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Enron Mail |
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
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