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Enron Mail |
Any chance they could email electronic version of this Agreement?
Mark Knippa 08/05/99 10:17 AM To: Gerald Nemec cc: Subject: Gallup - Continental Divide's contract proposal Gerald, I am sending up a copy of the proposed contract structure from Continental Divide who is the local power utility associated with the Transwestern Gallup station. Overall the commercial terms seem to be in line with all the discussions that have been referenced, although there are some issues we want to make vary clear or more apparent. 1) ECS is agreeing to a 3 yr term "to buy power from Continental Divide" assuming the merger is completed and power is available to ECS through the No. 21 tariff. 2) They have provided none of the information concerning a split demand charge that totals $12.21/kw. Discussions reflect that $8.86/kw is avoidable and tied to their monthly coincidental peak load and the remaining $3.35/kw is a base type demand. This is the basis of the rebate mechanism for TW. Note this is also a Tri-State portion and part of the tariff 21. 3) ECS is aware of more favourable contract structures that Tri-State has negotiated and wants to maintain the ability to utilize a more favourable tariff/contract structure or to negotiate specifics with Continental Divide post the Tri-State merger. We would still be buying from Continental Divide supporting their 3 yr term. I am trying to get some written specifics from Continental Divide / Tri-State relative to the demand avoidance since they are currently using this structure today. I'll let you know. Otherwise I wanted to get the document to you for your review. Thanks
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