Mark,
I called earlier today and left a lengthy phone message........sorry about that - we had a trading issue in the middle of my conversation with you.

Anyway,  I received the following question from some of our Retail folks. 
If you could help answer this question I would really appreciate it.
Jeff Miller and I are planning to visit Austin next Friday to discuss Settlements.   We look forward to meeting you.
Are you a golfer?   We may try to play Friday afternoon.

JForney
 -----Original Message-----
From: 	Maheu, Peter  
Sent:	Wednesday, August 08, 2001 8:28 AM
To:	Forney, John M.
Subject:	Re: ERCOT SETTLEMENTS


---------------------- Forwarded by Peter Maheu/HOU/EES on 08/08/2001 08:27 AM ---------------------------

 
Peter Maheu
07/30/2001 12:55 PM
To:	John M Forney/ENRON@enronXgate @ ENRON
cc:	Kenneth Farrar/HOU/EES@EES, Gary Galow/HOU/EES@EES 
Subject:	Re: ERCOT SETTLEMENTS   

Example assumptions:
Market consists entirely of 4 QSEs who have the following schedule-actual variances in a particular hour; A=+50MW; B=+50MW; C=-25MW & D=-25MW.
Market energy price is $100/MWH.

Since money paid by C & D is insufficient to fully reimburse A & B (5000+5000-2500-2500=5000), what happens in the settlement?  Do A & B get proportionally less than they otherwise would have gotten?  Or, is there a banking mechanism that builds up in hours where there are overages and is drawn down in hours where there are shortages (such as example above)?



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