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FYI. Thanks. Lynn
-----Original Message----- From: Semin, Frank Sent: Friday, November 16, 2001 4:06 PM To: 'Jeff Hicken'; Sebesta, Chris; Blair, Lynn Cc: Bill Zorr; Kelly Schneider Subject: RE: Zone Allocations To help clarify, a storage withdrawal reduction essentially created the same physical effect as would an injection during the recent storage allocations. For example: If the storage fields had a net injection on a given day of 100 dth(physical maximum)and at the 8:00 a.m. cycle an injection increased by 25 dth, it would be denied because of the physical limitations. The same limitation would occur if a withdraw was reduced by 25 dth (creating a net 125 dth injection) at the 8:00 a.m. process because the same physical limitation existing. Injections (150) Withdrawals 50 Net (100) physical limitation Trying to reduce a redraw of 25 dth would create: Injections (150) Withdrawals 25 Net (125) physically above the limitation and would be allocated. The intra-day process are interative, that is FDD withdrawals/injections can impact the interruptible storage availability during the intra-day cycles, whereas the 8:00 a.m. process is only a individual true-up and not interative with the other storage agreements. Lynn and Chris would gladly schedule some time to help clarify these issues, and I am sure it will be a lot more informative than my attempt here. -----Original Message----- From: Jeff Hicken [mailto:JeffHicken@alliant-energy.com] Sent: Friday, November 16, 2001 11:47 AM To: Sebesta, Chris; Blair, Lynn Cc: Bill Zorr; Kelly Schneider; Semin, Frank Subject: RE: Zone Allocations It may be standard practice in your opinion, but Kelly, Bill and I have never heard of this or remember it happening to us. Also Entergy-Koch was completely surprised by it as well. We just can't understand why you would call a reduction in a withdrawal an injection. Your allocation is limiting storage injections and we were not making an injection. We'd like to know where to find this in the tariff so we can read it and understand it better. We pulled looked at the 8 a.m. process instructions on the web and it doesn't say anything about this. What is really upsetting to us is were thought we were set up fine to be in compliance with the SUL and suddenly we couldn't do what we thought we had a right to do, even though Hot Tap accepted the nomination. On top of that, no one from NNG called us to let us know that our nomination had been undone and the same thing would have happened to us on the 11/15 gas day if we hadn't been lucky enough to have found it on our own. We pushed the gas across to ANR, but we are going to incur penalties from them as a result. The other really strange thing is that during the intraday processes we can cut back on our withdrawal even though storage is allocated, but you can't do it at 8 a.m. It just doesn't make any sense to us. <<< "Sebesta, Chris" <Chris.Sebesta@enron.com< 11/16/01 10:32AM <<< Jeff, I am sorry WP&L and IES are experiencing allocation problems. It is standard procedure during a storage (injection) allocation the 8 am true up process does not allow FDD withdrawal reductions or storage injections. Many other shippers are also working hard to manage their business. Other than getting truer information on your market's needs or finding alternate markets for your excess capacity, I don't have any other ideas on how to address your zone allocations. As requested I will add this item to our December 10 meeting agenda. -----Original Message----- From: Jeff Hicken [mailto:JeffHicken@alliant-energy.com] Sent: Thursday, November 15, 2001 3:00 PM To: Sebesta, Chris; Blair, Lynn Cc: Bill Zorr; Kelly Schneider Subject: Re: Zone Allocations Chris You should know that we are unhappy about something else now. For the 11/14 gas day you (NNG) did not let us reduce our FDD withdrawal nomination to zero in the 8 am process like normal because of a storage injection allocation. Because of this WP&L is going to get hit with SUL DDVC penalties. Entergy-Koch who handles the IES assests was surprised by this as well and IES may incur penalties too. We weren't trying to make an injection, we were just trying to cut our withdrawal to zero. We always schedule a maximum withdrawal in the winter because we are always at risk of a zone allocaton just like we have been seeing lately. We've had conference call with Jean Blair and Jerry Wilkens on the topic. We are also in trouble now for the 11/15 gas day, which we are current trying to figure a way out of. You can add this item to our discussion topics when you visit. Jeff Jeff Hicken Gas Trader Alliant-Energy 608-252-3173 <<< "Sebesta, Chris" <Chris.Sebesta@enron.com< 11/13/01 09:52AM <<< Lynn, as indicated in my voice mail, Frank and I would like you to call Jeff Hicken of Alliant Energy. He would like someone to explain, (1) why he is getting allocated at the zone level when he is trying to adjust his timely cycle noms later in the day to reflect lower requirements, and (2) what are his alternatives, especially as storage may have a chance of being allocated. Please call Jeff today. He can be reached at 608-252-3173. Thank you. Chris Sebesta Northern Natural Gas Office: 402-398-7064 Fax: 402-398-7413 chris.sebesta@enron.com ********************************************************************** This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain confidential and privileged material for the sole use of the intended recipient (s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Enron Corp. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you. **********************************************************************
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