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Enron Mail |
Here is a report on current Muni deals in the west.
1. Grant County PUD: (Washington) we have orally agreed (no signed confirms) to two identical deals, each calls for us to deliver power to Grant during year one and for Grant to deliver us power and money in year 4 or 5. Our effort to get an opinion from them that these deals have been properly authorized has foundered badly. We have the classic situation of a PUD whose procedural practice does not fit with the statute. They are irritated to have this pointed out to them and so far, unwilling to go back and fix their practices for fear of embarassment before the Board. Delicate, complex, difficult mess. Pat Boylston of Stoel Rives helping. 2. Clatskanie: (Oregon) We have done a deal ( signed confirms and EEI soon to be signed) whereby we deliver Clatskanie power in year 1, for which we receive a monthly payment which is roughly akin to a contract price, and they deliver us power in year 5. We have every expectation of receiving a satisfactory legal opinion from them when they return the signed EEI agreement. 3. EWEB: (Oregon) We have done a deal (being documented as a swap by the swap group) which I believe is a five year deal. The deal was originally conceived as being a physical transaction. We received satisfactory documentation about authorization from EWEB for the physical transaction, but when it switched over to being a swap at the last minute, and Sara subsequently reviewed the authorization issue, her conclusion was that we were not satisfied with what EWEB had shown us. I have gotten Pat Boylston to get EWEB to promise to give us a Board resolution in a couple of weeks addressing the financial risk concern. 4. Valley Coop. (Nevada) We have recently done a 4 year vanilla commodity sale to Valley and are in the process of checking out their authorization to do longer term deals. We have a services agreement with them whereby we are their SC for load balancing purposes involving the California market. A question has arisen as to whether or not certain sales we make to them as part of this arrangement may generate revenue for them in excess of 15%, if so, perhaps putting their tax exempt status as a muni in jeopardy. It is a tax, accounting issue. Pat Boylston of Stoel Rives is helping us sort it out. 5. LMUD (California) City of Lassen. We are trying to do a long term sale of power to them. Attempts to check out authorization have run into a complex, California municipality statute and a small town lawyer and we are presently stalled out. Sandy Skaggs of McCutcheon Doyle is helping as best he can. The commercial deal died its first death yesterday but rigor mortis is not complete and we may have to revive authorization efforts. 6. Tracy Ngo has given us a long list of munis, prioritized as to our credit exposure to them. Presumably I am busy checking all of the most serious ones out and making sure we have proper authorizations. In fact, I have done nothing with this because I am busy with other immediate priorities. Pat Boylston of Stoel Rives and Sandy Skaggs of McCutcheon Doyle are providing very valuable service in this area. They are both very good at dealing with these muni type folks and, with the exception of Grant, (and not because of Pat, who has been great) have gotten fairly good results so far.----cgy
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