RE: Midway Toll term sheet & LOI - comments ,
 Fred:

Based on what Dave says below we should then structure our toll such that we 
can dispatch each unit at whatever the part-load MW rating is that GE still 
guarantees at 9PPM NOx on gas, and 42PPM NOx on oil.


-----Original Message-----
From: Kellermeyer, Dave
Sent: Mon 6/4/2001 10:07 AM
To: Jacoby, Ben; Mitro, Fred; Mann, Kay
Cc: 
Subject: RE: Midway Toll term sheet & LOI - comments

No.....we can never exceed our NOx permit limits.  Some permits specifically 
identify a range of normal operations and don't allow you to operate outside 
of that range regardless of your emissions.  We don't have a similar 
prohibition in the Midway permit.  My statement about operating between 50% 
and 100% load was based on the belief that our NOx guarantee will be good 
within this range and that we can pass one-time emission tests for CO, VOC 
and PM10 at as low as 50% load factor.

Also, since this is a PSD permit, our hours are unaffected by the actual 
emissions, only by the permitted hours of operation and fuel consideration 
(i.e., the 2-for-1 trade above 250 hours of oil firing).

Dave

-----Original Message-----
From: Jacoby, Ben 
Sent: Monday, June 04, 2001 9:44 AM
To: Kellermeyer, Dave; Mitro, Fred; Mann, Kay
Subject: RE: Midway Toll term sheet & LOI - comments


Dave:

Thanks for the info. I just want to make sure I understand your message 
correctly. Notwithstanding wgat the emissions may be, you believe we can 
operate between 50% and 100% load when firing either gas or oil. So, if gas 
emissions are 50PPM NOx, and oil is 100PPM (obviously a hypothetical), our 
operating hours would not be reduced to a greater extent that if we were at 
100% load and 9PPM and 42PPM NOx. Is this correct?

Ben


-----Original Message-----
From: Kellermeyer, Dave
Sent: Mon 6/4/2001 9:32 AM
To: Mitro, Fred; Mann, Kay; Jacoby, Ben
Cc: 
Subject: RE: Midway Toll term sheet & LOI - comments

FYI, there is nothing in the permit that provides an allowable lower limit on 
the turbine load factor.  In the permit application, we provided emission 
estimates for 50 to 100 percent load and termed this as the "expected range 
of operating conditions".  We can operate below 50 percent load, but would 
likely need to do initial stack compliance tests at the lowest load we would 
operate the plant.

Since the emission guarantees from GE will likely be for a range of 50 to 100 
percent load factors, I suggest that we adopt 50 percent load (approximately 
85 MW per turbine) as the mimimum turbine load.

Dave

  -----Original Message-----
 From:  Mitro, Fred  
 Sent: Friday, June 01, 2001 5:57 PM
 To: Mann, Kay; Jacoby, Ben
 Cc: Kellermeyer, Dave
 Subject: Midway Toll term sheet & LOI - comments


 Ben/Kay:

 Attached are my comments on the Midway Tolling term sheet and LOI.  

 I will be out on Monday but will have my cell phone on.  My conversations 
will be regularly interrupted by golf strokes, but I will do my best to be 
available.

 Call me if you have specific questions/issues to discuss.  I have asked Dave 
Kellermeyer to call either one of you on Monday with an answer to the minimum 
block size for the tolling term sheet.  I am taking the air permit home to 
review and will leave you a message if I determine the answer.

 Fred



  << File: Kay Mann Term sheet June 1(fred's marked).doc >> 

  << File: Kay Mann Tolling Term sheet June 1(Fred'smarked).doc >>
dave.kellermeyer@enron.com, fred.mitro@enron.com, kay.mann@enron.com