Message-ID: <3536013.1075855670762.JavaMail.evans@thyme> Date: Thu, 22 Jun 2000 00:26:00 -0700 (PDT) From: phillip.allen@enron.com To: scott.carter@chase.com Subject: Re: The New Power Company Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Phillip K Allen X-To: "Carter, Scott" @ ENRON X-cc: X-bcc: X-Folder: \Phillip_Allen_Dec2000\Notes Folders\All documents X-Origin: Allen-P X-FileName: pallen.nsf Scott, I emailed your question to a friend that works for the new company. I think I know the answer to your questions but I want to get the exact details from him. Basically, they will offer energy online at a fixed price or some price that undercuts the current provider. Then once their sales are large enough they will go to the wholesale market to hedge and lock in a profit. The risk is that they have built in enough margin to give them room to manage the price risk. This is my best guess. I will get back to you with more. Phillip