Message-ID: <7168463.1075840888056.JavaMail.evans@thyme> Date: Wed, 1 Aug 2001 13:38:07 -0700 (PDT) From: tim.belden@enron.com To: john.lavorato@enron.com, louise.kitchen@enron.com Subject: P&L Explanation for 7/31 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Belden, Tim X-To: Lavorato, John , Kitchen, Louise X-cc: X-bcc: X-Folder: \ExMerge - Kitchen, Louise\'Americas\Portland X-Origin: KITCHEN-L X-FileName: louise kitchen 2-7-02.pst Total Loss of $20 million on prelim will be reduced to $13 on the final. Mike S. reduced the NW delivered basis by $1/MWh when it should have been increased by $1/MWh against a basis position of roughly 3 million MWh accounted for the change of $6 million. In addition, our NOB curve (which is a basis off of COB) had been mismarked (too low) by between $25/MWh to $50/MWh. Mike doesn't know how it got marked so low. We are short NOB, so he wasn't trying to hide money. We are using a new curve file and position manager, so there's a chance that the application isn't working right, but it's more likely that Mike screwed something up. Net effect of this is roughly $5 million hit (offsetting illgotten gains of the same amount before). This brings us down to a one-day change of roughly $8 million associated with the back of the curve moving up. With gas coming off today, the backs have moved down some. Let me know if you have any questions.