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Enron Mail |
Presenters: Pat Brennan and I attended the Virtual Power meeting this
morning representing Regulatory. Drew and Dari were there from law. Drew led the presentation and covered the matrix/template that out study group submitted earlier. Audience: Rockey Storie, Kevin Hyatt, Bob Burleson in Houston. Kent Miller and Tim Johanson in Omaha. The material, presentation and discussion was well received and timely. Rockey indicated that, in a recent status meeting with Danny McCarty, Danny had asked if the commercial people were discussing their proposed deals with Law and Regulatory. Rockey responded that there had been contact and discussion under way. As for the discussion, the audience easily and quickly picked up on the template format with most of the questions/comments focusing, as one might expect, on revenue/COS bottom line issues. Pat was able to provide additional definition and comment to the group discussion and template display. Dari led us through the "jurisdictional" issues regarding electric and gas service. The abandonment of service concern that we expressed at the study group meetings was more or less put to bed when Marketing responded that, based on field operations input, turn-around time to stop a turbine, engage a different operation (e.g., run a compressor) could be accomplished in 1 -2 hours. "Gearbox" technology to shift operations is available. We also touched on the jurisdictionality issue associated with the purchase of a compression service - ala monetization. Other concepts were brought up with regard to deal structure and financing alternatives but were tabled for the moment. There was also a question, to be pursued, regarding air quality/permits using the engine to compress for natural gas service vs running a generator. I really feel that the meeting was successful and appreciated in that, at the least, we were able to congeal much info on the matrix and facilitate what could have been a very lengthy discussion into a relatively brief meeting. Drew concluded by stating that the template should not be distributed outside ETS. He suggested that, on a case-by-case basis, our study group of Legal and Regulatory personnel could quickly respond to case specific issues in a customized response that the commercial dealmaker could provide to their client(s).
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