FW: Just curious 

-----Original Message-----
From: Jake Hadix [mailto:jhadix@calpine.com]
Sent: Friday, October 26, 2001 8:43 AM
To: Kuykendall, Patrick M.
Subject: RE: Just curious


We just refinanced this past Monday.  We were going to do a 15 year at 6%,
but changed our minds and decided to do the 30 year again, but could only
get 6-5/8% (still much better than the 8% we had before).  We are still
going to pay on it like a 15 year mortgage, but the 30 years gives us
flexibility to make the lower payment in case of an emergency.  5.75% sounds
really good -- do you have to pay points to get it that low?  I like 15 year
loans for the interest rate, but like 30 year loans for the flexibility --
it's really a matter of personal choice.  That's why we went with the 30
year and will pay like a 15 -- it costs a little more (due to int rate) than
a straight 15 year mortgage, but is kind of an insurance policy because you
only have to pay the small 30 year payment.  Sorry to hear about the golf
membership.  I know how much you enjoyed that.  We have focused this entire
year on paying down debt, so we really haven't saved anything other than
401k and ESPP.  However, we payed off my student loans back in March and
will pay off the car next month (yeah!!).  After next month, our only debt
will be the house.

-----Original Message-----
From: Kuykendall, Patrick M. [mailto:PKuykendall@wm.com]
Sent: Thursday, October 25, 2001 4:12 PM
To: 'Jake Hadix'
Subject: RE: Just curious


We are just glad that Tori is up this year and was up last year in her book.
Basically, her desk has agreed to put their head down and make as much money
as possible.  That way, if the axe starts falling, it falls somewhere else. 

The employees in general are disgusted with upper management and would
prefer for all of them to be replaced.  Who knows, if the stock remains too
low you would have to consider the possibility of a hostile takeover (i.e.,
GE, Exxon etc..).  All speculation of course.  In short, we have lost alot
of money and are making changes in our finances to accomodate in future
issues.  No more golf membership :(   

We are considering refinancing again at 5.75 for 15 years.  It saves us 160K
over the life of the loan.  Any thoughts on 15yr mortgages?

-----Original Message-----
From: Jake Hadix [mailto:jhadix@calpine.com]
Sent: Thursday, October 25, 2001 3:42 PM
To: Kuykendall, Patrick M.
Subject: RE: Just curious


Not much going on.  I am hoping CPN stays low for about another 5 weeks so I
can load up with my ESPP $.  I get a 15% discount on the price on the last
day of Nov.  How are things going with Tori over at Enron -- it sounds like
they are in a bad situation over there.



-----Original Message-----
From: Kuykendall, Patrick M. [mailto:PKuykendall@wm.com]
Sent: Thursday, October 25, 2001 2:13 PM
To: 'Jake Hadix'
Subject: RE: Just curious


Loaded the boat this morning in the low 23 range.  Go CPN :)

Anything new with you guys.  I could have bought a house with the monies we
lost ENE stock options - just kidding of cours.

-----Original Message-----
From: Jake Hadix [mailto:jhadix@calpine.com]
Sent: Tuesday, October 02, 2001 11:54 AM
To: Kuykendall, Patrick M.
Subject: RE: Just curious


Still in the process of refinancing - we should close in a couple of weeks.
Susan doesn't want to start trying for a baby until after the holidays.  The
answer to your Calpine question is a little complex, but the short and
simple answer is the following:

1.  Although there is a lot of new power coming online, most companies are
not accounting for the fact that a lot of the old generation will be
displaced by the new generation (i.e. the new generation is much cheaper to
operate, so it will "win" the battle in the end).

2.  New power generation has not kept up with the growth of the 80's and
90's - plain and simple, this is a fact.  However, if we go into a
long-lived recession, some of the growth will erode.

3.  A lot of the current plans for more generation will not materialize.
Many companies will shut down plans to build more generation because of
fears of over-building.  Whoever gets the new generation on the ground first
will force the other companies to back off.  In the 80's, Calpine's CEO
recognized the fact that there would be a lack of power in the US by the
late 90's and into the 2000's.  Therefore, he bought call options from the
major turbine producers (GE, Westinghouse, etc.) which gives us the rights
to a large portion of the turbines that are currently being built and will
be built over the next few years.     

-----Original Message-----
From: Kuykendall, Patrick M. [mailto:PKuykendall@wm.com]
Sent: Tuesday, October 02, 2001 9:02 AM
To: 'jhadix@calpine.com'; 'jake.hadix@calpine.com'
Subject: Just curious
Importance: High


Jake,

What does Calpine see that the rest of the world doesn't when it comes to
power?   Calpine keeps building-out to produce more power and the so called
"experts" indicate there is a glut of power coming out.  I don't
understand..   Any thoughts?

I heard you guys refinanced the house :).   I hope everything is going well
over at CPN.   Any new developments on the Baby front or are you guys just
still practicing :).   

Patrick Kuykendall
Senior IT Auditor
WM Internal Audit Services
(713) 265-1216

