Message-ID: <12440551.1075840723815.JavaMail.evans@thyme> Date: Thu, 11 Jan 2001 09:31:00 -0800 (PST) From: jesse.bryson@enron.com To: portland.shift@enron.com Subject: Import to fill SC trades Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Jesse Bryson X-To: Portland Shift X-cc: X-bcc: X-Folder: \mark guzman 6-28-02\Notes Folders\Notes inbox X-Origin: GUZMAN-M X-FileName: mark guzman 6-28-02.nsf Group- Last night there was a strategy that was implemented that needs some clarification. We bought from EPE at PV and imported to the ISO. We then did an SC trade (internal interchange) with WESCO in SP15. When we do this, we do not want to adjust bid our import. If the import were to be cut due to congestion higher than our adjustment bid, we will be subject to replacement costs, which may be as much as the highest out of market energy price. However, if we send in the import without an adjustment bid, we are subject to a maximum of $250 per Mw. This is potentially a substantial loss, but a least it is a known (and manageable) downside. In order to mitigate this risk of congestion, we can run a wheel in at Four Corners (with bid at $200) and out at Palo Verde (with bid of $150). With both the import and the wheel for congestion relief, any congestion will be a wash and our only downside will be our transmission from PV to FC. If this does not make complete sense, let me know and I will try to explain it further. Cheers Jesse