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September 03

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All:

As the second highest month of production, September's 276,500 MW brought year-to-date Commercial production above 1,000,000 MWhr, a milestone that was surpassed on September 19th. We were dispatched for 27 days and operated 65 hours at peak fire. For September, our (NERC) Equivalent Availability Factor improved to 88.8% and Net Capacity Factor adjusted up to 61.4%. The YTD Forced Outage Factor is recorded at 7.49%, due in no small part to Mother Nature, 230 Kv Breaker manufacturer errors, and our neighbors down the road. For the fourth consecutive month, Mesquite Generating Station Block 1 exceeded design Heat Rate with a seasonally adjusted Efficiency Rating of 103.9% at 7056 Heat Rate. Technical Availability was an impressive 99.4% and Commercial Availability reached an all-time high of 120.1%.

By now most of you are familiar with the major issues we've been dealing with over the past two weeks. Though I often fail to express individual gratitude, please know that I recognize the significant efforts you've all put forth in this hugely successful Outage on Block 1. If not for your investigation into these problem areas, I'm confident we would find out the hard way, under high loads. Great job!

We have more Sempra auditors arriving Monday for a week-long stay and you can be assured that at some point, one of them will come up and ask you pointed questions. We expect two individuals for a Financial Audit and one person for an IT/Security audit, you'll probably easily recognize them as standard corporate issue. If you're on day-shift next week, please take a few moments to review PPM section 11 and brush up on our IT policies.

Mike Niggli will be onsite this Friday, October 17th. I understand his visit is in preparation for the upcoming Board of Directors tour on the 29th. Tidy up as much as practical tonight. I won't ask for an all-out cleaning.

In response to the recent disclosure of the Sempra Energy Resources “Fleet Statistics”, I wanted to include the official NERC data that Mesquite (Steve P.) prepares and will submit at the end of 2003. Unlike the Sempra “Fleet Statistics” you saw, these measurements are Industry-standard and cannot be manipulated to reflect superior numbers because of seasonal ambient conditions or the exclusion of derate hours. Factual data represents the good name of Mesquite Power. In this game anyway, we all have to answer for what we allege to be true.

Please keep in mind this is confidential information as presented.

Looking forward to getting Block 1 back online. Have a good weekend.

 

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