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February 04

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Congrats on a fantastic beginning to 2004 ! Very impressive numbers to send up for January and an awesome (!) Technical Availability:

February 2004

  • Production: 613,785 MWh
  • Avg Heat Rate: 7109 Btu/kWhr
  • Technical Availability: 99.97%
  • Block 1 Availability Factor: 100%
  • Block 2 Availability Factor: 95.6%
  • Block 1 Equivalent Availability: 97.9%
  • Block 2 Equivalent Availability: 93.5%

Again, a super effort by all. The data shows where your focus is and reflects directly from how well you perform your jobs. It is the cumulative result of Operational Excellence and your commitment to being “the best”. I'll let everyone decide if these numbers are good enough, but I promise a huge party… when we get our first 750,000 MWh month. The rest of the percentages will fall into place.

The present schedule has us operating through April at pretty much the same level, approximately 21,000 MW/day. We've bumped-up daily baseload numbers and expect to continue following the ambient curve into the spring, intent on meeting Asset Management's expectations for our baseload capability. With the exception of the weekly runs, we shouldn't anticipate any peak firing until end of May. The Spring outage is tentatively scheduled for May 1-10 (nine days, staggered blocks) so please… anticipate full support for this short period.

We'll be hosting a BVZ photographer onsite during the week of February 16th. As a heads up, they've also contracted a pilot to take aerials of the Facility during this time.

March 10th will be the Mesquite Power dedication ceremonies to be held at the site. Warehouse 3 is going to be transformed into a convention hall, media will abound, politicians shaking hands, photo ops, the whole works. Sorry, it's just one of those necessary events you “have” to do. Mesquite's participation in the affair will actually be minimal, but you can expect the preparation efforts to far exceed what we did for the Board of Director's visit. So keep this date in mind. No scheduled maintenance, no deliveries, no vendors dropping by.

We recently submitted a Request for Proposal/Request for Quote to our chemical and Water Treatment service vendors. The Team has been doing a great job reviewing all 10 proposals and next week will announce the contract awards. I'm sure if asked, each of them would say it's been an enlightening experience, having submerged into the details of what each vendor says they can provide us.

Bonus and Raises. Now that I have your attention … raises were submitted to SER Human Resources last week per . I'm not sure what the SER policy is for retroactive periods since this is my first raise as well, but I'll find out for you soon. A word about raises though: “conservative” … and I mean that across the board. SER is the type of company that plans for solid, long term growth and while that's a good thing, I don't want anyone to have misconceptions about the process. It's easy for me to say what a terrific job you're all doing, we're making all this power, earning huge profits for the company, but difficult to present a raise inconsistent with your performance. Therefore, don't think of the raise as a reward for doing a great job… that's why we have a “performance-based” bonus program! I submitted our bonus validation yesterday and as I understand it, these will be paid out on the first pay period of the second quarter. Our bonus targets for maximum payout were all met.

Water plant upgrades are in the process and we'll soon have the pretreatment Capital Project submitted. There are still several projects left to do before June, but we also have the confines of a budget to consider. Savings on typical operating costs: chemicals, gases, and water consumption can offset monies we spend on equipment upgrades and special projects. Keep this in mind, because these are things you have control over. 2004 may be the only opportunity we have to optimize Mesquite Power's mechanical systems and I hear unanimous agreement, when I say it sure would be nice to resolve our outstanding items.

Keep up the excellent work.




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