Subject: re : replacement cost values
brian :
this insurance is purchased on a portfolio basis with payment to underwriters at inception of the coverage . values are adjusted annually at renewal . the premiums are allocated to the participating entities as part of the budget process and insignificant additions and deletions of assets do not normally result in premiums additions or refunds . in the event that we discontinue premiums to north america for hlp , we have no mechanism to allocate that premium to the other assets that continue to be insured . in the event of a significant divestiture , underwriters may consider a refund , however , the values discussed below would not likely be significant when compared to enron ' s values as a whole . additionally , enron ' s adverse loss experience affects the underwriters ability to return premium for small divestitures .
at renewal , 4 / 01 / 02 , north america ' s revised property values will be declared to underwriters as part of enron ' s overall values and your premium allocation will adjust depending upon your values and loss experience as compared to the rest of enron .
regards ,
paul
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from : redmond , brian
sent : monday , october 08 , 2001 5 : 31 pm
to : coffey jr . , jim ; clayton , paul ; azore , jacquelyn
cc : whiting , greg ; gruesen , karen ; helton , susan ; koehler , anne c . ; kitchen , louise
subject : re : replacement cost values
paul :
please confirm that ena will not bear any insurance costs for the hpl assets for the second half of 2001 and the balance of years going forward ? if this is not the case , then we need to meet and discuss why this is not the case .
thanks ,
brian
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from : coffey jr . , jim
sent : monday , october 08 , 2001 5 : 25 pm
to : clayton , paul ; azore , jacquelyn
cc : redmond , brian ; whiting , greg ; gruesen , karen ; helton , susan ; koehler , anne c .
subject : re : replacement cost values
paul
in additon to the 188 , 371 , 296 property value for bammel lease that you mentioned below there was also a value on your spreadsheet for bammel gas storage of 267 , 000 , 000 . requirements to insure both of these amounts should be with aep not enron and thus the 2002 plan premium allocations of $ 754 , 096 on the bammel gas storage 267 , 000 , 000 value and $ 924 , 433 on the bammel lease value of 188 , 371 , 296 should not be needed .
jackie
please remove these amounts from the ena - hpl 2002 plan .
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from : clayton , paul
sent : monday , october 08 , 2001 5 : 10 pm
to : coffey jr . , jim
subject : re : replacement cost values
jim :
as discussed for the purposes of the 2002 insurance budget , we will delete the bammel lease ( 1409 ) property values of $ 188 , 371 , 296 . we will advise the insurers effective this past june to delete these assets and will attempt to receive a refund . however , as respects asset divestitures , insurers have not been inclined in the past to refund premiums for comparatively small divestitures in view of our adverse loss experience . however , if we are successful in receiving a credit , we will refund the premium .
i will discuss with karen and brian the other remaining assets .
regards ,
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from : clayton , paul
sent : monday , october 08 , 2001 2 : 13 pm
to : coffey jr . , jim
subject : replacement cost values
jim :
please update accordingly .
thanks ,
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