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Enron Mail |
---------------------- Forwarded by Benjamin Rogers/HOU/ECT on 09/26/2000
02:00 PM --------------------------- From: David Parquet on 09/25/2000 11:03 AM PDT To: Benjamin Rogers/HOU/ECT@ECT cc: Christopher F Calger/PDX/ECT@ECT, Andrew Kelemen/HOU/ECT@ECT, Don Miller/HOU/ECT@ECT Subject: PG&E Questions My responses to one set of PG&E questions would be as follows. Dean is answering the other one and will send back to you directly. * What is Enron's intent re: continuing involvement? PG&E is concerned about any potential requirements that they might be required to either purchase fuel from Enron or engage Enron as the power marketer. RESPONSE: Enron is very flexible re continuing involvement: scheduling coordination, fuel supply, power marketing, etc. We are also flexible re the time period and the terms of the continuing involvement. Whatever arrangement is developed would be mutually beneficial. * What is status of EPC negotiations. Will they be required to engage NEPCO as the EPC contractor? Does the EPC contractor have control over the turbines? RESPONSE: o EPC negotiations are complete with NEPCO. Contract has not been executed, but has been "put on the shelf" awaiting decision on successful bidder for the purchase of the Pastoria project from ENA. Successful bidder and NEPCO will each have the option of executing the EPC agreement. o Successful bidder is under no obligation to engage NEPCO. o West LB has control of the turbines. They can be assigned either to the LLC or to ENA. (If assigned to ENA, it was because the successful bidder for the Pastoria project did not want the turbines with the acquisition.) If assigned to the LLC as part of the acquisition, the LLC can then assign the turbines to the ultimate EPC contractor. * They also questioned whether there would be any "agricultural restrictions"? RESPONSE: The project site is presently under a Williamson Act contract to maintain agricultural use in exchange for lower taxes. Last week, the Kern County Board of Supervisors voted to cancel the Williamson Act contract to allow for industrial use, which started a 180 day public comment period. However, the Governor has on his desk a bill for signature that would reduce the public comment period for the cancellation to the same time frame as the request for rehearing period for the CEC Final Decision. (The Governor has until 9/30 sign the bill and is expected to do so because of the overwhelming support of the bill in the Assembly and the Senate.) The cancellation will be contingent upon a successful CEC decision and a payment of a Williamson Act cancellation fee.
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