Here are the updated basis curves (premium/discount) to the Palo Verde curve provided by Matt Motley, our term trader.

MEAD (ON PEAK ONLY):
Balance of Month (BOM)==> $1.00 premium
Q2'02==> $3.33 premium

FOUR CORNERS (ON PEAK):
Balance of Month (BOM)==> $0.00
Q1'02==> $1.25 premium
Q3'02==> $4.83 premium

FOUR CORNERS (OFF PEAK):
Balance of Month (BOM)==> ($1.00) discount
Q1'02==> $0.63 premium

Please run by Morgan.  This should narrow in on the discrepancy.

Tracy


 -----Original Message-----
From: 	Sacks, Edward  
Sent:	Friday, November 09, 2001 6:20 AM
To:	Gonzalez, Veronica
Cc:	Ngo, Tracy
Subject:	Morgan Stanley MTM cob 110801

Veronica - I have updated the MTM and cleaned it up so that you can share it with Elwood.

Ed