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Enron Mail |
Wow. Pretty interesting info. I'm trying to think of a "plan B" approach,
but without ENA (and their turbines) I'm haviang a hard time coming up with one. Steve, I'll talk to you in Tucson on this. Thanks. DF Steven Harris 04/25/2000 09:19 AM To: Kevin Hyatt/ET&S/Enron@Enron, Lorraine Lindberg/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON cc: Subject: Pueblo I spoke to Frank Vickers who is responsible for ENA's power generation projects for the Western half of the United States. We discussed the opportunities for a generation project in the Albuquerque region and he offered the following observations. First, he indicated ENA has evaluated numerous projects in that area including participation in the Cobisa project. They always come to the same conclusion which is that the project economics become non-workable due power grid constraints and the inability to negotiate a long-term wheeling arrangement with PNM. He felt like the only reason Cobisa could go forward was due to PNM being the purchaser of power from the project. We talked about lower the delivered cost of gas to the facility through a "zero return" pipeline but in the end what the generation facility would have to compete with is power from and around Palo Verde. He is very familiar with the ENA model (in fact he could calculate various electric costs immediately just based on some parameters I mentioned to him over the phone). In the end, he felt like ENA would not want to participate because the risk of having to sell the excess power at a competitive rate was just too great given the cost to get it to a market. We will continue to give the Pueblo project a final look by talking to Plains and Four Corners but without the baseload generation the pipeline prospects look pretty dismal.
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