Subject: new calpine twist
it ' s getting strange . . .
calpine wants to see our offer :
big prepay - $ 200 mm - $ 300 mm
epmi sells 200 mw + 7 x 24
dp : np - 15 or sp - 15
price : $ 61
start : 7 / 02
term : 5 - 10 years
rationale : they have $ 61 dwr contracts . at this point the dwr contracts are tied to their accrual generation business . if we pay them for the right to sell $ 61 ' s , they can get the cash and recognize the earnings .
like the rest of this story , selling to a generator sounds strange . however , if the forward market is trading below their stated price forecast , they may want to buy , not sell .
perhaps we go down a parallel path : bids in the east , offers in the west .
maybe we end up in a seller - financing deal : loan $ for investment in new power and purchase of sites , equipment , erc ' s .
dave and i are available to compare notes and discuss strategy .
regards ,
chris calger
503 - 464 - 3735