re : out of interest calpine reduced their purchase price because the turbine contract for pastoria was overpriced by $ 9 . 9 mm , the amount of the catalytica credit .
a brief confusing history as i understand it . . . ena east and west jointly owned the catalytica equity account in 1999 . it was written up based on expectations of an ipo value . at 12 / 99 it transferred to west power because catalytica entered into an agreement with pastoria to provide the project with its zonon technology . this agreement included a commitment from ge to do research / work in order to use the catalytica technology on ge turbines . the cost of this ( $ 9 . 9 mm ) was added to the pastoria turbine contract .
in feb 2000 , when i arrived in portland , i had the catalytica account transferred to the portfolio because i thought it was overvalued with little synergies with ena west power . in mid - 2000 the agreement was restructured in order to " clean up " catalytica so it could ipo . at that time , enron was credited back the $ 9 . 9 mm from catalytica and it was decided by delainey that that amount should be split 2 / 3 - pastoria and 1 / 3 catalytica equity , with the 2 / 3 going to ena west power upon the sale of pastoria . pastoria did not get the full $ 9 . 9 mm back because we benefited somewhat from favourable publicity and some interest savings .
at this time , since there is no funds transfer , i believe it simply becomes an internal income transfer from the merchant portfolio to ena west power .
louise kitchen
03 / 22 / 2001 08 : 33 am
to : christopher f calger / pdx / ect @ ect
cc :
subject : out of interest
what happens under the pastoria deal to the catalytica credit - did it go to calpine or are you using it in the other turbine purchases ?
re : out of interest
calpine reduced their purchase price because the turbine contract for pastoria was overpriced by $ 9 . 9 mm , the amount of the catalytica credit .
a brief confusing history as i understand it . . . ena east and west jointly owned the catalytica equity account in 1999 . it was written up based on expectations of an ipo value . at 12 / 99 it transferred to west power because catalytica entered into an agreement with pastoria to provide the project with its zonon technology . this agreement included a commitment from ge to do research / work in order to use the catalytica technology on ge turbines . the cost of this ( $ 9 . 9 mm ) was added to the pastoria turbine contract .
in feb 2000 , when i arrived in portland , i had the catalytica account transferred to the portfolio because i thought it was overvalued with little synergies with ena west power . in mid - 2000 the agreement was restructured in order to " clean up " catalytica so it could ipo . at that time , enron was credited back the $ 9 . 9 mm from catalytica and it was decided by delainey that that amount should be split 2 / 3 - pastoria and 1 / 3 catalytica equity , with the 2 / 3 going to ena west power upon the sale of pastoria . pastoria did not get the full $ 9 . 9 mm back because we benefited somewhat from favourable publicity and some interest savings .
at this time , since there is no funds transfer , i believe it simply becomes an internal income transfer from the merchant portfolio to ena west power .
louise kitchen
03 / 22 / 2001 08 : 33 am
to : christopher f calger / pdx / ect @ ect
cc :
subject : out of interest
what happens under the pastoria deal to the catalytica credit - did it go to calpine or are you using it in the other turbine purchases ?