Message-ID: <30768570.1075852308191.JavaMail.evans@thyme> Date: Wed, 3 Oct 2001 13:50:40 -0700 (PDT) From: j..sturm@enron.com To: jennifer.fraser@enron.com Subject: RE: power trading and heat rates Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Sturm, Fletcher J. X-To: Fraser, Jennifer X-cc: X-bcc: X-Folder: \FSTURM (Non-Privileged)\Sturm, Fletcher J.\Sent Items X-Origin: STURM-F X-FileName: FSTURM (Non-Privileged).pst sure, e.g. Buy Jul-Aug Cin power at $50, sell Jul-Aug NatGas at $2.885 $50/$2.85 = 17.5 HeatRate To hedge: sell 28 contracts/month gas 50 MW = 32,000 MWhours (50 MW x 16 peak hrs x 5 peak days/wk x 8 wks = 32,000 MWh) 32,000 MWh x 17.5 = 560,000 MMBtu = 56 contracts over Jul-Aug strip Just do the reverse math at 18 heat rate to figure P/L... Fletch -----Original Message----- From: Fraser, Jennifer Sent: Thursday, September 27, 2001 5:51 AM To: Sturm, Fletcher J. Subject: power trading and heat rates Hi Im not sure I understand how you guys trade heat rates. Is there anything around I could read to give me a brief overview? Alternatively, could you email me an explanation? Thanks Jen