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Enron Mail |
Hmmm. Very interesting. I doubt AIG thinks of itself as being in the middle.
Heather Kroll@ECT 02/20/2001 03:07 PM To: Kay Mann/Corp/Enron@Enron cc: Subject: Re: New Albany & Alamac Plants Thought you'd find this interesting. ---------------------- Forwarded by Heather Kroll/HOU/ECT on 02/20/2001 03:06 PM --------------------------- Enron North America Corp. From: Kevin M Presto 02/20/2001 03:02 PM To: Ozzie Pagan/HOU/ECT@ECT cc: Don Miller/HOU/ECT@ECT, Stuart Zisman/HOU/ECT@ECT, Heather Kroll/HOU/ECT@ECT, Steve Van Hooser/HOU/ECT@ECT Subject: Re: New Albany & Alamac Plants Ozzie, I want to retain the option of keeping Alamac (create a control area), and selling New Albany. From a desk perspective, retaining at least one control area is strategically important, and if I can sell New Albany for $175 million and keep Alamac for $20-30 million, we may want to do that. Given the strength in the long term gas market ($4.50 - 5.25/MMBtu over a 15 year period), it is much easier to hedge the forward value of a coal plant. On the other hand, peakers are literally worth zero on a forward basis, given low heat rate forward pricing. Can we remove AIG from the middle, if necessary?
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