Message-ID: <28851646.1075845747736.JavaMail.evans@thyme> Date: Tue, 11 Jul 2000 07:29:00 -0700 (PDT) From: fred.mitro@enron.com To: ben.jacoby@enron.com Subject: Kendall New Century Development,LLC; Plano Letter of Intent Cc: rusty.stevens@enron.com, kay.mann@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: rusty.stevens@enron.com, kay.mann@enron.com X-From: Fred Mitro X-To: Ben Jacoby X-cc: Rusty Stevens, Kay Mann X-bcc: X-Folder: \Kay_Mann_June2001_1\Notes Folders\Chicago X-Origin: MANN-K X-FileName: kmann.nsf Ben: Attached is the ComEd Letter of Intent to interconnect at the Plano TSS. In addition, ComEd has included a cover letter which indicates a significant level of uncertainty regarding a '01 interconnect at Plano. Under the guidelines of Appendix K of ComEd's Open Access Transmission Tarriff, we are required to execute this LOI within 15 days of the date of receipt (7/7/00) in order to maintain our current position (6/12/00) in the ComEd queue. If we execute after 7/22/00, then the date our date in the ComEd queue becomes the date of execution of the LOI. Appendix K provides that once the LOI is executed, ComEd shall provide Enron with an Interconnection Study (IS) and Project Diagram (PD) within 45 days (ComEd has the option to extend another 30 days, if needed). The IS and PD will provide Enron with a description of the upgrades required and an estimate of the proposed allocation of the cost to interconnect. The IS and PD do not provide Enron with information on transmission availability (ie ATC), this would be addressed by the Interconnection Feasibility Study currently in progress by ComEd (I am expecting the results of this IFS in the next 2-3 weeks). ComEd informed me in a discussion yesterday afternoon that their current interpretation of AppendixK provides that if the commercial start date of a proposed IPP project is delayed, that there is no impact to that proposed projects' queue position relative to competing projects provided that all interconnection milestones (LOI, PD, Notice To Proceed, and IA) remain current. ComEd further indicated that such a delay would result in a project with an inferior queue position (i.e. Wizvest) being charged with the necessary system upgrade costs even though their project would come on line prior to the project with the superior queue position. I will request that this interpretation be confirmed by ComEd in writing to Enron. (This interpretation obviously has a large value implication for the Torrence site relative to the Wizvest planned '01 interconnect). I will review this letter on the plane to Houston this afternoon. I believe that it authorizes ComEd to spend up to $100K on engineering related to the interconnect design. It also addresses the ordering and payment responsibilities for long-lead equipment required to facilitate the proposed interconnection. Based upon our development budget discussions earlier this week, we obviously do not want to incurr long-lead equipment charges prior to having a clear value proposition in our sights. I will have recommendations ready for you on these issues by Wednesday. I am simaltaneously forwarding it to Kay Mann for her review so that we will be in a position to move forward to execution prior to 7/22 if we choose to do so. From a legal standpoint, this is ComEd's boilerplate LOI. I believe that we executed a similar LOI for Wilton Center in early 1999 under Des Plaines Green Land Development, L.L.C. Call me if you wish to discuss. Fred ---------------------- Forwarded by Fred Mitro/HOU/ECT on 07/07/2000 05:24 PM --------------------------- on 07/07/2000 03:57:31 PM To: fred.mitro@enron.com cc: Carter.C.Culver@ucm.com, Robert.D.Koszyk@ucm.com Subject: Kendall New Century Development,LLC; Plano Letter of Intent Fred, Thank you for your request to Interconnect nw generating facilities per your request to, Steven T naumann, Transmission Services Vice president. Please execute the Letter of Intent per the attachments to maintain your place in the queue of Applicants fo interconnection. <> <<1XM10!7.7.00.DOC>> Thank You, Bruce L. Tanouye Com*Ed Transmission Services Independent Power Production Services Phone: 708-410-5276 Fax: 708-410-5900 E-Mail: bruce.l.tanouye@ucm.com ****************************************************************************** *** This E-mail and any of its attachments may contain Unicom proprietary information, which is privileged, confidential, or subject to copyright belonging to the Unicom family of Companies. This E-mail is intended solely for the use of the individual or entity to which it is addressed. If you are not the intended recipient of this E-mail, you are hereby notified that any dissemination, distribution, copying, or action taken in relation to the contents of and attachments to this E-mail is strictly prohibited and may be unlawful. If you have received this E-mail in error, please notify the sender immediately and permanently delete the original and any copy of this E-mail and any printout. Thank You. ****************************************************************************** *** - LOI attachmwn_7_7_00enron plano.doc - 1XM10!7.7.00.DOC