Rob,this deal is not dead; I am primarly waiting on NEPCO numbers.

You should be moving down the road on the deconstruction, refurbishment and 
movement of the NB machines.   You should also be doing any development work 
(permits, interconnection agreements et al) you need to do to maintain the 
optionality of this project (let me know if the expenses get above $1MM).

Randy, please facilitate. Mike, can we put the screws to ABB given the 
significant transformer business we forwarded their way?

Laura, we probably need to make a call on the Peoples turbine pretty soon.

Eric/Rob, I think we need to see the project with IDC come in  between 350 to 
400/kw to be viable or I need a very detailed analysis of why it costs 
significantly more than a Frame 7 machine in the US markets.

I would like see us make this work.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 06/02/2000 
03:18 PM ---------------------------


Rob Milnthorp
06/02/2000 10:16 AM
To: David W Delainey/HOU/ECT@ECT
cc: Eric LeDain/CAL/ECT@ECT, Kyle Kitagawa/CAL/ECT@ECT 
Subject: Moore Power Plant status

Dave, the impression we are getting is that Houston thinks this deal is dead 
or on the back burner. Until you tell me otherwise, we are going full steam 
ahead. Is there any way that you can help us get the airtime we need down 
south? We are now down to crunch time, and I dont want to see this project 
slip away due to control groups dragging their feet.

Regards
Milnthorp


---------------------- Forwarded by Rob Milnthorp/CAL/ECT on 06/02/2000 08:52 
AM ---------------------------
From: Eric LeDain on 06/01/2000 05:12 PM
To: Kyle Kitagawa/CAL/ECT@ECT, Rob Milnthorp/CAL/ECT@ECT
cc:  
Subject: Moore Power Plant status

The following is a status update of key current items:
1. We continue to try to confirm the viability of the Peoples units.  We have 
not received NOx versus water injection data.  We still have not received the 
full noise spectrum data.  It looks like the only source for this is ABB and 
they're not fast.  Peoples and ourselves are going after ABB on these issues 
(and the possibility of a change order on the exciter design which doesn't 
meet Ontario specs).
 - we have confirmed that the municipality can provide 600 USGPM of water, 
but the silica content has to be confirmed to see if it's a problem.  I met 
with Terra Industrial Tuesday and they remain interested in providing the 
treated water, but they would have to expand their treatment plant.  They can 
provide 1/3rd of the water required and their permit can handle the waste 
stream on regen for the full water flow - we're sorting out the optimum tank 
capacity versus treatment plant capacity sizing to meet reliability at 
minimum cost.  Bottom line is we've got options to handle this water flow and 
we can avoid trying to get a permit for waste water.
 - we're going to use the noise consultant EE&CC used in conjunction with 
Agra Envir. in Canada to sort out the low frequency noise problem, and check 
the other frequencies against our nearest receptor, once we get the data from 
ABB.
 - Peoples are checking with ABB on the possibility of a change order on the 
exciter design.
2. MCN/Columbus have come back on the other two N2 units - they want another 
$1 MM US and can't confirm any changes to the contract.
We are completing our comparison of the Peoples/MCN contracts - the MCN 
contract is much better (guarantees, liquidated damages etc.) but of course 
power output is less.
3. We kicked off Agra to prepare our permit amendment (using data from both 
the Peoples N2's and MCN N2's).
4. NEPCO capital cost estimate will be ready June 9th.  It looks like $2-3 MM 
will come out of the base estimate for the N1's due to the acceleration and 
winter work coming out.  They still have to do the N2 estimate.  There might 
be a chance to push this ahead to the end of the 7th if we were to pressure 
them more.
5. We feel we can increase our N1 output up by 6 MW at 90F without 
incremental O&M.  The Peoples units would add an incremental 40 MW at 90F.

Using the Peoples units our capital per kW at 90 F is $397 US/kW (using our 
original $156 MM incl. IDC estimate less $2 MM).
Using the MCN units our capital per kW at 90F is $443 US/kW.

Issues:
1. We are not getting great support from Houston in many areas, with the 
exception of some like Don Miller/Genco.  It appears that some groups like 
underwriting/RAC and structuring either are getting the message this project 
is not going ahead, or are taking our continued delays in approval to work on 
all of their other priorities (hoping that we will go away presumably...).  
Schedule becomes more of a concern every day.
2. The Ontario interconnection timing becomes more and more of a concern each 
day that passes as OH isn't the fastest working entity.  Aleck and Duncan 
continue to work the IMO/OHSC/OEB angles but with some of the rules not set 
yet we may need higher level pressure at some time soon.  I'll let you know.