I've redlined the outline to address what I believe is the most important 
risk you guys will face out there:  the risk that FERC will listen to your 
presentation and conclude that the embedded optionality that some pipelines 
are currently offering in transport contracts is a negotiated term and 
condition and therefore must be stopped.  I think we need to tailor the 
presentation and filing to minimize the chance that FERC will take away 
flexibility we think we now have (i.e., the flexibility to embed shipper puts 
in transport contracts).   Even if the TW approach on unbundled options goes 
nowhere, several of the strategies we may want to implement next year depend 
on continued ability to sell embedded options.   Susan, Shelley,a nd MKM, I 
still think it is a good idea to push this proposal, but am concerned that 
FERC might squirrel and go the opposite direction we are trying to push 
them.  Your thoughts?  DF




     




Susan Scott
09/28/2000 03:27 PM
To: Nancy Bagot/OTS/Enron@ENRON
cc: Shelley Corman/ET&S/Enron@ENRON, Jeffery Fawcett/ET&S/Enron@ENRON, Drew 
Fossum@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON 

Subject: Outline of TW Options Program

Nancy, I've prepared the attached outline in response to FERC Staff's request 
that we provide "something in writing."  This is basically just a description 
of our proposal.  I've tried to keep it brief so that staff members are not 
reading while we're trying to talk to them.  It should be enough information 
to raise a lot of questions.

Please wait until Shelley or I give you the go-ahead to pass this along to 
the relevant Commission people; I'd like to give the other addressees the 
opportunity to comment on this to the extent possible.  

Everyone else:  please give me your comments ASAP as Nancy has been asked to 
provide something to them tomorrow.