FW: Vanalco Transmission

-----Original Message-----
From: Malowney, John
Sent: Wednesday, September 12, 2001 3:20 PM
To: Scholtes, Diana
Subject: FW: Vanalco Transmission

Diana; not only am I interested in your interest, but I'd like to visit with you about this as a learning tool. Let me know when you'd like to discuss it. Thanks, John

-----Original Message-----
From: Bob Griffin [mailto:rdg@keywaycorp.com]
Sent: Wednesday, September 05, 2001 11:54 AM
To: Malowney, John
Subject: Vanalco Transmission

Hi John -

As we discussed earlier, this is the
information about the contract
Vanalco is attempting to resell.
The Contract Demand is 170 MW. It
is currently divided among 3 POIs.
( 50 MW at Chelan/RRH, 50 MW at
Slatt/Boardman, and 70 MW at the
US/Canadian Border.) The POD is
Alcoa substation, near Vanalco's
facility. Without a notice for
change in these points, the demand
would have to be used on a nonfirm
basis. The value, of course, would
be in the discounted price you could
achieve for the demand. If you have
a high load factor usage, it may be
very economical.

Vanalco would consider offers
consistent with the secondary
transmission market, subject to the
process they are going through in
the courts, but their objective is
to preserve the asset for the
future.

The term of the contract begins Oct
1, 2001 and terminates Sept 30, 2002
(1 year), but rollover rights exist
which have some value. They would
expect some recall rights in the
event of production at the smelter,
but the notice period could be a
number of months. Let me know what
you think. If you are not
interested, do you know of a party
who might either buy or manage this
contract?

Thanks,

Bob