Message-ID: <17330430.1075845054269.JavaMail.evans@thyme> Date: Fri, 20 Oct 2000 04:38:00 -0700 (PDT) From: mark.haedicke@enron.com To: frank.sayre@enron.com Subject: Global Markets Legal Matter - Puerto Rico Claims and Disputes Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Mark E Haedicke X-To: Frank Sayre X-cc: X-bcc: X-Folder: \Mark_Haedicke_Oct2001\Notes Folders\Sent X-Origin: HAEDICKE-M X-FileName: mhaedic.nsf Keep me posted on this matter. Mark ----- Forwarded by Mark E Haedicke/HOU/ECT on 10/20/2000 11:38 AM ----- John Schwartzenburg@ENRON_DEVELOPMENT 10/20/2000 09:36 AM To: Mark E Haedicke@ENRON_DEVELOPMENT, Frank Sayre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Vicki Sharp@EES Subject: Global Markets Legal Matter - Puerto Rico Claims and Disputes I am copying Frank Sayre and Mark Haedicke on this memo because I understand that responsibilty for this project is now somewhere between you two gents and therefore you both need a heads up. Vicki, you also need to be aware of this as well. I attach a letter EECC signed and sent out to the EcoElectrica project yesterday re the need to schedule a senior management meeting to try and resolve outstanding issues and payments due EECC for this project, We have been trying to schedule meetings to resolve these matters since September, but the project, perhaps because of Mission Energy's impact, has not yet agreed to a meeting to resolve the matter. With David Haug's help we were able to get a significant portion of undisputed payments that had been delinquent for some time (in some cases since before the first of the year) paid. including a recent payment of $6 million. Even so, approximately $18 million still remains unpaid to EECC and seriously delinquent. EcoElectrica has identified $8.4 million as being withheld in connection with disputed liquidated damage payments, but there remains an undisputed, unpaid balance of approximately $9.6 million that EcoElectrica has not offered any contractual or other explanation for withholding other than that they are working on other matters. Larry Izzo needs to get these claims resolved, and at least needs a commitment from EcoElectrica to a date for formal senior management discussions under the contract from the project. Failing that, he will be directing EECC to seek clearance to institute arbitration proceedings.