Subject: PGE Tranny Contract
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Thu, 13 Dec 2001 20:10:37 -0800 (PST)

Steve,

Following up on our conversations today, attached is a draft fact sheet and our contract with PGE for 180 MW of capacity on the Intertie.  Because the contract is in the money both today and on an expected future basis, Belden and Calger recommend continued demand-charge payments to retain the contract's  value to the estate.  Based on my reading, the contract is assignable either to a third party or Netco.  If we default, the capacity would revert to PGE and PGE would sell it at a maximum of its tariffed rate, which is what EPMI pays today.