Enron evaluates whether to build a plant Escondido power capacity of 500 MW combined cycle natural gas plant in the town of Douglas, Arizona, in the amount of $ 250 million. The plant will sell power under a 20-year contract for the sale of power (PPA). Construction of the plant is expected to be completed within 18 months, will be financed by a loan from Credit Suisse First Boston (CF First Boston). During construction, interest will be capitalized. When completed, the plant will be financed 60% debt and 40% equity. Enron and General Electric Capital (GE) will each provide 50% of the equity. At the end of 20 years, the plant will be sold at book value.
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by Graeme Rankine Source: Thunderbird School of Global Management 6 pages. Publication Date: January 4, 2000. Prod. #: TB0189-PDF-ENG
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