Can you all help with the California issues?
---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 06/22/2001 
12:55 PM ---------------------------
   
	
	
	From:  Christi L Nicolay                           06/19/2001 03:33 PM
	

To: Robert Eickenroht/Enron@EnronXGate, Paul Kaufman/Enron@EnronXGate, Janine 
Migden/NA/Enron@Enron, Steve Montovano/NA/Enron@Enron, Harry 
Kingerski/NA/Enron@Enron
cc: James D Steffes/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON, David 
Portz/Enron@EnronXGate, Robbi Rossi/Enron@EnronXGate, Ray 
Alvarez/NA/Enron@ENRON, sscott3@enron.com, Andrea Woodland/Enron 
Communications@Enron Communications 

Subject: ASAP please -- EBS on site power deals


EBS owns on-site back up generators at various POP locations (in the EBS 
buildings) across the US (see the list below.  The generators max at appr. 
1.5 MWs each.  Per the generator permits, the generators only run during 
emergencies when there is no power coming off the grid.  EBS only uses about 
20% of the generator output.

EBS has been approached by several tenants within the EBS buildings about 
"sharing" by purchasing power from the on-site generators during emergencies 
only.  The appr. value to EBS is $2MM this summer.

Robert--Are there any PUHCA issues to Enron if EBS sells power to other 
tenants in the same building?  Is EBS required to obtain an EWG certificate 
before doing this?

Retail folks--Since the power would not flow to the grid, this seems like it 
may entail a "retail type" sale of on-site generation, rather than a 
wholesale sale for which a power marketer license is required.  Do you know 
of any specific restrictions for the states listed?  (FYI -- One of the 
locations is in San Jose and the power has been curtailed severel times at 
the location.  It certainly seems like Cal. would be encouraging the use of 
back up generators, but I do not know the specific rules.)

Finally, since EBS wants to act quickly, we discussed EBS hiring perhaps Sam 
Behrens to work through this issue in the event we are unclear about any of 
the regulations or rules.  Thanks for letting me know your comments right 
away.

 -----Original Message-----
From:  Woodland, Andrea  
Sent: Friday, June 15, 2001 4:35 PM
To: Rossi, Robbi
Subject: Re: Power

Here's the scope of this project.  I do not have David's email, so could you 
send this onto him?

The plan is to sell Emergency Power at our POP's.  There are 11 POP's where 
we have generators installed in the building, and we are only utilizing 
approximately 20% of the capacity.  The plan is to sell the other 80% to 
other building tenants.  The power would only be provided in emergency 
situations - which means when the normal power grid is down (current building 
permits allow this).  There would be an up front cost to providing the power 
(breaker/conduit/conductor) which we would pass onto the customer as an 
ititial Non-recurring Fee.  They would pay a monthly fee to have the 
emergency power available (demand charge), then pay a fee for the kwh used 
(capacity charge).  The customers that will be interested in this are either 
tapped out on their generator or do not currently have a generator.  So, to 
pay a initial connection fee, which will be much less than the cost to 
install a generator, and then a monthly fee for the power insurance, should 
be acceptable.

This file shows the cities & the generator sizes, with about 80% available.  
The companies on the right are who I've currently sent letters to.  So far 
we've received 3 phone calls - 1 who wants to buy all the power he can in San 
Jose.  From these discussions, the requests have ranged from 100A or 83kW to 
1000 A or 830kW.



We need a term sheet or contract, and I would also be interested in speaking 
with EPMI about a contract with them.  Sounds like that might be a bit less 
risky.

Thanks for you help.
Andrea Woodland
Enron Broadband Services
503-886-0532 (desk)
503-880-4547 (cell)





	Robbi Rossi/ENRON@enronXgate 06/15/01 12:47 PM 	   To: Andrea Woodland/Enron 
Communications@Enron Communications  cc:   Subject: Power




  Andrea,

  David called me back and said he wanted to talk to Kristy Nickolay - his 
regulatory person before we spoke.  It may be helpful if you could send him a 
brief description of the intended transaction.  The power people are very 
busy right now - and the easier we can make it for them to help us - the 
better.  He needs to know something about the size of the transactions and 
the potential customers.