Message-ID: <14866819.1075854473329.JavaMail.evans@thyme> Date: Mon, 17 Jul 2000 16:19:00 -0700 (PDT) From: david.delainey@enron.com To: rodney.malcolm@enron.com Subject: Are we finding value in outsourcing? - GE Plastics Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: David W Delainey X-To: Rodney Malcolm X-cc: X-bcc: X-Folder: \David_Delainey_Dec2000\Notes Folders\Sent X-Origin: Delainey-D X-FileName: ddelain.nsf Rodney, interesting title- is someone giving you grief on this strategy? Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 07/17/2000 11:13 PM --------------------------- Enron North America Corp. From: Rodney Malcolm 07/16/2000 11:08 AM To: David W Delainey/HOU/ECT@ECT, Raymond Bowen/HOU/ECT@ECT cc: James A Ajello/HOU/ECT@ECT Subject: Are we finding value in outsourcing? - GE Plastics This week we will begin discussions on structure and pricing with GE Plastics. At the risk of getting committed to earnings delivery I thought it would be helpful to give a range of value to us & GE at least before the economics start to deteriorate in negotiations. Currently the proposal would require GE to step up to ten year fixed price positions that would create the following split up of economics: Savings to GE $33MM PV Value to Enron $15MM with $10MM of this value in bookable mark to market $40 MM in capital invested in the Demand Side Management Projects. I think that this suggests there should be value in our outsourcing efforts. Thanks, Rodney