|
|
Enron Mail |
FYI - BE contract extended.
----- Forwarded by Aleck Dadson/TOR/ECT on 05/15/2001 09:02 AM ----- Paul Devries 05/14/2001 06:04 PM To: Rob Milnthorp/CAL/ECT@ECT cc: Jeff Borg/TOR/ECT@ECT, Jan Wilson/TOR/ECT@ECT, Chris Gaffney/TOR/ECT@ECT, Aleck Dadson/TOR/ECT@ECT, Peter Keohane/CAL/ECT@ECT Subject: British Energy Rob, after extended negotiations with British Energy, we have verbally settled on: 1. Contract drop dead date extended to December 31, 2002 2. Contract price of C$ 41.85/MWh. 3. A number of small amendments to the contract that we (Chris and I) are OK with (Chris is preparing an Amending Agreement and memo for Peter Keohane to review tomorrow). I am very happy with this as it still leaves a value of C$ 107 million (US$ 71.3 million), and it extends the contract out 13 months from the current drop dead. They were initially at C$45/MWh so we were able to squeeze them down a fair bit. Realistically, there was a fair chance of not getting any of this power as they would only have had to give Falconbridge or Dofasco or any industrial a call and been able to fill this at $45/MWh in a heartbeat. Fortunately they still see value in having a contract with us for the future opportunities that may come up in the marketplace. We have left the discussion of the put swaptions from Bruce A to a later date. Cheers, Paul D
|