Message-ID: <31208529.1075855149154.JavaMail.evans@thyme> Date: Thu, 5 Jul 2001 17:18:12 -0700 (PDT) From: rich.heidorn@ipgdirect.com To: don.baughman@enron.com Subject: Proposed revisions to TradersNews Hourly Index Methodology Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "Rich Heidorn Jr." @ENRON X-To: Baughman Jr., Don X-cc: X-bcc: X-Folder: \Edward_Baughman_Jan2002\Baughman Jr., Don\Power\Cinergy Index X-Origin: Baughman-E X-FileName: dbaughm (Non-Privileged).pst Dear Don: We are fine tuning the methodology for our hourly indexes in order to clarify our regional definitions. I know that you offered some valuable feedback in the past to Bobette Riner and wanted to solicit your input now as well. In the draft (attached) we have classified trades solely based on their source and sink. In so doing, we have removed references to power moving "into or through" hubs. In drawing regional boundaries, we have generally relied on the NERC regions, although we continue to offer two indexes for ECAR (AEP/Northern ECAR and Cinergy/Southern ECAR). We also are retaining the Entergy/SPP index, based on Entergy's intention to join SPP's proposed Regional Transmission Organization. The most significant other changes are: -- ComEd/MAIN: Trades sourcing from, or sinking in, Ameren's control area, would be included; title may change to "MAIN" -- TVA/SERC: Virginia would be included; as previously planned, the name changes to "SERC" -- ERCOT: power moving out of ERCOT can be included in the index I will attempt to reach you via phone next week to discuss these proposed changes. We are particularly interested in how these changes may impact use of the indexes in financial trading, quantitative analysis, risk management, deal structuring, etc. Feel free to pass this along to any of your colleagues for their input and to jot any immediate thoughts to me in an e-mail. We appreciate your input. Regards, RICH HEIDORN JR. General Manager TradersNews Energy 170 Pheasant Run, Suite 200 Newtown, PA 18940 rich.heidorn@ipgdirect.com (T) 215-504-4288 ext. 203 (F) 215-504-5598 - All Hub Methodology (Rev. 7-01).doc