Vasant,

Good enough. The last edition includes the discussion of price processes.

Vince





Vasant Shanbhogue
08/01/2000 01:56 PM
To: Stinson Gibner/HOU/ECT@ECT, Pinnamaneni Krishnarao/HOU/ECT@ECT, Grant 
Masson/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT
cc:  
Subject: Need info on fundamental modeling of prices

One guy, John Neslage, from Corporate/Regulatory Affairs is putting together 
a talk for state regulators and wants to talk about fundamental modeling of 
energy prices.  He was wondering if our group could shed some light on major 
fundamental variables, possibly even for new commodity markets.  I am not 
sure if we have done much fundamental analysis, since we focus mostly on 
option valuation.  Also, since market power is an important variable, 
marginal cost analysis is not sufficient, but if anybody has any info, please 
let me know.  I have referred him to the "Managing Energy Price Risk" book.

Thanks,
 Vasant