hey guys , i would like to get with you to discuss our hedge policies . i am concerned about the recent accounting around the wind hedge ( and not necessarlily the outcome in this particular case ! ) . if the outcome had been reversed ( ie . a loss on the hedges existed ) we would have had no choice but to book it . the issue is that nobody commmunicated or documented the designation of these positions as hedges of the " wind " ppa . it occurs to me that we do not have any process that requires coodination when you set up an accrual book . as you know the designation criteria are rigid for acctg purposes . if we miss it , we can ' t cure it and the acctg would be mtm for the life of the contracts . i will set a metting to discuss . wes
hey guys , i would like to get with you to discuss our hedge policies . i am concerned about the recent accounting around the wind hedge ( and not necessarlily the outcome in this particular case ! ) . if the outcome had been reversed ( ie . a loss on the hedges existed ) we would have had no choice but to book it . the issue is that nobody commmunicated or documented the designation of these positions as hedges of the " wind " ppa . it occurs to me that we do not have any process that requires coodination when you set up an accrual book . as you know the designation criteria are rigid for acctg purposes . if we miss it , we can ' t cure it and the acctg would be mtm for the life of the contracts . i will set a metting to discuss .
wes