|
|
Enron Mail |
I'm OK with this agreement. Christine, I appreciate your explanation of how
we developed the rate. Hopefully, once FERC approves our purchase and sale of options, we can price them as a stand alone service. For now, including the optionality as a bundled component of the total discounted rate--as we did here--is appropriate. Christine Stokes 08/28/2000 03:00 PM To: Steven Harris/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON cc: Kevin Hyatt/ET&S/Enron@Enron Subject: Red Cedar - Contract Approval Request TRANSWESTERN PIPELINE COMPANY CONTRACT APPROVAL REQUEST Please review the attached non-standard discount letter to Red Cedar Gathering Company (Red Cedar). The discount letter provides Red Cedar a five year discount rate, beginning January 1, 2001, for 125,000 Dth/d of Red Cedar to El Paso/Blanco capacity for year 1, and 150,000 Dth/d of described capacity for years 2-5. The base transportation rate for the described capacity is $.02/Dth/d, escalating at $.005/Dth/d per year. Red Cedar is also paying an additional $.001/Dth/d for a one-time option to request to reduce their total MDQ in years 4 & 5 to a level between 100,000-150,000 Dth/day. Also, year 1 of the discount rate includes a "reimbursement surcharge" of approximately $.009/Dth/d for Transwestern's capital expenditure required to increase the existing receipt point capacity at the Red Cedar interconnect. Red Cedar has been provided alternate delivery capabilty at Transwestern's I/B Link, in addition to alternate receipt capability at a proposed new interconnect with Red Cedar in Transwestern's Ignacio to Blanco Area. Please indicated approval via REPLY WITH HISTORY. If any questions arise, please contact me at x5702. All Officers approvals will be forwarded to Dan McCarty for final Officer approval.
|