----- Forwarded by Elizabeth Sager/HOU/ECT on 10/26/2000 09:14 AM -----

	Janice R Moore
	10/26/2000 08:31 AM
		 
		 To: Elizabeth Sager/HOU/ECT@ECT
		 cc: 
		 Subject: Re: Black Hills Pepperell tolling transaction

a followup note on this deal from Kevin Presto
Regards,
Janice

EB3861
Assistant General Counsel, Enron North America Corp.
713-853-1794 (Fax:  713-646-4842)
----- Forwarded by Janice R Moore/HOU/ECT on 10/26/2000 08:30 AM -----

	Kevin M Presto
	10/26/2000 08:25 AM
		
		 To: John Llodra/Corp/Enron@ENRON
		 cc: Janice R Moore/HOU/ECT@ECT, Tracy Ngo/PDX/ECT@ECT, Edward 
Sacks/Corp/Enron@Enron, Edward D Baughman/HOU/ECT@ECT, Mark Dana 
Davis/HOU/ECT@ECT, Jim Homco/HOU/ECT@ECT
		 Subject: Re: Black Hills Pepperell tolling transaction

John,

We need to make sure we are valuing the spread option using only No. 2 oil in 
Dec, Jan & Feb.  We will almost certainly be curtailed during blow out events 
in the winter and, therefore, it is not appropriate to use nat gas as the 
winter fuel.