Con Edison's Capacity Release/Delivery Service Programs for the 2

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---------------------- Forwarded by Larry F Campbell/HOU/EES on 07/31/2000=
=20
11:20 AM ---------------------------

"Doyle, Michele" <Doylem@coned.com< on 07/20/2000 04:51:35 PM
To: "'lcampbel@enron.com'" <lcampbel@enron.com<
cc: =20
Subject: Con Edison's Capacity Release/Delivery Service Programs for the 2=
=20
000/2001 Winter Season

As a result of feedback received at the July 6 reliability collaborative,
Con Edison has made the following changes to its capacity release/delivery
service programs for the 2000/2001 winter season.

First, to assist you in meeting your primary point obligations relating to
the firm load on our system that you are serving, Con Edison will make
available to Marketers 25,000 dt/day on Transco. Your allocation based on
active customers in your group as of July 1, 2000 is
511 dt/day in the form of either:

(a) a capacity release of Transco capacity at the
Transco maximum
rate for the 12-month period November 2000 through
October 2001,
or

(b) a bundled citygate sale for November 2000 through
March 2001 priced
as follows:

* Inside F.E.R.C.=01,s first of the month index price at
Transco/Zone 3 (Station 65) plus $1.00/dt.

or;

© a combination of the two adding up to 511 dt per
day.

Second, in addition to the above, we can make available to you 204 dt/day
during March 2001 as a bundled citygate sale on the same terms as set forth
above.

Third, with respect to the balance of capacity that you may require to meet
your primary point obligations,

(a) There will be no citygate allocation requirements
for this winter, except for the 25% limitation on Texas Eastern. (i.e., you
may deliver all of your gas to any of the
following receipt points, except that no more than 25% may be delivered to
Texas Eastern.

Transco (Receipt
Point: 134th Street - Manhattan, Central Manhattan, Narrows or Long Beach)

Tennessee (Receipt
Point: White Plains)

(b) We will permit you to meet the primary point
requirement using your Daily Load Following Service Quantity (for Load
Following Service) or Daily Load Quantity (for Daily Delivery Service)
during November instead of the Average Day/Peak Month quantity used during
the remaining four winter months.

© Prior to the winter, you can trade all or part of
your citygate allocation on Texas Eastern to another marketer, so long as
the aggregate entitlement for deliveries on Texas Eastern among all
marketers remains below 25% of the combined total allocation.

Please let us know on or before close of business Friday, July 28, 2000
which, if any, of the above-described services you are interested in.

NOTES:
1. We will advise you if additional capacity becomes available as a
result of actions taken by other marketers.
2. Bundled sales service is subject to the execution of a written
agreement (on mutually agreeable terms), including a take-or-pay commitment
and resolution of any creditworthiness issues.

Michele Doyle
Manager
Transportation Services

phone: 212-460-8172 fax: 212-529-1452 e-mail: doylem@coned.com