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Enron Mail |
You quoted $5.10 as the total spread you would pay.
So: $6 + $5.1 = $11.10 Question: What is the credit you will give Pasadena time their capactiy of 3886 MMBtu/d? Answer: To figure out what you are paying for the capacity: Assume SJ Index = 6.00 Then, Basin Price/(1 - Fuel %) + Variable Cost + Demand Charge (Kim's # for Pasadena) = Border Index Demand Charge = Border Index - $.026 - (Basin Price/(1- .0388)) x = 11.10 - .026 - 6.00/(.9612) 11.10 - .0266 - 6.2422 $4.83 is the implied demand charge $4.83 * 3,886 * 29 = Total Credit Chris
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