Message-ID: <12558640.1075845908754.JavaMail.evans@thyme>
Date: Wed, 16 May 2001 12:01:00 -0700 (PDT)
From: carlos.sole@enron.com
To: ben.jacoby@enron.com, chris.booth@enron.com
Subject: Westinghouse "Wet" Turbine
Cc: andrew.edison@enron.com, james.bouillion@enron.com, james.studdert@enron.com, 
	kay.mann@enron.com
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I have involved Andy Edison, one of ENA's litigation managers, in reviewing 
our potential claims against Westinghouse with respect to the "wet" turbine 
and the general issue of whether we have any type of "duty to mitigate" the 
expense of the cost of the replacement generator (ie, whether we have a duty 
to purchase the replacement generator at $3 mm since its cost might go up.)  
Andy has some interesting thoughts and questions, including why we aren't 
pressing Westinghouse harder with our claim and aren't pressing them harder 
to hold their price on the replacement generator for a longer time period 
given their potential exposure to us (arguably we might have a duty to 
mitigate the expense associated with the replacement generator if we have a 
reasonable basis for believing that the cost might go up).  Since there are 
no black and white answers, it probably would be useful to have a meeting to 
discuss our thoughts and address questions that we and you all may have.  
Please let me know your availability to meet either this week or early next.  
Lastly, Andy has noted that under our insurance policy we need to bring a 
lawsuit against the insurance carrier if they to fail resolve our claim 
before July 2001.  The practical impact of this is that we need to prepare a 
letter agreement whereby we and the insurance company agree to extend that 
time period.  Andy has recently prepared such a letter with respect to 
another claim and has agreed to prepare one for this claim as well.  Thanks.