Mary Kay, although we did want to post for 10 years because it helped us in negotiating future contracts, it is no longer necessary to do so for such an extended period. We can wait until an order on the options is issued but maintaining the 10 year posting has become unmanageable.   




"Miller, Mary Kay" <MaryKay.Miller@ENRON.com> on 04/20/2001 08:40:56 AM
To:	"Frazier, Perry" <Perry.Frazier@ENRON.com>
cc:	"Hyatt, Kevin" <Kevin.Hyatt@ENRON.com>, "Fossum, Drew" <Drew.Fossum@ENRON.com>, "Gottsponer, Morgan" <Morgan.Gottsponer@ENRON.com>, "Donoho, Lindy" <Lindy.Donoho@ENRON.com>, "Steve Harris (E-mail)" <sharris1@enron.com>, "Susan Scott (E-mail)" <sscott3@enron.com>, "Hass, Glen" <Glen.Hass@ENRON.com>, "Darveaux, Mary" <Mary.Darveaux@ENRON.com>, "Pavlou, Maria" <Maria.Pavlou@ENRON.com> 

Subject:	Re: TW 10 year capacity posting




Kevin, Steve, Perry;

 When we worked on the new posting requirements for 637, we had specifically inquired about why TW posted for 10 years , since NNG only posts 13 months of info.   The feedback we all received, we that TW wanted to continue posting for the 10 years.  We can relook at that but first, since we did represent in our options filing the 10 info, I'd like  to see how or if the order references that before we change.   Steve, maybe, it would be helpful to "round up" all your troups to make sure everyone is on the same page as to the pros and cons of the 10 years.   Let us know that and then again I feel we need to wait until the order issues on Options.   

Perry, in regard to point 4, the capacity related to a contract with a ROFR right is shown as Not Available after the primary term correct?  

Mary Kay



Perry Frazier

04/19/2001 01:01 PM

To:     Kevin Hyatt/ENRON@enronxgate

cc:     Mary Kay Miller/ET&S/Enron@ENRON, Drew Fossum/ENRON@enronXgate, Morgan Gottsponer/ENRON@enronXgate, Lindy Donoho/Enron@enronXgate, "Steve Harris (E-mail)" <sharris1@enron.com>@SMTP@enronXgate, "Susan Scott (E-mail)" <sscott3@enron.com>@SMTP@enronXgate 

Subject:        Re: TW 10 year capacity posting   ole0.bmp

Kevin: Thanks for the information, I am a little confused as to the timing and the number of years required to be posted now, after the Capacity Options approval and after the new CAS has been released to you for daily operations.  I am working with the following assumptions:

1.      The 120 monthly spreadsheets will be maintained and updated to the EBB every hour between 6:00 am and 6:00 pm.  This is consistent with the historical updating since mid 1998, and I will continue to do this until the new CAS process is tested and released for your group to use(Best guess  2 more month-end nom cycles).

2.      The new CAS process will update the EBB with the same data as the spreadsheets.  We need to determine if we will include all receipt & delivery points, and if we will include a partial group/path list as we currently post.  Currently the spreadsheet contains only those points and/or groups that we thought our shippers might be interested in using monthly.

3.      The Gas Control Allocation and Facility Planning unsubscribed modules are adopting new standard group names,  I will let you review what those will be prior to any changes to production. 

4.      The ROFR flag is now in the new CAS and will reduce the unsubscribe numbers past the contract expiration date.  This will be effective after CAS is released to you.  Currently the 120 monthly spreadsheets tract subscribe FT to the contract expiration date, no reservations past the expiration date. 

Let me know if my assumptions are correct, and any changes that might effect the above efforts.  I need to let the IT group start their development process, as to,  What we will post from CAS?   Call me with any questions, PT 3-0667.


 

From:   Kevin Hyatt/ENRON@enronxgate on 04/19/2001 10:22 AM

To:     Mary Kay Miller/ET&S/Enron@ENRON

cc:     Drew Fossum/ENRON@enronXgate, Perry Frazier/ET&S/Enron@ENRON, Morgan Gottsponer/ENRON@enronXgate, Lindy Donoho/Enron@enronXgate, "Steve Harris (E-mail)" <sharris1@enron.com>@SMTP@enronXgate, "Susan Scott (E-mail)" <sscott3@enron.com>@SMTP@enronXgate 

Subject:        TW 10 year capacity posting

MK-

        I have discussed with Steve Harris and Drew Fossum the prospect of reducing TW's EBB posting of available capacity from 10 years to something less.  Ideally, I would like no more than 3, Steve and Drew however agreed to no less than 5 years.  Their only qualification was if you concurred.

I understand we have made certain posting representations in our FERC Capacity Options filing.  Drew and Steve thought it better to wait until after the Options approval from FERC before we made any changes to the EBB.  Are you OK with this?

From a business perspective, posting TW capacity for 10 years reduces our negotiating leverage on long term contracts.

From an administrative perspective, trying to maintain 120 monthly spreadsheets with correct capacity figures is a nightmare.  Maintaining this level of detail only increases the risk of making mistakes. 

Please let me know your thoughts.

thanks

Kevin Hyatt

x35559






 - ole0.bmp