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PFR II Scenarios

PFR II Scenarios. What would it take to get a 10% reduction in the Initial Proposal Average Rate? Scenario 1: $175 M/year reduction in costs results in approximately a $3/MWh reduction in the Initial Proposal Average Rate Scenario 2:

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PFR II Scenarios

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  1. PFR II Scenarios • What would it take to get a 10% reduction in the Initial Proposal Average Rate? • Scenario 1: • $175 M/year reduction in costs results in approximately a $3/MWh reduction in the Initial Proposal Average Rate • Scenario 2: • Liquidity Tools and $50 M/year reduction in costs result in approximately a $3/MWh reduction in the Initial Proposal Average Rate ($2/MWh from liquidity tools and $1/MWh from cost reductions) • Scenario 3: • Liquidity Tools and $125 M improvement in FY06 Expected Value Net Trading Floor revenues result in approximately a $3/MWh reduction in the Initial Proposal Average Rate ($2/MWh for liquidity tools and $1/MWh improved net trading floor sales) • Note: Liquidity tool impacts assume a fully flexible financial tool in these scenarios.

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