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Enron Mail |
From a credit perspective, should we be in front of any other debt issue of
CWR related to the California Procurement Adjustment, and have a dedicated slice of the PUC approved rates, this would, from a practical standpoint be at the top of credit claims. Since repayment of the debt at the utilities is dependant on net cash flows (from rate payers), we functionally prime them as well. Jeff Dasovich Sent by: Jeff Dasovich 02/09/2001 10:24 AM To: skean@enron.com, Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Vicki Sharp/HOU/EES@EES, Mike D Smith/HOU/EES@EES, Michael Tribolet/Corp/Enron@Enron, Sandra McCubbin/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, Susan J Mara/NA/Enron@ENRON, Joe Hartsoe/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, mpalmer@enron.com, Karen Denne/Corp/Enron@ENRON cc: Subject: CDWR Credit Proposal FYI. Calger is in active talks with Freeman and DWR lawyers about the offer letter we submitted on Tuesday. Freeman's very anxious to do a deal for 200 MWs from the West Desk and then start talking about a deal for power from Parquet's Pastoria plant. Credit is of course the issue and Calger's told them that unless the credit issue is bulletproof it's not going to work. See Chris' comments below. It looks like progress is being made, but the details will make it or break it. Any thoughts? Might make sense to discuss on the call. Please forward along to others. Thanks. Best, Jeff ----- Forwarded by Jeff Dasovich/NA/Enron on 02/09/2001 10:22 AM ----- Christopher F Calger@ECT 02/08/2001 06:11 PM To: Tracy Ngo/PDX/ECT@ECT, Christian Yoder/HOU/ECT@ECT, Jeff Dasovich/NA/Enron@Enron, Chris H Foster/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT cc: Subject: CDWR Credit Proposal CDWR is proposing to all potential suppliers the following security package for new PPA's: 1) Irrevocable PUC Order / Agreement that "locks in the revenue stream" for CDWR to cover the PPA costs. 2) PPA covenant that the power supplier has payment priority over any debt, including the contemplated debt issue - the concept is that the supply is the operating cost and any debt would be subordinate 3) PPA Covenant that their is a uniform package to all suppliers; no more favorable terms or priority to ayone, no L/C, etc. Subject to definitive language, CDWR is trying to get people to buy into this general plan. What do people think? Please try to shoot holes in this. Please forward to the appropriate legal, regulatory and credit folks to air this out. Thanks, Chris
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