Rebecca,
For September 28th,  we have sold a financial swap to Frontera for hours ending 7- 11.   We bill them $20,  Enpower #794481,  for various hours.
I will take the floating imbalance price for the following megawatt totals :

he7 - 310 mw's
he8 - 310 
he 9- 240
he10 - 140
he 11 - 60

Frontera will be running a resource imbalance for these hours.  (see imbal.  # 794516).       I should be allocated the imbalance charges as listed above and Frontera is responsible for any remaining imbalance for this day..
This is a financial swap that we will be offering our customers and I need your feedback on any requirements that you have in settling this product.

Thanks,
JMF


 -----Original Message-----
From: 	Forney, John M.  
Sent:	Thursday, September 27, 2001 2:45 PM
To:	Kenneth Parker (E-mail); May, Tom
Cc:	Gilbert-smith, Doug
Subject:	Frontera Proposal for tomorrow



Ken,
As discussed earlier,  I am proposing ramping up late for the onpeak sale that Frontera made for tomorrow.       If we must sell the offpeak hours required to affect a 340 mw onpeak schedule,  I show that we would almost negate all profit from the sale.

I am suggesting starting your ramp beginning hour ending 7 and purchasing a fixed price swap from Enron for the short generation.    Basically,  you sold the preschedule for $21 and we would fix your price for hours ending 7-11 at $20.     

The benefit in this swap would be:
hedge against floating price
lock in $1 profit on sale for short portion of the schedule, increasing revenues
avoid losing approximately $10k on selling ramping schedule -  $4 is an optimistic real time sales price at this point,  however,  I used this in the analysis.



Please let me know what you think.      Enron will be offically rolling this swap product out to all of our service customers.   
I  think this would be a good fit your company and I would like to try this for Friday's run.

Additionally,   I think that there may be a good down balancing or OOM down  opportunity for tomorrow because of this preschedule.


Let me know what you think,

JForney
713-853-7160