TW Options filing

Yesterday, Fred Ni from the FERC called with some questions regarding the TW
options filing. Most all of his questions centered around the determination
of the highest value.
Bottom of page 7, last paragragh, we say Shipper call options will be
awarded upon the highest rate payable for the option component.
Then in the bullets that follow we say, based on the criteria known in
advance- I told him that we would post the elements and it would determine
the highest value.
Then in the next paragraph we say again sold in a bidding process to only
those parties that place the highest value on the option.
Then on the actual tariff sheet, 98 we refer to in 33 c) method of awarding
options, ?? being is the highest value
Then on tariff sheet 157, in the Option Fee section he felt we should refer
to the elements that make up the highest value; volume , rate and term
As you can tell, this all centers around the elements of determining the
highest bid, I advised him that it included rate, volume and term that the
option call was for. We need to clarify these in writing as soon as
possible. I told him we would do so in our answer to interventions. He said
the sooner the better. We also need to add expriation date on tariff sheet
98 c as to items included in the posting, since it could be different than
the exercise date.

I'd say all in all this is good that this is his only concern and that he
called before any protests etc. He said he like the filing- but was just
confused on what we meant by awarding to the highest value.

Susan, I assume you will be drafting the answer, although at this point I
haven't seen any protests, let's try to have the answer filed Friday or
Monday at the latest. Please call if questions- MK