Message-ID: <25799084.1075861737690.JavaMail.evans@thyme> Date: Wed, 14 Nov 2001 07:04:19 -0800 (PST) From: reagan.rorschach@enron.com To: kay.mann@enron.com, heather.kroll@enron.com, rudy.acevedo@enron.com Subject: RE: NLR & Benton Purchase Power RFP Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Rorschach, Reagan X-To: Mann, Kay , Kroll, Heather , Acevedo, Rudy X-cc: X-bcc: X-Folder: \KMANN (Non-Privileged)\Mann, Kay\Inbox X-Origin: Mann-K X-FileName: KMANN (Non-Privileged).pst Keep it simple and just buy it off them. No JV stuff. Reagan C. Rorschach Enron North America 1400 Smith Street Houston, Texas 77002 713.345.3363 -----Original Message----- From: Mann, Kay Sent: Wednesday, November 14, 2001 9:01 AM To: Rorschach, Reagan; Kroll, Heather; Acevedo, Rudy Subject: RE: NLR & Benton Purchase Power RFP Is your thought on the Dynegy role to have them contract with Enron, taking their profit in how they price OR enter into some type of joint venture/joint bidding arrangement? I know you don't know what they might want to do, but I was curious as to your starting position. -----Original Message----- From: Rorschach, Reagan Sent: Wednesday, November 14, 2001 8:52 AM To: Kroll, Heather; Mann, Kay; Acevedo, Rudy Subject: FW: NLR & Benton Purchase Power RFP Kay, attached is the letter from NLR regarding our proposal. Summary of the Cities of NLR and Benton, Arkansas deal: _____ assist Cities with network transmission service agreements with Entergy assist with initialization of OASIS, TSIN, and JTSIN transmission reservation accounts telemetering load from NLR SCADA and Benton's meters to Enron control room perform load forecasting manage NLR's Murray Hydro facility to serve NLR load deliver wholesale energy to match NLR and Benton loads inclusive of losses as an "into Entergy" product deliver wholesale energy such that network transmission can be used to sink energy to NLR and Benton native loads provide real time, day ahead, and term trading; scheduling and transmission reservations/services; volume management; settlements; and control room services arrange for ancillary services related to native load inlcuding Entergy OATT Schedules 1 through 6 provide NLR and Benton with a fixed price for energy and ancillary services through the life of contract provde NLR and Benton with option to extend agreemetn for 3 additional years. NLR Issues with Enron Proposal: _____ Your price is greater than 15% from the best price offer. A substantial improvement in price would be necessary to receive further consideration. You have identified no resources inside of Entergy's control area. If you can point to resources inside of Entergy's control area you may improve your position You did not utilize dynamic scheduling for the scheduling of generation to match load. You may improve your position by offering dynamic scheduling. The Cities desire a fixed cost over the term of the contract. You may improve your position by including any increases in the Cities' cost for Network Transmission Service over the term of the contract in your costs. The Negotiation Committees are alarmed by the recent developments concerning Enron's losses and the downgrading of Enron's securities. Significant financial assurance would be required before the Negotiating Committee's would further consider Enron. What We'd Like to Do With Dynegy: _____ Provided we can win the project, we'd like to do the following: name generation to satisfy point #2 use Dynegy base load generation assets to dynamically schedule the NLR and Benton loads name Dynegy assets as network resources Note that we have not talked with Dynegy about any of this and any deal would be subject to mutual agreement and negotiation. Reagan C. Rorschach Enron North America 1400 Smith Street Houston, Texas 77002 713.345.3363 -----Original Message----- From: Gertsch, Joe [ ] Sent: Monday, November 12, 2001 5:10 PM To: Rorschach, Reagan Subject: NLR & Benton Purchase Power RFP Reagan: Attached is the letter I promised regarding Enron's position relative to the other proposals. Joe Gertsch <>