Enron Mail

From:ann.s.chen@accenture.com
To:h..lewis@enron.com
Subject:RE: Calculating transportation per MMBtu --- I think I got it
Cc:
Bcc:
Date:Thu, 15 Nov 2001 10:36:57 -0800 (PST)


Andy --

If that is the case, for the example we went through yesterday, the
transport cost would be:

(NYMEX offer + Amarillo offer)*(1/(1- fuel ratio)) + commodity charge
(2.80 -0.05)*(1/(1-0.0319)) + 0.0167
2.75*1.0329 + 0.0167 = $2.86

How do you compare this transport cost to the spread between Amarillo and
Chicago basis and index (12 cents) to decide whether to transport?

Thanks!
Ann




Andrew.H.Lewis@enron.c
om To: Ann S. Chen/Internal/Accenture@Accenture
cc:
11/15/2001 12:26 PM Subject: RE: Calculating transportation per MMBtu --- I think I
got it






See correction below
-----Original Message-----
From: ann.s.chen@accenture.com@ENRON
Sent: Thursday, November 15, 2001 12:15 PM
To: Lewis, Andrew H.
Subject: Calculating transportation per MMBtu --- I think I got it

Is the formula for calculating transport cost:

cost of gas at receipt*(1/(1- fuel ratio)) + commodity charge?


----- Forwarded by Ann S. Chen/Internal/Accenture on 11/15/2001 12:12 PM
-----

Ann S. Chen
To:
Andrew.h.lewis@enron.com
11/15/2001 11:44 AM cc:
Subject: Calculating
transportation per MMBtu




Andy --

I have a couple of questions as I dive more into the details of figuring
out transportation costs. Still trying to figure out how you make your
decision whether to transport or not. You compare the cent spread
between
the Amarillo(offer) and Chicago basis(bid)+Nicor Index(bid) versus the
transportation cost. In the numbers you provided in your example, the
spread was 12 cents. I'm still confused as to how you compute the
transportation cost to compare that spread with. The fuel ratio you
specified was 3.19% and the commodity was $0.0167.

Thanks,
Ann


----- Forwarded by Ann S. Chen/Internal/Accenture on 11/15/2001 11:31 AM
-----

Ann S. Chen
To:
Andrew.H.Lewis@enron.com
11/14/2001 06:00 PM cc:
Subject: Transportation
Scenario Update




Hi Andy --

Thanks for helping us understand the tranportation and storage problem
today. We appreciate your patience. I know it's like teaching a baby how
to
walk!

Anyway, just wanted to get you the updated numbers for the
transportation
scenario, based on the changes you made at teh meeting today. Can you
also
double check with Philip regarding the issue with hedging Basis with
regards to transportation?

Have a great weekend!

Thanks!
Ann

(See attached file: Transportation.doc)




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- Transportation.doc << File: Transportation.doc <<



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