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Enron Mail |
Jeff,
Thank you for the referral of the Citizens Kingman, Arizona project to Enron Asset Management Resources (EAMR), the new ETS service company, for further development. We appreciate your willingness to "stay in the loop" with the project since you have the relationship with the customer. It is not often that we have the opportunity to take over the operation of a facility before in-service. This is a great opportunity to operate assets that do not have a long and potentially risky environmental history, so we are excited about this opportunity. This bid proposal is envisioned to be a joint effort between Operations and Market Services to: Identify the functions required to perform the requested services Price the delivered services Identify the risks associated with performing the services Mitigate and/or price in adequate compensation for the risks As the project is kicked off, we enter the information gathering stage to determine the configuration of the facility and the service requirements. I have placed a call to Citizens to initiate this effort and will keep you informed of developments. Julia, I am assuming that Donna Scott will be the primary contact for this joint development and that she will coordinate Market Service's efforts, therefore, she is copied on this e-mail. Let me know if you have any changes to this approach. Sarabeth X55023 ---------------------- Forwarded by Sarabeth Smith/OTS/Enron on 12/01/2000 01:14 PM --------------------------- Don Hawkins 11/30/2000 05:19 AM To: Randy Rice/OTS/Enron@ENRON, Jeffery Fawcett/ET&S/Enron@ENRON cc: Sarabeth Smith/OTS/Enron@ENRON, David Marye/OTS/Enron@Enron Subject: Re: Citizens request for proposal Jeff, Enron Asset Management Resources, the ETS entity used for providing these type services would be interested in further discussion concerning this opportunity including seeing the operating request made by Citizens. I would like for Sarabeth Smith to follow up with you as soon as possible on this opportunity so you should be expecting a call within the next few days Thanks, Don From: Randy Rice on 11/28/2000 09:03 PM Sent by: Randy Rice To: Jeffery Fawcett/ET&S/Enron cc: Drew Fossum/ET&S/Enron@ENRON, Julia White/ET&S/Enron@ENRON, Kevin Hyatt/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Rich Jolly/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON, Don Hawkins, Phil Lowry Subject: Re: Citizens request for proposal Thanks Jeff, ETS Operations would be glad to look at these and any other "potential" opportunity to operate 3rd party facilities. Don Hawkins is heading up the "endless possibilities" for us. I did copy him on this reply, Don is based in Houston. I 'am currently in Amarillo Texas with the SW Operation Directors and I will discuss this with Rich. THANKS for the partnership. R2 Jeffery Fawcett 11/27/2000 04:00 PM To: Randy Rice/OTS/Enron@ENRON, Rich Jolly/ET&S/Enron@ENRON cc: Susan Scott/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Kevin Hyatt/ET&S/Enron@Enron, Mary Kay Miller/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON, Julia White/ET&S/Enron@ENRON Subject: Citizens request for proposal Citizens Utilities is in the process of selling off all of its non-telecommunications businesses throughout North America. One of their principal assets, Louisiana Gas Service (LGS) is one of those companies recently sold by Citizens. LGS provided gas control and operations services to other non-LGS companies, including the Citizens Utilities LDC assets in Arizona. With the consummation of the sale of LGS, Citizens has told me confidentially that they have no reasonable way of operating the interconnect, metering and 1.5 mile lateral pipeline facilities that interconnects TW and EPNG to the recently constructed Griffith Energy Power Plant. Therefore, Citizens is looking to possibly have a 3rd party provide contract operations services under an operating agreement. TW has been asked in writing by Citizens to consider making a proposal to operate these facilities. Does TW have an interest in providing contract operations services for Citizens? In a related legal/regulatory question, does TW have the authority to conduct contract services on behalf of others, or would we have to perform these services as a separate legal entity? If we do, does this present an affiliate problem for us if we "share" operating employees? If these threshold questions can be accommodated, and TW is not only able to provide contract operations services for Citizens, but has a commercial desire to do so, what would we charge Citizens for this service? Although it would appear at first blush to be a relatively simple matter to operate these facilities, remember that Citizens will be receiving gas (potentially) from both TW and EPNG simultaneously, presenting not only a challenge to balance pressure between the pipes, but to account for and reconcile deliveries and receipts from both pipes as well as the plant site. Although I'm the principal commercial representative for Citizens as regards transportation matters, I'm certainly willing to step out of the middle of this negotiation if Operations desires to handle it themselves. I will be happy to provide you a copy of the brief 1/2 page letter Citizens sent to me on the 17th soliciting TW's interest. Given the relatively short lead time until LGS operations is sold, Citizens has requested expedited consideration. Please let me know how you want to proceed. Call if you have any questions.
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