
Date: Fri, 18 May 2001 01:52:00 -0700 (PDT)
From: susan.mara@enron.com
To: rcarroll@bracepatt.com
Subject:  Word on the Street -- Reliant Was Setup
Cc: acomnes@enron.com, dfulton@enron.com, gfergus@brobeck.com,
jalexander@gibbs-bruns.com, jsteffe@enron.com,
mmilner@coral-energy.com, rreilley@coral-energy.com,
rshapiro@enron.com, sbishop@gibbs-bruns.com, smara@enron.com,
snovose@enron.com, jeff.dasovich@enron.com, karen.denne@enron.com,
mark.palmer@enron.com, ray.alvarez@enron.com, tim.belden@enron.com,
linda.robertson@enron.com, steven.kean@enron.com,
paul.kaufman@enron.com
Bcc: acomnes@enron.com, dfulton@enron.com, gfergus@brobeck.com,
jalexander@gibbs-bruns.com, jsteffe@enron.com,
mmilner@coral-energy.com, rreilley@coral-energy.com,
rshapiro@enron.com, sbishop@gibbs-bruns.com, smara@enron.com,
snovose@enron.com, jeff.dasovich@enron.com, karen.denne@enron.com,
mark.palmer@enron.com, ray.alvarez@enron.com, tim.belden@enron.com,
linda.robertson@enron.com, steven.kean@enron.com,
paul.kaufman@enron.com

The feeling on the street is that Reliant was setup with the $1900 sale.  The
word is that the bid for $1900 power had been sitting there for months and
that Reliant had an "understanding" with DWR and the ISO that the bid was not
supposed to be taken except in dire need -- it's for a peaker and the price
represents the opportunity cost of running it now, and using up its very
limited emission credits, rather than running it during the real peak times
this summer. The $1900 represents the estimated cost to Reliant of Reliant
having to buy power this summer on the market when it otherwise would have
had its peaker available.  The wors is that the state/ISO took the bid, when
there was not dire need, just to make Reliant look evil and point to ever
higher prices -- when? -- yes, the week before the Bush plan was to come out.

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854



