Re: Black Hills Pepperell tolling transaction

a followup note on this deal from Kevin Presto
Regards,
Janice

EB3861
Assistant General Counsel, Enron North America Corp.
713-853-1794 (Fax: 713-646-4842)
----- Forwarded by Janice R Moore/HOU/ECT on 10/26/2000 08:30 AM -----

Kevin M Presto
10/26/2000 08:25 AM

To: John Llodra/Corp/Enron@ENRON
cc: Janice R Moore/HOU/ECT@ECT, Tracy Ngo/PDX/ECT@ECT, Edward
Sacks/Corp/Enron@Enron, Edward D Baughman/HOU/ECT@ECT, Mark Dana
Davis/HOU/ECT@ECT, Jim Homco/HOU/ECT@ECT
Subject: Re: Black Hills Pepperell tolling transaction

John,

We need to make sure we are valuing the spread option using only No. 2 oil in
Dec, Jan & Feb. We will almost certainly be curtailed during blow out events
in the winter and, therefore, it is not appropriate to use nat gas as the
winter fuel.