Message-ID: <17936726.1075840948332.JavaMail.evans@thyme>
Date: Tue, 13 Nov 2001 12:20:39 -0800 (PST)
From: f..calger@enron.com
To: louise.kitchen@enron.com
Subject: Allegheny / NEPCO
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X-From: Calger, Christopher F. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=CCALGER>
X-To: Kitchen, Louise </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lkitchen>
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The "bid" is for an EPC Contract with the equipment.  The implied bid for the equipment is -$16.7MM.  The implied margin in the EPC Contract is $32MM plus $11MM of contingency.  If the risk/reward on the EPC contract is reasonable, then this seems like a great deal.  At the same time, we will attach a Turbine LOI to the EPC LOI making it clear to Allegheny that we can offer the turbines on a stand alone basis.   Should we offer at the $10MM discount or are you OK with -$16.7MM?  Ben and I would hit a -$16.7MM bid.    This would probably close this in January, but we ould try to get a turbine down payment in December.

Chris Calger
503-464-3735