input stringlengths 93 39k | output stringlengths 1 117 |
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Dr. kaminski, I enjoyed the presentation you gave at the SIAM conference this friday and would appreciate the a copy of the slides that you were using.
Thank you.
Sincerely,
| Presentation Slides |
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| HATE TO FILE? WE HAVE A SOLUTION..... 6692 |
Please find attached a Scope of Services document and a list of projects which have been implemented with current EES customers.
The Scope of Services document is designed to show the types of projects, operations and maintenance, and facilities management services that EESO typically offers to its customers based on their industry segment.
The projects and services offered are very similar across segments and customers, but their level of deployment varies significantly from segment to segment.
Certain segments were grouped together because the EESO offering would feature similar assets and services.
SIC Codes were given for each segment to represent the types of customers that comprise each segment.
The list of projects represents general categories from which more specific projects will be tailored to fit the clients needs.
This project list represents assets that have been approved by the DSM Desk and was queried from PCCS.
The Operations and Maintenance services can be applied to any energy-related assets and was compiled from term sheets and IAM.
Generally those activities have been limited to a few industrial outsourcing deals including Springs, Polaroid and recently Eli Lilly.
Facilities Management is usually outsourced via IPT or through the adoption of existing vendor contracts and can involve repair and maintenance for all assets.
Generally this type of activity has been focused on the retail/real estate segment.
Cheryl, pls set up a meeting with Harris, Clayton, Bouillion, Jones and Kaminski to discuss this and an action plan to develop a liability mitigation product.
I will re-present the original product concept at the meeting.
Would like to see the meeting take place late next week.
Thanks.
| Risk Profile and Liability Mitigation Product |
Vince, I enjoyed your presentation at the SIAM workshop last Friday.
I have a much greater appreciation for the difficult problems you all solve.
If at all possible, I would like to get a copy of your talk and any references to review papers in the general area of market modeling and potentially control.
Have a great weekend.
Best Regards,
| SIAM workshop followup |
Stinson, Here is the 1 factor HJM model for curve simulation originally designed for a Coal Plant valuation.
This techniques is useful for all kinds of curves, especially when we do not have the quality data to estimate other factors.
(situations where only volatility curve is availiable).
Let me know if you have any questions.
Zimin
| 1 factor HJM for the propane project |
The Research Group is conducting an access audit for its directory and subfolders.
I would appreciate receiving a list of access groups and their members for the O:\Research directory and subfolders.
If there were a way to list what kind of access each group has for each folder (or at least which groups have Modify access), it would be great.
I have already spoken with Sandra Hart who has begun the process.
Thank you for your assistance in our effort to maintain the integrity and security of our data.
Regards,
| Access Groups and Members for O:\Research and Subfolders |
Dear Energy Supply/Power Marketing Executive: This Alliance Info Alert includes: Listing of recent filings at FERC New issue of FERC Filings - containing analyses of significant filings, including: RTO DEVELOPMENTS PJM Complaint to Amend Reliability Assurance Agreement Draws Divergent Reactions; Parties Differ Over Proposal*s Effectiveness, Unintended Consequences MARKET COMPLAINTS CARE, California Suppliers Spar Over Alleged Market Manipulation MISCELLANEOUS PJM Station Power Order Draws Various Opposition and Multiple Requests for Clarification and Rehearing; Parties Question Proper Extent of the Order (attached pdf file) == RECENT FERC FILINGS == (1) RTO DEVELOPMENTS * The residents of the La Jolla Village Towers in San Diego, CA filed approximately 30 letters requesting action from the Commission to resolve California's energy crisis.
EL00-95-000, et.
al.
Filed May 17, 2001.
* The following entities filed comments on CAISO's compliance filing pursuant to the Commission's April 26, 2001 Order regarding mitigation and monitoring of the CA wholesale market and a western wholesale rate investigation.
EL00-95-034 and EL00-98-033.
Filed May 23, 2001.
- WESTERN POWER TRADING FORUM - MIRANT COMPANIES - RELIANT POWER GENERATION and RELIANT ENERGY SERVICES - DYNEGY POWER MARKETING, EL SEGUNDO POWER, LONG BEACH GENERATION and CABRILLO I and II - WILLIAMS ENERGY MARKETING AND TRADING - CITY OF VERNON, CA - DUKE ENERGY NORTH AMERICA and DUKE ENERGY TRADING & MARKETING - NORTHERN CALIFORNIA POWER AGENCY - SOUTHERN CALIFORNIA EDISON CO. * PACIFIC GAS & ELECTRIC CO. and WILLIAMS ENERGY MARKETING & TRADING each filed answers to CAISO's request for rehearing of the Commission's April 6, 2001 Order regarding creditworthiness issues.
ER01-889-004, et.
al.
Filed May 22, 2001.
* SOUTHERN CALIFORNIA EDISON CO. and PACIFIC GAS & ELECTRIC CO. filed a joint supplemental filing to their request for rehearing and the NORTHERN CALIFORNIA POWER AGENCY filed an answer regarding the Commission's March 9, 2001 Order directing sellers to provide refunds or cost justifications for January sales in the California wholesale electric market.
EL00-95-019 et.
al.
Filed May 24, 2001.
* The following entities filed responses to PJM's revisions to its OATT and Operating Agreement to modify the rules regarding the provision of station power.
ER01-1936-000.
Filed May 22, 2001.
- CONECTIV - PPL ELECTRIC UTILITIES CORP. - DYNEGY POWER MARKETING - KEYSPAN-RAVENSWOOD - DUKE ENERGY NORTH AMERICA * ENRON POWER MARKETING, ARIZONA PUBLIC SERVICE CO., CARGILL ALLIANT, AVISTA ENERGY, SEMPRA ENERGY TRADING CORP., PACIFICORP and CONSTELLATION POWER SOURCE (one filing) and CAL PX each filed comments regarding CAL PX's request for rehearing of the Commission's April 6, 2001 Order regarding charge-backs and liquidation of collateral.
EL01-36, 37, 43, 29, 33-000.
Filed May 22, 2001.
* NYISO filed an answer to the LONG ISLAND POWER AUTHORITY and LIPA (one filing) to the NEW YORK STATE ELECTRIC & GAS CORP., ROCHESTER GAS & ELECTRIC CORP. and NIAGARA MOHAWK POWER CORP. LONG ISLAND POWER AUTHORITY and LIPA's responses and opposition to NYISO's motion for extension of time to implement its Market Administration and Control Area Services Tariff in order to implement locational reserve pricing.
ER00-3591-006 and ER00-1969-007, ER01-94-000 and ER01-180-000.
Filed May 22, 2001.
(2) OATT/TRANSMISSION * DUKE ENERGY NORTH AMERICA and ALCOA POWER GENERATING filed motions to intervene regarding SOUTHERN INDIANA GAS & ELECTRIC CO.'s revisions to its OATT updating rates, amending Energy Imbalance Service, establishing a charge for exceeding transmission reservation, establishing a Power Factor Correction Service, providing Interconnection Procedures, and adding a dynamic scheduling provision.
ER01-1938-000.
Filed May 22, 2001.
* DETROIT EDISON CO. and INTERNATIONAL TRANSMISSION CO. filed a joint response to DEARBORN INDUSTRIAL GENERATION's protest of DETROIT EDISON's revised draft of an unexecuted Distribution Interconnection Agreement between itself and DEARBORN INDUSTRIAL GENERATION.
EL01-51-002 and ER01-1649-002.
Filed May 22, 2001.
* NRG COMPANIES, KEYSPAN-RAVENSWOOD and MEMBERS OF THE TRANSMISSION OWNERS COMMITTEE OF THE ENERGY ASSOC.
OF NEW YORK STATE each filed motions to intervene regarding NYISO's filed revisions to its OATT regarding Code of Conduct.
ER01-1942-000.
Filed May 23, 2001.
* FLORIDA KEYS COOP.
ASSOC., pursuant to the Commission's April 24, 2001 Order, submitted a compliance filing including a rate schedule and the Long-term Joint Investment Transmission Agreement between itself and the CITY ELECTRIC SYSTEM, KEY WEST, FL.
ER01-1590-001.
Filed May 23, 2001.
(3) MARKET COMPLAINTS * The following entities filed responses to LG&E ENERGY MARKETING's complaint against SOUTHERN COMPANIES and GEORGIA TRANSMISSION CORP. regarding the priority of queuing for transmission rights.
EL01-78-000.
Filed May 22, 2001.
- GEORGIA TRANSMISSION CORP. - SOUTHERN COMPANY SERVICES - MONROE POWER - MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA * AMERICAN REF-FUEL COMPANY OF NIAGARA filed a protest and request for a hearing regarding vertical market power and control of access to transmission lines involved with the NIAGARA MOHAWK and NATIONAL GRID merger.
EC01-63-000.
Filed May 22, 2001.
| Alliance Info Alert - FERC Filings |
You have received this message because someone has attempted to send you an e-mail from outside of Enron with an attachment type that Enron does not allow into our messaging environment.
Your e-mail has been quarantined and is being held at the MailSweeper server.
Sender: Darci.Gustafson@truequote.com
| An Inbound Message For You Has Been Quarantined |
Vince: I received this resume today.
Would you take a look at it and let me know if you would be interested in talking with him?
Thanks,
| Any Interest? |
Vince, I was surprised at your comments in today's PRC meeting.
It must be my oversight for not sending you a copy of the briefing material that we provided Ken Lay for his trip to the White House.
I spoke with Steve Kean after the meeting and he was pleased with our group's contribution.
I thought you also had an opportunity to speak with Steve.
Maureen
| Breifing Ken Lay on President Bush's Tax Proposal |
Vince, I would like to respond to the discussion that we had today.
It probably would have been more accurate to characterize my work for Ken Lay as a "briefing" rather than as a "speech".
