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of course. info here goes nowhere. we've had trouble discerning where the switching takes place because the economics get very blurry: credits, ldc costs, transport, taxes, restrictions on # hours plants can burn resis are hard to account for and are different for everybody. also some noneconomic factors... convenience, inertia, multi-month fuel purchases, hedges, accounting procedures, resid in storage already... It's a big blur in my mind. I look at general levels and for anecdotal evidence. have seen zero anecdotal evidence so far. will also watch aga's for the indication, but so will everybody else.
-----Original Message----- From: "Lafontaine, Steve" <steve.lafontaine@bankofamerica.com<@ENRON [mailto:IMCEANOTES-+22Lafontaine+2C+20Steve+22+20+3Csteve+2Elafontaine+40bankofamerica+2Ecom+3E+40ENRON@ENRON.com] Sent: Thursday, May 24, 2001 12:02 PM To: jarnold@enron.com Subject: FW: fuel switching who loves ya kid-uncle steve...enjoy the weekend. appreciate if you dont distribute this my man. just for you. okay? < Steve, < < Aclient of ours from Ontario who is in Union gas said they saw for the < first time this week a client switching back to nat gas. 1st time in a < long time [LaFontaine, Steve] < witching < < i noticed that 1% residual fuel in various parts of the US part the big < cities in the upper midwest such as chicago and detroit has come to near < paritiy with natgas on a wholesale level. now there are things like ldc < costs and sulfur credits that will make additional differences in these < parities. < to marketing: could we please check with a few of our industrial or < utility customers to see if our customers are switching back to natgas? < this would be a material difference in the supply and demand of both fuel < and natgas and therefore perhaps our trading views(and my aga < forecasts).apprecitate the feedback.thanks
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