Message-ID: <1136754.1075852369381.JavaMail.evans@thyme> Date: Thu, 27 Sep 2001 14:30:39 -0700 (PDT) From: m..forney@enron.com To: m..grace@enron.com, michael.jacobson@enron.com Subject: FW: Frontera Proposal for tomorrow Cc: m..presto@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: m..presto@enron.com X-From: Forney, John M. X-To: Grace, Rebecca M. , Jacobson, Michael X-cc: Presto, Kevin M. X-bcc: X-Folder: \JFORNEY (Non-Privileged)\Forney, John M.\Sent Items X-Origin: FORNEY-J X-FileName: JFORNEY (Non-Privileged).pst Rebecca, For September 28th, we have sold a financial swap to Frontera for hours ending 7- 11. We bill them $20, Enpower #794481, for various hours. I will take the floating imbalance price for the following megawatt totals : he7 - 310 mw's he8 - 310 he 9- 240 he10 - 140 he 11 - 60 Frontera will be running a resource imbalance for these hours. (see imbal. # 794516). I should be allocated the imbalance charges as listed above and Frontera is responsible for any remaining imbalance for this day.. This is a financial swap that we will be offering our customers and I need your feedback on any requirements that you have in settling this product. Thanks, JMF -----Original Message----- From: Forney, John M. Sent: Thursday, September 27, 2001 2:45 PM To: Kenneth Parker (E-mail); May, Tom Cc: Gilbert-smith, Doug Subject: Frontera Proposal for tomorrow 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