Enron OnLine Capacity Auction
Bidding opened on Thursday 6/22; no bids have been received as yet but 
several shippers have indicated interest and plan on responding on Monday 
6/26.  Bids close at 2pm Monday 6/26.  Coincidentally, we received a call 
from Unbound Technology, a developer of wireless software technology.  
UnBound provides software architecture  that creates the connection between 
transaction processes and wireless services.  This potentially would allow TW 
to extend our e-commerce services beyond the desktop  to a wireless user 
through a customized, wireless interface (pagers, cell phones, etc.).  We 
have set a meeting with Unbound for next Wednesday.

Fuel Monetization
Implementation cost estimates are being finalized as customer interest is 
being evaluated for this potential service option.  Duke, Southern, and 
Reliant are all interested but only if they can have first call on the space 
created.  El Paso Merchant Energy is expected to provide Transwestern a 
proposal, early next week, for the potential monetization of the fuel 
component for their company's transportation contracts totaling 65,000 Dth/d 
of San Juan to California capacity.

Southern Company Energy Marketing
John Hogan was in town this week.  Southern has advanced to the second round 
of bidding on Nevada Power's generation assets which are scheduled to be sold 
off by the end of this year.  SCEM's Gallup agreement allows them to deliver 
to the new SWG delivery point on an alternate basis, but if Southern is 
successful in obtaining any of Nevada Power's gen assets, they may request to 
amend the delivery point on their Gallup contract.  SCEM is also very 
interested in any expansions TW may have in the near future.  Due to their 
affiliation with Vastar, they have a definite appetite for more San Juan to 
CA or NV transport.

Southern is interested in the possibility of buying options for capacity on 
TW and we requested that he get his regulatory group familiar with the idea 
in hopes that SCEM would support of our filing.

SCEM also plans to trigger its ROFR on their Ignacio to Blanco capacity 
(30,000/d) by the 7/1 deadline.

Duke
They have triggered their ROFR on the Ignacio to Blanco capacity (18,000/d) 
and this capacity will be posted on the Internet per TW's tariff the week of 
7/3.

Pueblo Project
Secretary of Energy Bill Richardson was excoriated this week in front of 
Senate panels reviewing his and the DOE's conduct regarding the missing 
computer hard drives at Los Alamos.  Since the Pueblo project hinged on the 
ability of Richardson to use his Secretarial discretion to create this sole 
source contract, with limited review by Congress, we can rest assured 
Congressional support for Richardson or any of his pet projects is 
non-existent.

Miscellaneous
Received a call from an irate Houston citizen complaining of "aggressive" 
driving by an 18-wheel motor fuel carrier with "Transwestern" painted on the 
truck.  We assured the caller it was not our truck and recommended he call 
the Tx DOT or sherriff's department.