-----Original Message-----
From: 	Symes, Kate  
Sent:	Friday, July 27, 2001 2:58 PM
To:	Williams III, Bill
Subject:	Palo Verde  Bottleneck - PLEASE READ
Importance:	High

Is this the only revision you'd like to see?

FYI -

Roger called today to inform us of a bottleneck at Palo Verde. Apparently, El Paso cannot take more than 50 mw into their system at Palo in any given hour; therefore, we need to monitor El Paso's net schedule to ensure that it does not exceed this. This poses some obstacles and opportunities related to the lending agreement. If El Paso is taking a net of 50 mw in at PV, you'll need to procure energy at Four Corners or Greenlee to fill the lending short, then enter a zero priced buy-resale to get the energy from an alternate delivery point to PV. 

This is how it should take place - 
Day-Ahead
	Buy from El Paso at PV 
	Sell to STSW at PV 
Hour-Ahead	
	Buy from Counterparty such as PNM, SRP, TNP, or APS at FC or Greenlee 
	Buy-Resale from El Paso from FC or Greenlee to PV 

Please let me know if you have questions.

Thanks,
Kate