enron direct canada corp . - lc ' s expiring 12 / 31 / 2001 sent on behalf of derek flaman :
the following is a response to bill ' s question : " when does the tariff require the lc to be renewed ? do we have some time to wait until mid - december ? "
also attached to this email is lori poffenroth ' s november 9 memo which sets forth lori ' s calculations based on wsp / ppa ' s formulas set forth in their tariffs for initial amounts , revised amounts , recommended october 31 amounts , and estimated december 31 amounts .
all of the wsp ' s and the ppa ' s prudential requirements allow the wsp ' s and the ppa to reevaluate edcc ' s credit limit and / or request additional security from time to time . while the following sets out in more detail the manner in which each wsp and the ppa can do this , all of the prudential requirements are the same in the following two respects : ( 1 ) if at any time edcc ' s financial obligations to the wsp / ppa ( the " financial obligations " ) exceed the existing credit limit ( or a certain percentage thereof ) , the wsp / ppa has the right to request additional security ( the " additional security " ) ; and ( 2 ) if edcc fails to post the additional security within the requisite time period , the wsp / ppa reserves the right to suspend service to edcc .
note that , as of today , no wsp / ppa has requested additional security .
however , as soon as possible , the following needs to occur in those instances where the october 31 amount exceeds the existing amount : ( 1 ) we should post the additional security now ; or ( 2 ) we put ourselves in a position to be able to post the additional security within the requisite time period . consequently , we do have some time to wait until mid - december provided that ( 2 ) has occurred .
as at december 31 , we must post the december 31 amount .
atco
existing amount recommended october 31 amount estimated december 31 amount
$ 300 , 000 $ 300 , 000 $ 450 , 000
as at october 31 , the financial obligations have been calculated to be $ 300 , 000 and the posted security is $ 300 , 000 ; therefore , no additional security is currently required . as at december 31 , the financial obligations have been calculated to be $ 450 , 000 and the posted security will have expired ; therefore $ 450 , 000 of additional security will be required at that time . such additional security will be due within 5 days of atco ' s request .
enmax
calgary
existing amount recommended october 31 amount estimated december 31 amount
$ 475 , 000 $ 750 , 000 $ 1 , 850 , 000
red deer
existing amount recommended october 31 amount estimated december 31 amount
$ 30 , 000 $ 40 , 000 $ 75 , 000
lethbridge
existing amount recommended october 31 amount estimated december 31 amount
$ 15 , 000 $ 35 , 000 $ 65 , 000
as at october 31 : for calgary , the financial obligations have been calculated to be $ 750 , 000 and the posted security is $ 475 , 000 - therefore , the additional security which may be required is $ 275 , 000 ; for red deer , the financial obligations have been calculated to be $ 40 , 000 and the posted security is $ 30 , 000 - therefore , $ 10 , 000 of additional security may be required ; for lethbridge , the financial obligations have been calculated to be $ 35 , 000 and the posted security is $ 15 , 000 - therefore , $ 20 , 000 of additional security may be required .
as at december 31 : for calgary , the financial obligations have been calculated to be $ 1 , 850 , 000 and the posted security will have expired - therefore , $ 1 , 850 , 000 of additional security will be required at that time ; for red deer , the financial obligations have been calculated to be $ 75 , 000 and the posted security will have expired - therefore , $ 75 , 000 of additional security will be required at that time ; for lethbridge , the financial obligations have been calculated to be $ 65 , 000 and the posted security will have expired - therefore , $ 65 , 000 of additional security will be required .
all of the foregoing additional security is due within the number of days required by enmax ( i . e . at enmax ' s discretion ) .
epcor
existing amount recommended october 31 amount estimated december 31 amount
$ 150 , 000 $ 150 , 000 $ 1 , 000 , 000
ponoka
existing amount recommended october 31 amount estimated december 31 amount
$ 5 , 000 $ 12 , 000 $ 12 , 000
as at october 31 : for epcor , the financial obligations have been calculated to be $ 150 , 000 and the posted security is $ 150 , 000 - therefore , no additional security is currently required ; for ponoka , the financial obligations have been calculated to be $ 12 , 000 and the posted security is $ 5 , 000 - therefore , $ 7 , 000 of additional security may be required .