When I said I wrote a speech, I meant "I prepared presentation material" for him to use for his speaking engagement.
I thought that "writing a speech" and "preparing a presentation" is OK to use interchangeably in the English language.
In my review I stated as an accomplishment, " I worked with the Chairman of Enron, Ken Lay, briefing him on President Bush's tax proposals helping him prepare for a trip to the White House along with Steve Kean."
However, I think the results are the same.
Ken Lay and Steve Kean were pleased with our contribution.
To me this was an accomplishment not only for me, but our group, and I would hope The Reseach Department.
For you to say that my misuse of the English language "undermines my credibility", however, is a bit strong and I do not agree.
I pride myself in is my honesty.
Maureen
| Briefing Ken Lay |
Dear Vince: I hope you have liked the short paper on decision making I sent you a week ago.
It emphasizes the human nature of the process of decision making.
I personally believe that this line of reasoning is systematically neglected by the investment and trading communities.
I think that many of the great traders and investors are very well aware of these limitations of human mind and are making efforts to utilize them.
For example you may encounter similar ideas in the George Soros' book "The Alchemy of Finance".
I am certain that developing and expertise in this area bears a tremendous potential for improving Enron's trading operations and will give us an edge with respect to other trading powerhouses.
Do you think there are desks at Enron that may be interested in developing a system of procedures that leads to improving our trading performance?
I will be extremely interested in working in this field.
By the way I have already gathered many of the basic pieces of information needed for such an undertaking.
As a beginning I may make an overview of the literature available on decision biases and list as many of them as possible.
Indeed, the mind traps mentioned in the paper are not the only ones.
Later we may discuss with our clients possibilities for quantifying the influence of a selected group of these biases on the performance of our traders.
Still later, a set of questionnaries, a system for keeping trader's perceptions prior to every act of decion making, and the result of the decision will be created, etc.
I envision the final product to be a self-educating trading system learning from every single experience, both positive and negative and utilizing the history of the decision maker to her best benefit.
After some transition period, the result should be a more enlightened process of decision making of our traders, stripped as much as possible from the common psychological biases and utilizing human judgment--the very thing which differentiates the good trader from the computer (or the bad trader, for that matter).
| Decision making opportunities |
Vince, I have gotten notice from EGM that they want to charge your cost center for the use of a weather research system named Avistar that someone is your group is using.
The plan is to allocate part of the depreciation of the asset to your cost center.
The total cost will be $10,583 over a 3-year period so the cost will not be significant, but I wanted to be sure you were aware of and approved of this charge.
Please let me know.
Thanks,
| EGM Charges for Avistar |
Hi I've attached a couple of files summarizing our progress and current status on modeling the bid-ask spread.
The first summarizes characterization of the EOL Crude data and the second describes a bid-ask spread model based on options theory developed by Zimin (The figure from the paper is included separately).
I am now setting up an Excel spreadsheet to test this model with the EOL data.
Let me know when you would like to meet to review this.
Thanks, Bob Lee
| EOL Pricing Algorithm Update |
Dear Vince, It is my pleasure to invite you to speak again at "EPRM 2001 Europe", Energy & Power Risk Management magazine's fourth annual European energy risk management congress which will be taking place in Amsterdam on 6 & 7 September 2001.
As you know, last year's congress attracted over 200 attendees and provided the ideal opportunity for leading institutions to discuss the key issues and latest developments in pricing, trading and risk management strategies for power and gas.
Please find attached a draft copy of the conference programme.
I have left the invitation open as I was unsure of your specific topic of interest.
Thank you for your time and consideration.
I look forward to hearing from you.
Yours sincerely,
| EPRM 2001 Europe |
As an FYI for those not already in the loop, new factors for VaR have not been implemented since some time in April, and it seems the process of administering them is foggy.
So here is an outline of the R&R and required technology to support the administration of factor loadings: Broadly, I have assumed that Global Risk Ops can run the process.
However, exceptions can take one of two forms: Large jumps in VaR due to bona fide changes in correlations; Pathologies in the matrix construct supporting factors; For either, tools are required for users to examine the exceptions and make changes as necessary (generally Global ops in the former case and RAC/Research in the latter).
Note that the IT Development group has no part in this business process beyond building the tools.
Lets use this as the starting point to develop a business model that makes this work.
Rgds DP
| Factor Loadings Process |
Hey, Vince: How are you?
I just want to thank your for all your efforts during my application to Enron last year.
Even if it did not work out in the end, but I still appreciate all your help.
I just started my new job at "Allegheny Energy Global Markets" in New York city, the company is the trading arm of Allegheny Energy, and used to be Merrill Lynch's Energy Trading Group.
I will be responsible for structuring.
Again, thanks for the help, I look forward to talking
| greetings from Charles |
Eugenio, As a follow-up to our meeting yesterday, a series of evaluations was conducted on the housing starts data to insure that the time series response variable was stationary (recall our brief discussion of results based on non-stationary time series).
Dickey-Fuller and Augmented Dickey-Fuller (accounting for autocorrelation in the error term) unit root tests were used in the evaluation process.
Given the limited number of observations for certain potentially important explanatory variables (e.g., %population change, etc.
), we tested the housing starts variable over 3 historical periods.
The results are provided below: Period 1: 1959 through 2001 (obs=503) TEST TEST STATISTIC CRITICAL VALUE (p=0.05) DF -6.712 -1.95
| Housing Data and Stationarity |
Gary: On behalf of Enron and the Research Group, Vince purchased a table at the subject event.
There are 8 places at the table and he would like to invite you and your wife to attend.
The attendees from the Research Group will be: Vasant Shanbhogue and his wife (Vasant's wife is actually working on the event, so her place will not be counted in with our group.).
Krishna Krishnarao and his wife Sandeep Kohli and his wife Maureen Raymond Please let me know if you are available on the 16th.
Shirley 3-5290
| INDO-American Chamber of Commerce Gala (and Dinner) - June 16, 2001 |
Greetings: On behalf of Vince Kaminski and Enron Corp. a check in the amount of $3500.00 is being mailed to you today to purchase a "friends table" for the June 16th gala.
A list of the attendees will be forthcoming.
Best Regards,
| Indo-American Chamber of Commerce of Greater Houston Gala - 6/16/01 |
Dear Director Vince Kaminsky, I am Alex Yu, an MBA student at Rice University.
Peter Veruki, Executive Director of Career Planning and Admissions, told me that he and Dean Gilbert Whitaker had breakfast with you today, and that you might be interested in hiring a summer intern or part-time helper.
I have received a Ph.D. in Finance, MS in Accounting, and MS and BS in Computer Science.
In the course of my studies, I have learned a great deal about finance, mathematics, and computer software.
I am very interested in working in your program at Enron as a summer intern or a part-time employee.
My resume is attached.
Thank you for your consideration.
Best wishes,
| job and my resume |
Hi, I am looking for a quant position within finance.
I have 6 months job experience as a risk analyst at Bear Stearns.
I was responsible for the Tokyo equity derivatives desk.
I have a PhD in theoretical Physics.
My PhD/postdoc research involved numerical methods for PDEs and adaptation of Monte-Carlo Simulated Annealing to various problems.
I include my CV.
Please let me know if you are interested!
Best wishes,
| JOBHUNT: risk analyst at Bear-PhD theoretical Physics |
VAR is using the May 1st run.
VaR without jumps is saved out in RMS_Value_at_Risk_copy table.
Of curiosity, West-DPR-VAR is not really impacted by jumps.
I suspect the reason for this may be that back in 1998 that region was less deregulated than today.
Let me know your thoughts.
Frank
| Jumps no jumps |
Vince: I've been on the road for a week and will be in southeast Asia and Australia for the following week.
I did, however, get a message from Mark Palmer saying that he thought I should present our stuff on current operations value/future growth value directly to Andy Fastow.
I agree this makes sense.
Nevertheless, I think the idea would have greater credibility if you, in addition to Mark, were to express an interest in the framework to Andy.
Would you be comfortable doing this?
I'd just like you to send Andy a message saying that you think the COV/FGV framework is logical and that investors would find it logical as well.
If you can do this, Melissa Jose would then give Andy's office a call and try to set up a convenient time for a presentation.
Of course, I would be very happy if you could attend that as well.
That would also give the two of us an opportunity to explore that article we have been meaning to write!
Best Regards,
| Mark Palmer re Andy Fastow |
The next session to discuss papers on models for setting the bid-ask spread will be Friday, June 15 2:00-3:00PM in 19C2 If you want copies of the papers Jinbaek will present ahead of time, let me know and I will provide a copy.
A summary of yesterday's session is attached.
Bob Lee
| Market Maker Discussion |
As you know, Mid Year PRC is right around the corner, and you should have received your PEP ID and password on Monday May 7th.
To assist you in preparing for PRC and utilizing the PEP system, we passed out a PEP Quick Reference System Guide, and Employee and Supervisor Guide to Midyear 2001 earlier this week.
Please read these two handouts so that you can be aware of the changes from Year End PRC, or to familiarize yourself with the process as a whole if you are a new employee.
The guides will specifically help you with the following when logging into the system: PEP Quick Reference System Guide- How To 1.
Log into Pep 2.
Suggest Reviewers 3.
Complete Feedback 4.
Complete Self Evaluation 5. Review Your Supervisor 6.
Give Unsolicited Feedback Employee and Supervisor Guide to Midyear 2001- "How to's" and FAQ's 1. Who participates and who is rated 2.
Choosing reviewers for 360 degree feedback 3.
What to do if you are chosen as a reviewer 4.
PRC meeting and listing your accomplishments for discussion in the meeting 5.
One-on-one evaluation with your supervisor and how you can prepare 6.
FAQ's and Glossary Additionally, a training session will be held on Monday 5/ 14 in EB48C2 at the following times: 9:00 - 10:00 10:30 - 11:30 1:30 - 2:30 3:00 - 4:00 If you have any questions, please call me at extension 5-7809.
