pls print with attachments.  thanks. df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 06/16/2000 
08:42 AM ---------------------------


John M Rose@ENRON_DEVELOPMENT
06/15/2000 06:53 PM
To: Bill Gang@EES
cc: Bill Votaw@ECT, Jerry D Martin/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, 
Arnold L Eisenstein/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steven Harris@ENRON, 
Drew Fossum@ENRON, Lorraine Lindberg@ENRON, Stephen Thome@ECT 

Subject: Pueblo

Bill,

Yesterday, we decided to look at two options for Pueblo; a 60 MW case and a 
140 MW case.  In order to match these outputs as closely as possible with 
available equipment, I made the following selections:

Case 1
Equipment     3 X GE LM 2500 Gas Turbine Generators with Heat Recovery and 1 
X 22 MW Steam Turbine Generator
Output at 95 deg F & 5000 ft   67 MW
Output at avg. conditions (60 deg F)  73.4 MW
Heat Rate at avg. conditions  8170 Btu/kWh (HHV)

  
Case 2
Equipment     3 X GE LM 6000 Gas Turbine Generators with Heat Recovery and 1 
X 44 MW Steam Turbine Generator
Output at 95 deg F & 5000 ft   130 MW
Output at avg. conditions (60 deg F)  143.7 MW
Heat Rate at avg. conditions  7900 Btu/kWh (HHV)

There is a wide fluctuation in ambient temperature in Albuquerque and I sized 
the blocks based on 95 deg F but used the annual average output at 60 deg F 
for estimating power sales.  I have attached files that show the build-up of 
the estimated EPC price for the plants. 

The required power prices are projected in a simple-minded economics file 
attached.  The projections are based on:

70% debt financing at 10% rate.
10-year project and debt life.
8500 hours per year at average output (97% capacity factor).
Gas at $4.40/MMBtu.

The results turn out pretty much as anticipated.  Even with the larger plant, 
we'd have to sell the power for over 6c/kWh.