This is the subject of the meeting w Larry for 230 today on 31 in control room
----- Forwarded by Elizabeth Sager/HOU/ECT on 05/17/2000 09:54 AM -----

	Larry Soderquist
	05/17/2000 09:42 AM
		 
		 To: Elizabeth Sager/HOU/ECT@ECT
		 cc: Larry Soderquist/HOU/ECT@ECT, Thresa A Allen/HOU/ECT@ECT, Lloyd 
Will/HOU/ECT@ECT, Mitch Robinson/Corp/Enron@Enron, Amy Spoede/HOU/ECT@ECT
		 Subject: TVA/Gleason - second transmission credits doc

Elizabeth, we discussed this matter intenally yesterday, witht he following 
conclusions:

We want to be able to apply Gleason Network credits to all transmission costs 
(from all  TVA-related control areas)
We want to be able to go negative on application of the credits - when 
network upgrade invoices to Gleason have not  yet caught up to transmission 
credit requests from all of the control areas.
We do not want to make a monthly declaration of transmission requirements.  
We need to agree with TVA on a process to keep track  of the credit usage and 
balance.

We would like to go over them with you in our 2:30 pm meeting today - at the 
controol room conference table.  

Larry.

  
---------------------- Forwarded by Larry Soderquist/HOU/ECT on 05/17/2000 
09:30 AM ---------------------------


Ben F Jacoby
05/13/2000 11:11 AM
Sent by: Ben Jacoby
To: Larry Soderquist/HOU/ECT@ECT
cc: Lloyd Will/HOU/ECT@ECT, Amy Copeland/HOU/ECT@ECT, Jody 
Pierce/HOU/ECT@ECT, Tammy R Shepperd/HOU/ECT@ECT 
Subject: Re: Ltr to Soderquist - Designate Recipients of Trans Credit  

Larry:

Please make sure folks are up to speed on this. In any current month, the 
amount of the transmission credit is equal to the then current amount of 
capital costs paid by Gleason to TVA for the Shleby upgrade, less any 
transmission credits previously used. I think the way to go is first to see 
if we can use the credits to offset transmission charges from our other TVA 
plants (on this point, TVA said no, but since Luke is out of the picture, we 
should make another run at this). If that does not fly, (that is, if the 
amount of credits we can use in any month is limited to the transmission 
charges otherwise due from Gleason on the power it generates), we obviously 
want to make sure we designate a credit amount equal to only as much as we 
actually need. 

Given that I believe we are the first IPP to be in this situation with TVA, 
and given that TVA is to repay us in 2009 for the actual cost of the Shelby 
upgrade less transmission credits actually used, we also need to make sure we 
are accurately tracking both upgrade costs and transmission credits used, and 
that TVA agrees with what we believe to be the correct balance. Jody Pierce 
and Amy Copeland are aware of this, but I caution that we need to be 
extremely careful given the amount of money involved. Toward this end, I have 
asked Jody and Amy to make sure each TVA Shelby upgrade invoice is adequately 
labelled as such by TVA before we make payments. I strongly suggest we put in 
place a similar system for transmission credits whereby we receive TVA 
signoff as part of the process Dennis To references below.

Please follow up with Jody, Amy, and Lloyd to make sure everyone is up to 
speed on this as we proceed, and please make sure that an adequate process is 
set up to account for transmission charges, credits, and balance of Shelby 
upgrade costs.

Thanks much,

Ben



"To, Dennis P." <dpto@tva.gov> on 05/12/2000 02:56:14 PM
To: "'Larry Soderquist'" <Larry.Soderquist@enron.com>
cc: "'Jack W. Simmons'" <infinergy@earthlink.net>, "'Ben Jacoby'" 
<Ben.Jacoby@enron.com>, "'Mitch.Robinson@enron.com'" 
<Mitch.Robinson@enron.com> 
Subject: Ltr to Soderquist - Designate Recipients of Trans Credit




> The original of this letter has been mailed to you.  Call me if you have
> any questions.
>
>  <<Soderquist Letter - Designate TC Recipient 5-11-00_.doc>>
> Dennis P. To, P.E.
> Transmission Strategy Specialist
> Executive VP's Staff
> MR 3H-C
> Phone 423-751-7109
> Fax 423-751-4187
> Pager 1-800-443-7243, code 011944
> Internet dpto@tva.gov
>

 - Soderquist Letter - Designate TC Recipient 5-11-00_.doc