re : mhi 501 f disposition planning louise :
we are presently working with jody pierce to get the accounting system for the turbine book in place , and a turbine report form prepared . we will have this to you in the next 10 business days . the only recent news is the sale of the steam turbine for $ 400 k , and that we intend to utilize an outside consulting firm ( navigant ) to enhance our ability to get some interest going on the sw 501 d 5 a . lastly , we are reviewing the possibility of having the ft . pierce project use mhi unit # 3 instead of unit # 1 in light of the apparent market interest in units 1 and 2 , and the current ft . pierce construction schedule which is better suited for unit # 3 than unit # 1 .
mike coleman is putting together a budget and program to monitor ( from a technical perspective ) and maintain the 501 d 5 a and the 501 fs .
please let me know if you have any other questions .
regards ,
ben
- - - - - original message - - - - -
from : kitchen , louise
sent : friday , july 20 , 2001 8 : 16 am
to : wiggs , brett ; jacoby , ben ; calger , christopher f .
subject : fw : mhi 501 f disposition planning
all valid points - i wouldn ' t mind an update on where we are on the turbine book ( including yesterday ' s good news ) .
thanks
louise
- - - - - original message - - - - -
from : coleman , mike
sent : thursday , july 19 , 2001 5 : 50 pm
to : wiggs , brett ; jacoby , ben ; calger , christopher f .
cc : virgo , robert ; mays , wayne ; tapscott , ron ; fairley , david ; golden , bruce ; kitchen , louise
subject : mhi 501 f disposition planning
with the shipment of two of the four units from mhi scheduled for august and no viable place to ship them , our exposure to increasing costs associated with these units will start to climb quickly . we need to move agressively to minimize our risk in this position .
based on discussion with a number of people , i would strongly recommend that we make full efforts to sell units 1 and 2 as quickly as possible . john garrison has identified a number of potential buyers , and i believe that brett wiggs in in communication with one or more of them as we speak .
we should inform mhi that we will now target unit 3 for fort pierce , given the slowdown in the fort pierce schedule and the inability to get further reductions in pricing from mhi on unit 1 . if we also drop the dual fuel requirement for fort pierce , we should provide some project savings to that project . prior to informing mhi , we shoud have jackson chaeng status the auxiliaries for unit 3 so we have a basis for understanding any appropriate cancellation costs .
i also recommend that we tentatively target unit 4 for tallahassee , unless sale of units 1 and 2 were contingent on delivering a 3 rd unit to a buyer . in the next three weeks we will review tallahassee versus best turbine fit and availability of alternative equipment to determine if we want to continue to target unit 4 to that project .
finally , mhi has requested that we allow an extention of ship date for unit 1 from august 2 to the end of august . i think it is in our best interests to agree to that directly , given that we can ' t tell them where to ship it and would immediately face claims for storage costs if we insist on an august 2 ship date . we should ask that they forgo storage costs on auxiliaries until the later ship date .
probably everyone knows some of this , and some know all of this , but hopefully the overall picture is of value .
thanks !
mike coleman
re : mhi 501 f disposition planning
louise :
we are presently working with jody pierce to get the accounting system for the turbine book in place , and a turbine report form prepared . we will have this to you in the next 10 business days . the only recent news is the sale of the steam turbine for $ 400 k , and that we intend to utilize an outside consulting firm ( navigant ) to enhance our ability to get some interest going on the sw 501 d 5 a . lastly , we are reviewing the possibility of having the ft . pierce project use mhi unit # 3 instead of unit # 1 in light of the apparent market interest in units 1 and 2 , and the current ft . pierce construction schedule which is better suited for unit # 3 than unit # 1 .
mike coleman is putting together a budget and program to monitor ( from a technical perspective ) and maintain the 501 d 5 a and the 501 fs .
please let me know if you have any other questions .
regards ,
ben
- - - - - original message - - - - -
from : kitchen , louise
sent : friday , july 20 , 2001 8 : 16 am
to : wiggs , brett ; jacoby , ben ; calger , christopher f .
subject : fw : mhi 501 f disposition planning
all valid points - i wouldn ' t mind an update on where we are on the turbine book ( including yesterday ' s good news ) .
thanks
louise
- - - - - original message - - - - -
from : coleman , mike
sent : thursday , july 19 , 2001 5 : 50 pm
to : wiggs , brett ; jacoby , ben ; calger , christopher f .
cc : virgo , robert ; mays , wayne ; tapscott , ron ; fairley , david ; golden , bruce ; kitchen , louise
subject : mhi 501 f disposition planning
with the shipment of two of the four units from mhi scheduled for august and no viable place to ship them , our exposure to increasing costs associated with these units will start to climb quickly . we need to move agressively to minimize our risk in this position .
based on discussion with a number of people , i would strongly recommend that we make full efforts to sell units 1 and 2 as quickly as possible . john garrison has identified a number of potential buyers , and i believe that brett wiggs in in communication with one or more of them as we speak .
we should inform mhi that we will now target unit 3 for fort pierce , given the slowdown in the fort pierce schedule and the inability to get further reductions in pricing from mhi on unit 1 . if we also drop the dual fuel requirement for fort pierce , we should provide some project savings to that project . prior to informing mhi , we shoud have jackson chaeng status the auxiliaries for unit 3 so we have a basis for understanding any appropriate cancellation costs .
i also recommend that we tentatively target unit 4 for tallahassee , unless sale of units 1 and 2 were contingent on delivering a 3 rd unit to a buyer . in the next three weeks we will review tallahassee versus best turbine fit and availability of alternative equipment to determine if we want to continue to target unit 4 to that project .
finally , mhi has requested that we allow an extention of ship date for unit 1 from august 2 to the end of august . i think it is in our best interests to agree to that directly , given that we can ' t tell them where to ship it and would immediately face claims for storage costs if we insist on an august 2 ship date . we should ask that they forgo storage costs on auxiliaries until the later ship date .
probably everyone knows some of this , and some know all of this , but hopefully the overall picture is of value .
thanks !
mike coleman