Re: Summary of Combustion Testing at New Albany

Kevin, the only thing to keep in mind are the patent issues on the DLN - the
GE settlement prevents PSM from re-manufacturing any further "tainted"
product including spares for the existing DLN system - how might this affect
our reliability at peak times?

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 01/30/2001
04:24 PM ---------------------------

Enron North America Corp.

From: Kevin M Presto 01/30/2001 11:17 AM

To: David W Delainey/HOU/ECT@ECT
cc: Janet R Dietrich/HOU/ECT@ECT, Robert P Virgo/HOU/ECT@ECT, Michael L
Miller/NA/Enron@Enron, Michael J Miller/Enron Communications@Enron
Communications, tchurbuck@powermfg.com
Subject: Re: Summary of Combustion Testing at New Albany

I'm having Mitch scrub the economics one more time. In general, however,
the capital expense is very hard to justify given the fact we ran only 200
hours last year (1000 hour total permit) and the forward curve suggests we
will run 300-400 hours per year.

Spending capital $'s for lower CO and NOx is hard to justify when the
additional run hours are not valued from a trading perspective.