Thanks,
| Mid Year PRC for 2001 |
Research Staff, As I mentioned today in your staff meeting, the mid-year 2001 PRC meeting for Research is scheduled for Wednesday, June 6th and will begin at 10:00 am.
The meeting will be held in Boardroom on EB50.
If you have any conflicts, additional questions or concerns, please feel free to notify me.
Thanks,
| Mid-Year 2001 PRC Meeting details |
Thank you for your participation in the above referenced visit to Enron.
Attached is a final agenda with attendees.
There are approximately 10 guests from Norsk Hydro.
Due to the size of the group, all meetings will be held in 50M.
I will have an LCD projector in the room if you wish to use a slide presentation.
Enron Norway would like this visit to be an opportunity to create a favorable climate for increasing business with Norsk Hydro as deregulation in Europe takes off.
To reiterate, this is a study team that is part of Hydro Energy Management Group, a division of Norsk Hydro in the oil and energy sector.
This visit is part of a one week trip to Houston with visits to at least four or five companies.
They are here to exchange ideas in a free informal give and take discussion about: Operation in deregulated markets E-Commerce Risk Management Tolling Agreements/Gas for Power Trading My role is to act as facilitator and agenda timekeeper.
Please let me know if there is additional information you require.
Thank you.
| Norsk Hydro Visit June 7th |
Please find attached an Excel workbook listing different access groups for Research.
I have marked some users for keeping and deleting.
I'm not sure how you wish to proceed.
You can edit the list as you see fit.
Perhaps we can contact those who have particular groups (e.g.
Weather) for updates on their list.
I am generally of the opinion that the lists should be as short as possible.
A directory that Lance and I share with the power group was deleted yesterday but nobody knows who did that.
I hope after this audit is done, we are much less at risk of something that like happening again.
Thanks,
| o:\Research access list |
Vince, Over the weekend, I fomulated the idea using option pricing for the EOL price seeting rules.
The initial results look interesting.
I will write it up for your inputs.
Also attach is the program SnagIt, for printing window.
Zimin
| Options approach for EOL price setting |
As you know, our mid-year performance review process is under way.
In order for this process to be successful, you must select at least five reviewers who can best speak about your performance.
The PEP system closes on May 25, 2001 and all feedback must be completed at this time.
Please promptly select your reviewers so that they will have ample opportunities to provide feedback.
If you have any questions, please feel free to call me at extension 57809.
Thanks,
| PRC Update |
Dear Mr. Kaminski, we met a few week ago in Houston (I was the previous speaker on modifications of Black-Scholes).
As I mentioned, there were in your talk several issues in which I am interested in.
I would be happy if you could send whatever related material you have: slides, papers, etc.
At some point you mentioned also the possibility of sending some time series.
It would be very interesting to have them and apply our pricing model to compare results.
Thank you very much,
| qustion |
Hi Peter: I really appreciate your taking the time to interview me and I am very interested in the position.
Organizational ability is one of my strong points along with the fact that my length of service with Enron gives me a great deal of knowledge in getting things done as quickly as possible.
I really like setting things up and seeing the results come together quickly and efficiently.
I am a quick learner and a willing learner and feel that I would be able to assist you a great deal with the Estate.
If you have any other questions, please let me know.
Also, I know that Vince Kaminski would be willing to answer any questions you might have.
Sincerely,
| My interest and resume |
Vince and Stinson, I talked with Torpong, the friend of mine that I mentioned this morning.
His original plan is to take MBA classes in the fall and go back to work for his father's company.
But he has a very good impression of Enron's image and if he can gain work experiences at Enron, it would be the best.
He is interested to work for Enron, at least for 1-2 years, before going back to work for his father's company.
I am sure that he is a smart person and can learn things really fast.
Attached are his resume and transcript.
I think we should telephone interview him.
Thank you,
| resume of Torpong Cheevaprawatdomrong |
Dear Vince I am currently producing Risk 2001 Australia (Risk and EPRM magazines' annual Australian derivatives and risk management congress) which is taking place in Sydney on 20 & 21 August 2001.
I understand that you spoke at our Australian Energy Risk 2000 conference last year.
I have now put together the draft programme and I am at the stage of inviting people to speak at the event in August.
I would like to invite you to speak at this year's congress and I attach a copy of the draft programme.
I particularly had in mind the presentation 'Case study: learning the lessons of the Californian electricity crisis - could it happen here?'
(talk number 7 in stream three of the programme which focuses on pricing, trading and risk management in the Australian energy markets).
However, if there is another topic that you would be more interested in presenting then please let me know.
This year's event combines last year's Australian Energy Risk 2000 and Risk 2000 conferences to create Australia's most comprehensive risk management and derivatives congress.
This year the congress will also include two one-day post conference seminars on 22 August.
Should you require any further information about the programme or the event generally, please don't hesitate to contact me either by telephone on +44 20 7484 9866 or by email at pannesley@riskwaters.com.
I very much hope that you will be able to accept this invitation and I look forward to hearing from you.
Kind regards
| Risk 2001 Australia |
Dear Vince, Risk Assessment and Porfolio Optimisation for Oil and Gas, 23rd-24th October, Holiday Inn, Victoria, London I am producing the above conference and have been speaking with both Ron Bain from Anadarko Petroleum and Soussan Faiz from Texaco who recommended that I contact you.
I understand that you have a wealth of experience in real options and that this is an area that Enron is extremely committed to.
I would love to invite you to come along and speak as I think that you would make a vital addition to the programme.
Your colleague Shirley recommended that I email some details over first of all - I hope you don't mind.
I have drawn up a draft programme (attached below) based on my research, but please do bear in mind that this is very much a developing programme and if you have any comments I'd really like to hear them.
Also if you feel that you would like to present an area that I have not covered in the programme or would like me to rewrite a session I would be more than happy to do so.
I know that you are extremely busy and must get approached regularly to speak at conferences, however I really do believe that this will be a fantastic opportunity to publicise Enron as a leader across Europe.
We will be marketing this conference to over 40,000 targeted individuals, including a direct mail of at least 25,000 and in addition an online and press campaign.
We will be looking to work with leading industry press such as Petroleum Review, Oil and Gas Journal, Offshore Magazine and Harts E&P and can also undertake mailings for our speakers and sponsors to their contacts and clients.
Just to let you know of my deadlines, I am working to a very tight deadline and will need confirmation by Thursday 14th June if you are interested in getting more involved in this programme.
I appreciate that this is very short notice, but at this stage I would need very little from you.
You would simply need to choose an appropriate session or I can adapt a short abstract for you and I can co-ordinate with your assistant to get a biography for the brochure.
I look forward to hearing from you soon and sincerely hope that you can make it.
Kind Regards,
| Risk Assessment and Portfolio Optimisation for Oil and Gas |
Tom, The Lukens' storage model is very similar to yours.
I got a paper from the lead developer Dr. Hugh Li, explaining in significant details about their model.
Let us compare notes after you read it.
We have both DP approach (mine) and optimization approach (yours).
We may combine the advatanges of the two approach into one product, and then we can claim we have the best Storage Model (and sell it if Vince feels like it).
Sounds like a plan ?
Zimin
| Storage model |
The Enron Oral History Project Continues... "Using History to Help Enron Become the World's Leading Company" How can an understanding of strategic choices, regulatory change and corporate culture help Enron achieve its vision?
Speaker: Joseph Pratt, Cullen Professor of History and Business, University of Houston and Co-Director, Enron Oral History Project Thursday, June 7 11:30 a.m. to 12:30 p.m. EB 5C2 To Make a Reservation, Call 3-1941 and Select Option 1 Lunch will not be provided, but you are welcome to bring your own.
Please inform us ahead of time if you need special accommodations to participate in this meeting.
Call 3-9390.
| The Enron Oral History Project Continues |
Good afternoon Vince - I am working with the Enron Oslo, Norway office on an executive customer visit from Norsk Hydro on June 7th.
The Norsk attendess (list below) have requested you specifically to lead a risk management and natural gas operations discussion.
Let me know if you or someone from your team would be able to participate in this visit either at 9:00 a.m. to 10:00ish or 11:00 a.m. to 12:00p.m Below are more details: Hydro's Visit Objective: A study trip to exchange ideas about: Operation in deregulated markets E-Commerce Risk Management Tolling Agreements/Gas or Power Trading Who: An executive level study group from Norsk Hydro's Energy Division Hydro is a leading global supplier of mineral fertilizers, oil and gas, aluminium, magnesium, petrochemicals, industrial chemicals & farmed salmon.
One of the world's leading energy and industrial companies, operating revenues of NOK 96 billion.
Hydro Energy's business sectors are oil and energy , light metals and agriculture with responsibility in electricity production, purchase and sale of electricity, natural gas, NGL, and oil and oil products.
Enron Europe's Objectives: Position Enron as an innovative business partner.
Create a favorable climate for increasing business with Norsk Hydro as deregulation in Europe takes off.
Draft Agenda: 09:00 - 09:15 Tour of Gas Trading Floor 09:15 - 10:00 E-Commerce Discussion/EnronOnline 10:00 -10:30 Meeting with Mark Frevert
| Visitors from Norsk Hydro 6/7 |
Energy Committee Members The following members were in attendance at the January 23rd meeting: Bruce Williamson, Tina Sivinski, Tim Tipton, Bruce Sukaly, Bob Peebler, Vince Kaminski, Dean Arthur Warga, Praveen Kumar, and Lane Sloan.
The handout material is attached for members that could not attend.
The committee viewed a TV ad for the Bauer College and a TV news story on the new AIM center and Cougar Fund.
The first item of business was the Partnership program.
The committee agreed on the following levels: Trustee $100,000 Partner 50,000 Investor 25,000 Sponsor 10, 000 For this year, these levels would receive placements in the new Energy Certificate Programs which will start in September of this year as follows: Trustee up to 10, Partner up to 4, Investor up to 2, and Sponsor 0.
