Hello!

Congratulations on your new arrival - hope you are all well.  Got married on 26 May and got sunshine in Dublin on the day!

We are running the virtual entry capacity as an auction
?	bids due in on 9 July (may be extended if Transco delay their auction)
?	5 year minimum term
?	any terminal
?	we have right to refuse gas at the beach on payment of compensation chosen by customer in the bid.

We are still running analysis to produce beach curves based but current thinking is that 
?	current market inefficiency is inflating the price (we are currently buying day ahead interruptible Fergus capacity at 0.3p and buying gas as it turns firm on the day at NBP-7p)
?	our aim is to take out the conservative guys in our auction so the Transco auctions should be less ridiculous (summer max price was 12p but the average was 6p, with wide spreads in each auction round
?	we have modelled with Transcost to verify Transco's view that Fergus can be expanded by 50% for 1 p/th LRMC

Also we have some other risk management angles we intend to pursue if we end up with a large position 
?	offer underwriting on incremental investment by Transco
?	code modifications to increase capacity auctioned
?	build a pipeline! 

It would be great to get your views on it - shall I give you a call when we've pulled together the curve analysis?

Peter




 -----Original Message-----
From: 	Kitchen, Louise  
Sent:	26 June 2001 16:48
To:	Crilly, Peter
Subject:	Hello

How are things with you?  Hope all is well - are you married now?

Just a quick one - you have scared me with the Entry Point trading thing.  If you ever want to talk it through give me a ring.

Louise