Message-ID: <29901671.1075858656157.JavaMail.evans@thyme> Date: Tue, 18 Sep 2001 09:19:46 -0700 (PDT) From: stacey.bolton@enron.com To: elliot.mainzer@enron.com, richard.ring@enron.com, jesse.bryson@enron.com, jennifer.thome@enron.com Subject: FW: Renewable Power Desk Activities Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Bolton, Stacey X-To: Mainzer, Elliot , Ring, Richard , Bryson, Jesse , Thome, Jennifer X-cc: X-bcc: X-Folder: \RRING (Non-Privileged)\EESIRenewableEnergy X-Origin: Ring-R X-FileName: RRING (Non-Privileged)1.pst Hope you all can follow my informal note taking, and appreciate my secretar= ial skills! The to dos are at the end. Stacey Bolton Environmental Strategies Enron Corp 713-853-9916 direct=20 713-303-2632 cell=20 sbolton@enron.com =20 -----Original Message----- From: =09Mainzer, Elliot =20 Sent:=09Thursday, August 30, 2001 9:54 AM To:=09Ring, Richard; Bolton, Stacey; Bryson, Jesse; Thome, Jennifer; Foster= , Chris H. Subject:=09Renewable Power Desk Activities Greetings all -- Given my rather other-world state on yesterday's conference call, I wanted = to fire off an e-mail to you to summarize current commercial activities on = the Renewable Power Desk. I appreciate all the work you guys are doing and = feel as though we're really gaining some traction. Green Power Market Development Group -- We will be submitting a proposal to= the Wind Energy Working Group of the Green Power Market Development Group = (headed by Mark Crowdis of Think Energy) on Tuesday with a variety of prici= ng proposals for products ranging from physical commodity with green tags t= o green tags with embedded call options. Richard and I are working together= to develop pricing for tags in the Pac Northwest, California, Texas and th= e East. I feel good about our chances of getting something done with these = guys as they are feeling the heat to do something concrete after making so = many public declarations of intent. As we move forward, I think we should a= ll do a lot of thinking about other companies we should approach for this t= ype of product. Once the Enron Building is juiced with wind power, we will = be able to approach other fortune 500 companies with a straight face and en= courage them to become Green Power Alliance Customers. During the week of S= eptember 11, I plan to be in Houston to work extensively on drawing up the = guidelines for the Alliance Program and working more closely with Richard a= nd Stacey and their EES contacts to develop green power products for up-str= eam marketing and new origination efforts. Elliot meeting with Wind Subc on Thursday 9/20 at 8:00 a.m. Beldon and Herndon are renewable products - get product descriptions to bot= h. =09One page description of renewable energy product =09RE + EE - Energy Audit Los Angeles Department of Water and Power -- LADWP is the largest green pow= er buyer among public power agencies in California. Their green power buyer= is heavily understaffed (and somewhat outgunned in terms of industry knowl= edge). He has hired us to help him bring his contract negotiations to fruit= ion, manage logistics for new projects and essentially sleeve new renewable= power products through Enron's existing Master Services Agreement with LAD= WP. This is an exciting (although not very profitable at this point) opport= unity to establish the nodes of the California Renewable Power Pool and we = see this as a way to bring our Services Desk functions to bear on the renew= able sector in California. I am meeting with FPL Energy next week to discus= s becoming the logistics coordinator for their new wind projects in Califor= nia. LADWP=20 =09unresponsive at present =09volumes can be doubled under current contract ($13 on tags) =09Contractual consulting potential - manage purchase of hydro=20 EEI language meeting resistance due to the force majeur language etc. Wind Development -- As you may know, I purchased an option on a large parce= l of windy land in Central Washington with enXco, a wind development concer= n. We are marketing the project to two of the munis in the Pacific Northwes= t (Seattle City Light and Eugene Water and Electric Board). Both have expre= ssed interest. This morning I am meeting with the City of Portland to try t= o convince Portland to follow Seattle's lead as a zero-carbon growth city a= nd signatory to the type of Kyotoesque committments recently announced by N= ew England legislators. Leave that to Enron Wind, etc. Upside limited compared to