-----Original Message-----
From: 	Miller, Stephanie  
Sent:	Wednesday, June 06, 2001 1:10 PM
To:	Moon, Eric; Polsky, Phil
Subject:	FW: Longview Transport Options

FYI - This is the analysis Phil and I spoke about.

May be back tomorrow a.m.

Steph

 -----Original Message-----
From: 	Wente, Laura  
Sent:	Tuesday, June 05, 2001 2:28 PM
To:	Miller, Stephanie; Slaughter, Jeff G.
Subject:	RE: Longview Transport Options

Hi Stephanie,

Thank you very much for the update (scary as it sometimes sounds). I know you're swamped but if we could review and talk about a synopsis of the gas options on Friday it would be very helpful. I think that we should be prepared to talk to Chris and Jake early next week as it looks like a pretty high probability (assuming we can't get there with Puget, Mirant or Engage) that we may need to step up to the Expansion. 

Let us know what your schedule looks end of this week and early next. Thanks very much! 

Regards,
Laura

 -----Original Message-----
From: 	Miller, Stephanie  
Sent:	Tuesday, June 05, 2001 2:12 PM
To:	Wente, Laura; Slaughter, Jeff G.
Subject:	Longview Transport Options

Spoke with Kern today - They are evaluating the economics of two expansion projects: Rockies to Stanfield (piggyback of displacement fix) and across the Gorge (Stanfield to I-5).  NWPL's least cost expansion of the Gorge is for roughly 55,000 mmbtu/day. At the present time, they plan to offer the cheap expansability to their existing shippers on June 20 as Phase II of the displacement fix. Existing customers will have 30 days to decide.

While NWPL remains undecided about the timing of an expansion out of the Rockies, the project has not yet disconnected from the displacement fix. Current best guess on economics (this is a moving target) for Rockies expansion is in the low $.50's plus $.40's for Gorge (and this excludes fuel).

Another option would be to use existing PGT capacity (or participate in their 6/19 binding open season) to Stanfield and participate only in the Gorge project.  If we were ready, we could force Kern into a Gorge expansion prior to June 20. To drive the process, we would need to be the anchor tennant and be subject to the outcome of an open season that could result in upward pressure on the rate.

I have asked Eric Moon to help analyze and map all of the options. Hope to have something to send to you on Friday.

Regards,