Message-ID: <4789819.1075855012323.JavaMail.evans@thyme>
Date: Fri, 30 Mar 2001 12:39:34 -0800 (PST)
From: kevin.hyatt@enron.com
To: lynn.blair@enron.com, jeanette.doll@enron.com, lindy.donoho@enron.com, 
	jeffery.fawcett@enron.com, lorraine.lindberg@enron.com, 
	tk.lohman@enron.com, michelle.lokay@enron.com, jan.moore@enron.com, 
	audrey.robertson@enron.com, darrell.schoolcraft@enron.com, 
	susan.scott@enron.com
Subject: bullets 3-30
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Capacity Marketing
PG&E Trading has re-aligned several transport contracts including a pre-arranged capacity release deal with Texaco for June - October.  PG&E sold 50,000 MMBtu/d of Topock delivery capacity at index formula-based rates.  However, Texaco is not utilizing Topock; they have chosen to re-deliver the gas to Citizens, east of the Cal border. 
 
Short Term April Capacity Deals

 
 
El Paso Field Services - EPFS would like to deliver another 50,000 MMBtu/d to TW's West Texas lateral as early as May 1 through the new Eddy County, NM interconnect.  TW informed them that at this point we will decline to share in the cost of expanding the interconnect.
 
Agave - Agave and Duke have for regulatory reasons chosen not take gas off the LEC 10" and redeliver to the Crawford lateral.  Their counsel informs them they stand the risk of making their gathering systems FERC jurisdictional pipelines.
 
NGPL - Met with business development reps this week to discuss the various interconnects between NGPL and TW's east system.  NGPL is conducting an open season on expanding the takeaway capacity on their line from the Marathon Indian Basin plant.  NGPL needs to add 6,000 hp of mainline compression plus a 1,000 hp booster compressor to access TW's high pressure system.  This additional horsepower would only bring an estimated 42,000 MMBtu/d incremental to TW.  Based on the cost, NGPL has proposed TW paying for the booster compressor.  Facility Planning is evaluating this cost plus possibly sizing a larger booster to see if we can gain additional throughput capability on the West Texas lateral.
 
FERC Negotiated Rate Filings - In our negotiated rate proceeding, the Commission issued a Section 5 "show cause" order.  TW must, within 10 days of the order, show cause why its actions in offering the negotiated rate contracts (Reliant, Richardson, BP, Sempra, Astra) were not in contravention of Commission policy.  TW must explain the availability of firm capacity on TW's system, and how it has the firm capacity to move gas under the transactions under investigation, yet provide recourse service without interruption.  
 
Red Rock Expansion - The project documentation was filed at FERC on Thursday March 29.
 
Caithness - The project developers for the Big Sandy generation project near Wickieup, AZ informed us this week they would like a budget quality cost estimate for tying the power plant exclusively to TW.  Caithness will install the approximately 40 miles of line to reach TW.  They projected in-service date for the plant is August 2003.  Phase 1 will consume 80,000 MMBtu/d, phase 2 will take an incremental 40,000 MMBtu/d.
 
 