Mitsubishi Turbines ,
 Louise,

I spoke with Ben and he and I are in agreement.  We would be prepared to take the Mitsubishis into the EA turbine portfolio at cost.  Because they are off-balance sheet and interest gets capitalized, we think it makes sense to take a quarterly reserve approximating the actual interest charges.  In the event a turbine is "flipped", East, West and South share in the total gain.  We could establish upfront a transfer price, say cost + $3MM, for transfers into a project.  With everyone sharing in the pain and the gain, we should be able to make the optimal decision for EA.  

If Brett is concerned about losing them, neither Ben nor I have anything that could definitively place these machines in the next month or two.  We both have projects, leads, etc. but nothing can get inked quickly.  However, it is probably in Enron's interest to have people looking for alternative uses while Brett is trying to firm up his deal.  In 3-4 months we should have a defintive plan for these machines-if we wait 2-3 months for Brett to continue, we may not have a definitive plan for 5-7 months.

Regards,

Chris
louise.kitchen@enron.com