Ben, 

Rick Winsor's note below has prompted me to provide a timeline with regards 
to the issue of Zilka's concerns with our Availability calculations.

5/2/02
Rick Winsor states on a Mill Run noise issue conference call that Gary 
Verkleeren has "scrubbed the data" from the Jan thru March time period and 
arrived at a 92% to 93% availability figure. Rick also states that SCADA and 
operational procedures have inflated availability.
While on the conf call, I stated that we would be very interested seeing the 
data as well as the methodology utilized by Zilkha to arrive  at these 
numbers and that we would work diligently to resolve the discrepancy between 
our numbers and theirs.  Rick replied that the information would be sent 
soon. Michael Miller, Michael Payne and Tom Nemila were participants on the 
call.     
5/15/02
Kurt Anderson sent an e-mail to Gary V. requesting the information regarding 
the availability and reiterating our desire to resolve this issue.
Gary V. replied with the data and a copy of a letter he sent to Rick W. that 
outlined the methodology utilized in Zilkha's calculations. 
Gary V's e-mail stated that he wanted to review the data with Joe Thorpe to 
"explain the basis and reasoning applied to the calculations" with the intent 
that Joe would then share this information with Tehachapi.
Upon receipt of the data I immediately forwarded this info to Hollis 
Kimbrough and requested that he review it and provide comments to Joe, in 
order to prepare Joe for his meeting with Gary. Hollis responded with an 
e-mail to Joe dated 5/16/02 in which he clearly indicates his concerns with 
the methodology utilized by Zilkha. Additionally, Hollis and Joe spoke at 
length regarding this issue.
5/21/02
Joe T and Gary V. met and reviewed Zilkha's availability calcs, during this 
meeting Joe T outlined our concerns with Gary's logic and  methodology. While 
in the meeting, according to Joe, Gary V stated that he may have made some 
errors and that he wanted to recalculate the availability. This was the last 
word Joe heard from Gary V regarding this subject.
5/23/02 Rick Winsor sends the note in which states that we "shrug off their 
inquiries", to Michael Zilkha, who then forwards it to Steve Zwolinski, 
Colleen Repplier and you. 

 




Benjamin Bell
05/27/2002 05:21 PM
Sent by: Benjamin Bell
To: Lois Woodland/EWC/Enron@Enron
cc: Dan Lindquist/EWC/Enron@Enron, Jeff Maurer/EWC/Enron@ENRON, Kurt 
Anderson/EWC/Enron@ENRON, Joe Thorpe/EWC/Enron@Enron, Hollis 
Kimbrough/EWC/Enron@ENRON, Mark Fisher/EWC/Enron@Enron 

Subject: Re: FW: GEWE reporting and follow-up

Lois:  Please schedule a meeting this week (preferably late Tues or Weds) 
with the cc'ed group above and help coordinate a conference call with Rick 
Winsor at Zilkha towards the end of the week.  Thx, Ben
---------------------- Forwarded by Benjamin Bell/EWC/Enron on 05/27/2002 
05:35 PM ---------------------------


Benjamin Bell
05/27/2002 05:17 PM
Sent by: Benjamin Bell
To: Michael@zilkha.com
cc: steven.zwolinski@ps.ge.com, colleen.repplier@ps.ge.com, Joe@zilkha.com, 
mskelly@zilkha.com, rwinsor@zilkha.com, Dan Lindquist/EWC/Enron@Enron, Jeff 
Maurer/EWC/Enron@ENRON, Kurt Anderson/EWC/Enron@ENRON, Joe 
Thorpe/EWC/Enron@Enron, Hollis Kimbrough/EWC/Enron@ENRON, Mark 
Fisher/EWC/Enron@Enron 

Subject: Re: FW: GEWE reporting and follow-up  

Dear Michael,

We, too, enjoyed the opportunity to meet with you last Thursday and 
appreciate the candid feedback you and Michael were able to give us regarding 
the PA projects.  We are currently investigating your and Mr. Winsor's issues 
regarding availability, noise, blades, electronic faults, and cold weather 
faults.  I suggest we schedule a conference call with our Operations team and 
Mr. Winsor this week to clarify and resolve any issues you may have.  We 
appreciate your business, and look forward to serving you better in the 
future.

Best regards,
Benjamin Bell
GE Wind Energy
661-823-6827




Michael@zilkha.com on 05/23/2002 11:40:05 AM
To: steven.zwolinski@ps.ge.com, colleen.repplier@ps.ge.com, 
benjamin.bell@ps.ge.com
cc: Joe@zilkha.com, mskelly@zilkha.com, rwinsor@zilkha.com 

Subject: FW: GEWE reporting and follow-up



I wanted to thank all three of you for coming to meet with us this morning. 
It is very exciting to have GE in this business. I am forwarding the 
following e-mail since I thought you would want to know what the feelings 
currently are in the trenches at Zilkha in terms of the PA projects. The 
projects were commissioned six months ago so I can understand the frustration.

We look forward to seeing you at AWEA and to a long and fruitful relationship.

