Message-ID: <25677481.1075854847823.JavaMail.evans@thyme>
Date: Tue, 15 May 2001 19:26:00 -0700 (PDT)
From: kevin.presto@enron.com
To: frank.hayden@enron.com
Subject: Re: Correlations gas vs. power
Cc: tim.belden@enron.com, manfred.roenz@enron.com
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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.