Re: CRRA LOI ,
 On the issue of the contracts, the draft says that the $170m is paid when the 
EPC contract is signed.  Are we expecting that the portion attributable to 
each project will be paid as the individual EPC contracts are signed?

Thanks,

Kay


   
	
	
	From:  Scott Healy @ ECT                           09/20/2000 06:40 PM
	

To: Kay Mann/Corp/Enron@ENRON
cc: Jeffery Ader/HOU/ECT@ECT, Heather Kroll/HOU/ECT@ECT, Stephen 
Plauche/Corp/Enron@Enron 

Subject: Re: CRRA LOI  


1.  The pricing that we have given CRRA is specific to FuelCell Energy and 
would not be meaningful without listing the manufacturer (i.e., ONSI would be 
a lot more money).  Hence, I think that we have to reference the manufacturer.

2.  The attachment of the Development Agreement is a Jeff question.  In order 
to mark any 2000 income, we will need to get CRRA to execute the Development 
Agreement in 2000.  In my opinion, we should show CRRA a copy of the LOI with 
the assumption that the Development Agreement is attached.  I would actually 
send them the draft Development Agreement a couple days after the LOI.  Based 
on how CRRA reacts, I would make an ultimate determination if the agreement 
needs to be attached to the LOI.  

3.  I expect at least one EPC contract per project.  We don't want to 
condition the acceptance of one project on the performance of another 
project.  Performance tests will either be performed on a project basis or a 
unit by unit basis in a given project.
scott.healy@enron.com