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Enron Mail |
Thanks. Do you have some free time today? I'm not sure about our schedule,
but if we have free time which matches up with you, I would like to spend some time discussing the issues. Kay "JON R MOSTEL" <JRMOSTEL@LLGM.COM< on 02/01/2001 08:36:23 AM To: Kay.Mann@enron.com cc: Subject: Re: coop city outline Kay: Thanks for the update. I thought I'd reply so you would have my e-mail address available. NOTICE: This e-mail, including attachments, contains information that is confidential and it may be protected by the attorney/client or other privileges. This e-mail, including attachments, constitutes non-public information intended to be conveyed only to the designated recipient(s). If you are not an intended recipient, please delete this e-mail, incluidng attachments, and notify me by return mail, e-mail or at (212) 424-8220. The unauthorized use, dissemination, distribution or reproduction of this e-mail, inclduing attachments, is prohibited and may be unlawful. Jon R. Mostel LeBoeuf, Lamb, Greene & MacRae, LLP 125 West 55th Street New York, N.Y. 10019 Tel.: (212) 424-8220 Fax: (212) 424-8500 jrmostel@llgm.com <<< <Kay.Mann@enron.com< 02/01/01 09:36AM <<< Hi John, Mark and I are still working at the hotel, waiting to hear from the counterparty. Could you forward this to Jon? I don't have his email address. Thanks, Kay ---------------------- Forwarded by Kay Mann/Corp/Enron on 02/01/2001 08:34 AM --------------------------- "Mark Bernstein" <delivertomark@hotmail.com< on 02/01/2001 08:30:37 AM To: kay.mann@enron.com cc: Subject: coop city outline Kay, I don't have the "sent" e-mail, but here is my outline: thank ASSET MANAGEMENT 1. Every December 1 the benchmark is set for next year's gas cost. The benchmark is adjusted for basis and transport. 2. The benchmark for gas purchases will be adjusted for a gas load factor to account for the non-block nature of gas consumption. 3. Enron will serve full requirements power and steam at the benchmark cost. 4. If unit 1 is down, Enron will serve Co-op City based on prevailing gas market price. 5. If Enron does nothing but serve power and steam from the project, actual cost will equal benchmark cost and Enron earns nothing. 6. If Enron can shut down the generators and buy power cheaper from the market than it could generate and sell the gas for a profit, the net reduces the average cost of gas. 7. Enron is only incentivized to buy gas and sell power or buy power and sell gas if there is a net benefit to Co-op City 8. A Co-op City book will be kept and audited to keep track of the gas and power purchases and sales to calculate the asset management performance. DEVELOPMENT RISK CAPITAL 1. Enron will commit development risk capital for: Permit preparation and application Preliminary engineering Site due diligence Securing turbines 1. Need to negotiate terms for development agreement ENGINEERING, PROCUREMENT AND CONSTRUCTION 1. Enron will perform EPC services at cost plus up to an estimate. The plus however, is not at risk. 2. The EPC contract must be executed after the asset management agreement so that there is no appearance of consideration between the two agreements. 3. Commercial operations date will float relative to the issuance of permits. OPERATIONS 1. Enron will dispatch the plant and procure gas and power so as to maximize plant efficiency and economics per the asset management agreement. MAINTENANCE 1. Enron will act as agent on behalf of Co-op City to negotiate a long term maintenance agreement, with a third party, subject to Co-op City's approval. 2. Enron will manage the maintenance contract and coordinate planned outages so as to maximize project value under the asset management agreement. Get your FREE download of MSN Explorer at http://explorer.msn.com
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