FW: VERY IMPORTANT POSITIONS FOR TOMORROW!!!

We have had a major scheduling mishap. When trading for the position listed below, we cut or increased EPMI resource to balance the pool, rather than taking length that you purchased to load. I wasnt aware that this was a point of confusion. Also, City of Austin was adjusted each hour, even though it was to be a mismatch schedule.
Mismatches dont consider volume, it is essentially zero.
We purchased a sizeable qty of mw's yesterday and because we didnt schedule it all to load, we wont be paid the balancing energy price, which was large.
If no EPMI load exists on the obligation side, then create it.

The EPMI resource represents Frontera's generation- dont play with it, unless directed to do so.

If you have questions, please dont hesitate to ask.

Also, dont wait until after your shift to reconstruct Enpower. It is not going to be accurate because it wont be fresh on your mind. It takes twice as long after the shift to enter your deals because you are tired.

Please ask me questions about the financial swap and how we are going to work together to make some serious money.

JMF

-----Original Message-----
From: Forney, John M.
Sent: Wednesday, October 31, 2001 3:18 PM
To: Capasso, Joe; Day, Smith L.; Errigo, Joe; George Phillips; Isaac Wong; McElreath, Alexander; Miller, Jeffrey; Olinde Jr., Steve; Saibi, Eric
Subject: VERY IMPORTANT POSITIONS FOR TOMORROW!!!

Item One
The Frontera Plant is scheduled to sell 450 mw's for tomorrow. I sold them a financial swap @ $24 for the whole day. For the first part of the day we will be running extremely short. We will just that we are having problems coming up.
This is the amount that will be short:

he7 - 420 mw's
he 8 - 420 mw's
he 9 - 420 mw's
he 10 - 315 mw's
he 11 - 230 mw's
he 12 - 22 100 mw's

I would like you to buy power for 7-11 for alot less than $24. If you cant, then we will take the imbalance price. If you do buy, purchase under the Ercot Asset book and schedule to South Zone load for the Ercot Asset book. If you have questions, call me.

Item Two

I purchased 99 mw's from City of Austin for tomorrow, hours ending 7-22 under the Ercot Asset book. I sold this power to the ST ERCOT desk for $28.75.
This power can be rescinded intraday. WE NEED TO CALL CITY OF AUSTIN TOMORROW WELL BEFORE FLOW AND TELL THEM WE ARE NOT TAKING THESE MW'S. THEY SUPPOSEDLEY KNOW ABOUT THIS DEAL. THEY ARE NOT TO GENERATE. CUT DEAL # 849947 IN ENPOWER SCHEDULING AND REPLACE WITH PURCHASES UNDER ERCOT ASSET.
We will either purchase 100 mw's balday (well below $28.75) or take the pool price.
For the hours that are filled by the pool, I need a purchase from Ercot Imbalance (under Ercot Asset book), zero price and mk-mkt flag set to "no."

Obviously, the market will be short tomorro, especially in the morning. Purchase at least some megawatts for tomorrow, but dont give away our position.
Maybe we could import from the East. That would be great. If you left us short for 100 mw's 12-22, that would be cool. We can take care of that.

FRONTERA NEEDS TO BUY 50 mw for hour ending 2300 to cover Mirant sale for the last hour. Purchase under the Teco Service book and sell to Frontera under Teco Services book. In Portal, we would enter a purchase from X and we should balance against an existing Mirant sale for hour ending 2300. Cut the Frontera 50mw in the Portal so we will balance.

Call if you have questions,

JForney