Enron Mail

From:drew.fossum@enron.com
To:susan.scott@enron.com, maria.pavlou@enron.com
Subject:Re: Caithness Big Sandy, LLC. Project
Cc:
Bcc:
Date:Thu, 24 Aug 2000 02:54:00 -0700 (PDT)

Have you guys met/discussed this with Michele? Please get me up to speed.
Thanks DF
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 08/24/2000
09:54 AM ---------------------------
Michele Winckowski 08/17/2000 01:39 PM

To: Drew Fossum/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@Enron, Maria
Pavlou/ET&S/Enron@ENRON, Dari Dornan/ET&S/Enron@Enron, Glen
Hass/ET&S/Enron@Enron
cc: Keith Petersen/ET&S/Enron@ENRON, Jeffery Fawcett/ET&S/Enron@ENRON, Susan
Scott/ET&S/Enron@ENRON

Subject: Re: Caithness Big Sandy, LLC. Project

As you are aware, Transwestern is working with a shipper to potentially
provide service to a new power plant located approximately 40 miles off the
mainline in Arizona. Although, the final negotiation are not complete
certain options are being evaluated, I need some assistance in interpreting
the regulations regarding the authority we should use for approval of this
project.

The facilities that would be constructed include a delivery point and
approximately 40 miles of pipe. As these facilities are non-mainline, it may
be possible to construct the proposed facilities under the prior notice
provisions of TW's blanket certificate, provided the project satisfies the
blanket criteria (generally costs and environmental).

With this in mind, I have the following issues and questions:

Preliminarily, marketing is thinking that we may want to develop an
incremental rate to recover the cost of the project.

Would a new incremental rate for this service impact our ability to file for
approval under the prior notice provisions? Note: Generally, Subpart F of
Part 157 (blanket regulations) does not address service issues as
transportation service is provided under Part 284 of the Commission's
regulations. However, the regulations (o157.204) set forth Who may apply
for a blanket certificate. The criteria includes, among other things, any
interstate pipeline that has rates accepted by the Commission. Therefore,
would an incremental rate have to be approved by the Commission before the
proposed facilities would be blanket eligible?

Can a new incremental rate be established through a limit-section 4 rate
filing or is a case-specific certificate required?

As the facilities will not include any mainline expansion - Is an open season
required for the project? My opinion is "NO". Do you agree?

Your thoughts and assistance in this matter would be greatly appreciated.
Thanks MW