|
|
Enron Mail |
Thanks Jeff, ETS Operations would be glad to look at these and any other
"potential" opportunity to operate 3rd party facilities. Don Hawkins is heading up the "endless possibilities" for us. I did copy him on this reply, Don is based in Houston. I 'am currently in Amarillo Texas with the SW Operation Directors and I will discuss this with Rich. THANKS for the partnership. R2 Jeffery Fawcett 11/27/2000 04:00 PM To: Randy Rice/OTS/Enron@ENRON, Rich Jolly/ET&S/Enron@ENRON cc: Susan Scott/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Kevin Hyatt/ET&S/Enron@Enron, Mary Kay Miller/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON, Julia White/ET&S/Enron@ENRON Subject: Citizens request for proposal Citizens Utilities is in the process of selling off all of its non-telecommunications businesses throughout North America. One of their principal assets, Louisiana Gas Service (LGS) is one of those companies recently sold by Citizens. LGS provided gas control and operations services to other non-LGS companies, including the Citizens Utilities LDC assets in Arizona. With the consummation of the sale of LGS, Citizens has told me confidentially that they have no reasonable way of operating the interconnect, metering and 1.5 mile lateral pipeline facilities that interconnects TW and EPNG to the recently constructed Griffith Energy Power Plant. Therefore, Citizens is looking to possibly have a 3rd party provide contract operations services under an operating agreement. TW has been asked in writing by Citizens to consider making a proposal to operate these facilities. Does TW have an interest in providing contract operations services for Citizens? In a related legal/regulatory question, does TW have the authority to conduct contract services on behalf of others, or would we have to perform these services as a separate legal entity? If we do, does this present an affiliate problem for us if we "share" operating employees? If these threshold questions can be accommodated, and TW is not only able to provide contract operations services for Citizens, but has a commercial desire to do so, what would we charge Citizens for this service? Although it would appear at first blush to be a relatively simple matter to operate these facilities, remember that Citizens will be receiving gas (potentially) from both TW and EPNG simultaneously, presenting not only a challenge to balance pressure between the pipes, but to account for and reconcile deliveries and receipts from both pipes as well as the plant site. Although I'm the principal commercial representative for Citizens as regards transportation matters, I'm certainly willing to step out of the middle of this negotiation if Operations desires to handle it themselves. I will be happy to provide you a copy of the brief 1/2 page letter Citizens sent to me on the 17th soliciting TW's interest. Given the relatively short lead time until LGS operations is sold, Citizens has requested expedited consideration. Please let me know how you want to proceed. Call if you have any questions.
|