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Enron Mail |
Please review. Is there a value proposition for us?
-----Original Message----- From: Kaminski, Vince J Sent: Tuesday, August 07, 2001 8:25 AM To: Presto, Kevin M. Subject: FW: Neptune Kevin, Ed is running a consulting firm in Boston that often tries to act as a boutique merchant bank. He inquired if Enron could provide transmission hedges for the Neptune project. Any interest. Please, feel free to contact Ed directly and let me know. Vince -----Original Message----- From: "Ed Krapels" <ekrapels@esaibos.com<@ENRON [mailto:IMCEANOTES-+22Ed+20Krapels+22+20+3Cekrapels+40esaibos+2Ecom+3E+40ENRON@ENRON.com] Sent: Tuesday, August 07, 2001 5:28 AM To: Vincent Kaminski \(E-mail\) Subject: Neptune Dear Vince, As you may know, FERC approved the Neptune transmission proposal on July 26 and the organizers (me among them) are now preparing to hold on open season starting September 10 to sell 80 percent of the capacity on a firm basis. A diagram of the system legs is on www.NeptuneRTS.com. Some of the bidders in that open season will be gencos with little or no experience in trading, some will be load-serving entities, some will be power marketers. There is likely to be interest in a Neptune hedge, and I wondered how we could engage Enron in an exploration of its willingness to provide such hedges. Essentially, bidders will be going long the various spreads (Nova Scotia - New York, New Brunswick - Boston, PSE&G - Zone J, etc etc) and we would like to encourage someone like Enron (I know there is no one quite like Enron but you know what I mean) to be willing to offer transmission hedges. It may also interest you that FERC gave Neptune approval to hold 20 percent of the capacity for sale in the short-term markets. We (the development group) see that as a desirable exposure to these spreads for Neptune's equity investors and are in the equity markets now securing a second tranche of development capital, and will return in early 2002 for a sizeable amount of permanent equity assuming the bids received in September - October yield sufficient interest to finance the majority of the project in the debt market. That's the plan, the primary virtue of which is that the authorities have allowed us to put it to a market test this fall. Let me know if you'd like to pursue this. I will make similar initiatives to several other entities later this week. Ed Edward N. Krapels, PhD Director, Gas and Power Services ESAI www.esai.com tel 781 245 2036 - Notice.pdf
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