My morning is fairly open, other than grinding on the purchase contract.





Heather Kroll@ECT
10/22/2000 01:31 PM
To: Kay Mann/Corp/Enron@ENRON
cc: Jeffery Ader/HOU/ECT@ECT, Scott Healy/HOU/ECT@ECT, Stephen 
Plauche/Corp/Enron@Enron 

Subject: Re: CRRA LOI  

Let's meet in the morning and discuss the LOI.

Kay,

To briefly answer your questions, we are contemplating another layer of 
documents with the EPC contract.  There will also be a Development Agreement 
that outlines our development activities and our nonrefundable fee.  I don't 
read his comments to mean he only wants one EPC contract.  Let's discuss 
tomorrow.  Also, we've told Bob Wright that if the plants don't work, the 
state gets its money back.  I think he and everyone involved would be 
amenable to a performance band provided that a comparable reduction in price 
accompanies the reduced performance (to the 10 percent floor, of course).  
This LOI outlines the EPC contracts only.  The Development Agreement will 
cover our fee.  So, no, our fee is not at risk for the fuel cells failing to 
perform.  We will have some risk on BOP if the plants fail.

What time works for everybody?  How about 9:30?

Heather


   
	
	
	From:  Kay Mann @ ENRON                           10/21/2000 12:14 PM
	

To: Jeffery Ader/HOU/ECT@ECT, Heather Kroll/HOU/ECT@ECT, Scott 
Healy/HOU/ECT@ECT, Ozzie Pagan/HOU/ECT@ECT, swanita_99@yahoo.com
cc:  
Subject: CRRA LOI

Hi guys,

In looking at CRRA's comments to the draft LOI. I have these questions:

1.  I'm not sure what we mean by EPC contract.  Is this referring to the Fuel 
Cell document we are working now, or is there to be another layer? I know 
this may depend on whether CRRA or someone else is doing the balance of the 
construction activities.

2.  He expects one EPC contract, and we had tried to leave room for multiple 
contracts. Does anyone care?

3.  Does CRRA get a full refund of the purchase price if the fuel cells fail 
the performance tests?  We have discussed with FCE the concept of a 
proportional reduction if the performance is within 10 percent, then a full 
reduction as to the failing unit(s) only.  Also, are we planning to mark up 
the fuel cell contract to recover our fee?  Is our fee at risk for the fuel 
cells failing to perform? 

Thanks,

Kay