FW: fixed forward or other Collar floor gas price terms

---------------------- 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
<