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Are these numbers consistent with your expectations. We will submit to HR if
no onjections. Traditionally Sutton has looked at the range and made the decision where to be inside the range. I don't know if Skilling will do the same. I have a voice mail into him to see. Rick ---------------------- Forwarded by Rick Buy/HOU/ECT on 01/18/2001 06:13 PM --------------------------- David Gorte 01/18/2001 05:17 PM To: Rick Buy/HOU/ECT@ECT cc: Mark Ruane/HOU/ECT@ECT Subject: EcoElectrica/Corinto Valuations for Compensation Purposes Rick, The valuation ranges for EcoElectrica and Corrinto, as revised, are as follows: EcoElectrica: High - $240.8 million (excludes FASB125 interest; terminal value discounted at 18%) Low - $220.3 million (included $20.5 million of FASB125 interest as project cost) Corinto: High - $4.389 million (20% discount rate) Low - $3.609 million (23.7% discount rate) For EcoElectrica, the argument is whether the deal team should bear the cost of off-balance sheet treatment in choosing between the high and low values. For Corinto, the higher discount rate and lower value reflects how RAC would value this transaction as a new merchant deal, reflecting Nicaragua's downgrade; the lower discount rate is consistent with the original RAC discount rate and may be a reasonable discount rate for a completed plant to a strategic buyer. Please let me know if you require additional information. I am happy to speak with David Haug on these if you'd like. Regards, Dave
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