Calpine 10,200 Heat Rate

Scott,

Below is the new capacity pricing (improved by $0.1/kw-mo) based off of
10,200 heat rate, which is still long way to go. I will make a more effort to
get better pricing. There is still a room between mid curve and bid curve.
Another possibility is to sell by 4 hour block with better pricing, as you
commented. Please let me know if you have any better idea. Thank you.

Jinsung (37330)
---------------------- Forwarded by Jinsung Myung/Corp/Enron on 03/03/2000
03:42 PM ---------------------------

From: Garrett Tripp @ ECT 03/03/2000 02:33 PM

To: Jinsung Myung/Corp/Enron@Enron
cc:

Subject: Calpine 10,200 Heat Rate

Calpine Pricing

Jinsung,

Below are the indicative prices for the Calpine deal assuming there are no
additional gas costs related to
the transport of gas from the Transco Sayreville meter point and the
potential site.

We have passed this by the trader, Paul Racicot. If we enter the next round
of negotiations where specific information
has become available, a stronger price is possible but we would need to deal
more specifically with the Unit Contingent
aspect and the gas cost from meter to site.

Here is the assumptions and the prices:

180MW
HEAT RATE 10,200 (previously 10,500)
Priced at Sayreville (discount to Eastern hub)
Must be called in 16 blocks
5x16 product
Total start cost: $1200 per start ($300 per unit)
No escalation in VOM
95% availability in winter, 97% in summer
Gas priced at NY zone 6 with $0.03 physical premium in summer, and $0.07 in
WINTER.