Rogers, Kev wanted me to summarize for you the information that I received from one of the industrials that we have been actively pursuing.  

TotalFinaElf has about 70MW of ERCOT load at a 85%+ load factor.  Doug very aggressively priced these guys due to two things: 1)  contact had indicated that he was getting "low, low 8 heat rate offers" and 2) our relationship with contact (I used to trade gas at the same bucket shop with their head gas trader).  Last week Doug showed them $26.00, load following, +/-10% band, all congestion, all ERCOT pancake charges, et al (T&D only pass through).  

Evidently that indication by customer wasn't blowing smoke, we ended up "middle of the pack."  Calpine and Reliant both came in with the same product (converting the heat rate) sub-$25 --- Calpine being the most aggressive.  By all indications Calpine is showing 8.2-8.3 heat rates and Reliant 8.3-8.4 at least for this customer.  Now whether that translates into equivalent pricing for all low meter, high usage, and high load factor customers we shall soon see given the amount of pricing we have out there.  In this case, however, looks like they are willing to give it up on the MTM book to get MWs out the door and have it to trade around real-time in the accrual book next year.


Regards,

Larry Jester
Enron Power Marketing Inc.
Phone:  713-853-5266
Fax:      713-646-8272