Guys, I would like your opinion on this potential transaction.  This has been 
sold through GE for some time and it is reasonably likely that if we employed 
some additional resources that this could be completed over the next quarter 
or so.

Ultimately, Rodney and his team would like to see EES take control of the 
deal with EIM folks staying involved to ensure continuity and to assist to 
closure. Assuming that the sales process is largely completed, I see some 
value for Enron to take this deal including:
 a) $200 M in TCV for 2000;
 b) $3 to $5 M in value;
 c) GE on our EES resume of companies which will help in future sales to the 
large industrial customers;
 and d) provides an "in" to the GE family of companies which could result in 
significant up-sell capability in the future if we provide a quality product.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 10/13/2000 
09:36 AM ---------------------------
   
	
	
	From:  Rodney Malcolm                           10/12/2000 07:37 PM
	

To: David W Delainey/HOU/ECT@ECT
cc: Raymond Bowen/HOU/ECT@ECT 
Subject: GE Plastics Facts

Dave,

The GE Plastics facility is located in Selkirk NY just south of Albany and 
produces polystyrene and polyphenyleneoxide.  The deal value is roughly $4-5 
million NPV of which $3-4 million may be markable income.  

The obstacles to closure are:
- the projected savings have gone from 27% to 20% when GE said they wanted 
more
- there is some capital recovery at the end of year ten that GE would have to 
pay us and they are not yet agreeable to,
- the savings include $1 million in O&M savings and it will be very difficult 
to get to closure with them letting us do the O&M

Deal Stats Are:

Electricity  230,000 mwh/yr  $12 million/yr
Steam  430,000 lbs/yr  $3   million/yr
Gas  470,000 mmbtu/yr $2   million/yr
O&M     $3   million/yr
Total     $20 million/yr

10 year contract, total contract value $200 million.

Let me know if you need any further information.
Thanks,
Rodney