Ramona, "total cost commitment" in TW's tariff generally means total revenue 
to be received from a transaction, taking 
into account reservation rate, the term of the commitment, and the commodity 
revenues associated with any minimum 
throughput commitment the shipper may make.  Obviously some of these items 
aren't applicable in the PNR context; the 
language must have just been lifted from another part of the tariff.  For PNR 
we would just multiply rate times number 
of days the service will be used.  Practically speaking, I'm not sure how 
this is done if you have an interruptible service with 
no throughput commitment, but I think you should just be able to use the 
number of days in the contract term.  

If there's a tie (i.e. more than one shipper willing to pay at or above max 
rate), we just allocate the capacity pro-rata.  We 
do not have to offer a right to match.





Ramona Betancourt
06/19/2000 03:52 PM
To: Susan Scott/ET&S/Enron@ENRON, TK Lohman/ET&S/Enron@ENRON, Michael 
Bodnar/ET&S/Enron@ENRON
cc:  

Subject: TW Tariff

Susan,

I am working with TK on automating TW's PNR allocation process & I was 
reviewing the tariff rules for TW PNR allocation of service on sheet 37e. 
Section 8.

Can you interpret the meaning of "total cost commitment"? We state that 
buyers willing to pay more than the maximum tariff rate will be considered to 
be paying the maximm rate and we will pro-rate amoung buyers willing to pay 
the same total cost commitment. Does this mean we must offer a right to 
match? What does the term "total cost commitment mean?

Thanks Ramona