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Enron Mail |
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
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