Spreadsheet: diana_scholtes__8612__SchedC0514_Power West
Sheet: Per Sch. C of PDX - By trader

 |  |  |  |  |  |  |  |  |  | CONFIDENTIAL
 |  |  | Schedule C Summary
 |  |  | As of May 7, 2001
 | Portfolio | Book(s) | Trader | Date | Book Name | Description | Reserved Amount | Released Amount | Net Balance | Removal Date | Schedule E Amt.*
 | Power | West | [NAME] | 1998-02-01 00:00:00 | LT-NW | Incremental Reserves over the MTM value of the swaptions. The deal is marked against the Mid-C curve, however the actual delivery is at an interconnection with Portland General System or if an Indego system is built the delivery will be at the interconnection with the Indego system border. Due to this, money is reserved pay for the transmission needed to deliver at these points. (This is recorded in the Welded Tube book) |  | 0
 | Power | West | [NAME] | 1999-04-01 00:00:00 | LT-NW | Reserve to pay for Distribution and/or substation costs. Purchase to back this sale is at 230 Kv and the sale is at 13.8 Kv. Ther reserve will pay to convert this energy down to 13.8 Kv. (Counterparty is Ft. [NAME]) | 896391 | -896391 |  | 1999-08-14 00:00:00
 | Power | West | [NAME] | 1999-09-01 00:00:00 | LT-NW | Legal Reserve due to unwind of [NAME] deals to offset any potential legal fees. (Counterparty is Ft. [NAME]) |  | -500000 |  | 2000-07-07 00:00:00
 | Power | West | [NAME] | 2000-08-08 00:00:00 | LT-NW | Reserve associated with EPMI purchase from FPA at Wawuna substation. Litigation pending. | 20000000 | -20000000 |  | 2000-12-28 00:00:00
 | Power | West | [NAME] | 2000-08-18 00:00:00 | LT-NW | Legal staff has reviewed the case against BPA in Federal District court. Odds of settlemnt at that venue are much less than originally anticipated  Thus, we are increasing the total reserve by $10,000,000 (from $20,000,000 to $30,000,000) because of BPA's trach record in Fed. Court. | 10000000 | 0
 | Power | West | [NAME] | 2000-08-22 00:00:00 | LT-NW | BPA has determined that they do not have enough power to serve all Preference Load. Our legal staff has further indication that BPA's record in the 9th Circuit Court is very strong. Accordingly, we are increasing the total reserve to $60,000,000 which should be enough to cover the majority of the liability. | 30000000 | -30000000 |  | 2000-12-28 00:00:00
 | Power | West | [NAME] | 2000-08-24 00:00:00 | LT-NW | Cover specific political risk in California and overall political risk in the western markets.(50% split w/ST-CA) |  | -12500000 |  | 2000-09-05 00:00:00
 | Power | West | [NAME] | 2000-08-25 00:00:00 | LT-NW | Reserves associated with the Federal Power Act 206 investigation. (see note 3 below) | 25000000 | -25000000 |  | 2000-09-05 00:00:00
 | Power | West | [NAME] | 2000-10-31 00:00:00 | LT-NW | Reserves associated with potential creditors' claims in bankruptcy court against Enron's benefits from terminating the contract. (Counterparty is Can Fibre) | 3445061 | -530732.98 |  | 2000-10-31 00:00:00
 | Power | West | [NAME] | 2000-11-20 00:00:00 | LT-NW | Potential refund risk in California due to the FERC's proposed 206 order. | 25000000 | 0
 | Power | West | [NAME] | 2001-02-01 00:00:00 | LT-NW | Reserve associated with revocation risk arising from BPA's Federal Surplus Firm Power Statute, and comments by [NAME] on 1/29/01. (Deals: 511626, 511627, 511628, 511629, 511630, 511631) | 11432070 | 0
 | Power | West | [NAME] | 2001-03-02 00:00:00 | LT-NW | Deal 3689.03 uncertain of counterparty's status re: swaption. Will research and resolve. | 26212029 | -26212029 |  | 2001-04-12 00:00:00
 | Power | West | [NAME] | 2001-04-10 00:00:00 | LT-NW | Reserve for PG&E deals #438496 & #438497 that were killed due to PG&E bankruptcy. | 129549180 |  |  | 4/30/01, 5/4/01, 5/7/01
 | Power | West | [NAME] | 2001-04-23 00:00:00 | LT-NW | Reserve the extrinsic value of transmission deal #503112 being released on 4/23/01 due to market illiquidity. | 4474510.96 |  |  | As of 5/14/2001
 |  |  |  |  | LT-NW Total
 | Power | West | [NAME] | 2000-05-18 00:00:00 | LT-SW | Firm sale is being backed by non-firm purchases. Measure potential exposure relative to building a peaking unit. | 10000000 | -10000000 |  | 2001-04-30 00:00:00
 | Power | West | [NAME] | 2000-06-14 00:00:00 | LT-SW | CSU firm load sales backed with non-firm transmission in the Rockies. | 7200000 | -7200000 |  | 2001-04-30 00:00:00
 | Power | West | [NAME] | 2001-04-10 00:00:00 | LT-SW | Reserve for PG&E deal #499147 that was killed due to PG&E bankruptcy. | 8092659 | -8092659 |  | 2001-04-30 00:00:00 | 8092659
 |  |  |  |  | LT-SW Total
 | Power | West | [NAME] | 2000-05-31 00:00:00 | LT-WMGMT | Cover potential liability associated with scheduling at Silver Peak on May 24, 1999. | 4000000 | 0
 | Power | West | [NAME] | 2000-06-13 00:00:00 | LT-WMGMT | Increase reserve associated with PX schedule at Silver Park. Reserve for total potential in Day Ahead & Real Time markets, includes actual damages & opportunity cost. | 6000000 | 0
