These excerpts taken from the CEG 10-K filed Feb 27, 2009.
The mark-to-market VaR during November and December 2008 was adjusted to eliminate the impact of a change in accounting treatment of coal positions that are expected to be part of the planned sale of our international commodities operation.
We experienced higher average VaR for the year ended December 31, 2008 compared to the year ended December 31, 2007, primarily due to a higher number of economic hedges of accrual positions, increased volatility of commodity market prices, and an increase in our trading activities discussed below. We discuss our mark-to-market results in more detail in the Global Commodities section.
The following table details our VaR for the trading portion of our wholesale marketing and risk management derivative assets and liabilities subject to mark-to-market accounting over a one-day holding period at a 99% confidence level for 2008 and 2007:
The mark-to-market VaR during November and December 2008 was adjusted to eliminate the impact of a change in accounting