All members of the partnership program would be able to participate in the Learning Community programs of seminars, forums, and symposiums free of charge with the number of attendees and special arrangements varying depending upon the partnership level.
The Chairman noted that with the certificate classes beginning in September, then the annual fee structure would need to align accordingly which left a funding gap for the first part of the year for the marketing costs to launch GEMI.
The original idea had been for the one time entrance fee in the Partnership Program to cover these costs but as you recall the committee did not favor that approach.
The Chairman asked the committee to provide ideas on how to fund these marketing efforts originally targeted at $200,000 for this year.
Dr. Kumar discussed three energy certificate programs to be available as 1) Risk Management 2) International Project Finance, and 3) Energy Accounting.
The courses can be fully developed for the Risk Management and Energy Accounting to start programs in September (many already available).
The International Project Finance may require additional time because of development efforts on certain courses.
Dr. Kumar requested that the members identify people in their organizations that could give detailed feedback on the course proposals so we are assured they fit the needs of the Energy community.
We will also begin discussions with Energy committee members on what level of participation your forsee for your company.
Dr. Kumar noted that the BS and MS programs would be underway but less of an issue for course development as students would not be taking these more energy focused courses until junior and senior years.
He said that specialized training programs seemed to be of high interest and more activity than originally anticipated.
The chairman covered the feedback on the seminars, forums and conferences.
There was real interest in seminars and forums but committee members did not recommend pursuing conferences at this time.
The plan would be to have in steady state 3 seminars per year which would be for large audiences with a featured speaker.
It was noted that the venue would be an important consideration to attract appropriate audiences.
Various suggestions were given on topics of interest with an overall view that the presentations should be practical and of high quality.
The committee agreed that a reasonable fee should be charged to non members of the partnership program.
The feedback on the forums was that they should be smaller more focused groups with different formats depending upon the subject matter.
The thought was that they could address overarching issues integrating energy and service sector considerations.
Non members would not participate but selected student participation was seen as valuable.
A new concept of symposiums was introduced based on discussion with various committee members.
The idea of a symposium was to bring together important spokespeople and other key participants on a topic of high interest to the Energy community.
The Bauer College would provide a coordinating role to address the issue with the objective of gaining input on all fronts.
Dr. Kumar noted that there had been various discussion with members around current topics emanating from the Enron collapse such as clearing house and credit risk considerations.
The committee was quite enthused that an imporant event could be created but it needed to be very carefully thought out as to topic and the management of the process including the media.
It was discussed that if the Bauer College wanted to sponsor such an event then it would need to provide a project manager.
Committee member companies would need to provide assistance/advice particularly on coordinating the media.
Dr. Kumar will be sending out an e-mail to get your input.
Then Dean Warga would make a decision on whether to pursue such a significant event which could be a great launch vehicle for GEMI but also carried a series of risks.
Next, Dr. Kumar discussed briefly the trading center noting that the key issue was endowment funding before any significant activity could take place.
The college was continuing to think through the content and integration with other aspects of GEMI, the AIMs investment center, etc.
The Chairman then discussed GEMI's overall marketing image.
There was some fine tuning of the proposal providing further clarity and emphasis of key aspects of GEMI but in general a high consensus on the desired image contained in the attachment.
After the dialogue on the symposium, which would be a major marketing effort in an of itself, the discussion on external and internal promotion was tabled til next meeting.
The chairman noted that there would probably be a need for a two tier approach if the symposium effort was pursued.
The major focus initially being on the symposium then coupled with a growing effort on the overall GEMI marketing over the next several months.
The last item was the competitive assessment/relationship with other universites and organizations where the chairman discussed the current approach and principles in the attachment.
This received good support from the committee.
The committee members recommended the next meeting to occur in six weeks.
I will send out a separate e-mail on possible dates for you to consider.
Best Regards,
| Energy Committee Minutes from January 23rd |
Vince, I am pleased to hear you will be returning to MSCF this year, participating in the Speaker Series on December 7.
Enron has a tremendous reputation in quantitative finance circles and your obvious interest in our students is deeply appreciated.
I know, too, our students are very much looking forward to your visit.
| MSCF Advisory Board Membership |
Vince, I am very pleased that you will be able to join our Advisory Board and I look forward to introducing you to those of our Steering Committee you do not already know as well as the other Advisory Board members at our next meeting on December 12, 2001 in New York.
I would like to send you a more formal letter of acknowledgment and appreciation but I realize I have only your e-mail address.
Could you kindly send me your full name, address and telephone number?
I would also appreciate your forwarding me a short bio.
Thanks again for your willingness to be a part of our Advisory Board.
Rick
| MSCF Advisory Board |
Students and Faculty, Attached is a memo from Kay Henry Director of MBA for Executives.
Please contact Kay at 713-348-4731 or henryk@rice.edu if you have any questions regarding this memo.
Kathy
| Surveys of MBA Programs for Executives |
Hello Vince, How are you?
Hope all is well.
Eric tells me he had a very productive summer at Enron and was exposed to several ideas that have shaped his research agenda, both in the pricing and trading space and in the telecom one.
I need to support him and a new student I am bringing aboard on this project for this quarter and the academic year, and I would like to see how we can move ahead with this year's funding for this project.
I understand that EBS has had some problems, but we are willing to expand our research agenda to match the current needs and foci at EBS or other groups.
Eric broughtback from Enron a couple of very interesting research problems that he/we is/are focusing on now.
Please let me know how we can proceed.
I'm under some pressure by the Department to move ahead with finalizing the research assistanships.
I look forward to see you again at Stanford or Enron.
Best Regards,
| Enron/Stanford Project |
Dear Vince, In view of all the turmoil at your company these days, I thought that it might be a good idea to check in with you and confirm that you are still planning to come to campus on 11/15-11/16.
We have you scheduled to present to students on 11/15 from 11-2, and on 11/16 to present a seminar to the finance faculty.
We also have a room reserved for you at the Judge Baylor house in Waco for the evening of 11/15.
Besides confirming your visit, I am wondering whether you would recommend that I have my students read any articles in preparation for your talk.
Would it be okay for me to assign your paper with John Martin (forthcoming in the JACF) entitled "Transforming Enron Corporation - the Value of Active Management"?
Also, would there be a seminar paper that I could distribute for the faculty seminar, or would you prefer to have more of a free flowing presentation along the lines of what you did for me during spring 2000 at LSU?
Finally, if you want me to distribute any other materials to the students or faculty, please let me know.
We are looking forward to your visit!
Sincerely,
| your upcoming visit |
Vince, As you have seen in the write-ups I have been sending you, we have established the Energy Markets Institute here to provide a world class recruitment, specialized training, and research resource for the energy industry.
The clear challenge now is to deliver on this as expeditiously as possible, and we need help and input from industry leaders.
We have set up an Energy Executive Committee to work with us on making this a valuable resource for the industry.
So far, Bruce Williamson (CEO, Duke Energy Global Markets), Gerald McElvey (Upstrean Controller, ExxonMobil), Fran Keeth (Exec.
VP, Shell Oil), Donna Pedersen-McGinnis (VP, Dynegy), Bruce Sukaly (Sr. VP, Cinergy), Bob Peebler (Retired, Halliburton) have agreed to be on the committee.
The committee is being put together by Lane Sloan (Retired, Shell Oil).
Both Lane and I very much want to have your input.
Enron is a leading energy firm (and from my perspective, it is the future of the industry).
So we would like Enron to be represented, and I personally would be delighted and gratified to have your advice and evaluation.
We plan to organize subcommittees dealing with Education, Research, and Trading---so it
| Energy Executive Committee |
Dear Mr. Kaminski, Hello, I am producing this year's 'Real Options Training Course' on behalf of the Risk Waters Group in NY.
I am very interested in hearing your comments and suggestions regarding the issues surrounding real options, in addition to hearing what type of research Enron has been doing with real options (as well as a possible speaker position).
Thanks again, I look forward to speaking with you.
Best Regards,
| Real Options Research... |
Vince, I was just thinking about the subject project that you were trying to get off the ground (even though no commercial support existed!)
that I worked on initially.
I know you were trying to get this done before I arrived and then followed my effort with at least one other person.
I think the reason we could not complete a comprehensive project was we did not have the mandate from the CEO office to do it so that relevant commercial and functional entities can provide the required information.
Perhaps the reason there were no major thrust from the management was that most people knew the answer was going to be less than desirable.
However, such information would have correctly priced the risk (to the shareholder not its agents--the management) so that we could have better managed the $20 Billion or so company specific (taking systemic market down turn, including telecom exposure, out) market value that perished.
| Enterprise-wide Risk Management |
Remi, Dave: First of all I want to thank you for your hospitality and to apologize for a delay in responding to you.
It was quite a tumultuous week and the turbulence continues.
The outline of commitments with the information on what I have done to jumpstart the process.
1. Review of the CEPEL model / simplified model.
Chonawee started the review process, with the help of our two native Portuguese speakers.
Less complicated/faster to run model will follow.
2.
SDDP.
As you know Tom Halliburton is in Norway this week.
They put their grimy fingers on him first.
He will be back next week and will help you to set up the SDDP runs.
He even volunteer to stay on the job for a few days longer to help you with the project.
3.
Transmission modeling.
Martin Lin will call Dave to jumpstart the process.
4.
Zimin will call David regarding swing option model, option pricing models for non-standard distributions and truncated distributions.
5.
Cooperation with the SA University in the area of the weather research Remains to be discussed with Jose and Mike.
Vince
| Outline of commitments |
I finished a spreadsheet for calculating historical correlations on forward curves.
It gives the correlation matrix for contracts going out an arbritary number of months out.
I think it might be a handy tool for some of you.
