Message-ID: <18622740.1075840807422.JavaMail.evans@thyme>
Date: Tue, 9 Oct 2001 07:05:13 -0700 (PDT)
From: no.address@enron.com
To: louise.kitchen@enron.com
Subject: Residual Values - Cogentrix
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X-From: Miller, Don (Asset Mktg) </O=ENRON/OU=NA/CN=RECIPIENTS/CN=DMILLE2>
X-To: Kitchen, Louise </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lkitchen>
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Louise,

I spoke with Victor yesterday and he said that the numbers we saw in our Cogentrix meeting reflect our standard QF valuation methodology including a residual value of $250 kW, grown at 2.5% until the end of the contracted period.  I had him do a sensitivity analysis by dropping the value to $100 kW and it only had a $50 million impact. 

Let me know if you have any additional thoughts.

Don 