Message-ID: <15236434.1075861287056.JavaMail.evans@thyme> Date: Thu, 8 Nov 2001 08:02:02 -0800 (PST) From: ann.s.chen@accenture.com To: dutch.quigley@enron.com Subject: RE: Questions regarding storage Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: ann.s.chen@accenture.com@ENRON X-To: Quigley, Dutch X-cc: X-bcc: X-Folder: \DQUIGLE (Non-Privileged)\Quigley, Dutch\BMR X-Origin: Quigley-D X-FileName: DQUIGLE (Non-Privileged).pst Thanks Dutch. I look forward to hearing your thoughts on this. These are pretty basic questions, so do you think you have answers for me by end of the week? Please let me know if you need clarification. Thanks again, Ann Dutch.Quigley@enron.c om To: Ann S. Chen/Internal/Accenture@Accenture cc: 11/08/2001 09:07 AM Subject: RE: Questions regarding storage I canceled this meeting , I will look at the info and get back to you -----Original Message----- From: ann.s.chen@accenture.com@ENRON Sent: Thursday, November 08, 2001 8:44 AM To: Quigley, Dutch Subject: RE: Questions regarding storage Hi Dutch -- Yes, we can discuss this at the 2:30 meeting. Talk to you then! Ann Dutch.Quigley@enron.c om To: Ann S. Chen/Internal/Accenture@Accenture cc: 11/07/2001 03:45 PM Subject: RE: Questions regarding storage Anne Can we discuss this tomorrow when I meet from 2:30 to 4:30 dq -----Original Message----- From: ann.s.chen@accenture.com@ENRON Sent: Wednesday, November 07, 2001 3:30 PM To: Quigley, Dutch Subject: Questions regarding storage Hi there Dutch! How are you? Hope you're doing well. We having been working on a storage problem that Philip as given us the framework for. In working out the details, we've come across a few questions that we know you can help us answer. I've included Philip's description of this problem in the word doc below, just for reference. 1) In Philip's document, he lists discount factors over the months. We understand that since the users are making storage decisions and hedging future months, they need to take time value of money into account. What is actually being discounted? Is it NYMEX? Is it prices of the instruments? How does that factor into user's storage decisions? 2) In our problem, we ask the user to fill out a storage schedule and then select instruments to hedge positions created by the storage. In our other scenarios we have initial and natural position split out into the Enron risk buckets (Price, Index, Basis, GD) and have users choose the appropriate hedging instruments based on the risk areas the instruments cover. In this storage scenario, the only positions created are by storage decisions. What risk bucket would storage create a position in? My thoughts are that if the only positions created are by storage, then would the user really need only 1 type of instrument to hedge their risks? Thanks in advance for your help, Dutch! Ann (See attached file: Storage Problem.doc) This message is for the designated recipient only and may contain privileged, proprietary, or otherwise private information. If you have received it in error, please notify the sender immediately and delete the original. Any other use of the email by you is prohibited. - Storage Problem.doc << File: Storage Problem.doc >> ********************************************************************** This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain confidential and privileged material for the sole use of the intended recipient (s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Enron Corp. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you. ********************************************************************** This message is for the designated recipient only and may contain privileged, proprietary, or otherwise private information. If you have received it in error, please notify the sender immediately and delete the original. Any other use of the email by you is prohibited. This message is for the designated recipient only and may contain privileged, proprietary, or otherwise private information. If you have received it in error, please notify the sender immediately and delete the original. Any other use of the email by you is prohibited.