON/ECT@ECT, Scott 
Sefton/LON/ECT@ECT, John Thompson/FRA/ECT@ECT, Joe Gold/LON/ECT@ECT, Peter 
Kreuzberg/LON/ECT@ECT, Christopher McKey/LON/ECT@ECT
cc: Mark Schroeder/LON/ECT@ECT 
Subject: energy exchange in Germany

With regard to the energy exchange projects in Germany the following meetings 
have been scheduled:

1. Concerning the D_sseldorf project we will meet with Mr. Elberskirch, 
general manager of the D_sseldorf B"rse, on Tuedsday, Jan. 12, between 9:00 
and 12:00 in the morning. Mr. Elbersbusch will be accompanied by two McKinsey 
consultants, probably Dres. Hirse and Schrader. They will discuss with us the 
feasibility study that McKinsey will present at the next "B"rsenratsmeeting" 
on Jan. 13 (the day following our meeting). As the study has not yet been 
finalized Mr Elberskirch will not forward any copies or drafts to us before 
the meeting. I have indicated that from our side Jay (possibly), Joe, John, 
Chris and myself would participate in the meeting.

2.The initiators of the Hannover project will meet with representatives of 
NYMEX on Jan. 12 at 9:30 a.m. in London. According to Mr. Hagena, who is in 
charge of the project on behalf of the state government of Lower Saxony, 
representatives of the "Stromwirtschaft", i.e. of the major electricity 
companies (in particular Preussen Elektra) will also participate in this 
meeting. After this meeting, i.e. between 15:00 and 17:00, Mr. Hagena and Mr. 
Wudy (Commerzbank Frankfurt) would like to meet with us. One of the issues 
that will probably be raised is whether Enron would be prepared to become a 
shareholder in the exchange company ("Tr,gergesellschaft"); it is planned 
that the initial capital contributions of the shareholders (Stammkapital) 
will amount to DM 20 Mio. 
Participants in the meeting on our side would be the same as in the meeting 
with the D_sseldorf people.

3. The "consensus talks" on the German energy exchange project are now 
scheduled for January 26, 1999 in the offices of the Commerzbank in 
Frankfurt. The meeting will be chaired not by the Minister of Ecomics, Mr. 
M_ller, but by Mr. Tacke, who is State Secretary in the Ministry of Economics 
and who has been Federal Chanceler Schroeder%s most important economic 
adviser for the last couple of years. Tacke is likely to be a strong 
supporter of the Hannnover project (he served under Schroeder in Lower 
Saxony).
Invited to the meeting are representatives of the large electricity companies 
(which have supposedly all already accepted the invitation), seven major 
industrial consumers, natural gas companies (Ruhrgas, Wintershall/Wingas, 
BEB), electricity traders (such as VASA and us) and banks (in particular the 
Commerzbank and the Norddeutsche Landesbank). The invitation to Enron will be 
addressed to Jay Fitzgerald. 

TG