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)


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   have
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       - Storage Problem.doc << File: Storage Problem.doc >>



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