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Enron Mail |
I would think we can do the same as we do in Florida, which is similar to
your suggestion. We did create a non-regulated affiliate to do the business in the name of, but that leaves the revenue in the venture and solves the fiduciary problem. Jerry Peters 12/08/2000 03:51 PM To: Rod Hayslett/FGT/Enron@ENRON cc: Patricia Wiederholt/NPNG/Enron@ENRON, Janet Place/NPNG/Enron@ENRON Subject: Re: O&M Fees at Interconnects For O&M fees at interconnects NBPL has been charging the customer an estimated incremental cost, which under the cost of service tariff was credited back to O&M (where the incremental costs were originally charged). We are definitely going to change this now. In at least one situation in the past, NPNG had the contract for maintaining a short lateral for the Synfuels plant in ND (in fact Phil may have been involved with this when he was District Manager in Glasgow). In that case, a small amount of O&M was left at NPNG and the revenue was booked at NPNG. In most cases the customer is negotiating the fees as a part of service on NBPL and I would suggest that unless these are significant contracts the amounts be left at NBPL. The main reasons are accounting ease, avoidance of fiduciary issues, and customer relations. Rod Hayslett 12/06/2000 10:05 AM To: Jerry Peters/NPNG/Enron@ENRON cc: Subject: Re: O&M Fees at Interconnects How have you guys been doing this? NBPL doesn't have any employees so it's got to have been done as Plains, yet I understaood that Plains could not provide services to others? ---------------------- Forwarded by Rod Hayslett/FGT/Enron on 12/06/2000 10:06 AM --------------------------- From: Phil Lowry 12/06/2000 08:10 AM To: Rod Hayslett/FGT/Enron@ENRON, Michael Moran/ET&S/Enron@ENRON cc: Don Hawkins/OTS/Enron@Enron, Michel Nelson/ET&S/Enron@ENRON Subject: Re: O&M Fees at Interconnects In other similar situations where Operations has had an opportunity to provide a service for a fee, we have been looking to EAMR as the entity to do the work. Does the NBPL sitiuation preclude EAMR from taking on this role? I would assume, unless there has been a change, that given the fact that NBPL does not have any employees it would be difficult for NBPL to provide the service. ---------------------- Forwarded by Phil Lowry/OTS/Enron on 12/06/2000 08:05 AM --------------------------- Michel Nelson 12/05/2000 08:02 PM To: Loretta McGowan/NPNG/Enron@ENRON cc: Bill Fonda/NPNG/Enron@ENRON, Bill Frasier/NPNG/Enron@ENRON, Bambi Heckerman/NPNG/Enron@ENRON, Robert Hill/NPNG/Enron@ENRON, Tom Lehan/NPNG/Enron@ENRON, Mitch Meyer/NPNG/Enron@ENRON, Randy Miller/NPNG/Enron@ENRON, Gaye Lynn Schaffart/NPNG/Enron@Enron, Patricia Wiederholt/NPNG/Enron@ENRON (bcc: Phil Lowry/OTS/Enron) Subject: Re: O&M Fees at Interconnects This seems like a revenue opportunity to me. Could this be considered a 'new service'? Loretta McGowan 12/05/2000 09:42 AM To: Bill Fonda/NPNG/Enron@ENRON, Bill Frasier/NPNG/Enron@ENRON, Bambi Heckerman/NPNG/Enron@ENRON, Robert Hill/NPNG/Enron@ENRON, Tom Lehan/NPNG/Enron@ENRON, Mitch Meyer/NPNG/Enron@ENRON, Randy Miller/NPNG/Enron@ENRON, Michel Nelson/ET&S/Enron@ENRON, Gaye Lynn Schaffart/NPNG/Enron@Enron, Patricia Wiederholt/NPNG/Enron@ENRON cc: Subject: O&M Fees at Interconnects The issue of O&M fees at new interconnects has been raised by several customers. A meeting to discuss this issue and how Operations will determine these fees, is scheduled for Monday, December 18, on your calendar. Your input is very important at this meeting. Several of NBPL's customers are currently waiting for answers on this issue and NBPL needs to respond very soon to these customers. NBPL has been asked to renegotiate fees (PGL&C) as well as set fees for a period of longer than 1 year (Harvest States). NBPL has also been asked to operate a 1/2 mile of line from a meter station to a power plant (Lakefield Junction). We need to agree on a decision from both a business and an operations perspective. Currently, we have estimated operating fees at interconnects where we charge a fee and charge a standard monthly fee of $2,000 per month with the exception of two interconnects. With the tariff changes, operating fees will not automatically be recovered in the future. How are these operating fees going to be tracked and charged? Does NBPL charge all interconnect customers the same fee? Should NBPL absorb some or all of the operating costs as a cost of doing business? These questions need to be answered at the meeting. Thanks!
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