Re: Un-allocated Turbines

Guys, what is your plan?

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 10/16/2000
06:35 PM ---------------------------

Brian Redmond
10/13/2000 12:42 PM
To: David W Delainey/HOU/ECT@ECT
cc: Ron Tapscott/HOU/ECT@ECT, Jean Mrha/NA/Enron@Enron
Subject: Re: Un-allocated Turbines

Dave,

We will either:

1. Find an acceptable structure for the LIPA PPA (unit contingent - no
replacement energy risk) and complete the transaction. LIPA is aware of our
issues and is considering how they want to proceed.
2. Don't come to terms on the PPA and sell the barges to LIPA - probably the
best case scenario.
3. Don't come to terms on the PPA and sell the barges to ConEd, Morgan
Stanley, AES or NRG (we are now in the process of agreeing CAs with these
parties with respect to an infor memo on the barges/deal), or
4. Let BargeCo keep the barges (technically they still own them now).

The time frame for resolving this is Q4.

Regards,
Brian

David W Delainey
10/11/2000 09:30 AM
To: Brian Redmond/HOU/ECT@ECT, Rob Milnthorp/CAL/ECT@ECT, Janet R
Dietrich/HOU/ECT@ECT, Christopher F Calger/PDX/ECT@ECT
cc:
Subject: Un-allocated Turbines

Guys, we have the following un-allocated turbines (approximately $100M in
nominal value):
a) 2 power barges - Brian - $13M
b) 2 ABB 11N1 - Rob- $35M
c) 1 501D5A - Janet/Chris - $25M
d) 1 7EA - Janet/Chris- $20M

All other turbines appear to be allocated to high probability projects.
Could you please provide me your plan with these units. I would like to
flatten out our book (ie) ensure there are good homes for or divest of all
our existing turbines before we look at purchasing additional units for 2002.

Regards
Delainey