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Enron Mail |
Mary,
I see that Phil Bair from JWorthan has responded to Phil DeMoes concerning the bond term. No comments were made concerning the legal opinion for the legal counsel for the bond provider. I was going to suggest that the contract language be modified to provide that the Company had a reasonable amount of time at the end of the lst 5 yr bond term to provide a substitute bond for the remaining term and that if the Company was able to get a replacement bond in place before the expiration of such period, no default would occur. Can you tell from the letter that Phil Bair is proposing if their are any other issues that either ENRON or the Bond Provider would have concerning the terms of the Bond and the Customer's methods of getting funding thereunder. ****************************************************************************** ****************************************************************************** ****************************************************************************** ********************************************** This was forwarded to me by Phil DeMoes. Dan, Take a look at this letter prepared by our surety provider on the PEAK pre-pay. In particular, note the last paragraph. I'm concerned on the unwind if there is a default. We plan to meet tomorrow with Joe Deffner and Breese tomorrow morning. Are you available? ---------------------- Forwarded by Phil DeMoes/Corp/Enron on 02/22/2001 11:29 AM --------------------------- Phil DeMoes 02/21/2001 01:30 PM To: Mark Breese/HOU/ECT@ECT cc: Subject: PEAK Surety Reference Letter FYI. ---------------------- Forwarded by Phil DeMoes/Corp/Enron on 02/21/2001 01:29 PM --------------------------- "Phil Bair" <pbair@jwortham.com< on 02/21/2001 01:21:17 PM To: <phil.demoes@enron.com< cc: <Joseph.Deffner@enron.com< Subject: PEAK Surety Reference Letter Phil-Attached is a first round draft of a reference letter for the PEAK project. Please review and let me know what changes are suggested. I've made calls to several of the major sureties this morning to re-confirm the availability of long term/non-cancellable bonds. Five years is the general ceiling. We need to be careful PEAK understands that if the surety elects not to renew at the end of the first five years, this does not trigger an automatic demand against the bond. PEAK should already know the issues involved from the surety side based on previous negotiations they had with other energy marketers when this project was negotiated (without success) last fall. This is not an Enron issue-it goes to commercial availability. Call me with your comments. Thanks. Philip N. Bair 713-346-1378 (Telephone) 713-520-1260 (Telefax) - EnronPeak.doc ****************************************************************************** ****************************************************************************** ****************************************************************************** ********************************************** This was forwarded to me by Jeff Hodge. Jeffrey T Hodge 02/15/2001 08:47 AM To: Dan J Hyvl/HOU/ECT@ECT cc: Mark Breese/HOU/ECT@ECT Subject: PEAK 2001A RFP Dan: Can you handle this for Mark? I have taken a quick run through and one thing that I know will cause us problems is the posting of a bond. Thanks, Jeff ----- Forwarded by Jeffrey T Hodge/HOU/ECT on 02/15/2001 08:45 AM ----- Mark Breese 02/09/2001 10:54 AM To: Jeffrey T Hodge/HOU/ECT@ECT cc: Subject: PEAK 2001A RFP February 5, 2001 Mr. Phil DeMoes ENRON Subject: The Public Energy Authority of Kentucky 2001 Long-term Gas Supply Acquisition Proposal Dear Mr. DeMoes: The Public Energy Authority of Kentucky ("PEAK") is a non-profit Joint Action Agency created under the statutes of the Commonwealth of Kentucky to provide natural gas supply and associated services to municipal gas systems. PEAK is requesting proposals from natural gas suppliers for the purpose of meeting its natural gas supply obligation to existing and new Members. Using the proceeds of its Series 2001 A Taxable Bonds, PEAK will make a one-time advance payment to the Supplier, for a supply of natural gas for delivery at Texas Gas Transmission Zone SL and Tennessee Gas Pipeline Zone 1 for specific daily quantities totaling between 34,000 and 53,000 MMBtu over a ten-year period (approximately 160Bcf). Please find the attached detailed information regarding the proposed transaction to assist with your evaluation. Specifically, the enclosures include the following: 1. Term Sheet and Request for Proposal 2. Natural Gas Purchase and Sale Agreement ("GPA") between PEAK and the Supplier 3. Summary of Daily/Monthly Volumes 4. Spreadsheets indicating the Prepay Calculation PEAK requests a written response via regular mail, courier service or electronic response by close of business Friday, February 23, 2001. Responses should be submitted to: Public Energy Authority of Kentucky Attn: Gerald Ballinger, President and General Manager 516 Highland Avenue P.O. Box 299 Carrollton, Kentucky 41008 Phone: 502-732-0991 Fax: 502-732-8777 E-mail: ballinger.peak@mindspring.com If you have any questions regarding this information, please call or e-mail as noted above. PEAK greatly appreciates your interest in this Project and very much looks forward to your response. Sincerely, Gerald L. Ballinger President & General Manager <<PEAK2001 1-18 10yr for RFP.xls<< <<PEAK2000 GPA 10-23-2000.PDF<< <<PEAK2001 Term Sheet and RFP.doc<< Judy Radel, Administrative Assistant Denver Public Finance Department Banc of America Securities LLC 1-800-861-4506 or (720) 932-1380 (720) 932-1386 (fax) CO1-001-01-01 - PEAK2001 1-18 10yr for RFP.xls - PEAK2000 GPA 10-23-2000.PDF - PEAK2001 Term Sheet and RFP.doc
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