Gleason #1

Whats's up with these machines - are we paying for past good luck?

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 07/15/2000
12:49 AM ---------------------------

Enron North America Corp.

From: Kevin M Presto 07/14/2000 08:34 AM

To: David W Delainey/HOU/ECT@ECT, John J Lavorato/Corp/Enron@Enron
cc:
Subject: Gleason #1

Losing this 175 MW unit will cost us approx. $2.0 million in lost margin
(higher if the South blows out).
---------------------- Forwarded by Kevin M Presto/HOU/ECT on 07/14/2000
08:24 AM ---------------------------

From: Mitch Robinson @ ENRON 07/13/2000 04:08 PM

To: Kevin M Presto/HOU/ECT@ECT
cc: Rogers Herndon/HOU/ECT@ect, Jeff King/Corp/Enron@Enron
Subject: Gleason #1

Verified that one blade broke off from the 7th stage of blades in the
compressor. The shrapnel caused unreparable damage to 3 additional blades.
From the pictures, it appears that one of the damaged blades was close to
breaking off, and likely would have caused much more significant damage to
the compressor AND turbine.

We've begun the process of removing the damaged blades. Westinghouse has the
repair lead, and so far, is giving it the right level of attention. My plant
manager's driving the effort on the ground, but I have a compressor engineer
that will be at the site tomorrow to serve as my eyes and ears so Pete can
concentrate on keeping the other two units running.

Barring as-yet undiscovered damage (doubtful), my best guess is that we lose
next week, but get the unit back for the week of 24 July. This hinges on
Westinghouse securing four replacement blades which they are scrambling to
do. All costs should fall on Westinghouse warranty.

I'm collecting the information we might need in order to file a business
process interruption insurance claim, but based on my best-guess schedule, I
don't expect to file the claim.

Mitch