of course.  info here goes nowhere. we've had trouble discerning where the switching takes place because the economics get very blurry: credits, ldc costs, transport, taxes, restrictions on # hours plants can burn resis are hard to account for and are different for everybody.   also some noneconomic factors... convenience, inertia, multi-month fuel purchases, hedges, accounting procedures, resid in storage already...  It's a big blur in my mind.  I look at general levels and for anecdotal evidence.  have seen zero anecdotal evidence so far.  will also watch aga's for the indication,  but so will everybody else.  

 -----Original Message-----
From: 	"Lafontaine, Steve" <steve.lafontaine@bankofamerica.com>@ENRON [mailto:IMCEANOTES-+22Lafontaine+2C+20Steve+22+20+3Csteve+2Elafontaine+40bankofamerica+2Ecom+3E+40ENRON@ENRON.com] 
Sent:	Thursday, May 24, 2001 12:02 PM
To:	jarnold@enron.com
Subject:	FW: fuel switching

who loves ya kid-uncle steve...enjoy the weekend. appreciate if you dont
distribute this my man. just for you. okay?

> Steve,
>
> Aclient of ours from Ontario who is in Union gas said they saw for the
> first time this week a client switching back to nat gas. 1st time in a
> long time
[LaFontaine, Steve]

> witching
>
> i noticed that 1% residual fuel in various parts of the US part the big
> cities in the upper midwest such as chicago and detroit has come to near
> paritiy with natgas on a wholesale level. now there are things like ldc
> costs and sulfur credits that will make additional differences in these
> parities.
>    to marketing: could we please check with a few of our industrial or
> utility customers to see if our customers are switching back to natgas?
> this would be a material difference in the supply and demand of both fuel
> and natgas and therefore perhaps our trading views(and my aga
> forecasts).apprecitate the feedback.thanks