Re: daily firm on TW

check with susan on the daily issue--did we test the reason behind our daily
limit? If we can do one month deals, why not 12 month?
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 03/09/2000
09:33 PM ---------------------------

From: Mary Kay Miller 03/09/2000 05:52 PM

To: Susan Scott/ET&S/Enron@ENRON
cc: Drew Fossum@ENRON, Mary Darveaux, Glen Hass

Subject: Re: daily firm on TW

I thought we had worked on some revised language, because we had a concern
when the agreement indicated the discount was available for the month. Glen
was working with you on this I believe. MK

From: Susan Scott 03/09/2000 11:44 AM

To: Mary Kay Miller/ET&S/Enron@ENRON, Drew Fossum@ENRON
cc:

Subject: daily firm on TW

The Commercial Group has asked whether they can sell daily firm for longer
than a 3-month period. This phrasing is of course misleading; TW's daily
firm contracts are always for a term of just one day, but renew for
consecutive one-day terms unless terminated. The discount letter, on the
other hand, grants a discounted rate for each of the one-day terms for a
certain period of time (typically one month). Steve Harris wants to be able
to "sell daily firm for a one-year period." In contractual terms all this
would mean is that the contract is for renewabable one-day terms (as usual),
and the discount applicable to such terms would be effective for one year. I
see no problem with this, do you? (Apparently the current perception in
marketing is that regulatory/legal was limiting daily firm to a 3-month
period.)