Right now, all of our trades are fixed price at a specific hub.   We will be moving to basis markets in some locations in the very near future.

 -----Original Message-----
From: 	Hayden, Frank  
Sent:	Tuesday, July 17, 2001 3:33 PM
To:	Vinson, Donald Wayne
Cc:	Presto, Kevin M.
Subject:	

Correct me if I'm wrong, but it is my understanding that for Power, basis curves and region curves have the same risk type "P".  I draw my question from the gas market, a Dec 01 fixed price New York deal, gets decomposed into a price, basis and index leg.  Each risk type gets simulated (except index) for VAR.  For example, VAR for NY Dec 01 P risk type would be zero, whereas VAR for NY Dec 01 risk type D and Dec 01 NG future (risk type P) would get a VAR.

However, regarding power, it is my understanding that a Dec 01 fixed price deal in NEPOOL isn't decomposed into its respective legs, rather it goes into the system as a Dec 01 NEPOOL deal.  Am I correct, or would a fixed price Dec NEPOOL deal be broken into an R curve piece and a basis curve piece?  Does Enpower do this or is this something done on the deal entry.  Would decomposing it like gas mess up the port calc function in Enpower?

Your feedback would be helpful.

Frank