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Enron Mail |
Enclosed is a first cut at a very rough approximation of interchange
benefits. It assumes that the benefit to the exporting parties is a contribution to their fixed costs of capacity of base load plants already built equal to the difference between the sale price and the cost of fuel (estimated from gas combined cycle operation). The tricky part is trying to unravel exports from the Southwest from the ownership shares of California parties. The gain to California is (1) the capital savings of added peaking plants and (2) the variable cost savings from not operating high heat rate units.
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