Message-ID: <1530251.1075857189964.JavaMail.evans@thyme>
Date: Wed, 29 Mar 2000 02:40:00 -0800 (PST)
From: oscar.dalton@enron.com
To: russ.porter@enron.com, benjamin.rogers@enron.com
Subject: Rochester, Mn (LM-6000 Deal)
Cc: ozzie.pagan@enron.com, janet.dietrich@enron.com, stuart.zisman@enron.com, 
	michael.miller@enron.com, ryan.deane@enron.com
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I was informed today by Rochester that they will not be working with Enron 
(or General Electric) on the LM-6000 Project.  The following are key points:


1.  Based on a GE evaluation of the site, the total net output of a new 
LM-6000 with Sprint Package is 42.2 Mw at average site conditions (79 degrees 
@ 1,006').

2.  Rochester had initially thought they would need 25 Mw and Enron could 
re-market the balance until Rochester's load growth utilized the balance.  
Rochester had initially considered an LM-2500 (25 Mw) and was not in favor of 
a larger machine becasue they thought the incremental 20-25 megawatts would 
cost in the $6MM to $8MM range.  Enron's proposal absorbed Rochester's risk 
of the incremental megawatts and Rochester was very interested in our 
concept.   Subsequent to our discussions with Rochester and providing a 
couple of proposals, the formal bidding process on the turbines indicated 
that the cost of the incremental Megawatts above their 25 Mw requirement was 
only approximately $1.4MM.  In fact, the cost of the last 10 Mw was only $1MM.

3.  Rochester choose to utilize the Pratt & Whitney FT-8 (Twin Pak) turbine.  
This machine yields 52 Mw (net) at site conditions and the extra 10 Mw over 
the 42 Mw provided by the LM-6000 was only an incremental $1MM.  Rochester 
says the cost of the 52 Mw will be approximately $13.1 MM or $253/Kw.  
Installation cost would be additional. (Note: ENA's bid for the LM-6000 at 42 
Mw was $14MM and GE was at $14.2MM

4.  Rochester's board instructed them not to enter into any long term 
arrangments where they would have to sign long term PPA's etc.  Rochester 
will look to have the P&W turbine installed and will market the additional 
Megawatts on a day to day and month to month basis.


Thanks to everyone for their efforts on this prospect.  Please pass the above 
information on to anyone who would benefit from this technical and 
competitive feedback.


Oscar