fw : performance / surety bonds fyi - plenty of focus on limiting bonds and collateral to the ldc ' s
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from : fite , rebecca
sent : wednesday , november 21 , 2001 9 : 27 am
to : kingerski , harry ; steffes , james d . ; leff , dan ; hughes , evan
cc : ogenyi , gloria ; sharp , vicki ; herndon , rogers ; black , don ; richter , jeff ; mihalik , teresa
subject : re : performance / surety bonds
one more .
- washington gas : ees has parental guaranty . due to current financial status , washington gas has requested bond instead . rac contact indicated no bond available - ees has 30 days to respond .
a note on the con - ed - services / operations has a work around for the few mid - market deals origination is closing which will prevent us from increasing our security ( straight dual billing ) . mass market volume increase will drive any security increase in this market .
thanks ,
rebecca
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from : kingerski , harry
sent : wednesday , november 21 , 2001 9 : 17 am
to : steffes , james d . ; leff , dan ; hughes , evan
cc : fite , rebecca ; ogenyi , gloria ; sharp , vicki ; herndon , rogers ; black , don ; richter , jeff ; mihalik , teresa
subject : re : performance / surety bonds
. . . and just to be clear , here are the recent or current issues i am aware of and their status :
con ed , request for $ 1 million security in lieu of parental guaranty : complete . $ 1 million sent prior to 11 / 14 deadline . request for additional security likely to come when con ed sees our increasing load .
socal gas , request for margin sharing agreement in lieu of parental guaranty : complete . new contract signed and delivered 11 / 16 . retail and wholesale gas desks to work together to avoid occurence of margin call for credit over $ 5 million daily .
peoples gas of il , request for letter of credit for $ 40 k in lieu of parental guaranty : deferred . peoples agreed to suspend demand for l / c if further downgrade does not occur .
virginia license for ees gas : complete , for now . services served copy of application to other parties . their comments due back to va scc by dec 7 .
maryland license for eemc gas : scheduled to be approved on provisional basis today . md psc will be reviewing generic requirement that parental guarantees be unconditional , unlimited , and unrestricted .
pennsylvania , request for update to ees and epmi bonds and request for increase in ees bond from $ 250 k to $ 3 . 8 m : under review . new bond language has been sent to mary grisaffi . trying to whittle down ( or eliminate ) increase .
cg hughes , evan ; kingerski , harry
cc : fite , rebecca ; ogenyi , gloria ; sharp , vicki ; herndon , rogers ; black , don ; richter , jeff
subject : re : performance / surety bonds
after talking with dan , i intend to set up a meeting to provide complete matrices on licensing and utility contracts sometime early during the week beginning dec 3 .
also , just to make sure everyone is clear , harry , gloria , and rebecca are on point during the next few weeks to ensure that that ees and / or epmi responds timely to any request for info , additional security , or other utility matters . this , of course , will continue to require help from legal , credit , and operations .
if anyone has any other questions , please give me a call .
thanks .
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from : leff , dan
sent : tuesday , november 20 , 2001 6 : 08 pm
to : steffes , james d . ; hughes , evan ; kingerski , harry
subject : re : performance / surety bonds
when can we discuss this ?
thanks
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from : steffes , james d .
sent : tuesday , november 20 , 2001 8 : 24 am
to : leff , dan ; hughes , evan ; kingerski , harry
subject : re : performance / surety bonds
dan - -
i will get with evan and his team and pull this together . of course , much of the activity with utilities is driven by their requirements and judgements ( which change over time ) .
jim
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from : leff , dan
sent : tuesday , november 20 , 2001 8 : 19 am
to : hughes , evan ; steffes , james d .
subject : performance / surety bonds
jim / evan -
as you are probably aware , the performance and surety bond market is difficult for us to navigate in and around in our current situation . as an example , efs has been shut out of getting access to new bid and performance / payments bonds for its business that requires these . we are addressing this with the bonding companies now . all of their existing bonds are in place and in force .
in light of this , i wanted to make sure that we are absolutely current in all aspects of all bonding requirements with udc ' s and ldc ' s .
please send me the most current copy of your matrix that illustrates where we have existing bonds in place , what drives the capacity requirements , status , renewal / expiration date , current payment status , etc . i would like to make sure that we are all clear on how these work , what triggers increases / decreases in capacity , and other issues impacting our ability to continue to flow electricity and natural gas to our clients .
thanks - dan