You may get that on O:\RESEARCH\CUSTOM\CORRELMATRIX\ It demands that you have access to our EGSPROD32 database.
You must have that configured in your ODBC.
It is a large spreadsheet, so it may take some computing resorces.
Let me know if you find any problem.
Thanks.
| Historical Correlation Calculator |
Mr. Kaminski- I am an officer in the Energy Finance Group in the University of Texas MBA program, and I am in charge of coordinating our Energy Finance Practicum Program.
I would like to know if Enron would be interested in sponsoring one or more student teams in an energy finance practicum next semester.
I have attached a document with a description of the program, and details on what the level of commitment is for a sponsor (no financial commitment is required).
Sponsorships can only be given by the eight trustees of CEFER (the Center for Energy Finance Education & Research).
Dr. Ronn serves as a faculty advisor for each team.
Lexi Elliott suggested that you and Traci would be the appropriate people to contact for such a request.
Could you let me know if Enron would be interested in sponsoring a team next semester, and who my point of contact should be in the event that you would like to participate?
Feel free to contact me if you would like some more details on the program.
Thanks,
| UT MBA Energy Finance Practicum Sponsorship |
Macroeconomic Factor Analysis Reported preliminary analysis results on macroeconomic time series.
Awaiting Craig's approval for buying bankruptcy rate data from D&B.
Recovery Rate Analysis Understanding the data and performing analysis is in progress.
EES Private Firm Model Completed model building and calibration.
Final reviewing and testing is in progress.
Drivers for Ratings Downgrade Prepared a report which will be discussed next week.
Experian Data Reviewed information received on Experian database.
A model may be built using this data.
This model can work as a supplement to the models being built using D&B data.
| Enron Credit Projects Review |
Vince, I simply wanted to jot you this note because I find that I am sometimes able to address things better in writing than in a conversation.
I want to convey my thanks to you for putting up with me through this period.
I guess I was a bit shell shocked after seeing the project I had worked on, and the team I had built from scratch just going down in a matter of days, not to mention the changes on the personal side.
Through this period you offered me the type of support that perhaps no one else would have, and I want to say that I really appreciate it.
Over this period I got so entangled in my own problems and worries that I forgot that leadership is all about caring for others and not yourself.
My house is now in order, and I am back to my old self.
I want to offer you my full support at this time, and am at your service on whatever issue it is that you wish me to take up.
The company is facing trying times, and I would like to help in whatever way I can.
Please do put as much pressure on me as you would like.
I promise that I will push myself to the limit.
I am ready for the commitment to learn new skills, and have already been doing this, though it has been a slow process.
I will require yours and others guidance from time to time, but will be ready for anything you suggest.
Regards,
| Thank You |
Dear Vince: Many thanks for your call the other day.
We will definitely keep you informed of any new developments.
If you would be interested in pursuing any joint projects, please don't hesitate to let me know.
Best regards,
| thanks |
Sure you are busy.
Sorry about the troubles.
Would it be possible for us to get a read-only account for Enron Online so that we can monitor things?
| request |
Greg, Condolences for the turbulent times Enron is going through.
We remain excited and optimistic about the possibilities of a joint project.
We realize that you and Vince may have limited bandwidth in the immediate future, but when you have time we hope you will consider the draft proposal we sent Vince.
We are still fully behind it.
Yours truly, Norman
| Enron and Prediction Company |
Vince, Here is the spreadsheet sent by the EGM group, and the draft memo that I have circulated internally (to Vasant, Zimin and Paulo).
If you have questions, please let me know.
Regards,
| Elba Island Option Pricing |
Vasant, I wanted to keep you up-to-date on the redevelopment of forward curves for the suite of 7 plastics (ethylene contract, ethylene spot, propylene contract, propylene spot, polypropylene, HDPE, LLDPE).
As you may recall, we talked about fitting all of the components into a VAR model and solving the system of simultaneous equations.
Unfortunately, with a limited dataset (say 5 years or so), our degrees of freedom in such a model are dramatically reduced.
Alternatively, Mauricio and I have decided to construct individual models for each of the plastics commodities while utilizing results from the initial VAR analysis as a guide.
Based on the petrochemicals flowsheet, both propylene and ethylene are fashioned directly from raw materials such as crude oil, coal, and natural gas.
In turn, polypropylene may be made from propylene while HDPE and LLDPE use ethylene as a raw material.
Given this logical flow, we restricted our model specifications in the following manner (all price variables tested for stationarity--first difference used in all cases):
| Plastics Models |
Hi folks, Sadly, this is my last day at Enron in Houston.
I've been here two years and 2 days, and have had a great time working here.
The longer I have been here, the better I have liked working here - probably because I got to know you all better.
If you are in New Zealand any time in the next 5 or 10 years, I would like you to stay at my house and update me on life at Enron - we will be living in Wellington, which is at the bottom of the North Island.
Contact details are: tomhal@attglobal.net 95 Wyndham Road Upper Hutt, Pinehaven New Zealand regards to all
| Visit New Zealand Someday |
Hi guys, here is a simple template based on discussions with Vince and Rakesh.
It takes positions for a single commodity (physical and financial), collateral info, and calculates P&L and collateral needs over a one month horizon.
This can be expanded to add pictorial info, and other expenses, and any other details as needed.
This is just a first cut, please feel free to tear it apart as appropriate.
Vasant
| Template for estimating Enron Capital needs |
Dr. Kaminski, Richard, who I understand is a previous intern at Enron in your group, suggested that I contact you.
I'm Albert Demery and a 1st year MBA at Haas.
I am writing a term paper on real options pricing methods and wanted to incorporate real-world examples (under a guise of anonymity, of course) and was wondering if you would mind answering a few questions regarding how Enron has tested, implemented and validated the methodology.
Thank you in advance for your assistance, Albert Demery demery@haas.berkeley.edu
| Haas Referral from Richard Peyton George |
Vince, 1) Did you talk to Whalley about Christian Werner?
I am sure that the is going to be calling in the next few days, and will want to know the status of his employment with Enron.
2) As you know Stephen Bennett would like to go to Rice's Executive MBA program.
In light of everything that is going on, do you still want to fund this?
The cost is 65K for two years, and we will need to submit a letter of nomination on Enron letterhead signed by a senior exec agreeing to do the following: 1) provide full financial support for the nominee, payable at the beginning of each academic year, and 2) Schedule the Nominee's work and travel requirements to permit regular class attendance, including the international trip, and completion of class assignments.
Steve would like to attend in the fall, and app's are due in the beginning of 2002, so we just need to work on this, if you agree to pay for it.
Thanks,
| Follow-up and Questions |
Dear Vince, I have attached the invoice for the workshop that Beth O'Sullivan and I conducted for your group last month as well as a summary of the workshop evaluation.
I am sorry for the delay, but we were waiting to receive more of the workshop evaluations so that we could provide you a more complete assessment of the workshop by the attendees.
As it is, we only collected 11 responses of the 17 attendees.
I will also send you a copy of this invoice in the mail and will be glad to send you the actual evaluation forms completed by the attendees if you would like to have them.
As mentioned in the attached, we enjoyed working with your group and hope that you can see the difference the training made in the presentation ability of the attendees.
| Workshop Invoice |
You have received this message because someone has attempted to send you an e-mail from outside of Enron with an attachment type that Enron does not allow into our messaging environment.
Your e-mail has been quarantined and is being held at the MailSweeper server.
Sender: VKaminski@aol.com
| An Inbound Message For You Has Been Quarantined |
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Vince, A friend of mine works at Equiva (trading sub of shell/saudi aramco).
She said they are in big need of smart-types to quantify the risk of their portfolio, etc.
Is there anyone in your group past/present who you think might be appropriate and could use a job?
bc
| quant job opening |
Vince- Are you going over to the new building right away?
The reason I ask is on the trading floor the workspaces are very small, and there is no room whatsoever for books (eg, econometrics texts).
I think this revives the issue of a library.
We used to have a wonderful one, then it went away.
I was wondering if you could keep a thought in the back of your mind in terms of a place where people could go to find and read good textbooks.
Thank you,
| new bldg- book space- library? |
Vasant, A quick update on a number of on-going projects: 1.
JCC Forward Curve/Hedging Strategy (Enron Japan) h An update of the historical P&L model was completed and included both commodity and foreign exchange risks.
The standard deviation of historical simulations for single month swaps was significantly reduced with the foreign exchange hedging strategy (two long yen/$ positions and 1 short yen/$ position).
h Enron Japan, in cooperation with Enron London, developed an alternative hedging strategy based on Brent $ value.
No P&L historical P&L simulations were conducted for the alternative strategy.
h The original Brent hedge ratios were based on an average of 3 monthly preliminary JCC values offered by METI.
Presumably, the swap will be settled off of the finalized METI JCC price which is released two months after the fact.
Rousseau forwarded those numbers from 1998 to present this morning.
Unfortunately, our model uses historical JCC values going back to August 1991.
Rousseau will hopefully obtain the required historical JCC time series early next week.
h I haven't yet heard about Jeff Shankman's response to the memo that was forwarded on Wednesday.
2.
Ethanol Forward Curve (Enron Global Markets) h A meeting was held with Marc de la Roche, Darren Maloney, and Sanjay Patel to discuss the development of a forward curve for ethanol.
A first-cut curve based on NYMEX unleaded gasoline, NYMEX WTI crude, and EIA fuel ethanol inventories was constructed and backtested.
Rolling monthly backtesting (using data from 2000 to 2001) suggested that, on average, the modeled and actual ethanol prices were off only by a few cents for time periods up to 6 months (e.g., 6 month swap).
Unfortunately, the 1 SD value for the historical projections was quite large (+/- $0.30 on a $1.40/gal commodity).
h The changing dynamics of the ethanol market offer the greatest challenge to forward curve construction.
That is, ethanol will likely replace MTBE as the fuel oxygenate of choice over time, which will probably signal a stronger relationship with unleaded gas price.
