Q: Susan B. should have gotten our draft of the referenced guaranty to you. It still needs to be reviewed by the physical gas group since we are amending their guaranty. Do you care about any allocation of payments between HPL and ENA? At the moment, I do not have any allocation language in the guaranty. SS
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A: Formosa/Neumin guaranty amendment

Q: Phillip, I'm building a sheet for each person specifically for financial hedging. Each day it will pull in the previous days position and previous day price curve to calculate the mark to market. Then that day's transactions can be entered to calculate the P & L of transactions which close out previous positions, as well as to calculate the new open positions. Initially, I thought that daily P&L could be calculated by simply adjusting the P&L whenever a transaction was made by the difference between the bid/offer of the closed out position by the offer/bid of the new position (of course time value and storage costs would be included). However, this only works if the person is 100% hedged, meaning they do not have any open positions which require marking. As the seller of synthetic storage utilizing 100% hedging, I should be able to do this, except for the fact that I will have size limits on transactions that will probably leave me open here and there. The main question I have is simply, "Should I be calculating the P&L for each person's storage book for open and closed positions?" Then beyond that, if we do calculate the P&L's from the buyer side, it seems that if their storage is not hedged, I will have to develop the market value of the storage in the ground and the remaining capacity to mark to market it. So, I guess I could apply the model for that purpose. Does this make sense to you? Any comments are appreciated. Thanks. Mat
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A: Synthetic Storage

Q: blue rinse (BLOO rins) adjective Related to elderly women. [From the hair-dye used on grey hair that produces a blue shade.] "If the race comes down to a former officer married to an aristocrat and blessed with four children - or a quiffed Spaniard with a gay past and a soft line on drugs, who do you think the blue rinse brigade will choose?" Jonathan Freedland, Still Lost in the Wilderness, The Guardian (London), Jul 11, 2001. Ever wonder how our vocabulary is colored by many hues of a rainbow? Often we use colors as symbols for ideas, thoughts, and concepts but do it with little logic. Take the color blue, for example. A blue chip stock is good to hold in one's portfolio while we're chary of blue-sky stock. A blue collar worker is a manual laborer yet a bluestocking is one with intellectual inclinations. A bluenose is a prude but a blue blood is aristocratic. Even a computer would go crazy trying to make sense of this. No wonder we made artificial languages to program computers. In this week's AWAD we take a look at other words and phrases tinged with colors. -Anu
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A: A.Word.A.Day--blue rinse

Q: Greetings Dr. Gobbo: If my memory serves, you should have arrived back in Italy, or will return soon. Since we met, I have spoken with Severin Borenstein, who is intimately involved with California's electricity restructuring (melodrama?) and a renowned energy economist at UC Berkeley. Severin has offered to serve as a contact for you as you continue to take on the formidable task of restructuring your country's electric industry. I've included his contact information below. And, of course, if there is ever anything I can do for you, do not hesitate to contact me. All the best,
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A:
Contact with Prominent UC Berkeley Energy Economist