Calpine Cost Estimates

I spoke with Earl regarding the cost differences indicated for the Calpine -Topock interconnect. The project files were discarded when the E&C Group moved to 3 Allen Center due to lack of storage capacity. But Earl recalled that Jim Tucker said that the scope change was done at the request of Marketing which explains the two work order forms that you have. E&C does not initiate project scope changes unless directed.

Since Calpine was supposed to "? install measuring station to Enron specs", the scope change items and labor (for EFM/RTU, battery backup, SCADA, and radio comm.) would have been provided by Calpine in the original work order for $68,900. However, it is my presumption that Calpine felt that the scope change items were exotic and more suitable for Enron to handle directly; therefore, the scope change items may have been requested by Calpine to be furnished and installed by Enron at the revised work order amount of $113,900. This type of scope change would have been consulted and approved by Marketing representation (Jeff Fawcett - Calpine rep.) prior to initiating the scope change work order.

EF x3-3395