time spent Concentrate on niche - marketing/services and downstream sales. EOL? - Need a more liquid market - more demand Renewable Portfolio Standard -- The proposed CA RPS has major implications = for our business, from both a risk management and commercial opportunity pe= rspective. We need to really drill down on this today and get as much insig= ht as to the political climate as possible. Having witnessed the first meet= ing of the California Power Authority last Friday in Sacramento, I am perso= nally convinced that the RPS will definitely be passed in some shape or for= m. If they pass a 1% requirement for new renewables next year, this transla= tes into 430MWm off a 43,000MW peak load in CA. We have very good working r= elationships with several of the biomass generators in California, includin= g generators with new resources, and we are actively negotiating a marketin= g agreement with one of them and considering taking a long position for the= next couple of years. The critical question, of course, is who will actual= ly have the short position in California? If it is just the DWR, then they = will probably satisfy their requirement with their new renewables purchases= . If the utilities end up serving load, they will be in the market looking = for the least-cost resources, and new biomass will clearly be a part of the= mix. national RPS - follow up with John Shelk Stir up demand Pac Northwest RFPs -- Both PacifiCorp and Portland General Electric have RF= Ps out right now for green tags and retail marketing services. I am staying= in touch with Bonneville Environmental Foundation, Green Mountain Energy a= nd Community Energy to act as a wholesaler for their tag submissions. I wan= t to get master services contracts in place with each of these entities to = make it really easy for them to transact with us. We can use our market leg= s to get well-priced tags and then sell to them as they shoot for RFP succe= sses. Bonneville Environmental, at a minimum, will need new biomass to blen= d in with their expensive wind energy tags. Chicago -- Most of you probably met Mike Lindert at our Houston Renewables = meeting earlier this month. He was the EES originator for the ComEd deal, a= nd as you know, there is a significant renewable committment in Chicago. We= need to get in front of the City of Chicago as soon as possible to talk ab= out their next generation of renewable purchases. Stacey, I belive you have= info on this. Elliot got follow up e-mail on 9/17 from Mike Lindert - sign up for Allianc= e customers ERT/City/RPD meeting on 10/15 (Richard and Stacey to go?) Steve Walter Sustainable Products Training -- The Renewable Power Desk has donated RECs = and CO2 offsets for the Sustainable Products Training in Austin, September = 10 - 11. They are giving us lots of press and would like one or two of us t= o attend. If you are interested in heading up there for a day with me, plea= se let me know. There should be a pretty good turnout among potential comme= rcial and industrial customers. Kinkos -- All indications are that our negotiations with Kinko's are going = very well. The hope is to sell them a three-year fixed-price retail product= and 100% wind tags. Richard and I are woking to source the tags. Success w= ill be huge, as Kinkos is part of the Green Power Market Development Group. Might be dead I know that Richard and Stacey have other deals on the table, and Jesse has= been busy working on finalizing our services deal with Edwards Air Force B= ase. I look forward to seeing you guys in Houston the week of September 11 = and taking the next steps in formalizing our green product offerings. To do: Elliot: =09Product Description =09Growing the business (all - brainstorm) =09Letter to Green Power Conference/AWEA =095 forces Michael Porter analysis: suppliers/buyers/barriers to entry/wha= t are the =09offering/what are the barriers Stacey: =09Follow up with NREL/DOE =09RPS by week's end =09Product Description for EE =09Set-asides=20 =09Research items for Jenny (supply/demand) =09=09RPS states - what is the supply status in each state Richard: =09Short positions =09Sending out 1/2 page description =09Fundamentals - get key issues to group Jesse: =09Logistics (LADWP/Edwards);=20 Jeffrey O. =09Template for the web Other: Red Herring article Talk to you soon, EM Elliot Mainzer Renewable Power Desk Enron North America 121 SW Salmon St. 3WTC-0306 Portland, OR 97201 (503) 464-3706 (503) 464-3740 (FX) (503) 709-6959 (CL)