as at december 31 : for epcor , the financial obligations have been calculated to be $ 1 , 000 , 000 and the posted security will have expired - therefore , $ 1 , 000 , 000 of additional security will be required at that time ; for ponoka , the financial obligations have been calculated to be $ 12 , 000 and the posted security will have expired - therefore , $ 12 , 000 of additional security will be required at that time .
all of the aforementioned additional security is due within 10 business days of epcor ' s request .
power pool of alberta " ppa "
existing amount recommended october 31 amount estimated december 31 amount
$ 4 , 800 , 000 $ 2 , 500 , 000 $ 6 , 000 , 000
as at october 31 , the financial obligations have been calculated to be $ 2 , 500 , 000 and the posted security is $ 4 , 800 , 000 - therefore , no additional security is currently required .
as at december 31 , the financial obligations have been calculated to be $ 6 , 000 , 000 and the posted security will have expired - therefore , $ 6 , 000 , 000 of additional security will be required at that time .
all of the aforementioned additional security is due within the number of days set by the ppa ( i . e . at the ppa ' s discretion )
utilicorp .
existing amount recommended october 31 amount estimated december 31 amount
$ 0 barry / lori to calculate barry / lori to calculate
utilicorp . ' s prudential requirements , like the other wsp ' s and ppa ' s prudential requirements , allow utilicorp . to re - evaluate edcc ' s credit limit and / or request additional security from time to time . to date , utilicorp . has not exercised their right to request additional security from edcc . as such , financial obligations with respect to utilicorp . have not been calculated . to be prudent , barry / lori will calculate a recommended october 31 amount and an estimated december 31 amount so that we are prepared in the event that utilicorp . does at some point exercise its right to require us to post additional security .
regards ,
derek
lori poffenroth ' s november 9 memo :
sarah butt
administrative assistant
enron energy services canada corp .
enron direct canada corp .
403 - 663 - 2828
enron direct canada corp . - lc ' s expiring 12 / 31 / 2001
sent on behalf of derek flaman :
the following is a response to bill ' s question : " when does the tariff require the lc to be renewed ? do we have some time to wait until mid - december ? "
also attached to this email is lori poffenroth ' s november 9 memo which sets forth lori ' s calculations based on wsp / ppa ' s formulas set forth in their tariffs for initial amounts , revised amounts , recommended october 31 amounts , and estimated december 31 amounts .
all of the wsp ' s and the ppa ' s prudential requirements allow the wsp ' s and the ppa to reevaluate edcc ' s credit limit and / or request additional security from time to time . while the following sets out in more detail the manner in which each wsp and the ppa can do this , all of the prudential requirements are the same in the following two respects : ( 1 ) if at any time edcc ' s financial obligations to the wsp / ppa ( the " financial obligations " ) exceed the existing credit limit ( or a certain percentage thereof ) , the wsp / ppa has the right to request additional security ( the " additional security " ) ; and ( 2 ) if edcc fails to post the additional security within the requisite time period , the wsp / ppa reserves the right to suspend service to edcc .
note that , as of today , no wsp / ppa has requested additional security .
however , as soon as possible , the following needs to occur in those instances where the october 31 amount exceeds the existing amount : ( 1 ) we should post the additional security now ; or ( 2 ) we put ourselves in a position to be able to post the additional security within the requisite time period . consequently , we do have some time to wait until mid - december provided that ( 2 ) has occurred .
as at december 31 , we must post the december 31 amount .
atco
existing amount recommended october 31 amount estimated december 31 amount
$ 300 , 000 $ 300 , 000 $ 450 , 000
as at october 31 , the financial obligations have been calculated to be $ 300 , 000 and the posted security is $ 300 , 000 ; therefore , no additional security is currently required . as at december 31 , the financial obligations have been calculated to be $ 450 , 000 and the posted security will have expired ; therefore $ 450 , 000 of additional security will be required at that time . such additional security will be due within 5 days of atco ' s request .
