Message-ID: <4795554.1075852369358.JavaMail.evans@thyme> Date: Thu, 27 Sep 2001 12:45:11 -0700 (PDT) From: m..forney@enron.com To: e-mail <.kenneth@enron.com>, tom.may@enron.com Subject: Frontera Proposal for tomorrow Cc: doug.gilbert-smith@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: doug.gilbert-smith@enron.com X-From: Forney, John M. X-To: Kenneth Parker (E-mail) , May, Tom X-cc: Gilbert-smith, Doug X-bcc: X-Folder: \JFORNEY (Non-Privileged)\Forney, John M.\Sent Items X-Origin: FORNEY-J X-FileName: JFORNEY (Non-Privileged).pst Ken, As discussed earlier, I am proposing ramping up late for the onpeak sale that Frontera made for tomorrow. If we must sell the offpeak hours required to affect a 340 mw onpeak schedule, I show that we would almost negate all profit from the sale. I am suggesting starting your ramp beginning hour ending 7 and purchasing a fixed price swap from Enron for the short generation. Basically, you sold the preschedule for $21 and we would fix your price for hours ending 7-11 at $20. The benefit in this swap would be: hedge against floating price lock in $1 profit on sale for short portion of the schedule, increasing revenues avoid losing approximately $10k on selling ramping schedule - $4 is an optimistic real time sales price at this point, however, I used this in the analysis. Please let me know what you think. Enron will be offically rolling this swap product out to all of our service customers. I think this would be a good fit your company and I would like to try this for Friday's run. Additionally, I think that there may be a good down balancing or OOM down opportunity for tomorrow because of this preschedule. Let me know what you think, JForney 713-853-7160