1. NEWCO FINANCIAL OPERATIONS

2. NEWCO FINANCIAL OPERATIONS
Wes Colwell
Chief Financial Officer
(2)
Total employees = 55
Stephen Douglas
Tax
(4)
Tom Myers
Treasury
(6)
Georganne Hodges
Accounting
(43)
Faith Killen
Internal & External Reporting
Elaine Schield
Accounting
Hope Vargas
General Accounting, Cash Reporting
& A/P
Greg Whiting
Trading Accounting
August 3, 2018

3. Treasury

4. Bank Account Structure
Account Groupings
Commodity
Receipts
Natural Gas
Power
General &
Administrative
Master
Account
Commodity
Disbursements
Natural Gas
Power
Payroll

5. Commodity Cash Timeline
Calendar Month
Power
Physical
Financial
Gas
OTC Margin
Nymex
Week 1
Week 2
Week 3
Week 4 ^ ^
&
& @
&
& # # # # * * * *
^ Majority of physical power settles from the 20th-30th of month. (Terms are net 20).
& Majority of Financial Gas –power settles in the first two weeks of each month (within 5 days of pricing).
@ Physical gas settlements take place on the 25th of each month.
# Fund/ Receive OTC margin (collateral) daily on the second business day following valuation move.
* Fund/Receive original margin and variation margin daily with brokers.

6. Commodity Settlement Process Flows
Receipts detail
Commodity
Settlement
Systems
Banks
Wire Transfers
& Checks
Invoice level
detail
Invoice level
detail
Treasury
Software
Receipts Detail
SAP
Disbursements
Detail
Unify
Enpower
“Treasury Workstation”
Provides review opportunity
prior to transmission to bank
Banks return confirmation
of disbursement

7. Next Day Cash Forecast Daily Cash Management
Utilize “Treasury Workstation” to consolidate cash forecast. Data sources are as follows:
SAP provides disbursement data:
Commodity
G&A (including payroll)
Commodity Settlements Accounting provides estimate for cash receipts
OTC margin requirement provided by Credit Department
Nymex margin provided by Commodity Accounting in a.m. of Settlement Day

8. Historical Summaries (Direct cash flow)
Other Cash Reporting
Daily Actual
Historical Summaries (Direct cash flow)
Long-term Monthly Projections (Price Risk Management “Roll Out”)

9. Administrative Functions
Overnight Investing & Funding
Create Local Checks & Wires
Letters of Credit
Set up Bank Accounts
Deposit Checks
Issue Stop Payments

10. ACCOUNTING

11. Accounting Systems (SAP)
Options:
(1)
Controlling Area Within Enron Temporary)
Contemplates SLA with Enron
Separate Security
Separate Chart of Accounts
Control of Separate Hierarchies
Licenses come through Enron
Can be set up quickly
(2)
Separate Instance of SAP
Ownership of separate servers
Staff at Newco or parent level
Probably 6 months timing

12. Other System Issues
Settlement system interfaces into G/L
Payroll interface
XMS or other expense report system
NYMEX broker activity – currently manual

13. Financial & Statistical
Reporting
Requirements of consolidation system may drive Newco setup decisions (chart of account, lines of business, etc.)
Business Line / Team Reporting Preferences
Tracking of P/L Categories (prop trading, mid/offer, originations)
Statistical Reporting (volumes, number of trades, etc.)