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Enron Mail |
FYI - Barton Clark called me to discuss spark spread concept. I'll be in
Brazil from 8/17-8/20. However, I'll alert Carol St. Clair to the possibility of a call. Sara Barton Clark 08/11/99 12:54 PM To: Sara Shackleton/HOU/ECT@ECT cc: Subject: Pastoria - Revised Enron/GE Agreement As we discussed earlier today, Chris Foster is in the process of analyzing the economics of the proposed derivative structure to determine indicative price,term, etc., and Catalytica is considering whether the structure meets its requirements. The attached draft ECT/GE agreement should give you some useful background and other details about the transaction. Thanks for your assistance. ---------------------- Forwarded by Barton Clark/HOU/ECT on 08/11/99 12:50 PM --------------------------- Sean Black 08/10/99 07:49 PM To: Dale Rasmussen/HOU/ECT@ECT, Barton Clark/HOU/ECT@ECT, Wayne Gresham/HOU/ECT@ECT cc: Brad Nebergall/HOU/ECT@ECT, Chris Holmes/HOU/ECT@ECT, Samuel Wehn/HOU/ECT@ECT, Henry Finkenstaedt/HOU/ECT@ECT, Vince Middleton/HOU/ECT@ECT, Winston Cheng/SF/ECT@ECT Subject: Pastoria - Revised Enron/GE Agreement Attached is the latest revision of the agreement for your review and comment. With regards to the Catalytica/Enron agreement, we are still working with Catalytica to come to agreement on an acceptable structure for both parties. However, the basic agreement as it stands is that we are working on a spark spread derivative structure which 'mimics' the macroeconomics of Pastoria as much as possible (e.g., 750 MW, local spot PX prices and gas price, etc.) but would not have any contractual link to the project. Under this agreement, we would always have the right at any time to buy back the spread for 10 MMUSD, or exchange it for the XONON credit if we could not use it at Pastoria or at another Enron project. We are working with the West desk to come up with a indicative price for such a spread so we can begin to craft an agreement which we can then pass on for your further review and comment. Keep you posted... Regards,
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