January Gas Curve Validation

Jennifer,

Phillip Allen and Keith Holst indicated that the curve changes in question
for Socal was simply due to a higher forward market. Let me know if you have
any further questions.

DG
---------------------- Forwarded by Darron C Giron/HOU/ECT on 03/05/2001
10:31 AM ---------------------------

Jeffrey C Gossett
02/28/2001 02:03 PM
To: Darron C Giron/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, Kam
Keiser/HOU/ECT@ECT
cc:
Subject: January Gas Curve Validation

Please get responses for these back to Jennifer today.

Thanks
---------------------- Forwarded by Jeffrey C Gossett/HOU/ECT on 02/28/2001
02:00 PM ---------------------------

From: Jennifer Nguyen @ ENRON 02/27/2001 04:15 PM

To: Jeffrey C Gossett/HOU/ECT@ECT
cc:
Subject: January Gas Curve Validation

Jeff --

Before I send out the memo for January, I have a few questions about 3 curves
that were reviewed this month. Attached are Powerpoint slides containg the
10 curves that were validated for January. The ones I'm asking you to take a
look at are:

1) NGI-SOCAL -- Why the upshift for the entire curve compared to prior
month? Why has the shape of the curve changed from (approximately) 1/1/04
forward compared to the curve from prior month?

2) IF-MONCHY -- What factors account for differences between the 1/31/01
curve vs. the 12/29/00 curve for the period between 1/1/01through 1/1/07?

3) IF-TRANSCO Z3 -- What factors account for the entire curve changing so
dramatically from last month to this month?

Thanks for your help.

Jennifer