Here is what we have concluded based on discussions this morning:  1) We believe that Furnas has agreed to contract and pay for 300 MW on oil to  meet regulatory requirements concerning required capacity and reserve  margin.
We do not believe that they intend for us to be dispatrched above  220 MW.
(Do we have any document which could substantiate this?)
2) Although  dispatch on a merit order basis would suggest that EPE runs full  time (with 300 MW available),  there are practical constraints in the  transmission system which will prohibit this from actually occuring.
[ Please  describe these constraints using some official sounding jargon but minimal  detail and in particular indicate what is involved to de-bottleneck and how  long this will take.
I presume that Furnas is solely responsible for the  corrective measures.]
3) Based on our analysis, the optimal operating approach would be to generate  220MW with  one turbine and 91 MW with the other for a total of 311 if  dipatched above 220 MW.
If we can prove that 1) & 2) are correct or convince the lenders that they  are, then I think we can suggest that fuel oil exposure is negligibe if gas  is ready by April 01.
We will have to see how it looks when we add the Sue  Garvin flex months.
Therefore, a merit order analysis is only necessary if i) our supposition  about Furnas' motivations are incorrect and/or ii) the transmission problem  is cleared.
If this happens it would be nice to be able to predict reduced  fuel utilization due to a) reduced dispatch during daily off-peak hours or  seasonal impacts, b) due to scheduled outages, and c) due to managing our  availabilty in such a way as to reduce fuel consumption operating losses.
Any data you can provide will be helpful.
Have I successfully connected the dots here?
If you have previously sent these materials to Felipe or Tracee please simply  grumble to yourself if you have to do an extra e-mail to me.
Remember, you  don't have to be nice to a short timer unless you need them to get something  done.
Regards,

EPE Dispatch