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Gold/Mining/Energy : CPN: Calpine Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (306)	2/18/2002 6:06:17 PM
From: Bob Rudd	Respond to of 555

Mark to market is appropriate for trading commodities. The problem with Enron was they got used to using it where it wasn't appropriate...for a deal or contract they finalized, they often 'marked to market' the present value of the expected earnings of the deal...and included it in current earnings. With Calpine, it's important to be aware of the mark to market present value of future 'spark spread' contracts...as an asset for figuring break up value, but they don't book those as part of current earnings.