Subject: turbine disposition exposure - - mhi f ' s and w 501 d 5 a
to all ,
i ' m very concerned , as i ' m sure you are , about the exposure of holding the mitsubishi units and the westinghouse 501 d . with the market for machines getting softer , the opportunity to sell these units looks increasingly slim .
mhi units :
i recommend that we seriously evaluate developing a project or projects around the mhi units . to do this , a project may have to underperform financially , but it may be significantly less of a hit than holding the machines for an indefinite time . when this has been suggested , the resonse is that the economics don ' t work for this project . the value of the units is around $ 160 mm and the cost of holding them will only increase . to avoid a major impact i feel it ' s important that we consider this issue on a global enron basis , rather than on a project basis .
one potential opportunity would be to put these some of these units into the mid - west project which fred mitro has gotten permitted . other potential projects may also be good vehicles .
w 501 d 5 a :
we need to reach closure on this unit . as a single unit , this unit may be easier to dispose of . if we can get it out of the legal arena , perhaps we can get siemens - westinghouse to take it back for what we paid . otherwise , we should go ahead and get it equipped with a generator and either sell it or put it into a project . as it stands now , the cost of holding it will be going up monthly . ron tapscott is now the lead for addressing this issue .
if the group thinks that the above suggestions have any merit , perhaps we should discuss what has to happen internally to pursue either of these to execution .
thanks !
mike