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Enron Mail |
George, it is probably worth speaking to them about the US assets - probably
the smaller Virginia sites which are probably less core and may be great brownfield sites. I'm not sure we would have an interest in UK coal fired assets. I would speak to Sherriff on that one. However, I would caution that real value is created through RAPID brownfield development leveraging on Enron's development, electricity, coal and emissions talents. For ComEd and Homer City, Mission has already paid up for these assets based on gas being on the margin. Now that was before a lot of the run up so it may be worthwhile; however, I think it may be difficult to arb these guys. As well, I think it may be difficult to get the asset out of them - I'm not sure that they can turn their strategy or show a loss this quickly from a Wall Street point of view. We should probably take a shot at the smaller probably less core Virginia assets. Are they in QF, if so there may be upside in the deal from Duran's point of view.. Dave, given the rise in gas prices and gas being on the margin for a larger part of the load curve, coal assets or coal QF's may be great assets for us from a restructuring and power asset (expansion/brownfield) point of view. Have we looked at this? Are there many in the market? Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 07/13/2000 08:17 PM --------------------------- From: George McClellan 07/12/2000 03:44 PM To: David W Delainey/HOU/ECT@ECT cc: Michael J Beyer/HOU/ECT@ECT, Daniel Reck/HOU/ECT@ECT, Janet R Dietrich/HOU/ECT@ECT Subject: Edison Mission Energy Dave - as we know Mission is under pressure with regards to the poor performance of their non-regulated generation assets in the US and UK. It appears their UK coal fired assets (Fiddlers Ferry and Ferrybridge) are for sale. We should consider contacting them to determine their interest to divest any part of their US generation asset portfolio as well. EME owns the former Comed coal and gas fired assets in Chicago, and Homer City in Pa. In addition they have small coal fired generation assets in West Virginia and Virginia. It may be possible to pick up one or more coal fired generation assets from Mission, and expand their existing capacity. We are continuing to work on identifying brown field coal fired sites. This may be another approach to pursue as well. Let me know if you think we need to work EME. Thanks.
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