Subject: Commodity / Embedded Finance Deals
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked]
Date: Thu, 2 Nov 2000 01:25:00 -0800 (PST)

Tim, I would argue that we should pursue this business as long as a) we are 
being adequately compensated for the financing and underlying commodity risk; 
b) we have very good paper; c) we are dealing with solid credits and are 
charging an appropriate risk adjusted cost of capital for the underlying 
financing; d) we have the ability to syndicate the capital or funds flow 
position if needed to manage cash issues and e) that RAC is comfortable that 
we are reaching these goals.

Any imbedded financing or $5M or more should be DASHED.  David, Joe and Mark 
should be your key contacts to ensure we are adequately managing these issues 
but I do not see any fatal flaw in the strategy if priced/managed well and we 
watch the funds flow issues.  

Regards
Delainey

---------------------- Forwarded by David W Delainey/HOU/ECT on 11/02/2000 
09:15 AM ---------------------------

	
	From:  Tim Belden                           10/31/2000 01:54 PM

To: David W Delainey/HOU/ECT@ECT
cc:  
Subject: Commodity / Embedded Finance Deals

---------------------- Forwarded by Tim Belden/HOU/ECT on 10/31/2000 10:57 AM 
---------------------------
From: Tim Belden on 10/31/2000 11:54 AM
To: Dave Delainey
cc:  
Subject: Commodity / Embedded Finance Deals

---------------------- Forwarded by Tim Belden/HOU/ECT on 10/31/2000 10:56 AM 
---------------------------
From: Tim Belden on 10/31/2000 11:52 AM
To: John J Lavorato/Corp/Enron, Dave Delainey
cc: Christopher F Calger/PDX/ECT@ECT 
Subject: Commodity / Embedded Finance Deals

We have closed the following deals where we deliver power two a muni in the 
short term and get paid back power later on.  These deals have both a 
commodity and a finance portion:

Counterparty    Loan Period  Repayment Period  Amount Financed

Grant County    7/01 to 7/06   7/06   $4.7 million
Grant County    5/01 to 7/06   7/06   $5.7 million
Avista/Kaiser    7/2000   7/2000 to 7/2006   $31.3 million   
BPA/Kaiser    9/2000   7/2001 to 9/2001   $36 million
Clatskanie    11/2000 to 9/2001 10/2001 to 9/2006  $5 million
Eugene Water and Electric  1/2001 to 3/2002  11/2001 to 4/2002  $4.9 million
Eugene Water and Electric  7/2001 to 12/2002 5/2002 to 12/2002  $7.3 million

We are seeing demand for more of these.  For example, Tacoma City Light is 
looking at $35,000,000 + in this type of structure.  What do you guys need to 
know about this business and how much of an appetite do we have for this?