Agreed.   I think Bradford already blew up the Constellation deal.

 -----Original Message-----
From: 	Herndon, Rogers  
Sent:	Friday, November 16, 2001 8:38 AM
To:	Aucoin, Berney C. 
Cc:	Presto, Kevin M.
Subject:	Heads - Up - Bernstein Supply Brewing

Berney -

A heads up - Bernstein is working on a supply deal with Constellation.  I am told it is the same as Alleghenny but have not seen.  I think they are still working on language, etc., but I get conflicting signals as I think they are already talking pricing - who knows.   I am not even sure what regions - these guys are operating in stealth mode as usual.  

I have reiterated to Deb Merrill and Janet that these deals need to come through the traditional sales channels once the Master and Confirms have been agreed to (we need to be comfortable with Master and Confirm before any pricing is contemplated).  Specifically, we need to make sure that 1)  Legal provides us a detailed gap analysis between contracts (purchase vs. sales), 2) all pricing comes through traditional channels (deal mgmnt/commodity structuring), 3) we know exactly how this is priced in relation to mid-offer, consider residual desk risk and 4) most importantly, we need to know exactly what type of orig. is being anticipated.  On the last point, I do not contemplate granting any orig for supply marked above our mids.  My view on this is that if they want to bring in supply between our mid-offer, they can sell this supply directly to customers, I do not plan to manage the risk.

Please let me know when you begin hearing about this.

Thanks,
Rogers