pls print for me on Monday--thanks. df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 02/11/2001
08:01 PM ---------------------------
From: Maria Pavlou/ENRON@enronXgate on 02/09/2001 04:02 PM
To: Drew Fossum/ET&S/Enron@ENRON
cc:

Subject: RE: TW


I haven't done additional research, but off the top of my head here's what I
think.

1. Open season giving all parties an equal shot to capacity is better than
selective marketing. However, once capacity is posted, a shipper is free to
inquire about it and we should be free to solicit interest by picking up the
phone. I can research whether any pipeline got its hand slapped for
selective marketing.

2. I thought we had agreed that we need a separate provision that governs
the allocation of capacity on TW's system apart from ROFR. In the rewrite,
we should add language that allows us to use any non-discriminatory
allocation methodology as long as we give shippers advance notice by posting
the methodology on our website. Until then, Section 13 of the FTS-1 Rate
Schedule is the only guidance we have. "All available capacity shall be
allocated under these procedures..." The lottery only comes into play if
there are two bids of equal value. I think we could use pro-rata as an
allocation methodology if we notified all parties on the website ahead of
time.

3. I agree with you on the approval process for negotiated rates and no or
limited approval for standard language max-rate deals. Maria.
-----Original Message-----
From: Fossum, Drew
Sent: Tuesday, January 30, 2001 2:20 PM
To: Harris, Steven; Hyatt, Kevin; Scott, Susan; Pavlou, Maria; Huber, Lee;
Miller, Mary Kay; Hass, Glen
Cc: Corman, Shelley
Subject: TW

In the last several weeks several areas have come up where the TW commercial
team could, in my opinion, use some clear written guidance on gray areas
under the tariff ought to be interpreted. Here is my list. Please add items
if I've missed any.

1. When can TW "selectively market" available capacity? I.e., if capacity
is on the board as available, and no one has bought it, are there any limits
on calling up a customer, or a group of customers, and pitching a deal? I
think we have a lot of discretion here--after all, using the telephone to
talk to one customer is always "selective" since there's only one guy on the
phone, not all our customers. Also, can we deliberately leave a customer off
the list of "the usual suspects" we call to pitch a special deal like an
index to index deal or a discount? I've asked Lee to pull together a quick
analysis of this issue.

2. If we get multiple bids for a chunk of capacity outside of the open
season context, how do we allocate it? This is the situation we got into a
couple of weeks ago on the '02 and '03 space. Are we always required to use
a lottery? Do we need to modify the tariff to use pro rata, or can we use
pro rata simply by notifying the customers in advance?

3. What approval process applies to max rate contracts and negotiated rate
contracts? The ET&S discount approval procedure still applies to TW
discounted deals (even there is no ET&S anymore). I think all neg. rate
deals should be approved by law and regulatory, but I don't need to see max
rate strd language deals.
4. ??? I think there was another issue, but I can't remember what it was.

Thanks for your input on this. DF