FYI - see below.

Belden is the King!
---------------------- Forwarded by John J Lavorato/Corp/Enron on 09/07/2000 
07:26 AM ---------------------------
   
	
	
	From:  Tim Belden @ ECT                           09/06/2000 09:32 PM
	

To: John J Lavorato/Corp/Enron, Derek Davies/CAL/ECT@ECT, Rob 
Milnthorp/CAL/ECT@ECT, John Zufferli/HOU/ECT@ECT
cc:  

Subject: Initial Thoughts On Alberta

As a result of meetings in Calgary last week, I have come up with the 
following capabilities that we need to develop in Calgary to effectively 
trade, schedule, and settle in that market.  I envision a series of 
transition teams, organized by function, that are responsible for 
transferring systems, knowledge, and people from the east and west power 
desks up to the Calgary office.  These are my initial thoughts.  Things will 
obviously change as we learn more about the market rules and when we get the 
head of the desk in place.

Trading
Transition team - Tim Belden, Mike Swerzbin, Bill Greenizen
Hire head trader.  John L. and Tim are currently working with John Zufferli 
to guage interest and come to terms on relocation.  John Z. is planning a 
trip to Portland and Calgary as soon as he is able to fly.  Hopefully the 
week of September 16th.
Get EOL products defined and posted.  Greenizen hopes to get this done by 
September 16th.
Develop curves.  Currently using implied PPA bid curves.
Develop position reports.
Give offers to origination team.  Tim/Mike/Bill will provide prices to 
origination until head trader has been hired.

Risk
Transition team - Monica Lande and Kathy ??
Kathy traveled to Portland on 9/5 and 9/6 to learn about our risk process and 
book deals.
Book positions.  In process of entering five deals.  One for each unit, line 
losses for each unit, and payment for the PPA.  Will run mini book to ensure 
that close to zero value is created when all deals are booked and run against 
our curves.  Should have this done by September 8th.
Drop curves.
Create position reports.

Scheduling
Transition team - Jeff Richter, Bill Greenizen, Peggy H.
Learn and define scheduling requirements in Alberta.
Learn about California scheduling systems.
Assess applicability of California scheduling systems to Alberta market.
Hire a scheduler.

Real Time
Transition team - John Forney
Assess whether we need to run real time group in Calgary.  We may be able to 
start with someone on days and have nights and weekends covered from 
Portland.  Legal issues with Portland providing service to Calgary.
Assuming we want a real time person in Calgary ... hire a RT trader/analyst.  
We may be able to draw from Portland's real time desk for this.

Fundamentals
Transition team - Tim Heizenrader and Stephan ??, and Chris Wiebe
We can use the Portland fundamentals team to do much of the work before 
January.  We have the systems and most likely the staff to come up with the 
first generation of Alberta fundamentals.
Train a person who will eventually be located in Calgary on West Power 
Fundamentals -- systems and processes.  Stephan or Chris W. may fit this 
bill.  Must get buy in from Heizenrader and head trader.
We have a person in Houston, Sanjeev Khanna, who used to work for Enmax and 
now works for structuring in Houston.  He is not interested in relocating to 
Calgary, but would like to help us learn about the market.
Should consider trying to hire industry expertise from local utility.  Derek 
will work on this.  Sanjeev may have some ideas here.
Establish better network connections between Portland and Calgary.  Dan 
Dietrich.

Volume Management
Transition team - Murray O'Neil, Peggy H., Laura Scott
Learn market rules for settlements.  Get 1 person from Derek's group to try 
to spell out the settlements formulas on both the pool side and the contract 
side.
Compare Alberta Power Pool settlements procedures to California settlements 
and determine whether Volume Management system will do the job.
Come up with a manual backup plan until VM system will work.
Hire someone to do volume management in Calgary.  We are currently assessing 
whether anyone from Portland could do this job.


I will be out of the office until September 16th.  We have already made plans 
for Bill G, Kathy, Peggy, and Laura to come to Portland to check out our 
systems and processes.  Shortly after I return we should be able to nail down 
the head trader position.  Tim Heizenrader will call Sanjeev to see if there 
is a role for him to play in our Fundamental Analysis effort.  It may be 
worth waiting until the head trader is in place to do this.

I'm off to Montana for a week.  Debra Davidson will be able to get in touch 
with me.  She can be reached at 503-464-3820.

Regards,
Tim