PES, an Enron subsidiary like PGE, is in the air conditioning business. Atop Block 2 of the five-block redevelopment of the former Blitz-Weinhard Brewery here, it is 90% finished installing the first phase of a massive chilled water air conditioning plant. In addition to cooling tenants in the 1.7-million-sf Brewery Blocks redevelopment, the company hopes to convince other building owners in the area to forego replacing their aging air conditioning units, which can run as much as $1 million, and instead hook into their plant.

At build out, the $15 million plant will be capable of cooling six million sf of commercial space. First, however, they need to get past the $6.4-million first phase, and that's where things have gotten sketchy, as they are $2 million short and not sure where the money going to come from. PES General Manager Gary Heikkinen tells GlobeSt.com that only the smallest of three chillers is up and running at the moment, which is enough to service the recently opened Whole Foods Market on the ground floor of Block 2 but not enough to cool the entire Brewery Blocks project, let alone other buildings in the area. And with Enron in bankruptcy, it's unclear if the money will continue to flow as it has up to now.

The conditions of approval, however, are such that PES will likely have to seek more funds to stay afloat and garner enough business to turn a profit. The recommended loan term is one year and the interest rate 16%. PES, meanwhile, is projected to lose money this year and next as it continues to ramp up operations.