Speak of the devil.
Tino called, all full of optimism and questions.
They  have pitched the DOE a deal in which Dennis builds three 50 Mw turbines on  the Isleta, and a 7 mile power line to DOE's distribution lines.
The project  will apparently be 100%debt financed, with DOE agreeing to pay a firm demand  charge rate of between 8 and 9 cents/kwh.
That rate is supposedly high  enough to service the debt on a 10 year amort.
basis (remember, DOE can only  sign 10 year contracts).
DOE is interested, says Tino, because of the  redundant, dedicated facilities and enhanced reliability, and because Dennis  and Tino pitched DOE on all the $$$$ DOE will make from the surplus power  sales.
Dennis apparently pitched them a "share the upside" deal under which  DOE keeps most of the revenue from surplus sales.
Tino showed DOE the July  spot prices at 4 Corners, which Tino said included many days over $200/Mwh  and they got all excited.
DOE has done a similar share the upside deal at  one of its facilities in Calif. Tino says and they have occasionally come out  net positive on elec.
costs in some months so they like the approach.
Tino  had two questions: 1.
Does TW have 30-40,000/d of permian capacity available starting sometime  in 2001 or 2002?
(I realize we have probably answered this question about 5  times, but lets do it again for him).
2.
Is there someone at ENA Tino can talk to about a getting a quote for long  term and/or short term power purchase prices for Four Corners delivery?
If  he can get something the DOE thinks is a good price, they m ay just sell all  the surplus power forward.
If not, they'll just hang on to it and sell it  into the cash market in monthly and daily deals.
Thanks.
DF

Pueblo
