
Date: Mon, 16 Oct 2000 04:39:00 -0700 (PDT)
From: daren.farmer@enron.com
To: sandi.braband@enron.com, bob.hall@enron.com
Subject: Re: Rate for Tenaska Deal

Sandi,

Sorry for just now getting back with you.  I was out last week.

The rate ($.04/mmbtu) will be charged on the greater of the volumes nominated
on the supply contracts or the actual deliveries to the plant.  The fee will
be adjusted yearly based on CPI.

Bob - I could not remember if we stated the type of settlement on the
delivered volumes (actuals or nominations).  I think we should use actuals
due to possibility that the plant could over pull with out our knowledge on a
daily basis.  We would receive the estimates/actuals on a lag and may have to
purchase gas to offset the imbalance, even though the plant kept the noms at
the 45,000 base.  I also think that if the plant does increase the nom, they
are more likely to pull the additional volume rather than pulling less.  Do
you agree with this?

D


