Enron Mail |
Group,
When doing an import or an export from California there are a few important guidelines to remember. IMPORT-This must be FIRM. A firm import is required so that we provide the spinning reserves to California (we do this by buying firm energy for the import). If the import is non-firm, California will charge us their price for spinning reserve margins. This could easily be $400 per mw come this summer. EXPORT-This must be NON-FIRM. A non-firm export allows us to provide spinning reserves to our bilat trading partners (or to simply sell the energy without spinning reserves as "non-firm"), and NOT have to pay the California price for spinning reserve margins. Conversely if we do a firm export, we would have to pay for California to supply spinning reserves. And because California will sometime use actual purchased energy for spinning reserves, this could easily be $400 per mw this summer. California has also proposed cutting firm exports this summer, so a "firm" export does not imply that the energy would actually be exported anymore than nonfirm. IF you have other questions. Please let me know. Thanks, Bill
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