Sandi, 

Sorry for just now getting back with you.  I was out last week.  

The rate ($.04/mmbtu) will be charged on the greater of the volumes nominated 
on the supply contracts or the actual deliveries to the plant.  The fee will 
be adjusted yearly based on CPI.

Bob - I could not remember if we stated the type of settlement on the 
delivered volumes (actuals or nominations).  I think we should use actuals 
due to possibility that the plant could over pull with out our knowledge on a 
daily basis.  We would receive the estimates/actuals on a lag and may have to 
purchase gas to offset the imbalance, even though the plant kept the noms at 
the 45,000 base.  I also think that if the plant does increase the nom, they 
are more likely to pull the additional volume rather than pulling less.  Do 
you agree with this?

D



From: Sandi M Braband on 10/10/2000 03:41 PM
To: Daren J Farmer/HOU/ECT@ECT
cc:  
Subject: Rate for  Tenaska Deal

Daren,
When we met regarding the rate for the Tenaska Gas Management Agreement, you 
guys mentioned that it would be tied to an index--could you restate for me 
how that is to work--it will start out 4 cents per MMBTU based on the greater 
of the volumes nominated through the supply contracts or the actual 
deliveries to the plant. Then the fee will vary month to month? year to year? 
based on what index?

Thanks,
Sandi