
Date: Tue, 5 Jun 2001 02:10:00 -0700 (PDT)
From: tim.belden@enron.com
To: james.steffes@enron.com, alan.comnes@enron.com, richard.shapiro@enron.com,
paul.kaufman@enron.com
Subject: RE: Price Caps in the West

the market has fallen and is still falling precipitously.  for example, power
for tomorrow is trading for about $70/MWh on peak and $25/MWh off-peak.
implementing price caps now would actually be harmful.  peaking units make no
money.  we are likely to return to a more normal market, particularly after
the summer, if we aren't there already.  with the forward curve crashing the
way it is and price caps it makes no sense to build peakers.  what are the
odds of a balance of the year price cap?

