Message-ID: <32261544.1075854847930.JavaMail.evans@thyme>
Date: Tue, 15 May 2001 13:50:00 -0700 (PDT)
From: kevin.presto@enron.com
To: mitch.robinson@enron.com, w.duran@enron.com
Subject: Coal Deal
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
X-From: Kevin M Presto
X-To: Mitch Robinson <Mitch Robinson/Corp/Enron@Enron>, W David Duran <W David Duran/Enron@EnronXGate>
X-cc: 
X-bcc: 
X-Folder: \Presto, Kevin M (Non-Privileged)\Presto, Kevin M.\Sent Items
X-Origin: Presto-K
X-FileName: Presto, Kevin M (Non-Privileged).pst

The only way the coal deal will go forward is if you prove you can get long term supply (pet coke, PRB, other, etc.) for $1.00-1.15/MMBtu delivered to the site.   The economics need to show a 8-10% IRR in order to justify the commodity risk.

In addition, we should explore IGCC in Florida.   The gas/coal spread is much larger in this market and the proforma economics would be much better.