FYI.... let's get more clarification when we talk to her about the Ft. Pierce 
model results.

Eric

---------------------- Forwarded by Eric Boyt/Corp/Enron on 02/27/2001 09:15 
AM ---------------------------
   
	
	
	From:  Edith Cross @ ECT                           02/27/2001 08:26 AM
	

To: Eric Boyt/Corp/Enron@ENRON
cc:  

Subject: Re: ICAP?  

ICAP is installed capacity.  You sometimes hear it referred to as RegCap 
(regulatory capacity).  In some of the northern markets you must demonstrate 
that you have enough capacity (ICAP) to cover your max peak.  This capacity 
doesn't necessarily have to be used to serve your load  (This is the most 
confusing part).  If you owned a plant, you could sell the ICAP and energy 
off that plant to two different counterparties.  What Kevin's is pointing out 
that the FL RTO will require ICAP, therefore, if we owned steel in the 
ground, we would receive the benefit of being able to sell the capacity AND 
the energy.  

Not all of the markets require ICAP, therefore, it is good to clarify what 
people mean when they use the word capacity.  In some markets, the capacity 
price is imbedded in the energy price.  Capacity is a very loosely used term 
in the electricity industry.    I am sure this is clear as mud.  It's kind of 
hard explain in an e-mail.  Let me know if you have any other questions.

Edith





Eric Boyt@ENRON
02/26/2001 03:52 PM
To: Edith Cross/HOU/ECT@ECT
cc:  
Subject: ICAP?

Can you explain ICAP (and why we would get paid for it) to a dumb gas guy?  I 
have heard it several times and read it in the Ft. Pierce e-mail.

Eric