prudency sorry , i left you off the original list .
thanks ,
wanda
- - - - - - - - - - - - - - - - - - - - - - forwarded by wanda curry / hou / ect on 03 / 09 / 2000 06 : 23
pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
wanda curry
03 / 09 / 2000 06 : 22 pm
to : michael e moscoso / hou / ect @ ect , wes colwell / hou / ect @ ect , barry
pearce / lon / ect @ ect
cc :
subject : prudency
please see the attached draft prudency policy and prudency schedule . barry ,
i need your comments asap . i am in meetings until around 11 : 00 tomorrow .
i don ' t think we can argue that we no longer need prudency without it being a
change in accounting policy . this years annual report fn - 3 stills contains
the following statement :
the values are adjusted to reflect the potential impact of liquidating
enron  , s position in
an orderly manner over a reasonable period of time under present market
conditions .
i think the best we can argue is 1 ) that the liquidity in some commodities
( gas for u . s . and maybe power for u . k . ) has increased to a level that
prudency is no longer required and 2 ) setting a minimum level of var before
prudency is required are not a wholesale change in our accounting policy .
i have not attempted to address establishing an operational reserve . i think
the two are separate , but no reason why we can ' t create one this quarter .
wes , i need to get with you to determine what ena would like to do . the
earnings situation may be different than expected . ena has taken a large
amount out of prudency ( see the attached schedule ) . we can probably argue
for that release to be reduced , pending complete research on power liquidity
and implementation of the new rac calculation . i obviously will not hold any
discussions with aa .
let me know what the next steps are . i will be waiting to hear from you both .
wanda
prudency
sorry , i left you off the original list .
thanks ,
wanda
- - - - - - - - - - - - - - - - - - - - - - forwarded by wanda curry / hou / ect on 03 / 09 / 2000 06 : 23
pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
wanda curry
03 / 09 / 2000 06 : 22 pm
to : michael e moscoso / hou / ect @ ect , wes colwell / hou / ect @ ect , barry
pearce / lon / ect @ ect
cc :
subject : prudency
please see the attached draft prudency policy and prudency schedule . barry ,
i need your comments asap . i am in meetings until around 11 : 00 tomorrow .
i don ' t think we can argue that we no longer need prudency without it being a
change in accounting policy . this years annual report fn - 3 stills contains
the following statement :
the values are adjusted to reflect the potential impact of liquidating
enron  , s position in
an orderly manner over a reasonable period of time under present market
conditions .
i think the best we can argue is 1 ) that the liquidity in some commodities
( gas for u . s . and maybe power for u . k . ) has increased to a level that
prudency is no longer required and 2 ) setting a minimum level of var before
prudency is required are not a wholesale change in our accounting policy .
i have not attempted to address establishing an operational reserve . i think
the two are separate , but no reason why we can ' t create one this quarter .
wes , i need to get with you to determine what ena would like to do . the
earnings situation may be different than expected . ena has taken a large
amount out of prudency ( see the attached schedule ) . we can probably argue
for that release to be reduced , pending complete research on power liquidity
and implementation of the new rac calculation . i obviously will not hold any
discussions with aa .
let me know what the next steps are . i will be waiting to hear from you both .
wanda