QUESTION: Steve - In response to your previous questions regarding customers behind SWG. SWG's largest customers are power plants. Nevada Power (still owns generation) El Dorado (Reliant and Sempra) Nevada Cogen Assoc. (NCA1 & 2) (partially owned by Texaco) Saguro Power Plant (NRG partially owns) Las Vegas Cogen (Enron involved?) Parties who are either planning to build new power plants or are already building power plants in the Southern Nevada area include Mirant Reliant Calpine PG&E APS/Pinnacle West was among the buyers of one of Nevada Power's plants before dereg in NV was postponed. Please let me know if you need other info. Lorraine
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QUESTION: Hi there, Morela called to asked to be removed from all EIM distribution lists, (eg. Price Forecasts, FOEX, etc). Can you ensure her name is removed from your personal distribution lists? Thanks,
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ANS: Morela Hernandez - remove from distribution lists

QUESTION: I have received questions about interpreting the ratio. Let me use yesterday's closing price. The merger probability is derived from a two scenario test, merger closure or merger non closure (there is also a competing offer scenario in reality). Let's use a closing DYN price of $46.20 yesterday (note I had a typo), at the exchange ratio, (not taking into account timing and dividends), this yields a merged ENE price of $12.40 ($46.20 * .2685). ENE closed at $10.00 yesterday. Thus if the market thought there was complete certainty of merger, the prices would converge at $12.40. Now comes the artful part, the non merger ENE price. I included another tab (Merger) to sensitize this. Say we pick an ENE price with no merger of $4.00. Looking at a deterministic probability, one can look at the distance (difference) in dollars to calculate the probability. For instance: ENE merged 12.40 ENE close 14-Nov 10.00 ENE no merger 4.00 Probability of merger = (1-((12.40-10.00) / (12.40 - 4.00))) or 71.4%. Said another way, there is a 71.4% chance of being worth $12.40 and a 28.6% chance of being worth $4.00, which yields a weighted price of $10.00 ($12.40 * 71.4%)+($4.00 * 28.6%). I also included a $1 distressed ENE price and a $7 previously observed low end ENE price as scenarios. Regards,
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Exchange ratio prices and probability