---------------------- Forwarded by Lorraine Lindberg/ET&S/Enron on 
06/20/2000 04:03 PM ---------------------------


Ramona Betancourt
06/20/2000 02:04 PM
To: Christine Stokes/ET&S/Enron@ENRON, Jeffery Fawcett/ET&S/Enron@ENRON, 
Lorraine Lindberg/ET&S/Enron@ENRON
cc: Susan Scott/ET&S/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Debbie 
Moseley/ET&S/Enron@ENRON, Sheila Nacey/ET&S/Enron@ENRON, Lynn 
Blair/ET&S/Enron@ENRON, Julia White/ET&S/Enron@ENRON, John 
Buchanan/ET&S/Enron@ENRON, Richard Hanagriff/ET&S/Enron@ENRON, Elizabeth 
Brown/ET&S/Enron@ENRON, David Duff/ET&S/Enron@ENRON, Gerry 
Medeles/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON 

Subject: TW Cash for Fuel Issues

Christine,

After our meeting last week, John, Elizabeth, Gerry, Richard, Dave & I 
discussed various options related to this cash for fuel process. We had 
several open issues that came up in our discussions and they are as follows:

Regulatory/Legal issue: Can we have contract specific language on our firm 
contracts that would prevent the firm shipper from releasing this fuel 
discount  cash option to an acquiring shipper?     If we must offer this 
special cash option to the acquiring shipper we will need to build a process 
to track this fuel option from the firm shipper to the releasing shipper. 
This will require more system modifications that we have not accounted for at 
this time.

Shipper nomination issue: How will we handle shipper nomination line items 
that are nominated as overrun paths on their firm contracts?  Could we 
default these "02" overrun transactions to calculate the fuel in kind using 
our existing tariff fuel %?  This would  make the process of trying to 
reconcile the contracted MDQ fuel volumes easier when we verify that the 
volumes the shipper elected to pay in cash tie back to the total volumes 
scheduled & paid for in cash..

Tariff Sheet issue:  When you state in the tariff provision that "The shipper 
may use the cash for fuel option only if the posted point of sale is a 
receipt point on shipper's service agreement" Does this only apply to the 
shipper's primary receipt points?

I would appreciate it if you could respond to these issues. If you feel like 
we should meet to discuss, I will be glad to set up another meeting. Please 
let me know.

Thanks Ramona