Chris,

		Good to hear from you. I didn't bring the Starwood documents with me when I moved (can you believe that I forgot them?!!!), so I'm going off of memory. I believe that we are obliged to at least offer lease financing to Starwood if the conditions precedent to financing in the lease documents are satisfied. However, we do have the ability to pass through increased costs of capital that we incur as well as other appropriate costs to Starwood. 

		Hope things are going well.

 -----Original Message-----
From: 	Ahn, Chris  
Sent:	Wednesday, November 14, 2001 5:22 PM
To:	Rapp, Bill
Cc:	Short, Joseph
Subject:	re: Starwood Questions

Bill,

I hope your new job is treating you well.  Sorry to bother you but I had two more questions regarding Starwood that I am hoping you can answer.  They both regard the DSM projects.

1. If Starwood chooses not to use their own capital for DSM projects, is EES obliged to provide lease financing?

2. Related to the above, if we are obliged, are we limited in the rate we can charge?  i.e. Could we charge a "discouraging" rate?  The language in the MLA Section 2.2 seems to be adequately vague that if we were having trouble raising capital ourselves, we could pass those costs through as "such other factors as are customarily considered by lessor parties providing lease financing for similar equipment and terms."  

These questions came up when RAC looked at our summary documentation.  I am hoping these are quick questions for you.  Please let me know.

Thanks again,
Chris


Chris Ahn
West Power, EES Transition
T: (713) 345 3613