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Enron Mail |
John--Attached is an update of the values in the various transport books as
of October 3rd. Please note that the East Desk has already made its changes. All that was done was to move the correlations up--the old percentage and new percentage of each deal is shown on the sheet. I am waiting on a deal by deal breakdown of extrinsic value changes, but I have been told that the change in total for the East Desk was ($5,900,000). They brought this in at the same time they cleared out the $5,700,000 positive that had been withheld, resulting in about a ($200,000) change. Please let me know if you disagree with any of the changes that were made and we will fix them. They really did not seem very controversial since these were all Columbia Gulf transports and the correlations were just set too low. The West Desk's proposal on PGT/Kingsgate is also shown on the worksheet. After speaking with the Canadian office on forward AECO basis, Phillip and Keith believe the Kingsgate / Malin spread should be widened considerably. At this time they are proposing moving the current spread from $.1676 to $.2676, and moving the correlations up to the point that results in a $.0303/MMBtu extrinsic value number. They believe this would put the values in the appropriate places, and would result in very little net impact overall to their books. As of yesterday's close, the impact would be a positive $55,301 change. No changes will be made until you approve it. Regarding the Central Region, I have not spoken with or received anything from Hunter and Andy yet. Neither one of them is here today but I will get with them as soon as I can to let you know the Central Region's proposal. You can at least see where they stood as of October 3rd for what is on the books. I have not included Geoff Storey's capacity deals on this sheet since his have no extrinsic value, but I will be happy to add them if you need that info.
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