Re: New Power plants vs. rising gas costs

Makes sense. Thanks df

Kevin Hyatt
10/24/2000 02:14 PM
To: Drew Fossum/ET&S/Enron@ENRON
cc:

Subject: New Power plants vs. rising gas costs

My thoughts are this:
those plants under development (i.e. past the planning stages and into
permitting or construction) will continue to move forward. Their fuel costs
are most likely already locked in or there is a pass thru mechanism to the
power buyer.

It is really only the near term gas prices that are high in this
backward-dated market. The 10 year gas price curve is still relatively
inexpensive. Those power plant projects in early planning stages or those
with higher merchant risk will likely be delayed but that depends on where in
No. Americal they are located. Those plants slated for severely constrained
NERC territories will probably continue to move forward, as evidenced by
recent announcements for new plants in the MAIN and WSCC regions.

just my thoughts, you get what you pay for.
KH