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Gold/Mining/Energy : CPN: Calpine Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Daniel G. DeBusschere who wrote (23)	3/2/2001 9:36:27 PM
From: jack bittner	Respond to of 555

thanks. hope you're right, i've got a big chunk.

To: Daniel G. DeBusschere who wrote (23)	3/4/2001 3:16:00 AM
From: jack bittner	Read Replies (1) \| Respond to of 555

here's why cpn sold down: "Meanwhile, the ISO asked the Federal Energy Regulatory Commission to cut electricity suppliers' invoices for December and January power by $550 million. Total bills for December from merchant generators and power marketers for bulk power sold in the ISO's wholesale-power market are $1.5 billion, and January's total is expected to be about the same. The filing is in accordance with FERC's Dec. 1 ruling on California's wholesale-electricity markets, which requires generators to justify all sales for more than $150 a megawatt hour by documenting generation costs. The ISO has 60 days to complain that prices charged were "unfair and unreasonable" and ask FERC to reduce prices. If no complaint is filed within 60 days of the power's delivery, the agreed-upon prices stand. Friday's ISO complaint names the suppliers which allegedly overcharged the state, but the list of suppliers isn't being made public. One source said it includes most of the merchant power producers in the state, Western utilities outside of California and some power-marketing companies. like to know how much of that $550 million belongs to cpn. happily the claim can only be for the last 60 days, i.e.: december and january. even if it's $100 million, it's not a big number for cpn. the other parties are mirant, duke, dynegy, nrg, reliant, probably enron. they all fell last wed., and the news came out next day. i'm still holding. the long term deal with calif is fabulous. the generators are not required to justify their charges based on costs, but on opportunity prices, i.e.: what was being charged generally in that tight period. if they do have to refund anything, it'll be a lot less than $550 million, of which i'd guess cpn's share is about 1/5.