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Enron Mail |
OK, I see your point. Incremental may be misleading. How about this??
"Market Price" is the price agreed to in any transaction inclusive of all costs specific to the same transaction. Incremental to me means an increased cost. I'm not sure what the cost is "incremental" of. I'm just trying to figure out if "incremental" is 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: Subject: RE: Market Price definition Incremental costs, for example, would be transmission and losses associated with a sale of power if that sale specified a delivery point away from the MDEA interconnect with Entergy. For example, EPMI sells 22 MW from the Clarksdale unit for $40/MWh to Southern at the Southern border. The transaction includes $4 of transmission and $0.50 of losses. Therefore, the 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 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: Subject: Market Price definition Kay- Discussions with RW Beck have resulted in the following changes: From the EMSA: "Market Price" is the price agreed to in any transaction inclusive of 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 difference between Market Price and the Target Production Cost as follows:...." (delete 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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