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Enron Mail |
Jerry/Eric/Frank,
Attached please find a "Unit Contingent" call option proposal that I had promised you at our last meeting. The thought here is Frontera could sell energy firm from the plant (once you become comfortable with its operation) and hedge most of the risk of a unit outage with this product. The time to do this is when the premium for a firm product (roughly $5/MWh) is greater than the price of this product (roughly mid to high $2's). You will find both an indicative proposal for Jun-Sep01 (I am not suggesting this term but wanted to give you a feel for the pricing) and the entire standard contract attached below for your review. This may require further explanation on my part but I thought I would send it to you now so you can become familiar with it. Please call if you have any questions, - Mike 713-853-4258 -----Original Message----- From: Ahn, Chris Sent: Monday, May 14, 2001 9:35 AM To: Dean, Clint Cc: Curry, Mike Subject: re: Contingent Call on Fronterra Chris Ahn Enron Power Marketing, Inc. T: (713) 345 3613 F: (713) 646 8055
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