Re: Tale of Two Power Plants

I reviewed the numbers with Linda Lawrence, and Steve Walton gave us some
background info as well, which makes me comfortable with these numbers.

Alan Comnes@ECT
02/22/2001 01:30 PM

To: John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT@ENRON, James D
Steffes/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, Jeff
Dasovich/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Steve
Walton/HOU/ECT@ECT, Linda L Lawrence/NA/Enron@Enron
cc:
Subject: Tale of Two Power Plants

Based on some additional information, here is a revised comparison:

Intermountain Power Project's (IPP) cost per MWh in 1997 was $46/MWh,
relatively expensive for its vintage (1984) and fuel type (coal). At an
orgininal cost of $2,776,988,000 for 1,640 MW of capacity, that translates
into $1,700/kW. Source: US DOE EIA, Financial Statistics for Publicly Owned
Utilities 1997. IPP is owned and operated by the Intermountain Power Agency
but all of the output is sold under contract to LADWP and other SoCal munies.

By contrast, consider a plant built at the same time and location and has
the same fuel source:
Plant Name Year
Originally
Constructed Total Installed
Capacity
(Maximum Generator Name
Plate Ratings in
(MW) Cost of
Plant: Total
Cost Cost per
kW of
Installed
Capacity Production
Expenses:
Fuel
Hunter Unit No.3 1983 446.40 MW 487,543,950 1,092.1683 25,007.036

The installed cost per MW of Hunter 3 is 35% lower than the cost of the
project built for LADWP.

From: John Neslage@ENRON_DEVELOPMENT on 02/21/2001 06:07 PM CST
To: Alan Comnes/PDX/ECT@ECT@ENRON
cc: James D Steffes/NA/Enron@Enron

Subject: Re: Cost of Takeover

Yes. We should be able to get at them on FERC's website, which I can check
for us now. Otherwise, Linda Lawrence should be able to help us first thing
in the morning.

Alan Comnes@ECT
02/21/2001 05:58 PM

To: James D Steffes/NA/Enron@ENRON
cc: Harry Kingerski/NA/Enron@Enron, Jeff Dasovich/NA/Enron@Enron, John
Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT@ENRON, Mark
Palmer/Corp/Enron@Enron, Susan J Mara/NA/Enron@Enron, Paul
Kaufman/PDX/ECT@ECT, Richard Shapiro/NA/Enron@Enron
Subject: Re: Cost of Takeover