Keep pushing these guys.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 11/12/2000 
03:48 PM ---------------------------


Janet R Dietrich
11/06/2000 03:09 PM
To: Ozzie Pagan/HOU/ECT@ECT, David W Delainey/HOU/ECT@ECT
cc:  
Subject: Ronnie Lee-Walton


I called Ronnie Lee to invite him to the New York Christmas party (he'll 
probably come) and we had a lengthy conversation about what they're doing 
right now.
It sounds like they are down to 4 counterparties on their previous "asset 
management" solicitation:  Enron, Southern, Duke and Williams.  Williams is 
their first choice at the moment purely driven on price. It sounds like 
Williams is willing to effectively provide natural gas at a  below-market 
fixed price. Both Williams and Duke were comparable on price. Enron and 
Southern are close on price and just behind the Duke/Williams pricing. 
Although Ronnie claims everyone is "right there together", the small pricing 
difference is significant when looked at over 15 years. Williams will be with 
Ronnie soon (next couple weeks) to begin discussing contract language. He 
says documents aren't signed and I can tell he really wanted us to be at the 
table. We priced our last deal to him about 4 weeks ago and I believe the gas 
curve was higher than it is currently. Ronnie agrees that it would be 
worthwhile to reprice our deal since the prices were so close before. He said 
Jackson has  now joined Walton, Colquitt, and Satilla and they would like to 
come to terms on a definitive document in the December/January timeframe.  

I talked with him about Oglethorpe and Tom Smith, and he was very interested 
to find out we'd been meeting with them. He thinks Oglethorpe will only keep 
about 40% of the existing Oglethorpe load. He'd like to sit down and talk 
thru all this after we re-price our deal and I told him that Ozzie would be 
in touch to try and set up a time. 

Although I hadn't really planned to call Ronnie on this, I thought it 
probably wouldn't be bad to stir things up a bit!