Enron Mail

From:oscar.dalton@enron.com
To:ozzie.pagan@enron.com, janet.dietrich@enron.com, michael.miller@enron.com
Subject:Lincoln
Cc:russ.porter@enron.com, benjamin.rogers@enron.com
Bcc:russ.porter@enron.com, benjamin.rogers@enron.com
Date:Fri, 28 Jan 2000 08:02:00 -0800 (PST)

We conducted a conference call with Lincoln today and they advised they are
no longer interested in working with Enron on the LM-6000 opportunity that
had been under consideration. The main reasons given was that there was
extreme existance in the organization. Lincoln said they would need an
annual payment of $90 to $100 per kw/yr to do the deal which they feel is
extremely out of the market and Enron would not transact. At this level, we
would be break-even at best, even with the OPPD work-out value and the gas
deal.

Lincoln is currently developing a peaking project using ABB units that must
be in operation 6/01. All of their resources are dedicated to this project.
Their plan is to install LM-6000's for a 11/1/03 start date and they are not
prepared to deal with an acceleration of the project. The feel that working
with Enron at this time only complicates their workload.

Lincoln did say they were interested in working with us on a gas supply and
pipeline transaction as the site for development is 6 miles from Northern
Natural Gas.

I will begin this evaluation and consider the possibility of selling two
LM-6000's bundled with the supply and infrastructure deal.

Oscar