energy leader consulting generation evaluator ege shirley requested herein information regarding meeting vince kaminski presentation ege tool applications allegheny energy case study timed take hour meeting conveniently scheduled tuesday may 29 might request set late afternoon appointments next day vince recall co leader energy consulting business phb hagler bailly developer ramp real time 75 check electric strategy tools presently ceo energy leader consulting elc background u power generation industry become increasingly efficient recent years rapidly growing new entrants seek profit maximization aggressively utilities still control power plants endeavor adopt entrants methods yet inefficiency among many utilities remains widespread utility inefficiency arises adherence decades old habits unit commitment dispatch planned maintenance scheduling many utilities notwithstanding industry wide trend towards profit maximization cling ingrained routines inefficiency also arise diseconomies small scale utility may operate relatively small system fewer dozen plants small system lacks portfolio diversification perspective focus regulated customers playing wholesale market margin variety reasons utilities reluctant cut back starts generating units let alone shut even temporarily seasonally economically inefficient units continue committed week week run half load range ege objectives ege identifies assesses generating units utility questionable commitment routines taking account transmission reliability factors procedure points towards profit opportunities may exploited another industry participant industry participant use ege basis medium long term wholesale power transaction utility price wholesale power aggressively take market share utility e compel changes unit commitment habits ii industry participant use ege spot quantify efficiencies would come merger acquisition iii power plant developer use ege estimate incremental value new plant enjoy target utility unit commitment routines inevitably become rationalized specific ege concepts ege reduces analyses extraordinary unwieldy continuous emission monitoring data base intelligently focusing profit opportunities produces indicative statistics frequency distribution starts per week b frequency distribution starts day 15 minute segment week c frequency distribution load level frequency distribution hours operation per start e average heat rate approximate fully allocated cost half load range f average ramp rate half load range g frequency distribution unused connected capacity highest demand hours h forced maintenance outage rate indicated indicative statistics generally aggregated month year cases temperature range regional wholesale prices well ege establishes target utility changed unit commitment routines significantly recent years ege based upon uniquely timely actual hourly operating data ege updated 4 th quarter 2000 december 31 2000 ege lst quarter 2000 march 31 2001 available approximately june 15 2001 ege also compares ranks generating units commitment dispatch similar units operated target utility well regional generators utilities operate group economically marginal units half load level lengthy time periods without apparent reliability basis splitting limited economic demand power among units ege supporting data planned maintenance schedule indicated j actual maximum generating capacity k actual minimum generating capacity actual maximums minimums differ significantly government reported values l average heat rate full load range average heat rate three quarter load range respect generating units average heat rate half load three quarter load full load ranges instructive rank relative similar generating units within region also interest identify significant seasonal variations average heat rates maximum capacities changes recent years parameters real world example allegheny energy allegheny energy serve case study illustrate application ege 4 th quarter 2000 instance one high cost generating unit started virtually every weekday morning 52 times committed whole day two cases arguably power products could substitute routine part least profit seller product allegheny energy another high cost allegheny energy generating unit started virtually every weekend autumn nine times committed coming week another plant two high cost units operated often expensive half load range 550 hours three quarter load range another 400 600 hours seldom called upon run higher levels power products address practices might appeal allegheny energy offering energy leader consulting elc ege procedure software package data base elc believes format effective arming clients information need act upon profit opportunities elc transfers knowledge ege procedure supporting data methods straight forward four step process 1 enron would select one three target utilities 2 elc would perform ege procedure target utilities 3 employing real world analysis pedagogic tool elc one day seminar enron personnel would instruct perform procedure future without assistance elc 4 optionally elc would provide ege supporting data quarterly enron basic ege supporting data set national including generating units continuous emission monitoring program virtually fossil fuel units parameters incorporated data set format specified upon request custom modifications considered steven mitnick chief executive officer energy leader consulting 4807 41 st street nw washington dc 20016 202 997 0924 voice 202 537 0906 fax smitnick energyleader com