The exposure goes up $3MM-$5MM per month up to the equipment contract cost of $67MM for an incremental DASH of approx $49MM (with interest).  Chip and I talked about approving the full amount, but checking monthly with you and him as to whether or not we want to continue payments.  An alternative is to DASH 2 more months now and formally evaluate our position at year-end. 



Chris Calger
503-464-3735

 -----Original Message-----
From: 	Kitchen, Louise  
Sent:	Friday, October 26, 2001 2:25 PM
To:	Calger, Christopher F.
Subject:	RE: Longview DASH

How much?

 -----Original Message-----
From: 	Calger, Christopher F.  
Sent:	Friday, October 26, 2001 4:20 PM
To:	Kitchen, Louise
Subject:	Longview DASH

Louise,

Chip will want to talk with you about the Longview equipment.  We are circulating a DASH to enable us to continue making payments.  If we do not continue to make payments, we forfeit the equipment and take a $23MM hit.  This is approximately 35% of the total equipment contract.  I think the equipment is worth more (than 65%) and I believe that we will get out of this problem with less than a $22MM hit.  I therefore recommend that we commit the extra $ for this equipment.  It will continue to be funded off B/S.  

We continue to have discussions/negotiations with Calpine, NRG and TransAlta.  We have also opened up general equipment discussions with Mirant and AES.  

Regards,

Chris Calger
503-464-3735