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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Elizabeth Sager X-To: Wanda Curry X-cc: X-bcc: X-Folder: \Elizabeth_Sager_Dec2000\Notes Folders\Sent X-Origin: Sager-E X-FileName: esager.nsf As promised, here is rough idea of deal. Terms have changed since this was prepared. I will keep you informed as the deal progresses. Thanks Elizabeth 36349 ---------------------- Forwarded by Elizabeth Sager/HOU/ECT on 02/09/2000 03:54 PM --------------------------- Mike Curry 02/08/2000 12:30 PM To: David Portz/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT cc: Subject: Duke Info David, Sorry I had to jump off our conversation earlier, I had a guy on the other line that I having been trying to catch for a while. I will meet you up at Elizabeth's office at 3:30pm to talk. Attached is the e-mail proposal I recently sent Duke. Other verbal understandings that have been exchanged are: 1. Duke would be allowed 50 starts per year (June through May each year). Each start after 50/yr will have a $1500 per start charge. 2. Duke gets 1 start per day Duke has asked for Force Majeure and Availability language, so I guess we need to write up a standard PPA contract with all the standard language to provide them. Kevin Presto has provided me the following information on how we want to proceed with the Availability issue: Monthly Availability Calc. = MWHs delivered by Seller(in Month) / MWHs Scheduled by Buyer (in Month) Base Payment = 100% of Demand Payment (Availability = 93% to 95%) Penalty Payment = 1% bonus for every 1% Availability above 95% Bonus Payment = 1% penalty for every 1% Availability below 93% Note: Force Majeure is excluded from Availability Calc. if < 90 days Thanks for your assistance. Give me a call if you have any questions, - Mike x3-4258 ---------------------- Forwarded by Mike Curry/HOU/ECT on 02/08/2000 12:02 PM --------------------------- Mike Curry 02/02/2000 04:05 PM To: dbjohnso@duke-energy.com cc: Subject: Enron Capacity - 3 yr. proposal Dave, Here is an indicative three year proposal for your consideration: Seller: Enron Power Marketing Inc. Buyer: Duke Power Commodity: Capacity and Energy - Unit Contingent Term: Jun'00 through May'03 (three years) Quantity: 120 MW (two New Albany units) Capacity Source: ENNA - New Albany Plant (in TVA) Delivery Point: TVA / Duke Interface Energy Price: $/MWh = 12.8 * Gas Price($/MMBtu) + $2.00/MWh + 3% transmission losses through TVA Gas Price = Gas Daily, Lousianna Onshore South, Columbia, Midpoint plus $0.08, plus 3% fuel Demand Charge: $9.47 / KW-Month for each calendar month of term Scheduling: max. run 900 hrs/yr, min. take 4 hrs, 1 hr notification Transmission: Enron is responsible for any transmission charges (not including losses) Conditions Precedent: Enron being able to acquire TVA-Duke PTP firm monthly transmission for term The prices in this proposal are subject to change until a final agreement is reached. This proposal is for discussion purposes only to facilitate the negotiation, preparation, and execution of definitive agreements. This is not an offer or commitment of Seller or any of its affiliates to enter into any transaction. The transaction described herein is subject to further review and approval of the Board of Directors of Seller and Buyer, and execution of definitive agreements containing all appropriate provisions, including those related to credit and limitation of damages and remedies.
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