---------------------- Forwarded by Phillip K Allen/HOU/ECT on 10/16/2000 
01:42 PM ---------------------------


"Buckner, Buck" <buck.buckner@honeywell.com> on 10/12/2000 01:12:21 PM
To: "'Pallen@Enron.com'" <Pallen@Enron.com>
cc:  
Subject: FW: fixed forward or other Collar floor gas price terms


Phillip,

> As discussed  during our phone conversation, In a Parallon 75 microturbine
> power generation deal for a national accounts customer, I am developing a
> proposal to sell power to customer at fixed or collar/floor price. To do
> so I need a corresponding term gas price for same. Microturbine is an
> onsite generation product developed by Honeywell to generate electricity
> on customer site (degen). using natural gas. In doing so,  I need your
> best fixed price forward gas price deal for 1, 3, 5, 7 and 10 years for
> annual/seasonal supply to microturbines to generate fixed kWh for
> customer. We have the opportunity to sell customer kWh 's using
> microturbine or sell them turbines themselves. kWh deal must have limited/
> no risk forward gas price to make deal work. Therein comes Sempra energy
> gas trading, truly you.
>
> We are proposing installing 180 - 240 units across a large number of
> stores (60-100) in San Diego.
> Store number varies because of installation hurdles face at small percent.
>
> For 6-8 hours a day  Microturbine run time:
> Gas requirement for 180 microturbines 227 - 302 MMcf per year
> Gas requirement for 240 microturbines 302 - 403 MMcf per year
>
> Gas will likely be consumed from May through September, during peak
> electric period.
> Gas price required: Burnertip price behind (LDC) San Diego Gas & Electric
> Need detail breakout of commodity and transport cost (firm or
> interruptible).
>
> Should you have additional questions, give me a call.
> Let me assure you, this is real deal!!
>
> Buck Buckner, P.E., MBA
> Manager, Business Development and Planning
> Big Box Retail Sales
> Honeywell Power Systems, Inc.
> 8725 Pan American Frwy
> Albuquerque, NM 87113
> 505-798-6424
> 505-798-6050x
> 505-220-4129
> 888/501-3145
>