Enron Mail

From:jeffrey.miller@enron.com
To:doug.gilbert-smith@enron.com
Subject:Initial APX Information
Cc:l..day@enron.com
Bcc:l..day@enron.com
Date:Wed, 30 Jan 2002 08:54:11 -0800 (PST)

Power Marketers

QSE Services - Full Service

Contract Length No Term 1 Year 3 Year
MINIMUM ANNUAL FEE $120,000 $108,000 $102,000

$/MWh $/MWh $/MWh
Energy Scheduling (includes reserve products) 0.08 0.065 0.055
Settlement 0.08 0.065 0.055

MAXIMUM ANNUAL FEE No limit $400,000 $380,000

Thane indicated that we could possibly do a 1 or 2 month contract, thus avoiding "LD's" for a NO TERM contract.. He also indicated that the Minimum Annual Fee is really monthly--thus under the No Term scenario, with a 60-day cancellation: if we were to terminate & begin using our own QSE prior to the 60 day cancellation we'd only be liable for the $20K in "Liquidated Damages"...$10K monthly minimum * 2 months. The point is, if we only use 2 months we're not liable for $100K for unused months because of the "MINIMUM ANNUAL FEE OF $120K."

We would download APX software to upload/download our daily schedules using APX as our QSE. (no email)

There is also another option where we could be our own QSE but use the APX software to schedule for a lesser fee (which Thane is checking into). There is a fee for the software per workstation.