We can definitely show them a firm, fixed price bid at SP-15.  They should be able to deliver into SP-15.  The issue is that we require huge credit for market LD's.  Duffy told Laura and Stew Rosman that the plant would have some free optionality from CFE so we thought that a services approach made sense.  

Our unit contingent fixed-price bid would be haircuted so much that it would not get done.

Laura and Stewart are prepared to show fixed-price term bids if that's what they want but I suspect that we will have a big credit /transfer price discussion - ultimately someone has to pay for the market LD's.  

Chris Calger
503-464-3735

 -----Original Message-----
From: 	Kitchen, Louise  
Sent:	Thursday, June 21, 2001 9:32 AM
To:	Calger, Christopher F.
Subject:	Fapsa

Don't know whether you have heard of the Mexico plant at Fapsa's paper company.  Potentially the project would need to export 10-15MW to you guys to make it viable.  I know they have been talking to Laura Wente in your group and got feedback that the best you can do is reasonable endeavours.

Is this at all viable on a firmer basis or viable at all?

Thanks

Louise