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Enron Mail |
OK, I see your point. Incremental may be misleading. How about this??
=01&Market Price=018 is the price agreed to in any transaction inclusive of= all=20 costs specific to the same transaction. Incremental to me means an increased cost. I'm not sure what the cost is= =20 "incremental" of. I'm just trying to figure out if "incremental" is=20 descriptive, or just an extra word the engineers (sorry) threw in. From: Reagan Rorschach/ENRON@enronXgate on 06/08/2001 09:38 AM To: Kay Mann/Corp/Enron@Enron cc: =20 Subject: RE: Market Price definition Incremental costs, for example, would be transmission and losses associated= =20 with a sale of power if that sale specified a delivery point away from the= =20 MDEA interconnect with Entergy. For example, EPMI sells 22 MW from the=20 Clarksdale unit for $40/MWh to Southern at the Southern border. The=20 transaction includes $4 of transmission and $0.50 of losses. Therefore, th= e=20 Market Price is $44.50. Thanks Reagan C. Rorschach Enron North America 1400 Smith Street Houston, Texas 77002 713.345.3363 -----Original Message----- From: Mann, Kay =20 Sent: Friday, June 08, 2001 9:18 AM To: Rorschach, Reagan Subject: Re: Market Price definition What is an incremental cost? I'm not sure I get it. From: Reagan Rorschach/ENRON@enronXgate on 06/08/2001 08:46 AM To: Kay Mann/Corp/Enron@Enron cc: =20 Subject: Market Price definition Kay- Discussions with RW Beck have resulted in the following changes: From the EMSA: =01&Market Price=018 is the price agreed to in any transaction inclusive of= =20 incremental costs specific to the same transaction. From the Profit Calculation Exhibit: "Profit per hour is calculated as the product of MWh sold and the differenc= e=20 between Market Price and the Target Production Cost as follows:...." (dele= te=20 the reference limiting Profit to Back-to-back Transactions) Reagan C. Rorschach Enron North America 1400 Smith Street Houston, Texas 77002 713.345.3363
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