Message-ID: <18368109.1075851850983.JavaMail.evans@thyme> Date: Mon, 29 Jan 2001 06:34:00 -0800 (PST) From: chris.foster@enron.com To: kim.ward@enron.com Subject: Re: Pasadena Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Chris H Foster X-To: Kim Ward X-cc: X-bcc: X-Folder: \Kim_Ward_Nov2001\Notes Folders\All documents X-Origin: WARD-K X-FileName: kward.nsf You quoted $5.10 as the total spread you would pay. So: $6 + $5.1 = $11.10 Question: What is the credit you will give Pasadena time their capactiy of 3886 MMBtu/d? Answer: To figure out what you are paying for the capacity: Assume SJ Index = 6.00 Then, Basin Price/(1 - Fuel %) + Variable Cost + Demand Charge (Kim's # for Pasadena) = Border Index Demand Charge = Border Index - $.026 - (Basin Price/(1- .0388)) x = 11.10 - .026 - 6.00/(.9612) 11.10 - .0266 - 6.2422 $4.83 is the implied demand charge $4.83 * 3,886 * 29 = Total Credit Chris