Hi All:

Just got off the phone with the folks @ Dominion regarding some indicative pricing I gave them last week for (i) a 7000 Heat Rate Call in TVA; and, (ii) a 7000 Heat Rate Call in SERC.  FYI, I had quoted the TVA Call  @ $3.97/KW-mo ($1 over our mid) for a 4yr call beginning 1/1/03 with $2 VOM and 5x16 avail with 16hr mins.  I also quoted the SERC 7000 call at $1 over our mid, at $3.98/KW-mo for 1 yr and $4.12/KW-mo for 4 yrs, again with 5x16 and 16 hour mins.

The good news is --- this pricing generated some interest.

The other (not bad) news is, they want us to refine our quotes in some respects.

For the SERC calls, they're really interested in the new RTO GridSouth.  Harry, we need to see if we can identify a product today for what GridSouth will be tomorrow.  In addition, they are really interested in something more akin to a true synthetic, with intraday availability, say 2-3 hour notice with 4 or 8 hour mins.  (Since they are going to compare this to a real plant, I think we can take some latitude in calculating the VOM for shorter dispatch periods, since they would otherwise experience a start charge which would be spread over fewer hours).  Let me know what you think we can do.  We should probably talk about this.

On the TVA call, they're happy with the quote I gave them, but would like the flexibility of 8 hour mins.  Let talk about this, as well.  I told them that size on the TVA would be in the range of 200-250.  They will check size on their side and I'd like us to affirm if this works for us, as well.

They would also like to see a Peaker Call in TVA with a June'04 start, 3-yr term, 4 hour notice, 4 hour mins, priced for Jun-Aug and Dec-Mar availability.  They'll get back to me on size.  In the meantime, let's talk about what we're interested in.

Sorry about the length of this message.  If I don't hear from you in an hour or so, I'll initiate the call.  My NY number is 212-715-5953.