Message-ID: <25808254.1075842427878.JavaMail.evans@thyme> Date: Tue, 18 Apr 2000 04:58:00 -0700 (PDT) From: drew.fossum@enron.com To: steven.harris@enron.com, kevin.hyatt@enron.com, lorraine.lindberg@enron.com, john.dushinske@enron.com Subject: Pueblo Cc: bill.cordes@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: bill.cordes@enron.com X-From: Drew Fossum X-To: Steven Harris, Kevin Hyatt, Lorraine Lindberg, John Dushinske X-cc: Bill Cordes X-bcc: X-Folder: \Drew_Fossum_Dec2000_June2001_1\Notes Folders\All documents X-Origin: FOSSUM-D X-FileName: dfossum.nsf Tino called today to report on their meetings with DOE last week. Tino, Dennis Langley, and their outside lawyer Jim Slattery met with Bill Richardson and DOE staff to discuss the "sole source" procurement approach to DOE's obtaining an alternative power supplier for Kirtland AFB and Sandia. Tino reports that Richardson signed off on the sole source approach, subject only to DOE review of the final contract to assure its consistency with the public interest. Tino believes that the combination of significant Native American involvement in the overall deal structure along with a power price that is lower than DOE's current PNM rates will satisfy the "public interest" standard. Slattery is set to begin discussions with DOE next week on the overall structure of Dennis' proposal. I am surprised that Dennis would go this far before hearing from us on the economics, but Tino made it sound like the initial discussions would be fairly general--i.e., to explain to DOE that the plan is to build a new pipeline and a new power plant and to do the whole thing in partnership with the Isleta Tribe, but without talking about specific economic issues. Sounds to me like Dennis has Richardson on board but is nevertheless planning to pitch to the lower level DOE staff people what a great deal this is for the Tribes and therefore the government. Tino, not surprisingly, is eager to see numbers and sit down to discuss them. He suggested a meeting the first week of May in either Houston or KC. I asked Tino whether he could get firmer numbers from DOE than we currently have on (1) total electric and gas load (current and projected) for the AFB and Sandia and (2) actual price DOE currently pays for gas and power. He didn't think he could get better information before the first week in May. On another related topic, through Shelley Corman's group I got acquainted with a guy named Tim Beldon who runs the ENA transmission capacity book for the Western U.S., out of Portland. I talked with him for a few minutes about power flows and pricing in the N.M-Arizona area and he seemed pretty knowledgable. He has a transmission engineer on his team who is an expert in verifying utility claims of transmission constraints. Apparently, ENA buys and sells a lot of power in the four corners area and is pretty familiar with the transmission availabilty and power pricing situation up there. I didn't discuss with Tim the specifics of the project we are looking at, but did tell him that Kevin and Steve were looking at a potential power plant load and trying to figure out how serious it is. Kevin, if you guys think Beldon could provide useful info on the cost and availability of firm and non-firm transmission for the surplus power out of Albequerque up to four corners, please give him a call. It is OK to disclose to Beldon what we are working on, but please inform him that we are subject to a confidentiality agreement and that further disclosure is improper. Please let me know whether a meeting with these guys the first week of May is doable. Thanks. DF