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August 04

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As September comes to a close, we look to ending our 3rd quarter with some very impressive Equivalent Availability results. Please take a minute to note our current Q1-Q2 availability numbers below and I'll tell you, we'll have to achieve some pretty good numbers in October and December to finish 2004 within our max targets. Not impossible, but a goal certainly rich with opportunity. August was another fantastic month “operationally speaking”, and we should be proud to once again come out as a leader in the Western fleet.

August 2004

  • Production= 657,327 MWhr
  • September Equivalent Availability:
    • Block 1: 99.0%
    • Block 2: 100.0%
  • Q3 Combined Average Equivalent Availability= 99.08%
    (2004 max target for Q3 is 95%)
  • Average Net Heat Rate= 7088 Btu/kWhr
  • Technical Availability= 100.02%
  • Combined Q1-Q2 Equivalent Availability= 88.8%
    ( 2004 max target for Q1-Q2-Q4 is 89.7% )

I encourage you all to review the complete August 2004 report at the Mesquite webpage ( http://www.mesquitepower.com/business/ppt/Aug-04.ppt ).

Shift Operations

A big Thanks to everyone for their part in establishing Mesquite Power as a TOP PLANT of 2004, a remarkable distinction that will forever carry with us. Although we didn't win Plant of the Year, I respect the fact that we competed against some of the best plants in the world, among more than 100 nominated, and became one of the very few who can proudly state how we've made our mark in the industry. The show with POWER may be over, but this is certainly not the end of the recognition you all deserve for doing such an outstanding job. The numbers I've provided above fail to represent the hard work, dedication, and raw perseverance I see every day among those of you determined to make this a better place to work and by those focused on Mesquite Power maintaining the new standard in power generation. Keep up the super job.

Shift 2 captures the flag of honor for August Operations Excellence and it appears we have a good race on for the annual prize. Again, if there are any improvements you'd like to see with this program, please offer your suggestions to Steve Perrizo.

During the week of October 11 th Mesquite will be hosting (yet another) EHS audit conducted by a third party on behalf of Sempra Energy Resources Permitting & Licensing. Not unlike past audits, we have a few issues to address before this date to ensure only the “lowest of the hanging fruit” is available to the auditors. I'm sure you all know what I mean.

Questions an EHS auditor might ask you:

1.) How do you initiate the FM-200 system?

2.) What would you do in the event of a terrorist threat?

3.) What is your response if a fellow employee splashed sodium hydroxide in his/her eyes?

4.) If you have just three designated areas for smoking, why are cigarette butts found lying all around the plant?

An All-hands meeting on Wednesday was held in recognition of your support during the Spring outage. Hope you all enjoyed the breakfast and the shirts. As far as outages go, that was probably one of the more complicated ones I've been part of, so you can expect future events should go much smoother. Our November outage plan is rather dynamic at this time but once we resolve significant issues with GE, our tasks will include the 230Kv breaker rework, removal of STG4 generator rotor, and STG4 valve inspection. Throw in WECC generator testing, a couple GE Magic inspections, and a whole lot of oil changes, and there you have our ‘outage'. Dates are still on for 1-16 th .

Next Month

We're planning an Open House/Family Day for sometime early in October. Many of you haven't yet had the opportunity to bring your spouses and family to the plant so this will be a formal time for such a tour. I'll send out more information on this soon.

The 2 nd Annual Mesquite Classic is scheduled for October 15 th and is assured to be a fantastic time for everyone. Please note that Mesquite employees will not have an entrance fee so go ahead and sign-up with Heather if your schedule permits. Putting contest, mulligans, drink tickets, and hole-in-one contest are on you...sorry we can't spring for everything.

I'm going to close out the 360-degree assessments by the end of the week, so if you still have a few remaining to complete, please do so before Friday. I realize some of you have declared Conscientious Observer status, but at the very least, I'd like to see the survey assessment done by everyone. The survey will be sent out today, takes only a few minutes to complete, and will provide us with (hopefully) an honest measurement of life at Mesquite Power.

Besides talent, our Safety Record is the most important possession we have. We have succeeded at zero Lost Work Days and minimal Recordable Incidents to date and I trust Mesquite will always remain on this enviable course. ADOSH is scheduled to pay us a visit early in October to conduct an audit for the SHARP program, sort of a precursor to the VPP program I've spoken of before. The SHARP program (Safety and Health Achievement Recognition Program) recognizes small employers who operate an exemplary safety and health management system. Companies that meet the established criteria and are accepted into the program are offered an exemption from planned ADOSH inspections for a one year period, with an opportunity to renew that exemption for an additional one to two years. The VPP program is still on the horizon, but it makes good sense to acknowledge our success with ADOSH as we continue through the VPP process.

In Summary

Borrowing a bit from a good friend of mine, I'd like to describe a very succinct, yet essential value that I hold to be true regarding ‘Leadership'. Leadership is often misunderstood to be reserved for company executives or managers, not for the typical line worker. The characteristic employee of a company is seldom seen as taking a leadership role, determining outcome from his or her own intuition, experience, or belief system. Fact is though, anyone can show leadership and they can do it by finding a better way to do his/her job, by setting a great example for his/her peers, or by finding ways to cut costs through more effective processes or an alternative approach to accomplishing their tasks. Conversely, complacency will drive a company into the ground, leaving a team powerless to invoke any change at all. When you truly consider it, success of this facility is inexplicably linked to your personal success, meaning that without a plant that can succeed at what it's built to accomplish, the people who operate it will have stagnated their employability. Leadership is a rare commodity in today's power industry. Show the world that you have the courage to take a leadership role, regardless of your level or function, and you have secured your future.

I have followed-up this email with another, entitled “Competitor's in the News”. Take a few moments to consider the atmosphere at some of the companies that failed to lead themselves into an ever changing business environment. NEGT is the owner of Harquahala Generating Station. We all know who DENA is (Duke Energy North America).

Be safe, work safe, and pay attention to the details.

Best Regards,



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