Georganne -

Attached is a brief presentation demonstrating 3 methods of correlating gas and power prices in Texas.  All show a high correlation (>85%).  This is to show Arthur Andersen that John's Nymex swap is a good hedge for the coal plant build option.

The spreadsheet provides the raw data.

My recommendation is to use the "Liquidated Price" method since it uses historical MW Daily and Gas Daily indexes and does not rely on internal curves.

Mitch