Message-ID: <11414428.1075852825420.JavaMail.evans@thyme> Date: Wed, 17 Oct 2001 07:53:25 -0700 (PDT) From: billy.braddock@enron.com To: m..presto@enron.com Subject: TECO RFP Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Braddock, Billy X-To: Presto, Kevin M. X-cc: X-bcc: X-Folder: \KPRESTO (Non-Privileged)\Deleted Items X-Origin: Presto-K X-FileName: KPRESTO (Non-Privileged).pst Kevin, As we discussed, TECO is offering up to 500MW (of a total 960MW) beginning 5/1/04 off the Gannon facility (which is being converted from coal to a gas-fired CC plant, called Bayside). The plant is in Tampa, FL and the offering is unit-contingent. TECO prefers to sell a toll where we bring the gas, but is open to other proposals. I figure we can bid for any of a few structures: 1) toll where we bring the gas, 2) toll indexed to a gas hub, where TECO is respons. for gas supply, 3) fixed price call. I think an at the money call would be the cleanest solution (avoid inefficiency's associated with the heat rate curve which varies by MW amount utilized, gas supply risk, etc.). What is your preferred structure? How many MW would you like to show a bid for? Structuring ran an initial valuation for a 3-year, $35 daily call, 100MW. Results are below. TECO RFP Curve Into FRCC Strike $35 Size 100 MW Availability 95% Term 5/1/04-4/30/07 $/kW-mo $/MWh PV'd $ Premium Bid 2.66 3.84 8,033,628 Mid 5.09 7.33 15,337,981 Billy Braddock Manager - Enron Power Marketing Inc. 713-345-7877 (work) 713-646-4940 (fax) 713-503-2166 (cell)