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Enron Mail |
Jeff, can you speak briefly with Kevin on this one - intriguing idea if the
execution was probable. By the way, what is our plan with Sithe? Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 10/06/2000 09:13 AM --------------------------- Enron North America Corp. From: Kevin M Presto 10/06/2000 08:50 AM To: David W Delainey/HOU/ECT@ECT cc: Subject: Re: Idea Put a bid into SOCO's shareholders for the transmission assets only. Since the market is valuing Genco assets at a much higher multiple, a bid at book value for the transco would be very intriguing to the existing shareholder base. Given a high probability of supply shortage in Florida over the next 2-4 years, the transmission gateway to Florida is extremely valuable, particularly if expansions are done off the existing system. In addition, it would give Enron tremendous regulatory leverage with the pending Entergy/FPL (SOCO connects systems), and the entire SE market, including TVA. I know it's a longshot, but we will have to do something radical to bust open the SE market into a free functioning commodity market. The SE is essentially untapped from a power trading standpoint right now, and the market is nearly 200,000 MW if you include Florida.
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