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Enron Mail |
Look! Foti's computer also confuses the Evil and Good Steves! DF
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 04/10/2000 12:16 PM --------------------------- Steven Harris 04/10/2000 10:42 AM To: Drew Fossum/ET&S/Enron@ENRON cc: Subject: ECS and the $500k reduction FYI ---------------------- Forwarded by Steven Harris/ET&S/Enron on 04/10/2000 10:41 AM --------------------------- Steve Harris@ECT 04/04/2000 05:50 PM To: Steven Harris/ET&S/Enron@ENRON cc: David Foti/ET&S/Enron@ENRON Subject: ECS and the $500k reduction I believe this is for you. Regards, Steve ---------------------- Forwarded by Steve Harris/HOU/ECT on 04/04/2000 05:49 PM --------------------------- David Foti@ENRON 04/04/2000 05:45 PM To: Rod Hayslett/FGT/Enron@ENRON, Steve Harris/HOU/ECT@ECT, James Centilli/ET&S/Enron@ENRON cc: Subject: ECS and the $500k reduction Rod, Steve, & James: In rough terms, this is what I understand ECS' logic to be - The $3.35 per KW for transmission demand charge was assumed not to be avoidable and have a 5000 KW minimum when ET&S and ECS agreed on the $2.8MM one time payment. ECS says that they have negotiated to make the transmission demand charge avoidable with no minimum. $3.35 * 10,000HP / 1.341 = $25k $25k discounted 10 years = $1.9MM 25% of 1.9MM = approx. $500k Original one time payment = $2.8MM less $0.5MM = $2.3MM (the new payment ECS wants to give ET&S) ECS contends that Fastuca agreed to a 25% sharing of benefits received from the avoidable demand. My recollection is that the 25% was used as a benchmark to estimate ECS' fee but was never established as a firm rule. ECS is supposed to provide us with their own written explanation for the $500k reduction. They are also supposed to send us the "re-negotiated" rate schedule 21 that shows the transmission demand charge becoming avoidable. In any event, whether it is reasonable or not that ECS is due the $500k, it is reasonable to expect that ET&S would have been notified of this change in a more timely manner. Dave Foti x.31978
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