Message-ID: <8142188.1075859821343.JavaMail.evans@thyme>
Date: Sun, 4 Feb 2001 22:49:00 -0800 (PST)
From: tim.belden@enron.com
To: richard.sanders@enron.com, gfergus@brobeck.com, mark.haedicke@enron.com
Subject: Advise
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X-From: Tim Belden
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We continue to perform on our PX block forward sales.  Rather than deliver to 
Edison and PG&E, the PX has unilaterally decided to schedule this power as 
"load deviation" in the ISO market.  That is, it is an uninstructed deviation 
in the ISO Ex Post market so it receives the "dec" price.  This poses two 
problems.  First, the Ex Post price is a max of $150/MWh while the bilateral 
market trades significantly above this price.  Second, the ISO has payed us 
$0.02 for every $1.00 of sales that EPMI made to them in November.  We are 
racking up a receivable on this stuff of approximately $1 million per week 
(average sales price of $69.50 times a quantity of 150 peak MW).  Now the 
state has come in and taken the block forward positions.  We need to look at 
whether we must continue to perform on this obligation.