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Enron Mail |
Yes and no.
They were supposed to call at 5am to see if they should come in at 700 (space permitting). If no space is available, they are to go in at noon. I'm guessing they went in at 7, since I think he would have called to say they haven't gone in. Just a guess, though. He has his computer at home, so I think if he was sitting around he would drop us a note. Kay From: Kathleen Carnahan 03/29/2001 08:34 AM To: Kay Mann/Corp/Enron@Enron cc: Subject: proposal to NMC Ron has requested a CA in connection with discussions regarding the proposed project described below. The site referenced as "Arpin" is the option we have in Wood County, Wisconsin. Can you review it when I get it ready? Any word from "Daddy Carlos"? K- ---------------------- Forwarded by Kathleen Carnahan/NA/Enron on 03/29/2001 08:24 AM --------------------------- Ron Tapscott@ECT 03/29/2001 07:58 AM To: Terri Clynes/HOU/ECT@ECT cc: Ben Jacoby/HOU/ECT@ECT, Kathleen Carnahan/NA/Enron@Enron Subject: proposal to NMC Terri, In preparation for our meeting tomorrow, Friday, March 30, I want to provide you background on the company we will be discussing -- Nuclear Management Company Llc (NMC) joint venture between -- NSP, Alliant, WEPCO and WPS services provided -- manage the companies (noted above) 7 nuclear facilities (5 sites) The Facilities are as follows: Point Beach Units 1&2, owned by WEPCO, located in east central Wisconsin (30 miles SE of Green Bay), mW 523 and 500 mW respectively Kewaunee, owned by WPS, located 27 miles SE of Green Bay, mW 511 Prarie Island Units 1&2, owned by NPS, located in Red Wing, MN, mW560 and 500 mW respectively Monticello Unit 1, owned by NPS, located 30 miles NW of Minneapolis, mW 536 Duane Arnold, owned by Alliant (IES Utilities), located 8 miles NW of Cedar Rapids, mW 515 Michigan nuclear facility (no details) They are looking for a physical hedge (they suggested a 600 mW gas fired peaking facility) but may be receptive to a financial hedge (especially for the Michigan site) as well. Or, a combination. I would like to explore leveraging the Arpin site if we could. They want ownership (percentage or all) of the gas fired facility. Based on the geographic location of the facilities noted above. The Arpin site should work well. I would imagine they have firm service for those sites and if they are looking for the gas fired facility to take up the slack when these units are out, we should not have a problem with transport from the Arpin site (even though there is a west to east issue). They would also like to market the gas fired facility when the unit is not needed as a backstop! From a physical plant standpoint -- I would suggest that we carve out the development with a slight ownership that has a put option (for the equity we retain) at a future date (but retain a percentage of the marketing arrangement for sale of excess power in the market). I think NMC wants complete control based on their view of deregulation in Wisconsin. I believe their long term strategy is to have a PPA with the above Utilities for the offtake (firm output w/ firm price) and the ability to market the excess (from both the Nuclear Units and peaking facility) at market rates. This arrangement should be able to flange well with your financial insurance product (since the addition of the gas fired facility would provide more liquidity). The contact at NMC is Greg Palmer (I believe he is ex -- ETS). I have asked that we have a confidentiality agreement in place before we agree to discuss a proposal. He agrees. I will ask Kathleen Carnahan to prepare a draft agreement. I look forward to the discussion tomorrow. Please call if you have any questions prior to the meeting. Thanks, Ron.
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