Re: Need info on fundamental modeling of prices

Vasant,

Good enough. The last edition includes the discussion of price processes.

Vince

Vasant Shanbhogue
08/01/2000 01:56 PM
To: Stinson Gibner/HOU/ECT@ECT, Pinnamaneni Krishnarao/HOU/ECT@ECT, Grant
Masson/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Need info on fundamental modeling of prices

One guy, John Neslage, from Corporate/Regulatory Affairs is putting together
a talk for state regulators and wants to talk about fundamental modeling of
energy prices. He was wondering if our group could shed some light on major
fundamental variables, possibly even for new commodity markets. I am not
sure if we have done much fundamental analysis, since we focus mostly on
option valuation. Also, since market power is an important variable,
marginal cost analysis is not sufficient, but if anybody has any info, please
let me know. I have referred him to the "Managing Energy Price Risk" book.

Thanks,
Vasant