Please confirm my inferences:

1) The Southeast curve has been provided by the MAE in its official capacity 
(do we have a reference from a press release or publication?)
2) I assume the Southeast curve predicts the maximum marginal cost expected 
to be dispatched for each period. Is this correct?  Is this for Peak demand 
periods?  Do we have a prediction on an intra-day basis?
3) The graph seems to  predict that EPE's cost will be below the Southeast 
curve; therefore we can epect full dispatch (?)








Felipe Ospina
12/18/2000 02:45 PM
To: Rob G Gay/NA/Enron@Enron, Richard A Lammers/SA/Enron@Enron, Tracee 
Bersani@ECT, Christiaan Huizer/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Laine A 
Powell/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:  

Subject: EPE v.s MAE Graph

As discussed on the conference call, here is a graph of the MAE forward curve 
v.s. the EPE marginal cost provided by Christiaan. It assumes EPE's marginal 
cost remains at R$97.84/Mwh until Aug-01, which I think is not the case as it 
will go down once gas arrives and the plant increases to 480 MW. The forward 
curve is as of Dec-06. One can see the impact of the dry season beginning mid 
year until around Sept as Laine was suggesting in the call.  Thanks.