GNE - Genesis Energy

[Snoopy]

Because if they used it to generate power, they would have incurred a bigger loss. I assume they know at what spot rate it becomes more economical to just shut down rather than incur all the other costs as well.

A gas turbine is relatively cheap to start up and shut down, and I imagine even cheaper to run a bit harder when it is normally a baseload unit (like Unit 5) in a state of contant readiness and use. Of course you must be right Harvey. No other explanation makes sense.

But don't you think it odd that you would sign a take or pay contract for natural gas for many years into the future when the margin between making a loss or a profit, by implication, so fine? What does that say about Genesis's management?

SNOOPY