Enron Mail |
The following points refer to the methodology that we are taking to rebook
the New Albany Plant. Please send me a note immediately if you disagree. Assume that NewAlb is a non mark to market entity and Enron is the mark to market entity. However, it is fully owned and operated by us for now. * The power mark to market book will pay NewAlb a capacity payment of $4.87 for 5 years. We shaped this payment as follows: 2001 - $5.06 2002 - $4.96 2003 - $4.86 2004 - $4.75 2005 - $4.65 * This payments allows Enron to supply gas to NewAlb and receive power. * Enron will pay NewAlb $1000 per unit start. * Enron will also pay NewAlb $1.05/MW hour for varialbe o&m. * This will create an entity "NewAlb" that will return 9% assuming a book value of $336/kw on 12/31/2005 vs. 409 currently. * If NewAlb pays the 9% out that entity should be relatively flat each year for the next five.
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