Russ/Ben

Here is Lincoln's response to our questions.  You may want to get with Sandra 
to discuss this

---------------------- Forwarded by Oscar Dalton/HOU/ECT on 01/20/2000 08:51 
AM ---------------------------


"Rich Kosch" <rkosch@les.com> on 01/20/2000 08:48:03 AM
To: Oscar Dalton/HOU/ECT@ECT
cc:  
Subject: Re: Questions






Assume an 8% cost of money(taxable) and 25 year amortizaton schedule per our
Financial people. Assume also that we will need to include
a bond reserve fund of equal to one years P and I  plus about 1.5% financing
costs.  The latter two simulates the cost of taxexempt financing requirements.
which we are assuming taxable will be in the same ballpark of requirements.

Again the $545 does not include an SCR. When we got our PSD permit for our
Rokeby 3 unit, the informal quotes we got for that unit were in the
  1.6 to 2.0  Million  dollar range. In the end, we proved to EPA that the
addition  was not  cost effective by some convoluted economic analysis
they made us go thru. However it became very obvious to us, this is their next
regulatory objective. We were so convinced that our Rokeby3
was going  to need an SCR we had internally resigned ourselves to that
unpleasant assumption.
We would assume a 45mw unit's cost would be about 2/3 the cost of this larger
unit 90MW machine ie Rokeby 3..








"Oscar Dalton" <odalton@ect.enron.com> on 01/19/2000 06:26:34 PM








 To:      Rich Kosch/LES@LES

 cc:



 Subject: Questions











Rich,

In working through our analysis for the revised proposal to Lincoln, I had the
following questions:

1.  In Lincoln's cost estimate of $545/kw, did this include SCR's?

2. Under taxable financing, what interest rate and repayment period would
Lincoln normally find acceptable?


Any input you could provide would be appreciated.


Thanks


Oscar