Sunday Palo Verde Preschedules

On Friday night we discovered that the planned maintenance at Palo Verde for
Sunday was a "go" again. The cash traders/preschedulers had been told
that the work was cancelled.

R. Slinger and Leaf rerouted 150mw's of onpeak energy that was routed/tagged
to go to the PX, saving the company $48,096. The PX cleared for zero's
much of the onpeak hours, as there was major cong. at PV. They sold to LA
directly 100 mw's and also booked out 50mw's with the generator (TEP) of one
of the preschedules. Our desk retained the majority of the savings, as
indicated below.

This was a good exercise, as it demonstrates how we can "jump chain" on
certain curtailed paths and settle directly with the generator's to avoid
inadvertancy.
This was done and the system balanced perfectly.

Good job!!

JMF

---------------------- Forwarded by John M Forney/HOU/ECT on 10/23/2000 02:21
PM ---------------------------
From: John M Forney on 10/23/2000 08:37 AM
To: Mark Fischer/PDX/ECT@ECT
cc:
Subject: Sunday Palo Verde Preschedules

Mark,
As discussed, we've rerouted your onpeak Palo Verde (150 mw's) schedules
that were destined to go to the P/X, We sold 100 mw's to LADWP for $38 -
see deal #440641. We also booked out 50mw's at $50 with TEP - see deal
#440642.
For ease of accounting, these sales were entered under your book, ST SW,
so you are flat for this day.

The P/X onpeak average was, as I calculated, $21.96.
The wt. avg price of the bookout/ sales agreements was $42. The net, of
course, is $20.04.

Enron saved:

$20.04 * 150mw's * 16 hrs = $48,096

Our split was 70%, so we should enter an annuity for this amount,
$33,667.20.

If you agree, let me know and I will enter the deal.

Thanks for the "heads up." This was a good call for the company.

JMF