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Enron Mail |
The exposure goes up $3MM-$5MM per month up to the equipment contract cost of $67MM for an incremental DASH of approx $49MM (with interest). Chip and I talked about approving the full amount, but checking monthly with you and him as to whether or not we want to continue payments. An alternative is to DASH 2 more months now and formally evaluate our position at year-end.
Chris Calger 503-464-3735 -----Original Message----- From: Kitchen, Louise Sent: Friday, October 26, 2001 2:25 PM To: Calger, Christopher F. Subject: RE: Longview DASH How much? -----Original Message----- From: Calger, Christopher F. Sent: Friday, October 26, 2001 4:20 PM To: Kitchen, Louise Subject: Longview DASH Louise, Chip will want to talk with you about the Longview equipment. We are circulating a DASH to enable us to continue making payments. If we do not continue to make payments, we forfeit the equipment and take a $23MM hit. This is approximately 35% of the total equipment contract. I think the equipment is worth more (than 65%) and I believe that we will get out of this problem with less than a $22MM hit. I therefore recommend that we commit the extra $ for this equipment. It will continue to be funded off B/S. We continue to have discussions/negotiations with Calpine, NRG and TransAlta. We have also opened up general equipment discussions with Mirant and AES. Regards, Chris Calger 503-464-3735
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