Message-ID: <30667068.1075857176765.JavaMail.evans@thyme>
Date: Thu, 2 Mar 2000 02:06:00 -0800 (PST)
From: jinsung.myung@enron.com
To: benjamin.rogers@enron.com
Subject: Retail Short Valuation
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
X-From: Jinsung Myung
X-To: Benjamin Rogers
X-cc: 
X-bcc: 
X-Folder: \Benjamin_Rogers_Dec2000_1\Notes Folders\Ctg-deals
X-Origin: Rogers-B
X-FileName: brogers.nsf

Ben,

I think we need to start to build model, rather than waiting for Structuring. 
Once we build template, we can finish model just by dropping curves from 
Structuring. Could you adjust our existing LM 6000 model to reflect our 
valuation method as follow;

Valuation of Retail Short =
+ Revenue from serving load (to get 12% IRR)
+  Expense from serving load at the market
+ Spread option value for full capacity (190MW)
+ ICAP ($1.00/kw-mo for 6 months)
- Fixed expenses

Please let me know if this is too much on your plate. Thanks. 

Jinsung