Louise,

Just a heads up on an opportunity you might hear about:

- NEPCO has an EPC contract with a small IPP for a 245MW combined cycle project in Goldendale, WA, adjacent to an aluminum smelter

- NEPCO brought an EECC turbine to the project as part of the EPC contract

- The developer's financing fell through 3 weeks ago (they attempted a highly structured muni-bond financing with tolls for marketers and the smelter)

- NEPCO has been paid several million $ for engineering services, but construction wont start until a big payment ($30MM+) is made April 18

- When the financing fell through they called the big generators to see who would step up - Reliant was the most agressive, but last week Reliant changed their bid - instead of paying up-front they will pay at COD subject to high delay damages

- The developer appears to be in a bad box 

- NEPCO called us last week - the developer would like Enron to provide construction financing

- I sent in a SWAT team to check out the project

- In general, we like it, but I am not interested in lending $ to other people, so I am figuring out if we could just buy it.  It is approx $200MM to construct but its early time to market may make it economic

Three things could happen here:
1) Someone else buys it and NEPCO continues with their EPC contract

2) Enron buys the project from the developer, constructs and flips

3) Project dies altogether - in this case we want to make sure ENA gets the turbine - Janet and I wanted it last year; now Duran, Jacoby and I still want it.


I will keep you posted.

Regards,

Chris