Well, Larry just won't let go of these contract issues, will he??
I believe the answer is that SWGas will always be billed based on the 
one-part rate, regardless of how we choose to allocate the rate components.  
My understanding is that the reason we reserve the right to allocate the 
components is simply for internal accounting purposes, to keep any one 
component from exceeding the max or going below the min.
Hope this helps; let me know if you have further questions!




Lorraine Lindberg
07/25/2000 02:59 PM
To: Susan Scott/ET&S/Enron@ENRON
cc:  

Subject: TSA #27252

Any advice on how to respond?
---------------------- Forwarded by Lorraine Lindberg/ET&S/Enron on 
07/25/2000 03:00 PM ---------------------------


Larry L Black <llblack@attglobal.net> on 07/25/2000 02:26:43 PM
Please respond to llblack@attglobal.net
To: "Lindberg, Lorraine" <llindbe@enron.com>
cc: "Gildersleeve, Dave" <dave.gildersleeve@swgas.com> 

Subject: TSA #27252


Lorraine,
Confirmation that I did receive your executed TSA and Letter Agreement.
I'm so glad you are excited.  We have so little in our lives to give us
true excitement.  At my age, I try to reserve all events of elevated
blood pressure for only the esoteric things.  (Just kidding.)  I'm very
pleased we finally got this done.  Now for the pipe wrench and welder
folks to get the physical jobs done, as well.

Unfortunately, the work is never over.  I will now try to concentrate on
the OBA, which has been sitting by the sideline for a long time.  Will
get back to you on that as soon as I can.

As for the TSA rate, I have a few questions.  We have agreed that TWPL
would allocate the rate between fixed and variable components.  I have
never been clear on just when and how that will be done.  I have assumed
you would make that call, let us know, and it would be over.  Is there
any idea that issue would be a changing thing, or is it "once done,
always done"?  Further, what factors do you use to make that
determination and what, if any, rules and regulations apply?  From
different views, I'd like to have it all variable and you would like to
have it all fixed.  What is the process here?

I will get back to you soon on the OBA stuff.  Meanwhile, chill that
champagne!
Larry

 - llblack.vcf