Message-ID: <25448446.1075852171393.JavaMail.evans@thyme> Date: Fri, 5 Oct 2001 12:18:20 -0700 (PDT) From: danny.mccarty@enron.com To: susan.wadle@enron.com Subject: FW: Top 3 Worries for '02 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: McCarty, Danny X-To: Wadle, Susan X-cc: X-bcc: X-Folder: \DMCCARTY (Non-Privileged)\McCarty, Danny\Sent Items X-Origin: MCCARTY-D X-FileName: DMCCARTY (Non-Privileged).pst -----Original Message----- From: Harris, Steven Sent: Thursday, October 04, 2001 5:03 PM To: McCarty, Danny Subject: Top 3 Worries for '02 - Fuel prices stay below Plan numbers and we can not hedge at a price even close to what is in the Plan as a base amount much less meet stretch. -Basis spreads between East and West stay depressed causing the Mavrix and remaining Red Rock space to be valued at margins of $.00 to $.05 going West (also, the demand stays low out West because of weather). -We can not renegotiate the ROFR contracts prior to expiration and we end up getting the capacity handed back to us in a depressed market.