Subject: Re: Power spread
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Thu, 3 May 2001 20:06:00 -0700 (PDT)

Kevin

This looks like it will work.  Since there has been some confusion around this, I'll lay out what I think will happen with this language.

Assumption #1:

MC on EOL is 300 at 350.
COB is not displayed on EOL.

Product 1 is COB; Product 2 is MC

COB/MC Spread is 5 @ 10 on EOL

Situation #1
Customer lifts the COB/MC spread at $10.  Enron will then BUY the MC at $325 and SELL COB at $335.

Situation #2
Customer hits the COB/MC spread at $5.  Enron will then SELL the MC at $325 and BUY COB at $329.

This is how it should work.

I suggest we test things out now, and see how it works.

Thanks,

Sean