Message-ID: <30046141.1075857183751.JavaMail.evans@thyme>
Date: Tue, 15 Feb 2000 04:39:00 -0800 (PST)
From: scot.chambers@enron.com
Subject: Santee Cooper O&M Estimate, Revision 1
Cc: mike.coleman@enron.com, john.cates@enron.com, richard.bickings@enron.com, 
	mark.dobler@enron.com, tom.callaghan@enron.com, 
	mitch.robinson@enron.com
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George and Webb, please find attached revision one to the Santee Cooper O&M 
cost estimate. It is for mobilization and operating period O&M services for 
one gas fired, 5 x LM6000 simple cycle peaking facility located at the 
Georgia and South Carolina border. 


The revision made adjustments to the following:
      Rev 0   Rev 1
Mobilization fee     $90,000   $200,000
Annual Operating fee    $160,000  $250,000
Annual Maintenance cost Estimate  $405,000  $593,000
Mobilization Labor cost (adjusted benefits) $175,000  $193,000
Annual Labor cost (adjusted benefits)  $406,000  $450,000
Initial Spare Parts    $1,320,000  $1,300,000

My reasoning is this:
1. After consulting with OEC, the previous fees were not believed to be at 
"market".
2. Annual Maintenance was recalculated after having more time to do a bottom 
up estimate.
3. Mob and annual labor costs changed due to a change in OEC benefits 
calculations.
4. Initial spares rounded down.

As we discussed, the GT major maintenance is scheduled to occur in year 18 of 
an 18 year term. 

Please provide your comments.

regards, Scot