Enron Mail

From:don.hammond@enron.com
To:pthompson@akllp.com
Subject:Re: LV Cogen/ABB Agreement
Cc:kay.mann@enron.com, dale.rasmussen@enron.com, bill.williams@enron.com
Bcc:kay.mann@enron.com, dale.rasmussen@enron.com, bill.williams@enron.com
Date:Thu, 26 Apr 2001 08:39:00 -0700 (PDT)

I have gone through the Version 3 of the ABB agreement that you forwarded. I
have compared it to the other versions and changes I was aware of (the
technical areas only). I have attached a red-lined version with edits. Also,
here are my notes on each of the changes:

Section 5.1 of the Agreement - earlier versions of the Agreement contained
the purchase amount here. As I commented by phone, by my calculation the
total purchase amount for these two units would be $1,713,000.00, or
$856,500.00 each. By my records, the original purchase amount for these units
was $782,000.00. A change was made in November 2000 that increased each unit
by $49,500.00. Another change in December 2000 increased each unit by
$25,000.00. These increase amounts were confirmed by ABB on 11/28/00 and
12/18/00. The Version 3 document eliminates this purchase amount.. However,
sections 6.1.2 and 6.1.3 contain amounts of $78,200.00, 10% on the original
purchase amount of one unit. Should these values be changed?

Exhibit B1:
Section 5.1.2 b) and c) - these are revisions requested by the contractor.
They are reasonable requests if they can be accommodated by ABB. I don not
know if these changes were coordinated directly between the contractor and
ABB.

Section 9.1 - minimum ambient temperature
Minimum ambient temperature should be minus 5 degrees C. This corresponds to
23 degrees F, the design basis temperature. The minus 13.3 degrees C
requested by the contractor is incorrect.

Section 9.5.5 - Surge Arrestor rating
This is a new request from the contractor. It appears acceptable.

Section 10 - Voltage Rating
This is a correction to indicate a voltage of 138,000

Section 10 - Type of Cooling
This is added information on type of cooling (FOA) as provided by ABB in
thier revised data sheets.

The other changes in Sections 9 and 10 correspond to information previously
provided to ABB in conference calls and communications from the contractor.