Message-ID: <27969601.1075857679355.JavaMail.evans@thyme>
Date: Tue, 29 May 2001 08:13:24 -0700 (PDT)
From: calger@enron.com
To: john.lavorato@enron.com
Subject: RE: West Power Orig Update
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John,
Tim's view is the main reason I am trying to sell these tolls. We sold our Las Vegas toll on-line (Dealbench) and I thought about putting these into EOL. However, different companies want different delivery points, start dates and implied heat rates. I think we have whet their appetite for the structure - if they don't transact, I think we should put a couple of structures online. Sometimes the formality of a competitive auction makes people transact - and bid higher!
Chris
-----Original Message-----
From: Lavorato, John
Sent: Monday, May 28, 2001 6:54 PM
To: Calger, Christopher F.
Cc: Belden, Tim
Subject: RE: West Power Orig Update
Chris
Have we thought about auctioning off a synthetic toll. It might fit Tim's view and we have seen some interest in the East on the synthetic or purely financial side.
Lavo
-----Original Message-----
From: Calger, Christopher F.
Sent: Sat 5/26/2001 1:33 PM
To: Kitchen, Louise; Lavorato, John; Schoppe, Tammie; Hillis, Kimberly
Cc:
Subject: West Power Orig Update
Change in Gross Margin:
Blue Dog moved to Q2 from Q3: $3.5MM
PSCo: additional income taken due to construction completion : $5MM
Las Vegas: additional income taken due to toll closure: $5.3MM
Pastoria: income reduced due to expenses and related writeoffs: -$2MM
Total Gross Margin Change: $11.8MM
Gross Margin to Date:
Pastoria: $39MM
PSCo (Fountain Valley): $10MM ($7MM more to be recognized in Q3)
Turbine Swap: $3.7MM (+ $2.1MM to Jacoby)
DWR: $7MM
Las Vegas: $5.3MM
Blue Dog: $3.5MM
Other: $1MM
SubTotal: $69.5MM
QI QF Valuation: -$5MM
Total: $64.5MM
Hotlist Summary:
PSCo, Q3 $7MM
Las Vegas, Q3 $20MM
Saguaro, Q3 $5MM
Longview, Q4 $15MM
Various Commodity $20MM
Total: $67MM
Total Forecast: $131.5MM
Deal Update:
Las Vegas: Meetings and site visits scheduled with Northland, Black Hills and Allegheny. All have registered a lot of time on Dealbench. Northland brought there investment bankers (CIBC) to Portland and hired an independent engineering firm. We will have the info memorandum prepared this week tosend out to other potential purchasers if necessary. Still on track.
AMPS: We are negotiating with two industrials, each can take the first two units. Oregon Steel in Portland and Geneva Steel in Utah. Geneva is a better site (permitting and infrastructure). High elevation in Utah will derate the output of the units, but will likely be able to run most hours. Oregon interconnects with Portland General (good) but permit will restrict hours (3,500 hours estimate). We need to talk this week to discuss the form of the contract and value/risk transfer between ENA and AMPS.
Wind: We completed a term sale to Edwards Air Force Base consisting of shaped energy and green tags. Tags came from our existing biomass tags and Texas wind. We will purchase the balance from Pacificorp. We expect more activity here with other feds, some of the munis and 6-7 developers that we are working with.
Generator Tolls: We are trading term sheets with Allegheny, Reliant, Idacorp, Dynegy, NRG and Constellation re our offer to sell at NP-15, Mid-C and Palo - I think we will get something done this quarter.
Longview: We met with the head of BPA this week and got confirmation that he supports our Longview process and that his agency will not slow us down with their proposed regional air study. Finding EPC contractors has been difficult so we may start discussions with NEPCO.
DWR: Should execute the Master agreement this week which will allow short-term deals with 7 day payment.