Here is the latest version that I had.  Is this up to date?
---------------------- Forwarded by Phil DeMoes/Corp/Enron on 02/27/2001 
10:52 AM ---------------------------


John Hodge
12/14/2000 08:47 AM
To: Phil DeMoes/Corp/Enron@ENRON, Les 
Webber/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John Griffith/Corp/Enron@Enron, 
Mark Breese/HOU/ECT@ECT
cc:  

Subject: Transco's Momentum Expansion and Elba

As a result of discussions for capacity to serve electric generation sites in 
Georgia through Transco's Momentum Expansion, Transco has proposed a rate of 
$0.32 plus 2.35% fuel for receipts in Zone 3 (Station 65) and deliveries in 
Zone 4.  If you assume fuel on a gas cost of $4.00 ($.095 fuel), then the 
total rate is $0.415.  

Assuming the aforementioned rate, Southern Company can pay Transco $0.415 or 
purchase gas from Elba and backhaul on Sonat at a rate of $0.22 which would 
netback to Elba at Hub + $0.195.  If you assume a basis of $0.01 for gas on 
Transco Zone 3, then the netback goes up to Hub plus $0.205.  

Transco has also offered a $0.27 Momentum rate for receipts from Station 
85/Destin (Zone 4) and deliveries in Georgia.  With fuel at 1.9% and $4.00 
gas, the total rate is $0.35.  However, basis at Station 85 is $0.04 and that 
takes the delivered cost up to Hub + $0.39.
This delivered price would yield a backhaul netback to Elba at Hub + $0.17.

Since Southern Company can site generation in Sonat Zone 2 (Alabama) or Zone 
3 (Georgia), they are probably unwilling to pay this high a netback price at 
Elba.  Additionally, most power developers will not commit to a baseload 
quantity given that they will be serving a peaking market.  One alternative 
is to sell to existing firm shippers on the Sonat system that would view Elba 
as a savings on variable cost on their FT agreement.  The net is a Hub + 
$0.10 at Elba assuming a basis of $.04 at Destin.  

Through discussions with Phil Demoes, Southern Company has stated that a 
price of Hub + $0.20 was out of the question.  Phil indicates that we could 
probably strike a deal between their bid of Hub + $0.12 and Hub + $0.17.