Generally, I am not too concerned with the position violation, since we are still under the VaR limit. However, the risk has been increasing and we are pushing the limit: $1.9 MM vs. the limit of $2.0 MM.

Also, the explanation below does not quite make sense because the gas desk has increased risk by getting shorter from yesterday, implying that there is some ability to transact and change risk profile.

Vlady.

-----Original Message-----
From: Gardner, Scott 
Sent: Wednesday, August 22, 2001 9:34 AM
To: Hayslett, Rod; Horton, Stanley; Gorny, Vladimir; Nordt, Kevin;
Miller, Kurt W; LYMAN, PETER; Lobdell, Jim; TURINA, MARY; HQ3.EM5.BRETT
SIMS; HQ3.EM5.David Hunker; Shaw, Garet; Owen, Jennifer; Piro, Jim;
Stathis, Kristin; SCHILMOELLER, Michael; FOWLER, PEGGY; HQ3.EM5.RUTH
BURRIS; Peschka, Terri; YILDIROK, VAL; Hayden, Frank; Dalia, Minal
Cc: HUNT, DAVE; Gardner, Scott; Gardner, George T; HQ3.EM5.KATE MERRITT
Subject: PGE Position Reports - As of August 21


See attached position reports.

Loss/Limit Notifications:

Gas

Regulated: 
  Net Open Position (10 Bcf Limit):  -13.7 Bcf;   3.7 Bcf out of limits
   
   Maturity/Gap Risk (10 Bcf Limit): -16.1 Bcf;   6.1 Bcf out of limits


Explanations:
According to traders, prices beyond Q1 2003 are not being quoted in the
market. The market is also illiquid for this period and very little trading is
occurring.  Traders are continuing to monitor the market activity for this
period.