Enron Mail

From:james.centilli@enron.com
To:kevin.hyatt@enron.com
Subject:RE: Sun Devil backhaul rate to Phoenix
Cc:
Bcc:
Date:Wed, 20 Feb 2002 08:26:14 -0800 (PST)

Are we using the 750 Case for volumes or something else.

-----Original Message-----
From: Hyatt, Kevin
Sent: Wednesday, February 20, 2002 10:23 AM
To: Centilli, James
Cc: Gadd, Eric
Subject: Sun Devil backhaul rate to Phoenix

James, can you please run 2 cases to calculate a backhaul rate to Phoenix using Sun Devil?

case 1: Using the Capex of $290,181,156 (which includes the Red Hawk lateral), what does the rate need to be using 100% load factors for 20 years with the terminal value and our hurdle return rate of 15%? Assume fuel at 0% for the entire term (source of gas would likely be Cal border area storage facilities).

case 2: same as above but load factors as follows:

year 1-2 50%
year 3-4 70
year 5-7 85
year 8-20 100%

We are trying to respond to Panda Energy by Friday 2/22.

thanks
kh