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Enron Mail |
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.
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