Enron Mail

From: f..calger@enron.com To: louise.kitchen@enron.com, carl.tricoli@enron.com Subject: New Calpine Twist Cc: david.parquet@enron.com Bcc: david.parquet@enron.com Date: Thu, 4 Oct 2001 11:05:19 -0700 (PDT) It's getting strange... Calpine wants to see our offer: Big Prepay - $200MM - $300MM EPMI Sells 200MW+ 7x24 DP: NP-15 or SP-15 Price: $61 Start: 7/02 Term: 5-10 years Rationale: They have $61 DWR contracts. At this point the DWR contracts are tied to their accrual generation business. If we pay them for the right to sell $61's, they can get the cash and recognize the earnings. Like the rest of this story, selling to a generator sounds strange. However, if the forward market is trading below their stated price forecast, they may want to buy, not sell. Perhaps we go down a parallel path: bids in the East, offers in the west. Maybe we end up in a seller-financing deal: loan $ for investment in New Power and purchase of sites, equipment, ERC's. Dave and I are available to compare notes and discuss strategy. Regards, Chris Calger 503-464-3735