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Enron Mail |
My morning is fairly open, other than grinding on the purchase contract.
Heather Kroll@ECT 10/22/2000 01:31 PM To: Kay Mann/Corp/Enron@ENRON cc: Jeffery Ader/HOU/ECT@ECT, Scott Healy/HOU/ECT@ECT, Stephen Plauche/Corp/Enron@Enron Subject: Re: CRRA LOI Let's meet in the morning and discuss the LOI. Kay, To briefly answer your questions, we are contemplating another layer of documents with the EPC contract. There will also be a Development Agreement that outlines our development activities and our nonrefundable fee. I don't read his comments to mean he only wants one EPC contract. Let's discuss tomorrow. Also, we've told Bob Wright that if the plants don't work, the state gets its money back. I think he and everyone involved would be amenable to a performance band provided that a comparable reduction in price accompanies the reduced performance (to the 10 percent floor, of course). This LOI outlines the EPC contracts only. The Development Agreement will cover our fee. So, no, our fee is not at risk for the fuel cells failing to perform. We will have some risk on BOP if the plants fail. What time works for everybody? How about 9:30? Heather From: Kay Mann @ ENRON 10/21/2000 12:14 PM To: Jeffery Ader/HOU/ECT@ECT, Heather Kroll/HOU/ECT@ECT, Scott Healy/HOU/ECT@ECT, Ozzie Pagan/HOU/ECT@ECT, swanita_99@yahoo.com cc: Subject: CRRA LOI Hi guys, In looking at CRRA's comments to the draft LOI. I have these questions: 1. I'm not sure what we mean by EPC contract. Is this referring to the Fuel Cell document we are working now, or is there to be another layer? I know this may depend on whether CRRA or someone else is doing the balance of the construction activities. 2. He expects one EPC contract, and we had tried to leave room for multiple contracts. Does anyone care? 3. Does CRRA get a full refund of the purchase price if the fuel cells fail the performance tests? We have discussed with FCE the concept of a proportional reduction if the performance is within 10 percent, then a full reduction as to the failing unit(s) only. Also, are we planning to mark up the fuel cell contract to recover our fee? Is our fee at risk for the fuel cells failing to perform? Thanks, Kay
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