-----Original Message-----
From: 	Stevens, Martha  
Sent:	Thursday, September 27, 2001 12:00 PM
To:	Poole, Julian; Collonges, Remi
Cc:	Freyre, Rodolfo
Subject:	Argentina Interest Rate Change Impact on Power

Julian and Remi,

Attached is a file summarizing the impact of changing the interest rate from AA Libor to the Argentina Interest Rate curve Sassa sent me.  The impact is about
$357,000 positive.
  
Regarding the gas, I estimated the change out through Dec 06 and left the curve unchanged for the remainder of the duration of the deals (Cerro).  The impact is about ($95,000) negative.  Of course, with the gas book, the change would require system changes and for us to stop giving the cash flows to Gary Hickerson's group to hedge.  Changing the gas book is going to require a clarification of the Rho & Drift issues.  I thought we were there with Brazil but Pushkar only put the curve out for one year.  This of course does not allow us to use their curve for valuation as we have positions out through 2011 with Cisframa.  

 

Martha