TCPL and the Stakeholders have been meeting regularly since January and are 
close to a partial two year toll settlement along the following lines 
acceptable to TCPL:

Cost of Capital and ROE - to be litigated in NEB Rate Hearing
Operations, Maintenance and Administration Costs - 2001 = $223M    2002 = 
$216.5M
Depreciation - 2001 2.76% (increase of 0.1%)   2002 = 2.91%  (approx $60M 
over two years)
Authorized Overrun Service of 2.5% of FT credited to IT services
Employee Severance costs amortized over 3 years
Revenue Sharing to be capped at $5M
New Services to be tariffed and run through expedited Tolls Task Force 
Process.  If opposed at TTF, sponsors can file application with NEB.
IT Floor = greater of 80% of FT toll or sum of incremental marginal fuel cost 
pus FT Commodity toll plus 5% of daily FT demand toll
STFT - status quo
AECO/ANR Storage - TCPL commitment to review monetization and disposition 
options on 8 bcf this year

In terms of an Eastern Zone toll and prior to taking into account any 
increase for higher cost of capital, this represents about CDN$1.10/GJ in 
2001 and $1.15 in 2002 (assuming discretionary revenue of $40M/year).

Going around the table most stakeholders, including the LDCs and CAPP gave it 
unenthusiastic support although IGUA and Centra Man indicated they have 
strong problems with AOS if it is run as a credit to IT services.  El Paso 
and PGE were non-commital and may end up opposed.  Representing Enron, I 
expressed concern about the lack of clarity around what marginal fuel costs 
mean but indicated we would unlikely to be opposed (i.e prepared to litigate) 
if it was otherwise widely supported.

TCPL is to draft agreement language for distribution next week.

Any questions let me know.

Kevin
403 974-6727