RE: J9 issue

Z-
I'm attaching a spreadsheet explaining how the true up should flow in the roll...give me a ring and we can discuss after you take a look at it....

Stacey - please correct me if I'm wrong?!

Thanks!
Casey

-----Original Message-----
From: Yang, Zhiyun
Sent: Tuesday, January 22, 2002 4:53 PM
To: Evans, Casey
Subject: J9 issue

Hi Casey:

Sorry we have to go through this J9 question so many times. I think it will help all of us if we can use an example. Let's assume we have a swap deal for 3 days: Sep 1, Sep 2, Sep 3, and the fixed price is 0 for simplicity. Again for simplicity assume the index price for the three days didn't change and stayed as $1. The only thing changed is the volume.

On Sep 1 the volume is 12 MWH
On Sep 2 we backdated the deal for Sep 1 as 10 MWH, and for Sep 2 as 10 MWH
On Sep 3 we backdated the deal for both Sep 1 and Sep 2 as 15 MWH

I'm trying to understand what should go into J9 on Sep 2 and Sep 3 respectively. Can you help me? In particular, should J9 on Sep 3 reflect the true-up for both Sep 1 and Sep 2?

The current J9 formula (the wrong one that is) should shown the financial liquidation on Sep 2 as -2 (=10-12), and on Sep 3 as 10(15+15-10-10). Isn't that correct?

Thanks a lot!

- Zhiyun