Message-ID: <30268152.1075842512996.JavaMail.evans@thyme> Date: Mon, 31 Jul 2000 08:59:00 -0700 (PDT) From: drew.fossum@enron.com To: kevin.hyatt@enron.com Subject: Pueblo Cc: steven.harris@enron.com, lorraine.lindberg@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: steven.harris@enron.com, lorraine.lindberg@enron.com X-From: Drew Fossum X-To: Kevin Hyatt X-cc: Steven Harris, Lorraine Lindberg X-bcc: X-Folder: \Drew_Fossum_Dec2000_June2001_1\Notes Folders\'sent mail X-Origin: FOSSUM-D X-FileName: dfossum.nsf Speak of the devil. Tino called, all full of optimism and questions. They have pitched the DOE a deal in which Dennis builds three 50 Mw turbines on the Isleta, and a 7 mile power line to DOE's distribution lines. The project will apparently be 100%debt financed, with DOE agreeing to pay a firm demand charge rate of between 8 and 9 cents/kwh. That rate is supposedly high enough to service the debt on a 10 year amort. basis (remember, DOE can only sign 10 year contracts). DOE is interested, says Tino, because of the redundant, dedicated facilities and enhanced reliability, and because Dennis and Tino pitched DOE on all the $$$$ DOE will make from the surplus power sales. Dennis apparently pitched them a "share the upside" deal under which DOE keeps most of the revenue from surplus sales. Tino showed DOE the July spot prices at 4 Corners, which Tino said included many days over $200/Mwh and they got all excited. DOE has done a similar share the upside deal at one of its facilities in Calif. Tino says and they have occasionally come out net positive on elec. costs in some months so they like the approach. Tino had two questions: 1. Does TW have 30-40,000/d of permian capacity available starting sometime in 2001 or 2002? (I realize we have probably answered this question about 5 times, but lets do it again for him). 2. Is there someone at ENA Tino can talk to about a getting a quote for long term and/or short term power purchase prices for Four Corners delivery? If he can get something the DOE thinks is a good price, they m ay just sell all the surplus power forward. If not, they'll just hang on to it and sell it into the cash market in monthly and daily deals. Thanks. DF