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To: Douglas V. Fant who wrote (81119)	12/8/2000 6:18:07 PM
From: Second_Titan	Read Replies (1) \| Respond to of 95453

Douglas Have you thought about how these developers of new power plants maybe exposed to unexpectedly high NG costs during commissioning and initial operation. Having worked in this business during project development I can tell you it is wild rush to get a project built from initially identifying a market through actually making first ignition. But there were many turbines ordered without sites a very short time ago when NG was much cheaper. Now as companies like CPN NRG SOU DUK REI go shopping for sites they need to arrange NG contracts etc. I suppose the developers like DUK who bought pissloads of turbines could have had there energy trading groups purchase future contracts to coincide with expected start up dates in order to hedge. But I bet there are many turbines coming on line whose owners did not expect NG rocket and are therefore paraying like hell that prices drop before they need to start up. Not all of the electric markets are going to support incremental generation with NG at say $5 mbtu next summer.