Unfortunately, the current model uses historical data from 1998 to present which do not necessarily reflect such a strong relationship.
These concerns have been noted to the ethanol guys.
h The ENE ethanol pricing index has been updated with August, September, and October prices and continues to generally track other industry publication values (e.g., Oxy-fuel news).
h Marc and Darren are in talks with Petrous as a potential counterparty for an ethanol swap.
h An ethanol status meeting will be held Wednesday or Thursday of next week with Randy Maffett.
3.
Plastics Forward Curves (Enron Global Markets) h Mauricio Mora and I have focused on the development of forward curves for a suite of plastics including propylene, ethylene, polypropylene, HDPE, and LLDPE (see earlier email for details).
h Initial models for each of these plastics have been completed and will be compared to the current model forward curves and Alan Engberg's expected values.
Alan did forward the most recent curves and personal outlooks to us today.
h Note that the methologies behind the creation of the old forward curves are not known.
Evidently, one can use various rankings (say 1 to 5 depending on market conditions) to manipulate the model forward curve--I don't know whether regression was involved in these forward curve constructions.
| Work Update |
Hi Vince, There has certainly been a lot of "water over the dam" since we first discussed your serving as a member of the MSCF Advisory Board last fall.
Obviously, you were unable to join us last month in New York, but I never did hear from you or your office whether your absence was due to a last-minute schedule conflict or whether you no longer desired to be a part of the Advisory Board.
Might I hear from you regarding your interest going forward?
Rick
| MSCF |
Attached are the directions to Tony's.
Sandeep and Vandhana would like you to celebrate their daughter's first birthday with them.
The information and directions are attached.
Therese
| Just a friendly reminder... |
Dear Mr. Kaminski, I was referred to you by Dr. Shi-Jie Deng of the Georgia Tech School of ISyE.
He suggested I send my resume to you because of my interest in the Energy Industry.
I will be receiving my master's degree in Quantitative and Computational Finance from Georgia Tech in December 2001.
My academic background also includes a strong emphasis on research, Mathematics, and Physics.
| Internship |
Vince, In light of the new circumstances, I am guessing that the company will not continue to reimburse me for my french lessons.
Thanks for the confirmation of this policy going forward.
Gwyn
| French |
Dear Vince, I hope that you would have received by now (through e-mail) the invitation from the Dean for the Energy Committee and the Advisory Board, the complete business plan for the Institute, and the list of the energy committee members.
We are very excited to have you on board with us.
Since you will not be able to attend the first meeting, I would like to arrange a visit by you to the Bauer College sometime in the near future, at your convenience.
In this visit, we would like to summarize the proceedings of the first meeting, get further input from you, and also show you the recently completed AIM Trading Center (even prior to the official opening ceremony in January).
It would be great if we could entertain you for lunch as part of the visit.
Please let me know of some days/time-slots that are open to you in the next couple of weeks, and we will try and firm up the visit.
Many thanks again.
Best wishes,
| Energy Committee |
Overview Since many of you can not attend every meeting at FERC regarding Generator Interconnection, we would like to provide you with a few highlights of the past two weeks.
Interestingly, generators are finding that the Transmission Owning (TOs) entities and ISOs have been less-combative than one may have thought.
This is largely due to Daniel Larcamp's, Director of OMTR at FERC, statement to the TOs that they can not hide behind the excuse that prior practice and their Open Access Transmission Tariffs (OATT) prevent them from granting many of the reasonable requests of the generators.
Larcamp said in no uncertain terms that the current OATTs are not hard- and-fast anymore, instead, they are most likely going to be subject to revisions per recent FERC orders.
The generator group is working very well together.
We, the Alliance of Energy Suppliers, are present and very involved in all of the generator strategy sessions and industry meetings, in addition to having Chuck Linderman of our Alliance on the "process group".
This process group develops the issue lists for discussions and decides on logistics and procedures for the upcoming meetings.
The Alliance has also sponsored lunch for the generator group and continues to offer our offices and conference rooms to any generators that may need office space amenities during their extended visits here in Washington.
Procedural Schedule for Interconnection Meetings 9:00AM Llarger industry session convenes to receive direction from FERC staff on the day's topics and process 9:15-9:30- Break into sector caucuses, i.e.
Generators, Transmission Owners (TO), RTOs/ISOs, Transmission Dependent Utilities (TDU), and Others.
10:30-12PM- All caucus groups come together to express desired outcomes on certain issues and topics 12:00-1:30- Caucus Group Working Lunches 1:30-3:30- Larger groups convene to discuss individual caucus groups' concerns and issues and attempt consensus 3:45-4:45- Individual caucus groups meet again to discuss positions and find compromise or consensus on issues 5:-5:30PM- Plenary session to chart out next steps and topics for next meeting.
Positive Meeting Developments Scope of Service Generators were very successful in negotiating to receive an option for generators to have three product levels of Interconnection Service.
Optionality was a paramount issue for generators.
TOs conceded to offer the following services: (1) Energy Resource- based on the PJM study process model (2) Network Resource- transmisison rights will be firm and comparable to TOs network resources (3) "Simple interconnection" which allows for several options to be chosen, but basic interconnection of the directly assigned facility is the minimum.
Queuing TOs recognized that the queue positioning issues were generator v. generator issues, so suggested that we offer suggestions to them as to how to structure and administer the queue.
Generators agreed and developed the rights and timing it wished.
Functions of the Queues (1) identify order of studies (2) identifies timing of projects for developers (3) identifies and allocates costs responsibility Limited Consensus TOs suggested, as generators had articulated that Best practices #4 of te ANOPR be adopted as the minimum and build fro those principles.
So in essence (1) queue position for all interconnection requests be based on the date the TP receives the request; ( (2) the Generator must meet reasonable milestones to retain position in the queue; (3) if a generator misses stipulated milestones, it will be able to have a time period which to "cure" the deficiency.
But if after the reasonably agreeable time frame is exhausted, if not cured, the generator may be at risk for losing its place in the queue; (4) queue position may be at risk, if a generator makes substantial "material change".
( material changes must be further defined by the generators) Scope of Studies and Interceonnection Agreement and Procedures Outstanding Questions and Issues to be addressed in Later Session (1) when is a generator included in the "base case" study or modeling (2) when is a generator on the hook for costs (3) time line for when a generator receives a feasibility study and that all developers should receives a feasibility study, unlike the current practice where that is not the norm (4) if a generator cancels a project that had been allocated costs for upgrades associated with its facilities, who pays for the necessary upgrades if the generator drops out and does not complete the project?
Milestones Generators requested that milestones be tied into the progression of a construction project.
These milestones will include time lines and schedules.
The milestones will begin when a generator applies for interconnection.
Note: TOs asked if generators could develop the milestones since they viewed them as a generator-to-generator issue.
As a result, a group of generators joined a group of transmission owners to help develop the milestone language.
Drafting Team A drafting team was formed that contains representatives from each participatory group at the Interconnection meetings.
This group will draft consensus language for the final Interconnection document submittal.
This group takes day-by-day issues and attempts to fashion language that represents broad consensus on these issues.
The language proposals are then vetted back through the individual caucus groups and voted on for later approval by the entire industry group.
(FERC distributed a voting guide that helps categorize what is consensus and what is not) Next Meetings Thanksgiving week- Nov 19-23.
NO MEETINGS There will be no FERC Interconnection meetings for this week.
However, the generators will have a caucus conference call on Monday Nov., 19 at 11AM to prepare for the following week's meetings.
If you would like that call in number please e-mail Chuck Linderman at Clinderman@eei.org - Tonja Wicks.vcf
| Update on FERC Interconnection Meetings |
Dear Vince I have not heard from you for a few days and was wondering what is happening.
The last time I spoke to Shelley, everything was fine and that you were still going ahead with your presentation and co-presenting the workshop on energy risk.
Please do reply to put my mind at rest!
Thank you
| GARP 2002 Convention |
Dear Vince, I was wondering whether in addition to your talk on market and credit risk at EPRM you would be interested in participating in the panel debate at the beginning of day two?
The panel will be a senior-level debate on the future of the US power markets and I thought this might be something you would be interested in speaking on.
I have reattached an up-to-date version of the agenda.
Please let me know what you think.
Best wishes,
| EPRM 2002 USA |
Dear Vince, Just to remind you, I will be graduating this May with an MBA from Rice.
My concentration is in finance, but I'm also an undergraduate engineer from Cornell University and an IT specialist.
I need help not simply finding a job, but perhaps some suggestions on how I can differentiate myself from my classmates in my job search.
I've been somewhat frustrated trying to explain why I'm more effective than my peers.
Mike Roberts even said that I achieved more for the weather group in three months over the Summer than any other MBA achieved in a year.
This was probably due to my technical background and ability to put models into program code quickly and reliably.
I know this is a tough economy, but I just want a chance to do good work and show quick success.
What I can't say in my resume is that I'm the best in my class at finance, statistics, and information technology.
However, this combination is also my biggest crutch.
I'd like to engage all my skills, but typically, interviewers are only looking for one.
Do you have any leads to big or small companies that might be interested in my skill set?
I'm indifferent to moving anywhere in the U.S. Vince, in any case, I appreciate your time and any suggestions you could offer.
I had a wonderful time working for you, we really had a good team.
If you have any questions for me, please call or email me at any time.
Sincerely,
| help finding finance work |
Hi Vince, Well I am speaking at Risk 2001 (which is the combination of Risk 2000 and the Australian Energy Risk 2000)on the 20th, 21st and 22nd of August in Sydney Australia.
I was hoping to see you again but you are not speaking this year.
Well I left iEnergy as a Risk Analyst (www.ienergyglobal.com) to Intelligent Energy Systems as a Market Analyst (www.iesys.com) ~ who have a licence in Enron Sydney for Prophet (Price Forecaster).
