In addition, make sure we understand the steam obligation and it's effect on dispatch flexibity and heat rate.  It appears the 8000 Heat Rate is assuming above market steam sales are buying down the heat rate.   Solar turbines in combined cycle (without a steam sale credit) would usually have a heat rate around 10,000 Btu/kwh.

The lower heat rate is probably predicated on providing 24 hour steam, which means less dispatch flexibility and producing off-peak energy at a loss.

Make sure we are modeling these dynamics properly.

 -----Original Message-----
From: 	Herndon, Rogers  
Sent:	Friday, June 15, 2001 8:40 AM
To:	Morse, Brad
Cc:	Bernstein, Mark; Virgo, Robert; Presto, Kevin M.; Ader, Jeff; Misra, Narsimha; Dietrich, Janet
Subject:	York Generation Valuation

Brad -

Some items we need to make sure we are addressing in this valuation analysis:

Fixd Costs and O&M:
Property Taxes
Gross Receipts Tax
Franchise Tax
Firm Transport Costs - Demand Charges (Full Basis in outer years)
Operations
Service Fees associated with any wholesale dispatch (Lloyd's group)

Heat Rates & Other Variable Issues
What is the Heat Rate Assumption during CT and CC mode and has Bob Virgo confirmed this?
Degradation factors
Recent Historical Run Times and awhen we would provide on-site live verification tests
Emmissions limitations
NG Intra-Day Premiums


Bob - I would like to get any information that you have that will be necessary to complete this evaluation.
Brad - I would like to discuss where you are in this process sometime befor the day is over.

Thanks,
Rogers