Message-ID: <4526169.1075852396122.JavaMail.evans@thyme> Date: Wed, 8 Aug 2001 07:09:56 -0700 (PDT) From: m..forney@enron.com To: mpatterson@ercot.com Subject: FW: ERCOT SETTLEMENTS Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Forney, John M. X-To: 'mpatterson@ercot.com' X-cc: X-bcc: X-Folder: \JFORNEY (Non-Privileged)\Forney, John M.\Sent Items X-Origin: FORNEY-J X-FileName: JFORNEY (Non-Privileged).pst Mark, I called earlier today and left a lengthy phone message........sorry about that - we had a trading issue in the middle of my conversation with you. Anyway, I received the following question from some of our Retail folks. If you could help answer this question I would really appreciate it. Jeff Miller and I are planning to visit Austin next Friday to discuss Settlements. We look forward to meeting you. Are you a golfer? We may try to play Friday afternoon. JForney -----Original Message----- From: Maheu, Peter Sent: Wednesday, August 08, 2001 8:28 AM To: Forney, John M. Subject: Re: ERCOT SETTLEMENTS ---------------------- Forwarded by Peter Maheu/HOU/EES on 08/08/2001 08:27 AM --------------------------- Peter Maheu 07/30/2001 12:55 PM To: John M Forney/ENRON@enronXgate @ ENRON cc: Kenneth Farrar/HOU/EES@EES, Gary Galow/HOU/EES@EES Subject: Re: ERCOT SETTLEMENTS Example assumptions: Market consists entirely of 4 QSEs who have the following schedule-actual variances in a particular hour; A=+50MW; B=+50MW; C=-25MW & D=-25MW. Market energy price is $100/MWH. Since money paid by C & D is insufficient to fully reimburse A & B (5000+5000-2500-2500=5000), what happens in the settlement? Do A & B get proportionally less than they otherwise would have gotten? Or, is there a banking mechanism that builds up in hours where there are overages and is drawn down in hours where there are shortages (such as example above)?