Message-ID: <14580254.1075854849053.JavaMail.evans@thyme>
Date: Fri, 4 May 2001 11:45:00 -0700 (PDT)
From: kevin.presto@enron.com
To: john.llodra@enron.com
Subject: Re: NORTON ENERGY STORAGE
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Great trading asset, but fixed costs are enormous.   The entire value proposition is based upon $15/Mwh spread between peak and off-peak (which is clearly there today).    My view is this spread collapses over time due to DSM/DG/real-time pricing and true hourly price signals in pool based markets.

We should look at the asset, but recognize the fixed costs are huge.