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Enron Mail |
Gil, could you please review the NDA for Jeff. Thanks
Robin L. Hill Legal Specialist Enron Broadband Services (713)853-3255 (713)646-8537 fax Robin_Hill@Enron.net ----- Forwarded by Robin Hill/Enron Communications on 05/08/00 09:34 AM ----- Jeff Dasovich@EES 05/05/00 02:06 PM To: Dan Minter/Enron Communications@Enron Communications, Jean Mrha@ECT, Robin Hill/Enron Communications@Enron Communications cc: Susan J Mara/SFO/EES@EES, Paul Kaufman@EES, Dave Parquet@ENRON_DEVELOPMENT Subject: NDA for Potential Opportunity with the California ISO All of the following should be considered confidential information. In addition to the information, the ISO prefers to keep the simple fact that they are meeting with us confidential. As you recall, we met the CIO/EVP of the California ISO regarding the ISO's excess broadband capacity. The ISO is very interested in determining if EBS can devise a solution. The ISO's outside counsel has reviewed the NDA we provided and made comments. The redlined version is included below for review. Still uncertain if there's a deal here. The idea is to get the NDA signed in order to get considerably more info from the ISO and then determine whether there's an opportunity. Please review the proposed changes and let me know if there are any issues/problems. The ISO's big concern is ensuring that it doesn't get crossways with MCI w.r.t. confidentiality, but they've told me they've cleared that hurdle. Here is the note the ISO outside counsel used to describe the changes: Jeff: Attached is a revised version of the proposed NDA, together with a redline showing changes from the Enron version. The main reasons for changes were to (1) limit data to the Enron telecom entity, and (2) assure compliance with ISO's MCI agreement. Let me know if there are any remaining issues. Jim I've also include some info that Dan Minter and I culled from the initial meeting with the ISO. The Network MCI built the system. The ISO currently shares its private, dedicated network 50-50 with the California Power Exchange, though the ISO like to take control of 100% of the asset. The network consists of 4 OC-12s and as part of the contract, the ISO has a call to upgrade at no or very little cost to 4 OC-48s. This "scalability" was built in to accommodate what California believed would be a very large and rapidly growing number of users (mostly scheduling coordinators), but California greatly underestimated the number. So the ISO is left with considerable excess capacity. About 1/2 the capacity is currently used by the PX, but the ISO would like to terminate that relationship as quickly as possible (if possible). It's an ATM switched network with 11 A-PoPs and 4 B-Pops and it runs from Folsom (Sacramento) to Alhambra (around Pasadena). The B-PoP locations are Hayward, Sacramento, Long Beach, and Claremont. The Contract The ISO pays about $30-35 million/yr under the contract---significantly above market. The contract ends at the end of 2003. The contract includes a costless, or very low cost, option to upgrade from OC-12 to OC-48 (we'd need to find out "how costless," and how long it would take to upgrade if the ISO exercised the option). The contract also permits interconnection to the network (by MCI) for $485, irrespective of difference from the grid. Access to the network is defined as DS1. The Goals of the ISO's EVP/CIO Reduce costs immediately. Needs to take a plan designed to mitigate the costs to the Board in 60 days. Wants to maintain some flexibility in the event usage grows. "Would like to do a short term deal, for "nonfirm" service and get a high price," but would do a long-term, firm deal if it reduced his costs significantly. - Redline Enron -- CA ISO NDA.DOC
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