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Russ/Ben
Here is Lincoln's response to our questions. You may want to get with Sandra to discuss this ---------------------- Forwarded by Oscar Dalton/HOU/ECT on 01/20/2000 08:51 AM --------------------------- "Rich Kosch" <rkosch@les.com< on 01/20/2000 08:48:03 AM To: Oscar Dalton/HOU/ECT@ECT cc: Subject: Re: Questions Assume an 8% cost of money(taxable) and 25 year amortizaton schedule per our Financial people. Assume also that we will need to include a bond reserve fund of equal to one years P and I plus about 1.5% financing costs. The latter two simulates the cost of taxexempt financing requirements. which we are assuming taxable will be in the same ballpark of requirements. Again the $545 does not include an SCR. When we got our PSD permit for our Rokeby 3 unit, the informal quotes we got for that unit were in the 1.6 to 2.0 Million dollar range. In the end, we proved to EPA that the addition was not cost effective by some convoluted economic analysis they made us go thru. However it became very obvious to us, this is their next regulatory objective. We were so convinced that our Rokeby3 was going to need an SCR we had internally resigned ourselves to that unpleasant assumption. We would assume a 45mw unit's cost would be about 2/3 the cost of this larger unit 90MW machine ie Rokeby 3.. "Oscar Dalton" <odalton@ect.enron.com< on 01/19/2000 06:26:34 PM To: Rich Kosch/LES@LES cc: Subject: Questions Rich, In working through our analysis for the revised proposal to Lincoln, I had the following questions: 1. In Lincoln's cost estimate of $545/kw, did this include SCR's? 2. Under taxable financing, what interest rate and repayment period would Lincoln normally find acceptable? Any input you could provide would be appreciated. Thanks Oscar
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