Subject: Pueblo
From: [email-masked]
To: [email-masked], [email-masked], [email-masked]
Cc: [email-masked]
Date: Tue, 23 May 2000 02:02:00 -0700 (PDT)

I saw in the press that N.M. has delayed electric open access until Jan 1, 02 
for residentials and small commercials and to July 1, 02 for large 
industrials.  That increases the likelihood that the Pueblo project will have 
to dump power in the wholesale market at 4 Corners for a while before retail 
markets start to open up.  One more thing to factor in.

I'm expecting to hook up with Bill Votaw of Enron Federal Solutions today to 
talk about Langley's "sole source" procurement strategy with DOE.  I hope to 
get Votaw on the phone with Langley's D.C. govt. contracts lawyers to discuss 
their theory.  We should be in a better position to raise a flag if the sole 
source strategy is really a high risk approach.  I'm not sure where that 
would leave us because the only other approach I can think of is to steer DOE 
into opening the power plant up for bids.  Langley does not appear interested 
in trying to win an open bid for the power plant, although frankly we would 
probably have about as good a chance as anyone of winning.

Once we clear up the government contracts issues (if ever) it seems to me 
that it would be time to expand the team to include Federal Solutions 
(potentially, if they see an angle to help them with their Kirtland 
outsourcing strategy) and ENA.  The ENA involvement would be particularly 
important so we could get a line of specific turbine availability and the 
specifications/economics that would result.  I'm probably engaging in wishful 
thinking again, but my hope is that the economics on a specific turbine/heat 
exchanger configuration work out a little better than the generic economics 
from the model that James ran.   If we think this thing is a potentially 
viable deal after I talk to Votaw and the Langley DC team, we need to grab 
Bill Cordes and discuss whether we go to ENA "from the bottom up," or through 
Stan "from the top down" to get hooked into a deal team over there.  Kevin, I 
still intend to hook you into the Votaw-DC call if you are available.  
Thanks. DF