Subject: Re: Correlations gas vs. power
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Tue, 15 May 2001 19:26:00 -0700 (PDT)

Why not use the actual correlations we have observed over the past 18 months.   Simply calculate forward gas price movement to forward power price movement (Bal 01, 02, 03, etc.)on a curve by curve basis, and you will find gas/power correlations on a forward basis are very high (80+%), at least in the Eastern markets.