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September 04

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Mesquite Power, LLC 3 rd quarter results: 99.4% Equivalent Availability Factor (EAF), with an overall (Q1-3) EAF of 92.3%. There's nothing left to say….just incredible performance !

September 2004

  • Production= 638,558 MWhr
  • September Equivalent Availability:
    • Block 1: 99.9%
    • Block 2: 100.0%
  • Q3 Combined Average Equivalent Availability= 99.4%
    (2004 max target for Q3 is 95% )
  • Average Net Heat Rate= 7175 Btu/kWhr
  • Technical Availability= 100.2% (current 2004 TAF is 100.04%)
  • Combined Q1-Q2 Equivalent Availability= 88.8%
    ( 2004 max target for Q1-Q2-Q4 is 89.7% )

Many of you probably don't realize it, but the above data, current status of our budget, labor stats, work order summary, and a summary of our revenue data are all included in the monthly report generated to SER Corporate. You can find the report in its entirety at the Mesquite webpage ( http://www.mesquitepower.com/business/ppt/Sep-04.ppt ).

Another tidbit of information: the entire SER western fleet ( El Dorado , Elk Hills, Mesquite , and Mexicali ) have produced 9551 GWhr this year. Of those facilities, only Mexicali and Mesquite have contributed to the CDWR contract, resulting in (SER) revenues in excess of $132M to-date. Of the roughly 7000 GWhr that have sold into CDWR, Mesquite has produced 5220 of them, a whopping 75% of the revenue created from this contract.

Mesquite Operations

As a Thank You to everyone at Mesquite for their contributions to our POWER magazine Top Plant award, please accept a framed, mounted cover of this issue to take home. I hope it's something you'll share with everyone who sees it, a tribute to your accomplishments over the past two years. After competing against some of the best in the world, this is truly a distinctive honor for all of us. If you haven't already picked up your copy, you'll find it in the conference room.

I have two site photo mattings in the conference room that we need everyone to sign. One is for the “Plank Owners” photo in the front lobby and only requires a signature. The other is for Richard Carter and I'd like everyone to offer a comment of Thanks when they sign. Although behind the scenes, Richard has always been a large part of our success and many times, I can honestly say, it's the things “you don't see” that have the greatest impact on Mesquite . Please stop in to sign them over the next week so we can get them sent out.

Family Day at Mesquite was Saturday, October 9 th and for those who attended, I'd say we all had a good time. This was the last event for the summer and with the outage and holidays looming ahead, the next get-together will be our Christmas party on December 11 th . As in past years, please feel free to invite your families even if you're unable to attend due to scheduling.

The Mesquite Classic 2004 had a phenomenal turn-out on Friday and in total, more than $12,000 was raised for our two selected charities. Again, I want to thank everyone who helped or participated in this event, destined to become a premier golf outing each year to come. I trust many of you will understand that it's not about playing the game, but rather showing support for a worthy cause while presenting Mesquite Power as a contributing organization in our community.

Shift 1 did an outstanding job in winning September's Operations Excellence Plan and are also maintaining a good second place in the annual points standing. I haven't heard much on the subject of the monthly incentive plan so I take that as good news. Steve Perrizo is the man to see if you have any suggested improvements for us to consider.

Thanks to everyone who took the time to fill out both the 360-degree assessments and the Mesquite surveys. There are still a few (completed) assessments that need to be distributed and we'll try and get those out to you this next week. I have all the surveys now and I've begun to compile the results to determine the general themes from them. After I get these put together, I'll respond to each of the questions (but not each of the answers) so everyone can have feedback from this process. To me, this is a valuable and constructive exercise since typically a Plant Manager doesn't have an opportunity to gain insight or honest responses from the workforce. Sure, there were some facetious answers but those were easily recognized and appropriately regarded. Again though, thank you for your input. I'll do my best to get a response back to you quickly.

Next Month

Our fall outage will pretty much consume any spare time between now and the end of November. The most critical days of the outage will be the first 5; the time it takes to shutdown, waterwash, borescope, repair three sets of 230kV breakers, drain and clean a cooling tower, condenser, and two clarifiers, and upgrade the DCS operating system…all on Block 1. If we pull that off, the rest of the outage is a snap (I'm knocking on wood here). In all seriousness, the first week is going to be awfully busy, stressful, and taxing… but that's why we do what we do. Keeping the place running is much preferred over sitting idle.

Mike Niggli will be visiting the site on the 29 th and is looking forward to seeing all of you again. It's a busy time at Mesquite now, but I do expect we'll present a clean facility that mirrors our reputation. There are some areas that need attention before his arrival and they're pretty easy to spot.

The final testing period will soon begin with the pretreatment Purefloc (expected 10/20) and if indications prove that substantial silica reduction is achievable, we'll look at solidifying plans to upgrade the mechanical aspect of the system. Rather than sit back and wait, some work is already in motion. During the outage, a bypass line will be installed on both clarifiers that will allow full flow around the units during any upset condition. Parts to automate and send the torque and NTU meter signals into the HMI's have been ordered. If liquid, neat feed is proven cost-effective after Purefloc results, the systems will be permanently installed and upgraded to automate these delivery methods. A comprehensive review of the filter press and/or alternate de-sludging equipment is underway. Triggers to perform these upgrades, although ready to pull, won't get the green light until positive results from the Purefloc are in. Please understand people, this has been a “performance-based” project, wherein a paradox evolved: a stabilized treatment system is needed to prove out the microbiology, but we are unable to install a permanent system without proof that the Purefloc will work. Assuredly, we'll be making improvements to whatever treatment process we conclude with. Hang in there…the end is near.

In Summary

There are two good traits that always get my attention: Initiative and Attitude . People with initiative go beyond their defined “job description”, show adaptability, and are willing to take on additional responsibility. They have and always will achieve success. Gen. Colin Powell coined it best by saying ”No matter what it is you do, do it well. Someone is always watching”. If you want to be the standard by which all others are measured, then walk in the door with a high energy level, tons of enthusiasm, and the determination to be the very best at what you do. Enthusiasm is infectious. It is motivating and it drives others to higher levels of productivity and success. Mesquite Power may be just a job or perhaps even not your ‘perceived final destination'. Your life goals however, should always include something you get up for every day.

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

Best Regards,


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