We should condition all "free" sleeve trades on future trades with the counterparty.   For example if Reliant does not do at least 20 trades per week with Enron, then an $0.25/Mwh charge will apply.
 
I simply don't believe these guys will do incremental business with us at this time so why not make some money in the sleeving process.   I can almost assure you that these counterparties are motivated to do these trades anyway.   Once they are done cleaning there books with us, they will do very limited business (only very large margin deals like the 4 yr EES supply deal and then command a huge cash collateral.).
 
I will do what you ask, but I strongly disagree.

-----Original Message----- 
From: Lavorato, John 
Sent: Fri 11/23/2001 1:10 PM 
To: Presto, Kevin M. 
Cc: 
Subject: FW: Sleeves/bookouts



Kevin 

Help out with Reliant.  

John 

 -----Original Message----- 
From:   Bradford, William S.  
Sent:   Wednesday, November 21, 2001 12:22 PM 
To:     Lavorato, John; Kitchen, Louise 
Subject:        FW: Sleeves/bookouts 

This is from Reliant's Cheif Risk Officer.  Please speak with Presto about facilitating these trades.  Also, Badeer was trying to ring positions out with MS and AEP and I told him not to do anything with AEP.

Bill 

 -----Original Message----- 
From:   emeche@imcingular.com ( emeche)@ENRON  
Sent:   Wednesday, November 21, 2001 11:42 AM 
To:     Bradford, William S. 
Subject:        Sleeves/bookouts 

We have had generally good success working with your traders and credit departments working on mutually beneficial 3-way offset transactions. Much appreciated. Even today in the west. But I don't think your pjm or ercot traders agree with the worthiness of that type of activity. Pjm trader will not participate without a spread and ercot trader won't even discuss. We are not panicked here but trying to make credit room for continued trading activity makes sense for us all. I have informed our traders to be o

pen to such opportunities, but not to actively seek them out because of the confidentiality provisions in our contracts. That's why the interaction of your traders is vital. There are two pending opportunities in pjm and ercot. Hope you can help.

I also just got a writeup of a potential new 4-year deal in the west our guys are negotiating with your EES supply desk. I am reviewing now. Of course it only adds to our mutual credit exposure, so making room in other areas makes so much sense.

Eddie Meche