George, it is probably worth speaking to them about the US assets - probably the smaller Virginia sites which are probably less core and may be great brownfield sites. I'm not sure we would have an interest in UK coal fired assets. I would speak to Sherriff on that one. However, I would caution that real value is created through RAPID brownfield development leveraging on Enron's development, electricity, coal and emissions talents. For ComEd and Homer City, Mission has already paid up for these assets based on gas being on the margin. Now that was before a lot of the run up so it may be worthwhile; however, I think it may be difficult to arb these guys. As well, I think it may be difficult to get the asset out of them - I'm not sure that they can turn their strategy or show a loss this quickly from a Wall Street point of view. We should probably take a shot at the smaller probably less core Virginia assets. Are they in QF, if so there may be upside in the deal from Duran's point of view.. Dave, given the rise in gas prices and gas being on the margin for a larger part of the load curve, coal assets or coal QF's may be great assets for us from a restructuring and power asset (expansion/brownfield) point of view. Have we looked at this? Are there many in the market? Regards
Answer: Edison Mission Energy
Ed and Bill: Per Leslie reeves, we did receive a payment from LG&E Energy Marketing so the only issue remaining on them is whether the LC has been renewed. As Ed reported, El Paso renewed their LC so there is nothing to do on that. With respect to Enserco, I faxed the proposed new LC to ed and spoke with Don Perkins, their credit manager (303) 568-3255. I told him that he may be receiving a call from you regarding Fortis, the Issuer. I also told him that drawing condition #1 would have to change to take out the reference to delivery of natural gas and he agreed. He was also going to talk to Lynn Evans, his attorney, about the procedures that need to be followed under 'Special Instructions" as I do not think that we should be sending anything to Fortis. More to come tomorrow. Ed: Please e-mail me, Sara and Jeff a description of where things stand with Niagara based on their payment today as it sounds complicated and may require us to piece together all of the contracts we have with them before deciding how to proceed. Did you have any luck confirming the status of the Chase LC? Sara, Let's meet in the morning. We also will probably here from Lyn Evans, Enserco's lawyer.
Answer: LC Update
Mark - Pursuant to your voice mail message, attached is a copy of the NDA I prepared for VMAC with CL. If you need a document of this nature for EOL, please let me know and our office can prepare it and forward it for your use. The Legal Dept. prepares and forwards NDA's so that we can track them and ensure terms are legally acceptable. Mark
Answer: VMAC NDA
David and Louise: One of the things that Organic has asked us to keep confidential is "the existence of any business discussions, negotiations or agreements between the parties as well as any information regarding the skills and compensation of employees, contractors or other agents of the disclosing party." This is a departure from our form. Are we prepared to agree to this? Also, to the extent that parties are insisting on using their form of CA, what do you want the approval process to be? Carol
Answer:
Organic Confidentiality Agreement