QUESTION: The company is 50 mw's long onpeak under deal 683846.1. Either leave in the pool or sell balance of the day. The sale side should go under Ercot Options book. The power is currently scheduled to the North Zone. JMF
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ANS: Ercot Options book is long tomorrow 7-22

QUESTION: I asked Credit to put the referenced counterparty on the re-approval list for financial because momentarily we hope to get the signed ISDA Master Agreement in from the Counterparty and if certain things don't happen when I open them up they will have a cow!! 1. When I approve them to trade financial online we need to make sure they are coded for having the master swap agreement in place. They are insistent that they do not see the GTC and that the confirms and procedures agreed to in the master apply. 2. All US and Canadian financial transactions, whether online or offline, should roll up under the master. As soon as we get the executed ISDA Master Agreement in I will send an email. I thank you and I know Sara Shackleton thanks you...!! !
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ANS: Pacific Gas & Electric Company

QUESTION: 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?
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ANS:
solution for hedging options that doesn't decrement swap volume