FW: Southwest Power Update

We signed last night with Black Hills Energy Capital. They have till 5:00PM Thursday to deliver either the LC or the Corp guaranty.

Chris Calger
503-464-3735

-----Original Message-----
From: Calger, Christopher F.
Sent: Monday, June 18, 2001 5:39 PM
To: Lavorato, John; Kitchen, Louise; Schneider, Chip; Colwell, Wes; Deffner, Joseph
Subject: Southwest Power Update

We are not done. On Friday when we were prepared to sign, Black Hills Energy Capital said they needed until today to get a signature from their parent, Black Hills Corp. At noon today they said that the signature was on its way. At 4:00PM we heard that they will issue a L/C instead of the Corp guarantee. The L/C approach is fine, but I am concerned with this flaky behavior.

Our plan is to sign the purchase and sale with Black Hills Energy Capital tonight/tomorrow morning. They would have the obligation to deliver either a gurantee or an L/C for $15MM by Thursday. If not, we can terminate at any time prior to close of business Monday. I will update when something changes.

Chris Calger
503-464-3735