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Enron Mail |
Michael, Wanted to follow up our conversation today with a note summarizing
EPMI's thoughts. I know neither of us thought that Garrard Hassan's analysis would drag on this long (since end of November) so I thought it would be appropriate to re-address where we are. At this point, I think EPMI is looking for two things from EWC: 1) We understand EWC's concern with Garrard Hassan and the affect their estimates for wind speed have on the economics of the Indian Mesa project, but EPMI needs EWC to place a deadline on when EWC will have enough information in order to sign the agreements. My expectation is this should be in the next two weeks (after another meeting with Garrard Hassan)? The reason for this request is that opportunities for EPMI to resell some of its renewable energy position (should EWC sign the agreement) are now starting to appear in the market and those opportunities will be lost if EPMI is unable to consummate. Also, as you know, the power market is volatile and any large movement could quickly kill the economics of our PPA from Indian Mesa. Lastly, EPMI will soon need to make decisions regarding dedicating time and money in preparation for accepting and managing the intermittent wind power. Bottom line is that the deal's value will start to decay the longer delay in EWC's signing. 2) EPMI expects EWC to not compete with EPMI on renewable energy opportunities in Texas (specifically the Austin Energy RFP). EPMI has in good faith negotiated this agreement with EWC and needs to be able to pursue these opportunities with EWC's cooperation in anticipation that EPMI will have a signed PPA from Indian Mesa. At your earliest convenience could you please give me a call to address these concerns. Thanks, - Mike
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