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Enron Mail |
As discussed - the First Gas article. Also, I talked to Jeff & George about
Sempra/SCEG and both said it was completely executed. We are booking the deal and will be prepared to release income next Weds. or Thurs. Let me know if you have any questions. ---------------------- Forwarded by Brent A Price/HOU/ECT on 12/22/2000 09:23 AM --------------------------- From: Scott Earnest 12/18/2000 07:45 AM To: Brent Price cc: Subject: FGPC 2001 Fuel Consumption Let's discuss when you get a chance. Scott ---------------------- Forwarded by Scott Earnest/HOU/ECT on 12/18/2000 07:48 AM --------------------------- John L Nowlan 12/18/2000 07:10 AM To: Scott Earnest/HOU/ECT@ECT cc: Subject: FGPC 2001 Fuel Consumption Just when you thought it was safe ---------------------- Forwarded by John L Nowlan/HOU/ECT on 12/18/2000 07:10 AM --------------------------- John Chismar 12/17/2000 08:35 PM To: John L Nowlan/HOU/ECT@ECT cc: Subject: FGPC 2001 Fuel Consumption John, didn't see you copied on this but this basically shuts us out. This is going to be worse than what we had already forecasted at 250mb/month. Essentially, what I take from this message is that they are agreeing to cut the highest cost power out ( which is the Santa Rita power plant) and it is only going to run @ 3mbd or less. So instead of 250mb month that I had told Scott Earnest it will now only be more like 100mb. John ---------------------- Forwarded by John Chismar/SIN/ECT on 12/18/2000 10:29 AM --------------------------- Michael L Brown@ENRON 12/15/2000 11:01 PM To: Scott Earnest/HOU/ECT@ECT, John L Nowlan/HOU/ECT@ECT cc: John Chismar/SIN/ECT@ECT, Matthias Lee/SIN/ECT@ECT, Robert C Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Victor Santos/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: FGPC 2001 Fuel Consumption Scott, John, See article below dated December 15-16, 2000 from Manila, Philippines and pay particular attention to paragraphs 6, 7 and 9. As you can see, Meralco (the power purchaser from FGPC) and the National Power Corporation (Napocor) have agreed to a minimal dispatch of the FGPC Sta. Rita power plant until December 26, 2001. This would place the liquid fuel deliveries for the upcoming year at about 10% or less of the originally anticipated 31kbd, so this should certainly be addressed in our 2001 budget. Regards, Mike ---------------------- Forwarded by Michael L Brown/Corp/Enron on 12/15/2000 08:56 AM --------------------------- Victor Santos@ENRON_DEVELOPMENT 12/14/2000 09:41 PM To: Michael L Brown/Corp/Enron@ENRON, David A Terlip/Corp/Enron@Enron cc: Subject: News Article - Ano Ba Yan!!! MANILA, PHILIPPINES | Friday-Saturday, December 15-16, 2000 Meralco settles access dispute with Napocor With a new agreement signed Tuesday night, power distribution firm Manila Electric Company (Meralco) and state-owned National Power Corporation (Napocor) finally settled their dispute over alleged violations on "open access transmission." As a result, Meralco paid Napocor 684 million Philippine pesos ($13.661 million at PhP50.071=$1), representing its unpaid electricity bills for the June 26 to July 25 billing period. Meralco's bills actually amounted to PhP5.3 billion ($105.85 million), but it paid only PhP4.6 billion ($91.87 million), claiming it incurred unnecessary losses when the state utility failed to allow the output of its independent power producer (IPPs) to come on stream. Meralco claimed Napocor should absorb these losses. Meralco paid about PhP20 million ($399,433) in accrued interests as Napocor, for its part, claimed it failed to meet its own obligations because of Meralco's non-payment. In an interview with BusinessWorld, Napocor treasurer Laura F. Salandanan said Meralco's payment eased the pressure on Napocor's very tight cash flows as December always mean bigger debt servicing. Under the letter of agreement signed by Napocor president Federico E. Puno and Meralco executive vice-president and chief operating officer Jesus P. Francisco, the full capacity of Meralco's IPP, particularly the 440-megawatt (MW) Mauban coal-fired power plant operated by the Quezon Power (Phils.), Ltd., will be able to come on stream. On the other hand, minimal dispatch will be used for the 1,000-MW Sta. Rosa combined cycle power plant operated by First Gas Power Corp. In a separate interview, Napocor's department manager of utility economics Jesusito Sulit said the two parties agreed to such a compromise since energy from the Sta. Rita plant is higher because it uses condensate fuel in the absence of the natural gas. Electricity produced from coal-fired power plants, on the other hand, is less expensive. Since the natural gas that will be fed to the Sta. Rita plant will come only by January 2002, the agreement will be implemented retroactive to October 26, 2000 to December 26, 2001. Mr. Sulit said Napocor will replace the Sta. Rita output by providing Meralco with less expensive power and, at the same time, offer a discount rate of as much as PhP1.16 per kilowatt hour (kWh). This discount, Mr. Sulit said, will mean savings for Meralco because it no longer needs to pay for the fuel requirements of Sta. Rita plant. Under the power purchase deal between the two firms, Meralco spends for fuel used by the plant. First Gas, for its part, will still receive payments despite the unutilized capacity of its plants because of the presence of the take-or-pay agreement. For Napocor, it will be assured of a captured market and consequently additional revenues in terms of higher energy sales. Mr. Sulit said consumers are also expected to benefit not necessarily from a much lower power rates but from an assurance that electricity bills will not increase as much.
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