Keep it simple and just buy it off them.  No JV stuff.
 

Reagan C. Rorschach 
Enron North America 
1400 Smith Street 
Houston, Texas 77002 
713.345.3363 

-----Original Message-----
From: Mann, Kay 
Sent: Wednesday, November 14, 2001 9:01 AM
To: Rorschach, Reagan; Kroll, Heather; Acevedo, Rudy
Subject: RE: NLR & Benton Purchase Power RFP


Is your thought on the Dynegy role to have them contract with Enron, taking their profit in how they price OR enter into some type of joint venture/joint bidding arrangement?  I know you don't know what they might want to do, but I was curious as to your starting position.

-----Original Message-----
From: Rorschach, Reagan 
Sent: Wednesday, November 14, 2001 8:52 AM
To: Kroll, Heather; Mann, Kay; Acevedo, Rudy
Subject: FW: NLR & Benton Purchase Power RFP


Kay, attached is the letter from NLR regarding our proposal.

Summary of the Cities of NLR and Benton, Arkansas deal:


  _____  


assist Cities with network transmission service agreements with Entergy 
assist with initialization of OASIS, TSIN, and JTSIN transmission reservation accounts 
telemetering load from NLR SCADA and Benton's meters to Enron control room 
perform load forecasting 
manage NLR's Murray Hydro facility to serve NLR load 
deliver wholesale energy to match NLR and Benton loads inclusive of losses as an "into Entergy" product 
deliver wholesale energy such that network transmission can be used to sink energy to NLR and Benton native loads 
provide real time, day ahead, and term trading; scheduling and transmission reservations/services; volume management; settlements; and control room services 
arrange for ancillary services related to native load inlcuding Entergy OATT Schedules 1 through 6 
provide NLR and Benton with a fixed price for energy and ancillary services through the life of contract 
provde NLR and Benton with option to extend agreemetn for 3 additional years.

NLR Issues with Enron Proposal: 
  _____  


Your price is greater than 15% from the best price offer.  A substantial improvement in price would be necessary to receive further consideration. 
You have identified no resources inside of Entergy's control area.  If you can point to resources inside of Entergy's control area you may improve your position 
You did not utilize dynamic scheduling for the scheduling of generation to match load.  You may improve your position by offering dynamic scheduling. 
The Cities desire a fixed cost over the term of the contract.  You may improve your position by including any increases in the Cities' cost for Network Transmission Service over the term of the contract in your costs. 
The Negotiation Committees are alarmed by the recent developments concerning Enron's losses and the downgrading of Enron's securities.  Significant financial assurance would be required before the Negotiating Committee's would further consider Enron. 

What We'd Like to Do With Dynegy:

  _____  

Provided we can win the project, we'd like to do the following:

name generation to satisfy point #2 
use Dynegy base load generation assets to dynamically schedule the NLR and Benton loads 
name Dynegy assets as network resources

Note that we have not talked with Dynegy about any of this and any deal would be subject to mutual agreement and negotiation.


Reagan C. Rorschach
Enron North America
1400 Smith Street
Houston, Texas 77002
713.345.3363


-----Original Message-----
From: Gertsch, Joe [ <mailto:JGertsch@nlrelectric.com>]
Sent: Monday, November 12, 2001 5:10 PM
To: Rorschach, Reagan
Subject: NLR & Benton Purchase Power RFP




Reagan:

Attached is the letter I promised regarding Enron's position relative to the
other proposals.

Joe Gertsch


 <<Enron  LTR.doc>>