The following table summarizes the PV quantities associated with the three transportation contracts owned by the Navy Yard.  You may use this number to look at the impact of a 1 cent change in demand rates (unitized) on the value of the transaction.  Because pipeline demand charges do not flow as part of the sales price, an increase in the demand charge will result in a loss to the deal.  

As a reminder, the base valuation makes very reasonable (and conservative) assumptions regarding increases in pipeline demand charges over the term of the deal.




	Transcanada	Iroquois	Transco	
MDQ	25,508	25,253	30,303	
PV Volumes	93,598,193 	92,662,505 	115,211,782 	


Mark S. Breese
Director, Gas Structuring
Enron North America
P.O. Box 1188
Houston, TX 77251-1188

Phone:  (713) 853-6751
Cell:      (713) 419-1038