After my probabation they offered me a good salary and permanent position (this was an awesome job) but I was offered an Associate Lecture in the School of Banking, Finance and Accounting at Griffith University in Brisbane, Queensland, Australia.
Maybe I am following your starting career in Academia.
I had an interview with Enron Sydney with Raymond Yeow (but did not make the grade) ~ pricing interruptible options.
Well my other friend Quentin Kerr who sent over his papers with (Professor Burrage and Professor Gray from the University of Queensland) to you had an interview with your Houston office (but he did not make the grade) also.By the way how were the papers?
Still I am determined to write more papers in this huge market and maybe I will catch up with you on the American or European Conference Circuit.
Kind Regards
| Hi Vince from Australia |
The approval process initiated in 1998 for all meeting and event expenditures in excess of $5,000 has enabled Enron Americas to better assess the business value of events, accurately track our activities and save money.
These events include customer and employee meetings, and trade shows.
EA has made some modifications to the process, which are described in this memo.
The $5,000 threshold remains in effect for all customer events.
However, the threshold for approval for employee meetings and events has been lowered to $500, and some additional requirements must be met prior to approval.
Please be sure to follow the procedures described below for all meetings and events, so we can continue to successfully manage these events.
1) Prior to making any commitments to customers or vendors, all customer events with anticipated costs in excess of $5,000, and all employee events with anticipated costs in excess of $500 must be reviewed by the Enron Americas Public Relations department and approved by the Enron Americas Office of the Chairman 2) The PR department will handle the site search and hotel contract negotiations for all such events.
Once this is completed, the PR department will work with you to plan and produce your event in its entirety; or they can provide as much or as little assistance as you require.
The PR department will be responsible for helping you achieve the best value for your program and EA.
3) A completed expenditure request form (see attached) and supporting documentation is required for each event.
Employee meetings require a detailed agenda as part of the event documentation prior to approval.
Please submit the completed expenditure request form and documentation to the PR department at EB 3642, or work with PR department employees to complete the form.
4) After PR review, the expenditure will be submitted to the EA Office of the Chairman for final approval.
Additionally, the PR department can assist in the procurement of tickets for various local sporting events and concerts.
If you have any questions regarding this process, would like assistance planning an event, or need tickets for a Houston event, please contact Dorie Hitchcock in the PR department at (713) 853-6978.
Thank you for your cooperation.
| Meeting and Event Expenditure |
Vincent....on behalf of Toshiba Corporation, we wanted to thank you for the valuable time you spent with us on Tuesday and also for the great Brennan's Lunch!
We hope you and your team felt that the time was well spent and you found the Boltzmann concepts and model to be both interesting and compelling.
We know that we threw alot of very detailed information at you in a relatively small amount of time and of course it will take some time to digest.
We're thinking that the best way forward may be a small research or prototype project where Enron and Toshiba may be able to jointly test, analyze and benchmark the application of this concept -- to determine it's feasibility and potential business benefit.
We are very interested in your thoughts about this idea.
| Thank You For Your Time and Hospitality |
Vince, Following are the Employment Agreement recommendations for Mike, Vasant, and Krishna.
Please know that I have not had a chance to run these up the HR flagpole yet so the following is not set in stone, but I will be out of town Friday and Monday, and I wanted you to have something for your meeting with Whalley.
Name: Mike Roberts Term of Contract: Two years Sign-on: 40K Equity: 40K Name: Vasant Term of Contract: Two years Sign-on: 35K Equity: 35K Name: Krishna Term of Contract: Two years Sign-on: 30K Equity: 30K If you have any questions, or need anything else from me, please do not hesitate to let me know.
Thanks,
| Employment Agreement Recommendations |
Vince I manage the conference programme for Enron Europe and I have been co-ordinating Peter Styles' participation at Gas and PoweRisk, 6-8 November 2001.
With this taking place in Paris, I wanted to offer you our help should you require any assistance with liaison with the conference organiser, presentation support or hotel logistics.
Best regards
| Gas and PoweRisk 2001 |
Vince, I am attachings the revised Employment Agreement forms for Mike, Vasant, and Krishna so that you can review the numbers with Whalley.
Please just let me know when you are ready to pull the trigger or if any changes need to be made.
Additionally, I am attaching the final ratings for all of your people.
Some people have NR by their names, but that is only because they have not been here long enough to be reviewed.
If you need any additional info from me, please let me know.
Thanks.
| Employment Agreements and Final Rankings |
Vince, How are you?
I understand that it is a very difficult time at Enron right now.
I really hope that things will work out for you fine.
Please do let me know if there is anything that I could be of any help.
Take care.
Best,
| Touching base |
Dear Vince J Kaminski, As a Mathematical Trading and Finance MSc student (City University London) I am writing my dissertation on "power forward curves".
Since you have participated in the writing of the book "Managing Energy Price" I was wondering if you could eventually help me.
The MRHV model seams to be the best econometric one to model the electricity forward curve.
I understand and know how to work out with the classic Mean Reverting Process, but I don't understand the MRHV (I don't know the discretised form and I cannot even find any paper, or article on it) and how to get rid of the exponent to estimate my parameters (long-run mean, Speed of mean reversion, volatility, exponent, Floor price).
Thank you by advance for any help Yours sincerely
| MRHV Model (power curve) |
Sandeep, I received a e-mail from Toshiba requesting a meeting to discuss collaboration between Enron.
Mr. Tatsumi states in the email that Vince told Toshiba that Enron would like to examine the Boltzmann model through the Tokyo office.
How would you like us to proceed with Toshiba?
We are happy to meet with them, however I would like to have a clear definition of the objectives from our perspective.
Regards,
| Meeting Request from Toshiba |
Thank you for attending to the talk last Friday.
The current version of the program can be installed by double click on file setup.exe in O:\Research\Common\from_cs\fullReqDispatch\installation directory.
It has a security checking system that allows only Enron people with readable-access to O:\Research directory to be able to run the program.
If you have any questions or problems please let me know.
Thank you,
| Installation for Full Requirement Dispatch Application |
Your opportunity to register for the invitation-only Neptune Regional Transmission System Open Season Pre-Bid Conferences is running out.
NeptuneRTS, the FERC-approved subsea HVDC electric transmission system that will interconnect Nova Scotia, New Brunswick, Maine and New Jersey to downtown Boston, New York City, Long Island, and the Connecticut shore will begin its initial sale of Transmission Scheduling Rights on September 10.
In advance of that opportunity, NeptuneRTS and its advisors from Skadden Arps, Societe Generale, and Energy Security Analysis will hold pre-bid conferences as follows: September 5 Houston, Texas September 6 Halifax, Nova Scotia September 7 New York City If you are one of the many participants who have already registered, you can expect your confirmation card in the mail this week.
If you have not yet registered, please do so with Paul Rich at (207) 487-4183 or by email at prich@neptunerts.com <mailto:prich@neptunerts.com> A conference agenda is attached.
If you have not received a copy of the Neptune Bidders Brochure, you may also request one by e-mail.
We look forward to seeing you next week!
- Open Season Pre-bid Agenda 28Aug01.doc
| NeptuneRTS Open Season |
Bob, I finished the draft of Summary to be included in "Statement of Work" document.
I would like to finish all the paper work this week so that DA and DBA can start to set up the data mining data base.
Zimin
| Executive Summary of EOL Data Mining |
Dear John, dear Vincent, Let me up-date you on the roundtables we decided in the last meeting to focus on during the rest of the academic year.
The original idea was to keep the number of events from 3 to 4 roundtables each semester.
The result of the last meeting with all members was driven by enthusiasm, and as you see below we produced a prolific list of 13 subjects.
Maybe you can help us to narrow down to a reasonable number, 12 events (one we had yesterday) by May 2002 we think are too many.
I also would take this opportunity to update on the ongoing relationships with the most prominent industry in the sectors and have your feedback, suggestion on how to group them in the roundtable.
We got great support so far from Reliant, Enron, Mirant, Schell (Coral), Bp, Duke.
El Paso, Chevron-Texaco, Phillips, and Halliburton etc.. also are interested and we will present the club to them as well.
The major challenge for us is not transform the Energy Club in a Finance Energy Club.
At Rice we already have a Finance club and it works very well.
We want first educate about the energy industry in general, and second present the opportunities for MBAs in the industry in different areas, including finance but not limited to.
Topics of Roundtable Meetings: 0) Energy "101" 1) Corporate Finance (Treasurer or Controller) 2) Energy Consulting 3) Financial Services (trading, risk management) 4) Origination, Marketing and Sales (Oil, Gas, Electricity) - Marteen 5) Project Development, strategic planning 6) Project Finance 7) Project Risk Management 8) Regulation, Deregulation, and Restructuring - Reliant done 9/17/2001 9) Structuring of Products 10) Supply Chain 11) Telecom - Broadband 12) Venture Capital within energy industry - Brian, Paresh Thanks in advance for your precious suggestions and I am looking forward to meeting you.
| Rice Energy Club Roundtable topics |
Dear Speaker at Gas & PoweRisk 2001!
I just wanted to give you a little update on the developments of the preparations for the conference in November in Paris.
We have now just launched the second round of marketing for the event, and bookings are coming in very nicely - it promises to be another exciting conference, and even bigger and better than last year's!
For those who have not yet done so, I would like to remind you of the possibility to send us the names of contacts that you would like to get informed about your involvement in the event, and we will then make sure that they receive a conference brochure.
To assure the highest level of confidentiality, you can also send these names to our third party mailing house instead, and we will guarantee you that we only use them for this one mailing.
Furthermore, I would like to remind you to book your hotel room in Paris as soon as possible, should you not have done so already.
The conference hotel is filling up very quickly, and we will only be able to hold rooms for you until the 28th September - so if you wish to stay in the conference hotel, please fax the booking form directly to the hotel as soon as possible to avoid disappointment.
