Enron Mail

From:jose.bestard@enron.com
To:keith.miceli@enron.com, adriana.domingues@enron.com, valeria.lima@enron.com,regina@fsbsp.com.br, robert.gross@enron.com, federico.cerisoli@enron.com
Subject:Bullets - Press Release - ANP decision on interruptible service for
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Date:Thu, 17 Aug 2000 05:57:00 -0700 (PDT)

Cc: ricky.waddell@enron.com, brett.wiggs@enron.com, peter.weidler@enron.com,
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Below are my points fro the press release. We can expand the topics in the=
=20
interviews. The impact should be more psychological than immediate earning=
s=20
potential. The emphasis should be "good for the Brazilian market". Let's=20
avoid getting into Enron vs Petrobras issues.

We will be drafting the actual message in the afternoon. Federico, Robert a=
nd=20
Valeria are working on Q&As. We expect to be publishing by tomorrow. Federi=
co=20
will be concentrating in the obvious market questions i.e. "when can I buy=
=20
gas from Enron?"

The message will be adapted to Bolivian and Argentinean audiences for press=
=20
release.=20

Jose

---------------------- Forwarded by Jose Bestard/ENRON_DEVELOPMENT on=20
08/17/2000 12:41 PM ---------------------------

Created 08/17 12:38 PM =20
Title: Bullets - Press Release =01) ANP decision on interruptible service f=
or TBG

=01&Good First Step for the Brazilian market=018
? Establishes the first access of a shipper other than Petrobras on the TBG=
=20
system
? Establishes the principle of tariffs pricing based on the distance to be=
=20
transported
? Establishes non-discriminatory general terms and conditions for all=20
shippers wanting a similar type of service.
? Establishes a precedent for future services for all shippers

=01&Beneficial to TBG and Petrobras=018
? The additional income is shared. 10% is allocated to the Transportation=
=20
company (TBG) and 90% is allocated to the existing shippers (Petrobras)
? Provides TBG the experience to handle transportation requests of other=20
interested parties on a non-discriminatory basis.
? Interruptible service increase the overall utilization of the pipeline=20
system and delays unnecessary expansions to serve the market.
=01&Strengthened ANP as a regulatory Agency=018
? Reinforced the vision of evolving towards a competitive gas market open t=
o=20
all agents
? Provided the first experience of a processes to evolve the transportatio=
n=20
rules.=20
? Good experience for future processes, when the transportation service=20
options become more sophisticated.
=01&Market wants this service=018
? Interruptible service is today an attractive option for gas distributors=
=20
that do not have a well defined or predictable user demand.
? Interruptible service is an attractive option for some consumers to save =
of=20
their energy cost by switching to other energy forms, or interrupting the u=
se=20
temporarily.
=01&In regards to pricing =01(.=018
? Enron believes that the equilibrium price for such a service should be=20
approximately 75% of the firm tariffs. ANP ruled that given the present low=
=20
utilization of the pipeline, the quality of service provided will be higher=
,=20
therefore a higher pricing level would be more appropriate at the moment.=
=20
Therefore, the pricing formula is expected to evolve in the future as highe=
r=20
utilization is reached.
=01&We expect to sign a Transportation contract with TBG on the basis of th=
e ANP=20
decision very soon=018