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Enron Mail |
We do in fact have a lot of captive markets. I don't have a problem with S=
&P=20 saying that, although I wouldn't want Enron saying it too often. In genera= l=20 I'm OK. Thanks. DF =20 =09 =09 =09From: Mary Kay Miller 06/14/2000 08:57 AM =09 To: Bob Chandler/ET&S/Enron@ENRON, Drew Fossum cc: Gina Taylor/HOU/EES@EES, Scott Vonderheide/Corp/Enron@ENRON=20 Subject: Re: Standard and Poor's Annual Review =20 I have a little discomfort with the reference a couple of times, that our= =20 customers have no options. If used and published this could impact us on o= ur=20 argument related to risk of market. Drew, what do you think?? MK =20 =09 =09 =09From: Bob Chandler 06/13/2000 10:16 AM =09 To: Gina Taylor/HOU/EES@EES cc: Mary Kay Miller/ET&S/Enron@ENRON, Scott Vonderheide/Corp/Enron@ENRON=20 Subject: Re: Standard and Poor's Annual Review =20 Tim Despain received a draft copy of S&P annual review from the S&P rep. = He=20 was given the opportunity to comment on the draft. The annual review will = be=20 an S&P analysis, not an Enron release. Dave Neubauer didn't change the=20 wording much from the original S&P draft, but his changes improved the=20 original draft. Here's how it looked before his edits: Northern Natural Gas Company: =01(Northern Natural is a huge pipeline system that dominates gas deliverie= s in=20 Minnesota and parts of Iowa, Wisconsin, Michigan, and South Dakota. The=20 system=01,s above-average business profile reflects the only moderate amoun= t of=20 direct pipeline competition the company faces in its service area. The=20 upper-Midwest is a particularly cold region that uses a lot of natural gas,= =20 and Northern Natural=01,s customers (mainly gas utilities and municipalitie= s)=20 have little options for other fuels. Thus, the pipeline is in a strong=20 position to maintain existing sales and garner any new load. Throughput=20 growth has been modest. Although there is some ongoing recontracting risk = as=20 firm transportation service contracts expire, most customers have no other= =20 options other than Northern Natural. Competition for at-risk capacity is= =20 stiff, given the excess pipe capacity available on the other Midwest=20 pipelines and the new pipeline construction in the Midwest. Northern Natur= al=01, s cost structure is very competitive. A major rate case was settled in 199= 9=20 that extended many firm contracts with most of its customers. If anyone has further comments, I would suggest sending them directly to Ti= m=20 Despain. Gina Taylor@EES 06/13/2000 09:45 AM To: Bob Chandler/ET&S/Enron@ENRON cc: =20 Subject: Standard and Poor's Annual Review Bob, Good Morning! This write-up made it back to me for my reveiw. Has Mary Kay Miller review= ed=20 this? And what about Scott Vonderheide in Investor Relations? I think bot= h=20 of these groups need to sign off on this. Gina ---------------------- Forwarded by Gina Taylor/HOU/EES on 06/13/2000 09:00= =20 AM --------------------------- Deb Cappiello@ENRON 06/13/2000 08:29 AM To: Gina Taylor/HOU/EES@EES cc: =20 Subject: Standard and Poor's Annual Review This is what Dave Neubauer sent to Schafer. Just wanted to make sure you a= re=20 ok with that. Please give me a call after you review. Thanks. ---------------------- Forwarded by Deb Cappiello/ET&S/Enron on 06/13/2000= =20 08:25 AM --------------------------- Dave Neubauer 06/12/2000 05:41 PM To: Deb Cappiello/ET&S/Enron@ENRON cc: =20 Subject: Standard and Poor's Annual Review ---------------------- Forwarded by Dave Neubauer/ET&S/Enron on 06/12/2000= =20 05:37 PM --------------------------- =20 =09 =09 =09From: Bob Chandler 06/12/2000 04:19 PM =09 To: Rod Hayslett/FGT/Enron@Enron cc: Dave Neubauer/ET&S/Enron@ENRON=20 Subject: Standard and Poor's Annual Review Here is Dave Neubauer's revised draft for NNG's section of the S&P report: Northern Natural Gas Company: Northern Natural is a large pipeline system that provides gas deliveries in= to=20 Minnesota and parts of Iowa, Wisconsin, Michigan, and South Dakota. The=20 system=01,s above-average business profile reflects only a moderate amount = of=20 direct pipeline competition. The upper-Midwest is a particularly cold regio= n=20 with heavy natural gas usage. Although throughput growth has been modest,= =20 many of Northern Natural=01,s customers (mainly gas utilities and=20 municipalities) do not have dual fuel capabilities. This allows Northern= =20 Natural to maintain existing sales and garner any new load. Competition for= =20 at-risk capacity is stiff, given the excess pipe capacity available and und= er=20 construction on other Midwest pipelines. Northern has some ongoing=20 recontracting risk over the next five to seven years, but maintains a very= =20 competitive cost structure. A major rate case was settled in 1999 that=20 extended many firm contracts with most of its customers.
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