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Enron Mail |
Hee are Patrick Smith's brief comments regarding our questions.
---------------------- Forwarded by Benjamin Rogers/HOU/ECT on 12/15/99 07:50 AM --------------------------- Patrick Smith <PatrickAlan@compuserve.com< on 12/14/99 06:12:13 PM To: Benjamin Rogers/HOU/ECT@ECT cc: Linda Swoy <LFSwoy@tecoenergy.com<, Tom Zenner <thz@compuserve.com<, Linda Miller <lamiller@tecoenergy.com< Subject: Message from Internet Mr. Rogers, Just to quickly address your questions in advance of our call in the morning, I offer the following: 1. The debt amount contemplated was based on assumptions given by Enron. The rate given was $375 /kW or $120MM in debt. This would be obtained via a 144A Bond offering without any subdebt. 2. There are three operating fees listed in the proforma currently: Management fee ($600k/yr) to the Owners as contracted, O&M Fee ($300k/yr) to the Operator contemplated to be TECO Power Services ("TPS") and the TPS Parts Company for a spare engine. The TPS Spare engine may be eliminated provided we can get comfort via other methods. The financing fees were estimates based on discussions with Enron and our engaging CSFB. 3. The Maintenance Reserve account is accrued based on operating hours of the plant and planned major maintenance, as estimated by TPS (the O&M Operator). This reserve may be eliminated as we currently are estimating that this plant will never reach a major outage. I look forward to discussing these issues with you in the morning. Regards, Patrick Smith TM Power Ventures
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