Q: Trevor, I created an amendment to the Energy Services Agreement based on Paul's letter of April 19. I think that this amendment is a much cleaner way to revised the Schedules to the Agreement. Please review the amendment and schedules. I revised the schedules further to make the base line calculations clearer. If OK, lets fax a copy to Paul for his review before I prepare executables. Let me know if you have any questions. Note: We will also need to have a declaration of HPL and Managing Partner of HCC to review and approve this amendment. Kevin Howard can sign and I have already prepared this document.
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A: Planergy Amendment

Q: Attached is the latest set of documents which have minor revisions based on my discussions with Chris last week. These have been only redlined against the prior version, not the original versions. Let me know if you want redlines against the original docs. The LLC was not included as no changes were made from the versions already forwarded. With respect to the cash out imbalance procedures. The Administrative Services Agreement (Exhibit B) currently has a rough procedure for such cashout. It is also written such that the Members can adopt a new procedure at any time. If the current procedures are not sufficient, it probably make the most sense to have only a working draft (approved by the members) of procedures in place until we have a few month of operations under our belt to work out the bugs. Scott Sitter will be developing this draft. The development of these procedures can be done outside these current revisions. A final imbalance procedure would be adopted by written action of the members upon development of those final procedures. Let me know if you have any questions.
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A: Lost Creek Docs.

Q: The printer "Coconut Telegraph" is being moved to the 4th floor this morning. If you print to this printer, you can change to printer "Barometer Soup". Thanks
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A: Coconut Telegraph Printer

Q: Guys, attached you will find a completed 2001 Pro Forma budget needing Lavo's review and then detailed review with each team. This workbook has a number of worksheets including: a) pkrs o&m - this details the o&m costs for the sold peakers assuming we own throught Q2 - charged to the OOC; b) driftPrepay - shows the detail as provided netting drift and pre-pay expenses - not all that relevant if you assume that increasing drift will be offset by larger monetizations; c) Summary - overall completed income statement - note that non-external capital charges are added back to reach EBIT; d) commercial income - guts of the commercial budget; e) group expenses - shows the detail on ENA net groups expenses, EIS/ENW/IT non-allocable, corporate charges not allocated to specific commercial groups and bonus/other comp; f) HP&L - takes a cut at HP&L income statement and balance sheet in 2001 assuming a sale by the end of Q2 - this needs some sit down work with Redmond; g) Balance Sheet Allocations - this defines by group the capital employed, assets to be sold and new capital expenditures expected in 2001 - then calculates a net capital and depreciation charge; h) Balance Sheet - this defines the existing balance sheet with no anticipated sales or increases by vehicle (ie) Enserco, JEDI, etc - merchant investments are charged @ a blended rate of 15% and strategic investments are charged @ a blended rate of 9%. Two action items: a) Print out for John - Commercial Income & Summary worksheets for his comment and review & b) Start putting completed commercial packages together for distribution/further comment by the business units in the next couple of weeks - include detailed income statement, headcount, balance sheet (including expected increases,decreases, capital charge and depreciation), leave pages open for goals & objectives and target customer list. I would like to review format and detail for each group before distribution. Regards
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A:
2001 Pro Forma