Also please remember that we require a copy of your presentation by Friday 12th October.
Please make sure it gets to us in time, as it can otherwise not be included in the conference documentation pack, which in the past has been a constant source of complaints from our delegates.
Thank you for your cooperation!
I will attach the AV form and the marketing form - please send them back as soon as possible if you have not done so yet.
This should not take more than 5 minutes of your time, but will help us assure a smooth running on the day.
That's it for the moment - please contact either me or my colleague Natasha Woolf should you have any further questions!
I look forward to seeing you in Paris in a few weeks' time!
Kind Regards,
| Gas & PoweRisk 2001 Conference, November |
Dear Vince, I hope everyone is well among your family and friends;as a US citizen and as a European citizen,I am devastated by the New York (in fact,world) events.
I am in touch with Sandeep for the software;moreover,a good student from the Finance Mastere programme at ESSEC wishes to join Enron,anywhere.. Should I forward you his vita?
See you in November Kind regards
| News |
Dear Vince, We have been working on the curriculum for some of the educational programs to be offered by the Energy Markets Institute that Arthur Warga and I discussed with you in the summer.
I am attaching (tentative) curricula for two important programs: (1) A graduate certificate in Energy Finance, (2) A 5-year BBA/MS program in Energy Finance.
Briefly, the certificate is a 5-course for-credit program that is available to people with sufficient basic background in finance, economics, statistics and mathematics.
This certificate includes coursework in accounting issues specific to the energy industry, basic aspects of energy sources and the organization and regulation of energy industry, forecasting and time-series econometric methodologies, basics of financial engineering and derivatives, real-options and project analysis as it applies to the energy industry, and energy derivatives and risk-managament.
The 5-year program is more ambitious.
It seeks to provide a broad but rigorous curriculum for future energy industry professionals and managers.
In the undergraduate component students take rigorous courses in math, probability and statistics, economics, chemistry and physics, and accounting and finance.
This is conceived to be an "elite" and highly demanding program where students have to handle the more demanding courses in a variety of areas.
The 5th or graduate year of the program is given over to the energy certificate and additional graduate courses in finance and accounting.
I know you are extremely busy, but it would be very helpful to get your reaction (even at a broad level) to these programs and the type of courses that are envisaged.
We view these programs to potentially form the core of the educational activities of the Institute, but the next step would be to develop more specialized programs (of shorter duration) aimed at professionals already working on challenging problems in the industry.
We are in the process of setting up the Institute and developing its governance and administrative structure.
I will give you more details very shortly.
| Energy Institute Curriculum |
Hi Vince, How are you?
Everything is going well here in Boston.
I am staying very busy in school with the core business classes.
I am taking an intro to Finance with Myers which is very good, but otherwise my classes are very fundamental.
I'm finding the most challenging part of business school is juggling all the extracurricular activities.
Today we kicked off our first official team project which is very similar to the Tiger projects at Wharton that we worked on last spring.
We have a lot of flexibility with the topic of the project.
We are just supposed to find a real company or business unit that will let us analyze a recent, ongoing, or anticipated change initiative.
All that is required is that the initiative be important to the company, represent a change, and have organizational implications.
I don't know if you or a business unit of Enron you know of would like some free consulting in this area, but if so I would love a chance to talk with you about it.
Another group of us are starting an Energy and Environmental Finance Club this year.
We've collected over $3,000 for the club from about 100 MBA and Manufacturing students, and we will get more from the school.
We would like to bring in speakers from the industry to tell us about new initiatives and the state of the business.
Would you or someone you know be interested in presenting to the club?
The students would really appreciate your involvement.
Please feel free to forward this email to whomever you think may be interested in these projects.
I will try calling later this week to touch base and see how everything is in Houston.
See hello to Shirley and everyone else for me.
ken
| two potential projects at MIT |
This message is to update you on the status of EWS Accounts Payable (AP) and highlight recent improvements to the AP process.
EWS Statistics Thank you for your efforts to keep your iPayit inbox current, which reduces the chance of duplicate payments and directly impacts our vendors' confidence in Enron.
As you can see, we've made improvement in reducing our invoices over 30 days.
If you have invoices in your iPayit inbox that you can not process immediately, please use the new "hold for review" function.
This will let us know you are holding the invoice intentionally and will resolve later.
Task Force Update Here are a few statistics that indicate a positive trend in AP processing: * Average time from the P.O.
Box to your iPayit inbox: Reduced from 10 days to 3 days * Critical service and utility payments are processed in less than 2 days * 75% of invoices received in AP have correct contact information (those missing information are returned to the vendor for correction) If you need assistance processing outstanding invoices, please contact Christa Winfrey at christa.winfrey@enron.com.
| Update on EWS Account Payable Status |
Sevil, As I stated to you yesterday, I am extremely sorry for causing so much confusion over the non-existent compensation concern.
I would like to reassure you though that there are no problems or concerns, and that I was just letting my mind get ahead of me, and was mixing different thought processes and projects.
Unfortunately, you had to reap the repercussions of my brain malfunction.
I hope that you accept my apology, and can rest with an easy mind.
Anne
| Compensation Concern |
Don't forget to meet us tomorrow evening from 5 - 8 p.m. at the Boaka Bar downtown!
Located at 1010 Prairie, the Boaka Bar is right next door to the Mercury Room and your first drink is free!
Bring a new member with you (who pays their dues onsite) and you'll be entered into a drawing for HOUSTON TEXAN tickets!
The member who brings the most guests will win tickets to this year's HOUSTON LIVESTOCK SHOW & RODEO, so come out and bring your friends!
Also, mark your calendar for February 20th's Storage Economics Brown Bag... email Lana Moore for details at lana.moore@nesanet.org.
The next Technical Training class will be March 12-13 (Nominations thru Allocations)and Lana can help with your registration on that as well.
Have a good week, and I'll see you at the Boaka Bar!
| MIXER TOMORROW - THURSDAY, JANUARY 31ST! |
John: I received your voice mail upon return to the office this morning.
I'm sorry the schedules did not match up yesterday but certainly hope the next opportunity to meet will not be long in coming.
I was most impressed with the quality of students interviewed on campus yesterday.
Likewise, I have now had a chance to meet some of those we have hired while I was in London.
The high standard clearly continues.
Concerning your reference to the annual finance conference, I have kept up with each event from a distance.
Memory serving, it has been about four years since the concept was first considered.
Time flies!
Others have also said that it is a real success.
Many thanks to you and others at Baylor for the time and effort dedicated to date.
Let me know when you have plans to be in Houston in the future.
I'll do the same when in Waco.
Pass on my well wishes to others at the Business School including Dr.(s) Rose and Petty.
I did have a chance to visit with Dr. Maness by phone and exchanged v-mails with Dr. Rose.
All The Best,
| Hello & Thanks for the Call |
TheMarket for Lemons and the Price of Dishonesty=20 The Nobel Memorial Prize in Economics was awarded thisyear to three economi= sts: George Akerlof, Joseph Stiglitz and Michael Spence,who made significan= t contributions to modeling markets with information asymmetry.In many case= s in a given market sellers or buyers may have exclusiveinformation that is= not available to the counter party.
The best-known examplecomes from the [= paper by Akerlof, The Market for "Lemons": QualityUncertainty and the Marke= t Mechanism, Quarterly Journal of Economics, 84,(1970), pages 488-500.
=20 An owner of a used car can form a good idea of the qualityof his vehicle.
H= e has much better information if his car is a lemon.
As bothgood and bad us= ed car have to sell at the same price - it is impossible for anaverage buye= r to distinguish between good and bad merchandise - they sellers ofgood use= d cars are driven out of the market.
Most traded used cars will belemons.
O= f course, there are ways to mitigate the problem: an owner of a goodused ca= r may send signal to the buyer by offering him a guarantee or absorbingthe = cost of inspection.=20 Hiring is a similardecision.
As Michael Spence wrote in his paper Job Marke= t Signaling,Quarterly Journal of Economics, 87, (1973), pages 355 - 374, to= hire somebodyis frequently to purchase a lottery ticket.
The employer cann= ot directlyobserve the productivity of a potential hire.
"What he does obse= rve is aplethora of personal data in the form of observable characteristics= andattributes of the individual, and it is these that must ultimately dete= rminehis assessment of the lottery he is buying."
The observable characteri= stics of an individual may be immutable (raceand, generally, sex) but in so= me cases certain attributes are alterable.
A candidatecan modify such chara= cteristics as education and job history.
Some economistssay, tongue-in-chee= k, that some candidates who attended top schools and spentmany painful hour= s studying useless subjects signal their willingness to dowhatever it takes= to succeed.
Another way to send a signal about one's qualityis to find a j= ob with a top firm at the beginning of one's career and tosucceed in this f= irm before moving on.
This provides a useful lesson to anybodywho plans to = be in the labor market at some points in his or her life: thereputation of = the current employer is critical to future employmentopportunities and shou= ld be defended at any cost.
Honesty, at the end of theday, is an imperative= dictated as much by morality as by one's self interest.
=20 - The Market for Lemons and the Price of Dishonesty.doc=20 - The Market for Lemons and the Price of Dishonesty.doc
| Newsletter |
Vince and Zimin, PSIM presentation is scheduled on 4 pm, Tuesday Oct. 30 (this is the only availabe time, EB5C2 is fully booked, and Vince will be out of town Wednesday and Thursday).
I've listed some people below.
Can you add more to the list?
Power Traders: Doug Gilbert-Smith Harry Arora Robert Stalford Steve Wang Iris Mack Power Structure: Jim Meyn Nick Hiemstra Rahul Seksaria Power Origination: Pete Heintzelman Edward Baughman Tom May Clint Dean Utku Gulmeden EES: Berney Aucoin Edith Cross RAC: Naveen Andrews Power Fundamentals Rika Imai
| Invitees for Tuesday's presentation |
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