schedule c reserves we have had trouble valueing transmission , literally forever . we finally released a spread option model last night to value transmission . it spit out some huge values for out of the money transmission because it is valued as a daily option . for example , transmission from big eddy ( in the northwest ) to nob spit out a value of $ 28 million - - all extrinsic . given the state of affairs in california right now , i find it highly unlikely that we will take power from the northwest to deliver into the capped market . last night we recognized $ 16 million of transmission value , almost all intrinsic value associated with closing open positions . we reserved $ 36 million associated with extrinsic value . we will revalue the options once a week and make appropriate adjustments to the reserves . let me know if you have any questions or concerns .
schedule c reserves
we have had trouble valueing transmission , literally forever . we finally released a spread option model last night to value transmission . it spit out some huge values for out of the money transmission because it is valued as a daily option . for example , transmission from big eddy ( in the northwest ) to nob spit out a value of $ 28 million - - all extrinsic . given the state of affairs in california right now , i find it highly unlikely that we will take power from the northwest to deliver into the capped market . last night we recognized $ 16 million of transmission value , almost all intrinsic value associated with closing open positions . we reserved $ 36 million associated with extrinsic value . we will revalue the options once a week and make appropriate adjustments to the reserves . let me know if you have any questions or concerns .