We do in fact have a lot of captive markets.  I don't have a problem with S&P 
saying that, although I wouldn't want Enron saying it too often.  In general 
I'm OK.  Thanks. DF


   
	
	
	From:  Mary Kay Miller                           06/14/2000 08:57 AM
	

To: Bob Chandler/ET&S/Enron@ENRON, Drew Fossum
cc: Gina Taylor/HOU/EES@EES, Scott Vonderheide/Corp/Enron@ENRON 

Subject: Re: Standard and Poor's Annual Review  

I have a little discomfort with the reference a couple of times, that our 
customers have no options.  If used and published this could impact us on our 
argument related to risk of market.  Drew, what do you think??  MK


   
	
	
	From:  Bob Chandler                           06/13/2000 10:16 AM
	

To: Gina Taylor/HOU/EES@EES
cc: Mary Kay Miller/ET&S/Enron@ENRON, Scott Vonderheide/Corp/Enron@ENRON 

Subject: Re: Standard and Poor's Annual Review  

Tim Despain  received a draft copy of S&P annual review from the S&P rep.  He 
was given the opportunity to comment on the draft.  The annual review will be 
an S&P analysis, not an Enron release.  Dave Neubauer didn't change the 
wording much from the original S&P draft, but his changes improved the 
original draft.  Here's how it looked before his edits:

Northern Natural Gas Company:
(Northern Natural is a huge pipeline system that dominates gas deliveries in 
Minnesota and parts of Iowa, Wisconsin, Michigan, and South Dakota.  The 
system,s above-average business profile reflects the only moderate amount of 
direct pipeline competition the company faces in its service area.  The 
upper-Midwest is a particularly cold region that uses a lot of natural gas, 
and Northern Natural,s customers (mainly gas utilities and municipalities) 
have little options for other fuels.  Thus, the pipeline is in a strong 
position to maintain existing sales and garner any new load.  Throughput 
growth has been modest.  Although there is some ongoing recontracting risk as 
firm transportation service contracts expire, most customers have no other 
options other than Northern Natural.  Competition for at-risk capacity is 
stiff, given the excess pipe capacity available on the other Midwest 
pipelines and the new pipeline construction in the Midwest.  Northern Natural,
s cost structure is very competitive.  A major rate case was settled in 1999 
that extended many firm contracts with most of its customers.

If anyone has further comments, I would suggest sending them directly to Tim 
Despain.



Gina Taylor@EES
06/13/2000 09:45 AM
To: Bob Chandler/ET&S/Enron@ENRON
cc:  

Subject: Standard and Poor's Annual Review

Bob,

Good Morning!

This write-up made it back to me for my reveiw.  Has Mary Kay Miller reviewed 
this?  And what about Scott Vonderheide in Investor Relations?  I think both 
of these groups need to sign off on this.

Gina

---------------------- Forwarded by Gina Taylor/HOU/EES on 06/13/2000 09:00 
AM ---------------------------

Deb Cappiello@ENRON
06/13/2000 08:29 AM


To: Gina Taylor/HOU/EES@EES
cc:  
Subject: Standard and Poor's Annual Review

This is what Dave Neubauer sent to Schafer.  Just wanted to make sure you are 
ok with that.  Please give me a call after you review.  Thanks.
---------------------- Forwarded by Deb Cappiello/ET&S/Enron on 06/13/2000 
08:25 AM ---------------------------


Dave Neubauer
06/12/2000 05:41 PM
To: Deb Cappiello/ET&S/Enron@ENRON
cc:  

Subject: Standard and Poor's Annual Review


---------------------- Forwarded by Dave Neubauer/ET&S/Enron on 06/12/2000 
05:37 PM ---------------------------
   
	
	
	From:  Bob Chandler                           06/12/2000 04:19 PM
	

To: Rod Hayslett/FGT/Enron@Enron
cc: Dave Neubauer/ET&S/Enron@ENRON 

Subject: Standard and Poor's Annual Review

Here is Dave Neubauer's revised draft for NNG's section of the S&P report:

Northern Natural Gas Company:
Northern Natural is a large pipeline system that provides gas deliveries into 
Minnesota and parts of Iowa, Wisconsin, Michigan, and South Dakota.  The 
system,s above-average business profile reflects only a moderate amount of 
direct pipeline competition. The upper-Midwest is a particularly cold region 
with heavy natural gas usage. Although throughput growth has been modest, 
many of Northern Natural,s customers (mainly gas utilities and 
municipalities) do not have dual fuel capabilities.  This allows Northern 
Natural to maintain existing sales and garner any new load. Competition for 
at-risk capacity is stiff, given the excess pipe capacity available and under 
construction on other Midwest pipelines. Northern has some ongoing 
recontracting risk over the next five to seven years, but maintains a very 
competitive cost structure.  A major rate case was settled in 1999 that 
extended many firm contracts with most of its customers.