Re: LV Cogen Turbine Agreement

Pete,

Could you call Bill and discuss?

Thanks,

Kay

---------------------- Forwarded by Kay Mann/Corp/Enron on 04/09/2001 07:45
PM ---------------------------

Bill Williams@ECT
04/09/2001 07:19 PM
To: Kay Mann/Corp/Enron@ENRON
cc: Dale Rasmussen/HOU/ECT@ECT, lee.johnson@ss.ps.ge.com, Sheila
Tweed/HOU/ECT@ECT, Lisa Bills/Enron@EnronXGate, Roseann
Engeldorf/Enron@EnronXGate

Subject: Re: LV Cogen Turbine Agreement

Kay - sorry I have taken so long to review the attachments to your e mail.

I have comments that I would like to address in a conference call with GE
(Lee Johnson), Peter Thompson of AKLLP (history of changes - especially in
the guarantees for HR and MW output).
Basically, the figures for HR and Output should remain as was struck.
(Trivial - but Lee knows what I have gone through with the EPC contractor on
HR and MW (kW) guarantees.)
Electrical Output should stay at 43,994 kW rather than change to 43,988 kW.
Same goes for the specific value, and H/R guarantee (8969 btu/kWh) and
specific value.
What is really puzzling is when I went back to a December BO contract, I had
a kW guarantee over 48 MWs each, at an 8800 + HR. This is with conditions as
set in the existing version. Where did the MWs go?

I need to understand the history of changes to the BO contract, and be sure
we are not leaving value on the table. That is why Kay, if possible _ I'd
like a quick conference call that would include the party making the changes
to HR and MW output guarantees.

Also - I did not see the addition of 4 more HMI's as needed for LVCII. The
power system stabilizers were in the scope of supply - but I could not find
additional HMI's (whatever that entails).

I believe we can knock this out by tomorrow to meet the April 10 date listed
in your e mail.

Please call me should you have any questions.
Regards

Bill W.
(503) 464-8958