In the effort to understand this better is it fair to say that wholesale block prices between Friday afternoon and today have fallen on the offer side by $7.00 MWHr?

For example, these were the prices on Friday:

	Jack in the Box	PG&E	Offer	$41.15;	A/S	$4.93;	Block to Shape	$1.25 = Total $47.33.
	
The total price to Jack was $60.31 and includes the following additional charges $3.03 losses, $3.40 interzonal congestion; $1.75 uplifts; $1.80 ISO charges; $0.50 settlements and $2.50 "contract/legal".

I don't believe ancillaries and shape have changed dramatically; therefore, it would suggest that wholesale markets have changed by the number indicated above.

Our information would suggest that SP 15 and NP 15 on-peak has not changed by this amount between Friday to today.

This leads to two results:
	a) the generator price is closer to our original offer and
	b) our original offer on Friday was out of market and EES paid too much for supply.

Each dollar on the California deals is approximately $2.0M in value recognized in the wholesale versus retail organizations.

Please clarify.

---------------------- Forwarded by David W Delainey/HOU/EES on 09/25/2001 05:13 PM ---------------------------
From:	Loretta Brooks/ENRON@enronXgate on 09/25/2001 04:15 PM
To:	Sean A Holmes/HOU/EES@EES, Janet Dietrich/HOU/EES@EES, David W Delainey/HOU/EES@EES, Greg Whalley/ENRON@enronXgate
cc:	 
Subject:	FW: Energy and Ancillary Service Pricing

Here is the bid offers for the product you are looking at.

John

 -----Original Message-----
From: 	Belden, Tim  
Sent:	Tuesday, September 25, 2001 4:07 PM
To:	Lavorato, John; Richter, Jeff
Subject:	Energy and Ancillary Service Pricing

Below are our bid/offers for the product described in the confirmation drafted by Steve Hall.  A different confirm could change these prices.  It is my understanding that the deal team has not yet agreed to the Steve Hall version of the confirm.  

Please note that these prices are for a stipulated hourly shape and include CAISO energy and associated ancillary services including regulation up, regulation down, spin, non-spin, and replacement reserves.  This pricing also assumes a good credit, wholesale counterparty with no regulatory contingencies or recission rights.  It also assumes that liquidated damages/early termination payments are cleaner than those associated with retail load contracts as all of these products exist in the wholesale market independent of whether direct access exists or not. 

Here they are:

Term			10/1/2001 to 12/31/2004
Region			Mixed SP15
PVMWh		608,607
Bid			$37.25
Offer			$40.85

Term			10/1/2001 to 9/30/2004
Region			NP15
PVMWh		148,236
Bid			$37.50
Offer			$41.75

Term			10/1/2001 to 9/30/2004
Region			SP15-SCE
PVMWh		182,106
Bid			$37.45
Offer			$40.85

Term			10/1/2001 to 9/30/2004
Region			SP15-SDG&E
PVMWh		75,206
Bid			$37.50
Offer			$40.75