Message-ID: <25357459.1075842435861.JavaMail.evans@thyme>
Date: Tue, 24 Oct 2000 07:54:00 -0700 (PDT)
From: drew.fossum@enron.com
To: kevin.hyatt@enron.com
Subject: Re: New Power plants vs. rising gas costs
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Makes sense.  Thanks df 




Kevin Hyatt
10/24/2000 02:14 PM
To: Drew Fossum/ET&S/Enron@ENRON
cc:  

Subject: New Power plants vs. rising gas costs

My thoughts are this:
 those plants under development (i.e. past the planning stages and into 
permitting or construction) will continue to move forward.  Their fuel costs 
are most likely already locked in or there is a pass thru mechanism to the 
power buyer.  

It is really only the near term gas prices that are high in this 
backward-dated market.  The 10 year gas price curve is still relatively 
inexpensive.  Those power plant projects in early planning stages or those 
with higher merchant risk will likely be delayed but that depends on where in 
No. Americal they are located.  Those plants slated for severely constrained 
NERC territories will probably continue to move forward, as evidenced by 
recent announcements for new plants in the MAIN and WSCC regions.

just my thoughts, you get what you pay for.
KH