Subject: "solution for hedging options that doesn't decrement swap volume".

Body: Hi Andy. Here's my suggestion (actually it was yours): Product 1 Fin Power Swap Web Visible Offered Qty: 50 Qty Increment: 5 Min Qty: 5 (or whatever you want to use as a minimum) Product 2 Fin Power Swap Ghost Product - not web visible Offered Qty: 200 Qty Increment: 1 Min Qty: 1 Base Link to Product 1 with Bid = 0, Offer = 0, Offset to Last trade of 0 with reset qty of 200 NOT Auto-hedged to Product 1 Product 3 Fin Power Option Auto-hedged to Product 2. Here's what will happen: Suppose the option is traded and to hedge it requires a qty of 15. The actual hedge will be against Product 2. Product 2 offered qty will reduce to 185. Since Product 2 is not auto-hedged to Product 1, there will be no impact on the main swap. The prices for Product 2 will always be exactly those of Product 1 since the bid and offer are 0. Note: Eventually, the offered qty for Product 2 will reduce below the amount needed for hedging a particular trade (for instance, if every trade required a hedge qty of 15, then after 13 trades, your remaining qty would be 5). This is not a problem. The hedging model for options allows for not enough volume being available on the swap. The next trade would simply get fully hedged and pop the qty back up to 200. Since it has an offset to last trade of 0, the bid and offer prices would still be those of Product 1. Also Note: We will have to make sure the power IT guys are prepared to get essentially the same swap (Product 1 and Product 2) under two different product ids. Does this make sense?

Subject: "URGENT - PLEASE READ...REALLY".

Body: HERE IS A FINAL WORD ABOUT BLOOMBERG TRADES - WHEN YOU EXECUTE A TRADE ON BLOOMBERG, YOU MUST IDENTIFY "BLOOMBERG" AS THE BROKER IN ENPOWER. IF YOU FIND THIS MESSAGE UNCLEAR, MORALLY OPPOSING, OR IF YOU'D LIKE A LENGTHIER EXPLANATION OF WHY YOU HAVE TO DO THIS, PLEASE LET ME KNOW IMMEDIATELY. HERE'S WHAT YOUR BLOOMBERG DEALS SHOULD LOOK LIKE:

Subject: "September 2001 FERC California Report - Preliminary Ready for Review".

Body: Here are the preliminary reports ready for your review. I have done a thorough analysis on Items 2 and 3 and feel very confident with the data. I will be finalizing my review of contract volume data in Item 1 no later than tomorrow and will advise if any changes are necessary. TK - Please update the daily rates for contract 27495 (Astra) and verify the rates in blue. Additionally, please verify that the discounted IT rates for contract 20248 and 22136 are correct as billed (it doesn't appear that these discounts appeared in the daily transactional report postings). I need all updates/comments no later than COB Monday, 10/29/01. Thanks,

Subject: "Give Up Agreement".

Body:
Jason: Please review (I have others for you to see). Also, Paul and I spoke with Cadwalader this morning. Please continue to check the international exchanges online to see if you can locate clearinhouse rules for each exchange. Perhaps you can also find information on the regulatory scheme for the jurisdictions. I suspect we will have to hire outside counsel in each country to answer our concerns. Let's talk. SS