Spread option on Tiverton for Bal '00

---------------------- Forwarded by Peter F Keavey/HOU/ECT on 08/15/2000
02:51 PM ---------------------------

Scott Neal
08/15/2000 02:22 PM
To: Dick Jenkins/HOU/ECT@ECT, Peter F Keavey/HOU/ECT@ECT
cc:
Subject: Spread option on Tiverton for Bal '00

---------------------- Forwarded by Scott Neal/HOU/ECT on 08/15/2000 02:22 PM
---------------------------

Enron North America Corp.

From: Kevin M Presto 08/15/2000 02:12 PM

To: Scott Neal/HOU/ECT@ECT
cc:
Subject: Spread option on Tiverton for Bal '00

---------------------- Forwarded by Kevin M Presto/HOU/ECT on 08/15/2000
02:02 PM ---------------------------

John Llodra@ENRON
08/15/2000 09:46 AM
To: Mark Dana Davis/HOU/ECT@ECT, Edward D Baughman/HOU/ECT@ECT, Kevin M
Presto/HOU/ECT@ECT, John D Suarez/HOU/ECT@ECT
cc:
Subject: Spread option on Tiverton for Bal '00

Calpine-EMI wants to get a bid from us on a spread option on their Tiverton
plant in Tiverton, Rhode Island for Sept 1, 00 through Dec 31, 00. (Tiverton
apparently has achieved full commercial status as of today) I will be
pulling together a price today/tomorrow and was hoping to get back to them no
later than end of this week. They are shopping this around to 4-5 entities
including us. Here are some details FYI:

Day-ahead on-peak call on either power or gas
Power qty = 250 MW
Power strike = $45/Mwh
Gas qty = 30,666 mmBtu per day (16 on-peak hours), which results in an
implied heat rate of about 7667 mmbtu/GWh
Gas strike is $5.90/mmBtu
Gas is delivered to plant; they will assign their Algonquin gas capacity
rights which will allow secondary rights anywhere on the Algonquin G lateral
Power firmness: unit contingent with availability guarantee of not less than
95%
Gas firmness: secondary firm

Please get back to me ASAP with any comments or questions, including any
feedback on the degree of "strategic fit" this position would provide us.
Ed, I could especially use some gas expertise in scrubbing down the gas piece
and to make sure our gas curves are in the market (some miscellaneous
customer feedback I've gotten suggests our Northeast gas numbers are a bit
off). Thanks all

John