
Date: Mon, 20 Nov 2000 04:30:00 -0800 (PST)
From: timothy.ray@enron.com
To: dick.jenkins@enron.com
Subject: CPA Capacity
Cc: chris.germany@enron.com, john.henderson@enron.com, marc.manly@enron.com,
michael.garred@enron.com, jeffrey.porter@enron.com,
susan.covino@enron.com, becky.merola@enron.com
Bcc: chris.germany@enron.com, john.henderson@enron.com, marc.manly@enron.com,
michael.garred@enron.com, jeffrey.porter@enron.com,
susan.covino@enron.com, becky.merola@enron.com

Dick;
New Power has an issue with ENA on the TCO capacity that is released to us
each month by CPA.  I need to put this in an e-mail in order to get others
included in the topic.

During the purchase of the CES Retail business, we asked for a summary of all
capacity from CES.  CES could not produce contracts because ENA, as their
agent, possessed all pipeline contracts.  CES requested a summary of the
capacity applicable to Retail.  ENA, in response to the request, produced a
document representing the receipt and delivery points applicable to the
pipeline capacity.  The capacity allocated from CPA was clearly represented
as 100% Leach receipt point.  Corresponding, New Power has established all of
its curves based on this assumption.  We have now determined, as a result of
a pipeline cut, that we actually have Broadrun and AGG 6 receipt point
capacity.

Not only was the receipt point misrepresented on the summary that was
ultimately incorporated into the CES Purchase Agreement as a schedule, ENA
also recently executed new TCO capacity on our behalf from CPA and failed to
provide any notice to us that the allocations changed on receipt point
capacity giving us a much greater % of AGG 6 capacity.

This is a difficult situation.   We are significantly hurt from an economic
standpoint as a result.  The Agg 6 gas is as good as worthless since I can
not find gas here for winter.  It will probably be stranded.  This means I
have to find delivered gas for the majority of supply which trades at
exorbitant price.  I also have to pay premiums for Broadrun capacity.  I need
to get a reply from you as to what options ENA sees in addressing this
situation.  As our supply manager, we are looking to you for a economic make
whole.


