RE: JEA supply Update

I will pay $500k over the mid-curve. Morgan and JEA will be your best counterparties. I would proceed by showing them a bid for the shaped obligation that is flat to our mid, thus leaving you with 500k of orig value. Before we show a written or verbal bid, please get approval from me.

Thanks.
-----Original Message-----
From: Braddock, Billy
Sent: Monday, September 24, 2001 12:47 PM
To: Presto, Kevin M.
Cc: Kroll, Heather
Subject: JEA supply Update

Kevin,

While I realize this position become less of a problem as the markets continue their downfall, it still remains a problem. I've spoken with you about the best offers, but below is a list of all offers:

Morgan Stanley
Offered $44/MWh for on-peak and $29/MWh for off-peak, matching the JEA monthly MW requirement exactly. Firm LD offer.

Cargill
Offered $8 over your EOL, into SOCO offer price for on-peak, 10/1/01 - 2/28/02 only. 62MW is all he can offer. Firm LD offer. No offer for off-peak.

FP&L
Offered $45/MWh for the 7x24, matching the shaped on- and off-peak schedule. Offer is system firm, with our purchase subordinate to native load, but not to water heater and pool pump load (about 160MW of load that could be cut before us).

I'm still awaiting offers from JEA/TEA, which they said should be available in the next few days. So far, Morgan Stanley has offered the best in terms of price and matching our MW needs, but is still priced at $6-$7 over your mid.

Billy