With best wishes,

Michael

>  -----Original Message-----
> From:  Rick Winsor
> Sent: Thursday, May 23, 2002 1:15 PM
> To: Michael Zilkha
> Cc: Michael Skelly
> Subject: GEWE reporting and follow-up
>
> Michael,
>
> I spoke with Michael Skelly about your meeting this morning with GEWE and 
he suggested that I might give you something specific on certain GEWE issues.
>
> We are drafting a formal letter to GEWE to express our concerns with their 
overstating of availability and general unresponsiveness to issues.  In our 
view their performance is unacceptable.
>
> Along those lines, attached is an analysis of availability for the January 
- March period for both Mill Run (10 machines) and Somerset (6 machines). The 
attachment shows in the second last column the GEWE reported availability and 
in the third last column an availability number we determined after 
significant data analysis.  We believe that GEWE overstates their 
availability numbers by up to 4%.  We have shared this information with GEWE 
personnel but they quite frankly just shrug off our inquiries.
>
> Issues on noise, blade failures, electronic failures, cold weather faults, 
etc. are not at all adequately responded to by GEWE and we will be 
reiterating in our letter this concern.
>
> Also attached is an e-mail of today regarding Gary's observations on GEWE's 
April reports.
>
> Have a safe trip home.
>
> regards
>
> rick
>
>
>
> >  <<Mill Run & Somerset Monthly reports>> > >  <<Availability.zip>>
>
>
>
>
> Rick Winsor
> Zilkha Renewable Energy
> 1001 McKinney, Suite 1740
> Houston, TX 77002
>
> rwinsor@zilkha.com
> www.zilkha.com
> Telephone  713-571-6640
> Direct        713-265-0244
> Fax           713-571-6659
> e-fax          253-541-8837
> Cellular      713-870-5504
>

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Subject: Mill Run & Somerset Monthly reports
Date: Thu, 23 May 2002 11:03:58 -0500
Message-ID: <C4F6659E22D8194B925933CC808802540FC15D@server4.zilkha.com>
X-MS-Has-Attach:
X-MS-TNEF-Correlator:
Thread-Topic: Mill Run & Somerset Monthly reports
Thread-Index: AcICc2zvlTjbDznqRMKWdw4R6bKDng==
From: "Gary Verkleeren" <GVerkleeren@zilkha.com>
To: <kurt.anderson@ps.ge.com>
Cc: "Rick Winsor" <rwinsor@zilkha.com>, "Mark Haller" <mhaller@zilkha.com>, 
<joseph.thorpe@ps.ge.com>

Kurt,

I have a few questions relating to the Monthly Reports prepared for the Mill 
Run and Somerset Wind Farms.  They are as follows:

* On April 5th the Main Circuit Breaker located within the pad mounted 
transformer on WTG#7 at Mill Run was torn apart and replaced by Marvin Blanco 
(GE Turbine Tech.).  In addition, on or about this same date IGBT's were 
replaced within the same turbine.  Nowhere in the Monthly report are these 
issues mentioned, please explain?

* WTG#9 at Mill Run experienced downtime between 4-17-02 at 10:00 A.M. and 
4-24-02 at 4:00 P.M. this equates to 7 days - 6 hrs. or 7.25 days.  Assuming 
WTG#7 operated fault free the entire month (its availability at 100%) except 
for the above mentioned period of 7.25 days, the best possible availability 
that could be realized would be            (1-(7.25/30) x 100) = 75.8%.  
Please explain how the availability of this turbine can be 78.6% as listed in 
the Monthly Report?

* On 4-25-02 WTG#8 experienced several hours of repair time due to worn HV 
cable which had been rubbing against the ladder rungs at the yaw deck level.  
Apparently, the bundle of cables sways or moves during normal operation and 
over an extended period it caused significant wear to the protective 
coating/insulation.  Why was this not mentioned?  Are other turbines 
experiencing this problem?  Is there a retrofit being considered?

* On 4-28-02 a storm event with heavy winds rolled through the area.  
Turbines #2, #3, and #8 at Mill Run all experienced faults requiring 
component replacements.  The Summary on individual turbine activity in the 
monthly report does not reflect this, neither does the Consumption Log also 
contained within the Monthly Report, please explain?  In fact, WTG#8 required 
a new rack of IGBT's as a result of this storm event and no mention is made 
in the report to an IGBT replacement for this turbine.  Furthermore, on 
4-30-02 a new rack of IGBT's was installed in WTG#8 and they were blown upon 
start up.  IGBT's are major components, As a minimum I would expect the 
monthly reports to include major component failures/replacements.

* I need clarification on what exactly Section 7. EXHIBITS is attempting to 
demonstrate.  Surely, this is not an attempt to list all faults that a 
turbine experienced for the current month.  How are you selecting the faults 
you choose to include on the list?  For example, WTG#4 lists one (1) fault 
for the month and clearly that was not the case.  As one example, check the 
operational activity for WTG#4 on 4-22-02 where it experienced multiple 
faults among them "Gearbox Oil Pressure Too Low."

We have to have a better account of the operational history of these wind 
farms through GE Wind Monthly Reports.  I understand that the company as a 
whole has been consumed with many other tasks relating to the recent 
acquisition and that your attention has been elsewhere.  Nevertheless, we 
need to work together in order to improve the accuracy and attention to 
important details that is lacking within these reports.

I look forward to working with you and Joe to make these projects better and 
more accountable.

Best Regards,

Gary


Gary Verkleeren
Zilkha Renewable Energy
68 Braddock Drive
Ohiopyle, PA  15470

Office:  724 434-1542
Mobile: 724 554-0924
Fax:  724 434-1543


 - Availability.zip