 | Power | West | [NAME] | 2001-04-30 00:00:00 | LT-WMGMT | Firm sale is being backed by non-firm purchases. Measure potential exposure relative to building a peaking unit. Originally in LT-SW book, it's moved to LT-WMgmt on 4/30/01. | 10000000 | 0
 | Power | West | [NAME] | 2001-04-30 00:00:00 | LT-WMGMT | CSU firm load sales backed with non-firm transmission in the Rockies. Originally in LT-SW book, it's moved to LT-WMgmt on 4/30/01. | 7200000 | 0
 |  |  |  |  | LT-WMGMT Total
 | Power | West | [NAME] | 2001-04-23 00:00:00 | LT-WTRANS | Reserve the whole value of transmission deal #205218 being released on 4/23/01 due to market illiquidity. |  | -4471774 |  | As of 4/30/01
 |  |  |  |  | LT-WTRANS Total
 | Power | West | [NAME] Richter | 2000-08-24 00:00:00 | ST-CA | Cover specific political risk in California and overall political risk in the western markets.(50% split w/LT-NW) |  | -12500000 |  | 2000-09-05 00:00:00
 | Power | West | [NAME] Richter | 2000-08-25 00:00:00 | ST-CA | Reserves associated with the Federal Power Act 206 investigation. (see note 3 below) | 10000000 | 0
 | Power | West | [NAME] Richter | 2000-11-21 00:00:00 | ST-CA | Potential refund risk in California due to the FERC's proposed 206 order. | 15000000 | 0
 |  |  |  |  | ST-CA Total
 | Power | West | [NAME] | 2000-12-28 00:00:00 | ST-NW | EPMI has exported power from the ISO to BPA at delivery point of NOB during the month of Dec. [NAME] losses at NOB total about 10%. These line losses will be billed to us by the CAISO 75 days after the delivery date. We have estimated, by day, the physical quantities and associated line losses. | 900000 | 0
 | Power | West | [NAME] | 2001-02-28 00:00:00 | ST-NW | Deal 520328 as a Basis Option has been incorrectly valued and we are holding the curve shift even until we get the correct valuation modeal or change the deal type. | -285576 | 0
 | Power | West | [NAME] | 2001-03-05 00:00:00 | ST-NW | Deal 520328 has been entered as a call from a put and ST NW has taken the write-down. Therefore, we released the Sch. C against the deal. | 0 | 285576 |  | 2001-03-05 00:00:00
 | Power | West | [NAME] | 2001-04-23 00:00:00 | ST-NW | Reserve the extrinsic value of transmission deal #503107 being released on 4/23/01 due to market illiquidity. | 2586424 |  |  | As of 5/14/01
 |  |  |  |  | ST-NW Total
 | Power | West | [NAME] | 2000-12-04 00:00:00 | ST-WPLNT | Reserves associated with liquidity, index and physical delivery risk. (see note 2 below) |  | 0 |  | 2000-12-13 00:00:00
 | Power | West | [NAME] | 2000-12-13 00:00:00 | ST-WPLNT | Decreased liquidity risk - reserves associated with liquidity, index and physical delivery risk. (see note 2 below) | 0 | -40000000 |  | 2000-12-13 00:00:00
 | Power | West | [NAME] | 2000-12-18 00:00:00 | ST-WPLNT | Increased liquidity risk - reserves associated with liquidity, index and physical delivery risk. (see note 2 below) | 15000000 | 0
 | Power | West | [NAME] | 2000-12-28 00:00:00 | ST-WPLNT | Reserve associated with EPMI purchase from FPA at Wawuna substation. Litigation pending.BPA has determined that they do not have enough power to serve all Preference Load. Our legal staff has further indication that BPA's record in the 9th Circuit Court is very strong. Accordingly, we are increasing the total reserve to $60,000,000 which should be enough to cover the majority of the liability. (This was originally reserved in LT-NW book) | 50000000 | 0
 |  |  |  |  | ST-WPLNT Total
 |  |  |  |  | Sch. C Grand Total
 |  |  |  |  | Sch. C Balance (net of releases) |  |  |  |  |  |  | Checking
 | * Schedule E balance reflects only those amounts that were transferred from [NAME]
 |  |  |  |  |  | (2) Liquidity, index, and physical delivery risk.  There is very little trading in the western power markets now.  We have existing positions that are difficult to get out of.  We have short physical positions offset by long swaps.  It may be difficult to procure physical supply through this winter in the NW. There may be a large disparity between the price that we pay for the physical power and the revenue we receive on our index swaps due to lack of liquidity. We have purchased a variety of transmission paths to close out positions where there is a distinct possibility that the paths could be curtailed.
 |  |  |  |  |  | (3)  FERC issued an order on August 23rd, which we received on August 24th, in response to SDG&E's filing for price caps on sellers in addition to the CAISO as a buyer.  The order states that FERC is opening a Federal Power Act 206 investigation.  A 206 investigation "provides a statutory mechanism for the Commission to exercise its remedial powers to change the rates, terms and conditions of jurisdictional services that are determined to be unjust, unreasonable, unduly discriminatory or preferential and, if appropriate, to order refunds." Subsection F of the order provides more details on refund considerations. If the FERC decides to order refunds, EPMI will face tremendous exposure due to it large volume of activity in the PX and CAISO markets.