RE: Modesto deal changes made

Yes Sean, leg 3 is only for peak for 8/6/01-9/30/01 and premium for leg 3 is $2/MWh.
PS. The $5/MWh premium for the original leg 1 is already liquidated and paid off.

-----Original Message-----
From: Crandall, Sean
Sent: Friday, August 03, 2001 8:39 AM
To: Chang, Fran; Rosman, Stewart
Cc: Scholtes, Diana
Subject: RE: Modesto deal changes made

Just a clarification. The new leg 3 is just for onpeak (correct?), and the premium is $2 total, not in addition to premium of first deal. Is this correct?

-----Original Message-----
From: Chang, Fran
Sent: Thursday, August 02, 2001 4:18 PM
To: Rosman, Stewart
Cc: Crandall, Sean; Scholtes, Diana
Subject: Modesto deal changes made

Stewart,

Per our discussion I have changed Modesto basis option deal #520328 to reflect the restructured terms:

* original peak deal (leg 1) deal end date was changed from 9/30/01 to 8/5/01.
* new leg 3 was created for 8/6/01-9/30/01. All terms stay the same except that strike price was changed to $3 and an extra premium was added for $2/MWh for the new leg.

I have also put a note in the comment field requesting the confirm group to send documents to you before sending to counterparty.

Please let me know if you have any questions.

Thanks,
Fran
x7973