Message-ID: <12832296.1075852713822.JavaMail.evans@thyme> Date: Thu, 24 May 2001 13:49:16 -0700 (PDT) From: john.arnold@enron.com To: steve.lafontaine@bankofamerica.com Subject: RE: fuel switching Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Arnold, John X-To: '"Lafontaine, Steve" @ENRON' X-cc: X-bcc: X-Folder: \JARNOLD (Non-Privileged)\Arnold, John\Sent Items X-Origin: Arnold-J X-FileName: JARNOLD (Non-Privileged).pst of course. info here goes nowhere. we've had trouble discerning where the switching takes place because the economics get very blurry: credits, ldc costs, transport, taxes, restrictions on # hours plants can burn resis are hard to account for and are different for everybody. also some noneconomic factors... convenience, inertia, multi-month fuel purchases, hedges, accounting procedures, resid in storage already... It's a big blur in my mind. I look at general levels and for anecdotal evidence. have seen zero anecdotal evidence so far. will also watch aga's for the indication, but so will everybody else. -----Original Message----- From: "Lafontaine, Steve" @ENRON [mailto:IMCEANOTES-+22Lafontaine+2C+20Steve+22+20+3Csteve+2Elafontaine+40bankofamerica+2Ecom+3E+40ENRON@ENRON.com] Sent: Thursday, May 24, 2001 12:02 PM To: jarnold@enron.com Subject: FW: fuel switching who loves ya kid-uncle steve...enjoy the weekend. appreciate if you dont distribute this my man. just for you. okay? > Steve, > > Aclient of ours from Ontario who is in Union gas said they saw for the > first time this week a client switching back to nat gas. 1st time in a > long time [LaFontaine, Steve] > witching > > i noticed that 1% residual fuel in various parts of the US part the big > cities in the upper midwest such as chicago and detroit has come to near > paritiy with natgas on a wholesale level. now there are things like ldc > costs and sulfur credits that will make additional differences in these > parities. > to marketing: could we please check with a few of our industrial or > utility customers to see if our customers are switching back to natgas? > this would be a material difference in the supply and demand of both fuel > and natgas and therefore perhaps our trading views(and my aga > forecasts).apprecitate the feedback.thanks