RE: WAPA cut on 6-2-01

LD Mirant for the loss of revenue due to cutting the schedule. As long as we are kept whole financially then there should not be an issue. Please let me know if you need any more info. I assume that you will do the annuity but let me know if you want me to.

Thanks,
Holden

-----Original Message-----
From: Thompson, Virginia
Sent: Thursday, July 12, 2001 11:56 AM
To: Salisbury, Holden; Alonso, Tom; Fischer, Mark
Cc: Williams III, Bill
Subject: WAPA cut on 6-2-01

Dear ST_SW Traders,

FYI -
There was a cut on deal # 622350.1 on June 2, 2001 for HE 11. It was a real time cut that reduced the schedule from 40 MW to 25 MW. Mirant is at fault for the cut. (our up-stream is PAC).
We originally thought that this got booked out between Mirant and WAPA, but when I spoke with Kathy yesterday, she informed me that there was no bookout and that they want to cut the schedule. (the people involved during the cut were Geir at EPMI, Bob at PAC, Emily at Mirant, and Jackie for WAPA (Jackie is a control area dispatcher, so she cannot do bookouts for WAPA, hence there was no bookout)).

We have agreed that to cut the schedule will be the best for now. They do not plan on charging us LD's (she's checking with her boss to make sure.) We will just reduce the schedules to 25 for HE 11.

It is up to you if you want to charge LD's to Mirant for the spread.

Just wanted to let you know and get your input.

Virginia