The market last week for the flat MC was about $31: that difference would be 9.50 = $2,654,02 nominal for the increased mws.  The loss of the delivery value is about $.75/MWh- (about $2.3 million nominal).  The loss of the option is probably about $1 million.   Overall, you did a very job I think its worth $1.5 million- if you go by the numbers its 0.

 -----Original Message-----
From: 	Rosman, Stewart  
Sent:	Wednesday, October 03, 2001 11:43 AM
To:	Swerzbin, Mike
Subject:	Valuation Overview


MWHRs =  4 Years and 1 quarter Flat so that equals approximately 37,250 Hours

The difference between 102 (the new amount) and 94.5 (the old average flat amount) = 7.5 MW * 37,250 HRs = 279,375 MWhrs

I was under the impression that a 100 MW flat amount would equal $3 million value (a $16 difference between market and $21.50).  This would indicate the 102 equals a $4,100,000 valuation.  As to the discount in value due to the flexibility and delivery point I am looking to you for leadership.  If my assumptions are wrong then let me know.

Stewart