Ft. Pierce Gas Capacity Assumptions

Matt,

Would you please make sure that David gets to see this tomorrow. Mark asked me to send this so you could print it out and have Dave look at it and then recommend would else ought to see it. Would you plese E-mail me or call me with a list of who else needs to see this sometime tomorrow, per Mark.

Thanks,

Charlie

---------------------- Forwarded by V Charles Weldon/HOU/ECT on 05/01/2001 04:24 PM ---------------------------

Enron North America Corp. From: V Charles Weldon 05/01/2001 03:02 PM

To: David Fairley/Enron@EnronXGate, Mathew Gimble/HOU/ECT@ECT, Edith Cross/HOU/ECT@ECT, Jennifer Bagwell/Enron@EnronXGate, Ruth Concannon/HOU/ECT@ECT
cc: Eric Boyt/Corp/Enron@Enron, Ed McMichael/HOU/ECT@ECT, Mark Breese/HOU/ECT@ECT, V Charles Weldon/HOU/ECT@ECT
Subject: Ft. Pierce Gas Capacity Assumptions

The following basic assumptions concerning gas capacity requirements for the Fort Pierce project were confirmed today at a meeting attended by Dave Fairley, Ed McMichael, Ruth Concannon, Mark Breese, Eric Boyt, and Charlie Weldon. (NOTE: The heat rates and MW are subject to change pending final engineering evaluation. The intent of this note is to document the overall runtime assumptions.)

1) During the summertime months of May through September, the plant is expected to run 16 hours per day in a mode where Enron's 200 MW are dispatched as are Ft. Pierce's 82MW.

2) Enron will purchase summertime capacity only sufficient to allow running 200 MW for 16 hours per day at our "bought-down" heat rate of 6690. This equals 22,300 MMBTU/day and will allow for taking the full daily capacity in only a 16 hour period (6% per hour) The table below summarizes the monthly capacity requirements:

MONTH Total Capacity Needed By Enron Ft. Pierce Capacity (from FGU) Phase VI Capacity Capacity From East Desk
May 22,300 0 22,300 0
June 22,300 0 22,300 0
July 22,300 0 22,300 0
August 22,300 0 22,300 0
September 22,300 0 22,300 0

NTOE: Prior to Phase VI completion, the project will purchase capacity from the East Desk.

3) Ft. Pierce will use its existing FT via FGU to secure its gas requirements at the 9500 contractual heat rate for the 16 hours it is dispatched in the summer.

4) For the winter months of October through April, the plant is expected to run 16 hours per day in a mode where Ft. Pierce is not dispatched, thus leaving Enron with 282MW at the overall plant heat rate of 7500. This equates to 35,251 MMBTU/day and allows for taking the full capacity in only 16 hours (6% per hour)

5) Because Ft. Pierce will not be dispatched during the winter, their unused capacity via FGU will be available for Enron. These amounts differ by month as summarized in the table below.

6) Enron will purchase wintertime capacity only sufficient to allow running 282 MW for 16 hours per day at a 7500 heat rate, less the monthly capacities available from Ft. Pierce via FGU. These non-FGU purchased quantities will come from the Phase VI capacity and the East Desk as shown below:

MONTH Total Capacity Needed By Enron Ft. Pierce Capacity (from FGU) Phase VI Capacity (Nov-Mar = 28% of Summer) Capacity From East Desk
October 35,251 14,665 22,300 0
November 35,251 14,595 6,244 14,412
December 35,251 14,895 6,244 14,112
January 35,251 16,547 6,244 12,460
February 35,251 15,317 6,244 13,690
March 35,251 15,317 6,244 13,690
April 35,251 15,317 22,300 0

NOTE: Prior to Phase VI completion , the project will purchase capacity from the East Desk.

7) Backup documentation supporting the hourly gas requirement in each dispatch mode is attached to this memo.