Enron Mail

From:kevin.presto@enron.com
To:john.llodra@enron.com
Subject:Re: NORTON ENERGY STORAGE
Cc:
Bcc:
Date:Fri, 4 May 2001 11:45:00 -0700 (PDT)

Great trading asset, but fixed costs are enormous. The entire value proposition is based upon $15/Mwh spread between peak and off-peak (which is clearly there today). My view is this spread collapses over time due to DSM/DG/real-time pricing and true hourly price signals in pool based markets.

We should look at the asset, but recognize the fixed costs are huge.