enmax
calgary
existing amount recommended october 31 amount estimated december 31 amount
$ 475 , 000 $ 750 , 000 $ 1 , 850 , 000
red deer
existing amount recommended october 31 amount estimated december 31 amount
$ 30 , 000 $ 40 , 000 $ 75 , 000
lethbridge
existing amount recommended october 31 amount estimated december 31 amount
$ 15 , 000 $ 35 , 000 $ 65 , 000
as at october 31 : for calgary , the financial obligations have been calculated to be $ 750 , 000 and the posted security is $ 475 , 000 - therefore , the additional security which may be required is $ 275 , 000 ; for red deer , the financial obligations have been calculated to be $ 40 , 000 and the posted security is $ 30 , 000 - therefore , $ 10 , 000 of additional security may be required ; for lethbridge , the financial obligations have been calculated to be $ 35 , 000 and the posted security is $ 15 , 000 - therefore , $ 20 , 000 of additional security may be required .
as at december 31 : for calgary , the financial obligations have been calculated to be $ 1 , 850 , 000 and the posted security will have expired - therefore , $ 1 , 850 , 000 of additional security will be required at that time ; for red deer , the financial obligations have been calculated to be $ 75 , 000 and the posted security will have expired - therefore , $ 75 , 000 of additional security will be required at that time ; for lethbridge , the financial obligations have been calculated to be $ 65 , 000 and the posted security will have expired - therefore , $ 65 , 000 of additional security will be required .
all of the foregoing additional security is due within the number of days required by enmax ( i . e . at enmax ' s discretion ) .
epcor
existing amount recommended october 31 amount estimated december 31 amount
$ 150 , 000 $ 150 , 000 $ 1 , 000 , 000
ponoka
existing amount recommended october 31 amount estimated december 31 amount
$ 5 , 000 $ 12 , 000 $ 12 , 000
as at october 31 : for epcor , the financial obligations have been calculated to be $ 150 , 000 and the posted security is $ 150 , 000 - therefore , no additional security is currently required ; for ponoka , the financial obligations have been calculated to be $ 12 , 000 and the posted security is $ 5 , 000 - therefore , $ 7 , 000 of additional security may be required .
as at december 31 : for epcor , the financial obligations have been calculated to be $ 1 , 000 , 000 and the posted security will have expired - therefore , $ 1 , 000 , 000 of additional security will be required at that time ; for ponoka , the financial obligations have been calculated to be $ 12 , 000 and the posted security will have expired - therefore , $ 12 , 000 of additional security will be required at that time .
all of the aforementioned additional security is due within 10 business days of epcor ' s request .
power pool of alberta " ppa "
existing amount recommended october 31 amount estimated december 31 amount
$ 4 , 800 , 000 $ 2 , 500 , 000 $ 6 , 000 , 000
as at october 31 , the financial obligations have been calculated to be $ 2 , 500 , 000 and the posted security is $ 4 , 800 , 000 - therefore , no additional security is currently required .
as at december 31 , the financial obligations have been calculated to be $ 6 , 000 , 000 and the posted security will have expired - therefore , $ 6 , 000 , 000 of additional security will be required at that time .
all of the aforementioned additional security is due within the number of days set by the ppa ( i . e . at the ppa ' s discretion )
utilicorp .
existing amount recommended october 31 amount estimated december 31 amount
$ 0 barry / lori to calculate barry / lori to calculate
utilicorp . ' s prudential requirements , like the other wsp ' s and ppa ' s prudential requirements , allow utilicorp . to re - evaluate edcc ' s credit limit and / or request additional security from time to time . to date , utilicorp . has not exercised their right to request additional security from edcc . as such , financial obligations with respect to utilicorp . have not been calculated . to be prudent , barry / lori will calculate a recommended october 31 amount and an estimated december 31 amount so that we are prepared in the event that utilicorp . does at some point exercise its right to require us to post additional security .
regards ,
derek
lori poffenroth ' s november 9 memo :
sarah butt
administrative assistant
enron energy services canada corp .
enron direct canada corp .
403 - 663 - 2828