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Enron Mail |
I think that is exactly right. I suspect that the marketing guys could work
up a simple formula for determining our course of action depending on the size of the revenue opportunity vs. the power cost/penalty. Thanks. df From: Randy Rice on 12/15/2000 07:53 AM Sent by: Randy Rice To: Drew Fossum/ET&S/Enron cc: Charlie Graham/ET&S/Enron@ENRON, Dan Fancler/ET&S/Enron@ENRON, James Centilli/ET&S/Enron@ENRON, Rod Hayslett/FGT/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON Subject: Re: Gallup Rebate Drew, I plan to discuss this with Rich Jolly, and will call you with our thoughts. I would suggest our plan be such that we do not just aoutomatically shut down during these periods but work with marketing to create a cost vs. benefit profile of when/if it may make sense to operate even when in a peak state? R2 Drew Fossum 12/14/2000 05:31 PM To: James Centilli/ET&S/Enron@ENRON, Randy Rice/OTS/Enron@ENRON cc: Susan Scott/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Rod Hayslett/FGT/Enron@ENRON, Dan Fancler/ET&S/Enron@ENRON, Charlie Graham/ET&S/Enron@ENRON Subject: Re: Gallup Rebate Randy, this is the issue I left you the voice mail on. Article 6 of the Gallup Compression Services Agreement (which I am sending to you separately) with ECS obligates ECS to "work in good faith with CDEC" to establish an automated system that would automatically have alerted us to peak loading conditions on CDEC's system. We had a pretty good idea when we signed the contract that ECS would not be able to complete that by the contract start date, so we negotiated a fall back plan under which ECS is obligated to "assist [Transwestern] in developing a manual system to accomplish the same result and will hold harmless and keep [Transwestern] whole for all cost and expenses" associated with the manual system. We will fight with them about who owes the $200k that James mentions below based on their failure to "assist" us in managing the cost. In the mean time, we need to make sure that we are doing everything we can to get a handle on the situation to mitigate future costs. Do we have someone who is watching this out there? We are running so full tilt on TW that we may not have as much flexibiltiy to manage this situation as we expected, but let me know what we can do. James had heard that one hold up was the absence of a confidentiality agreement--I guess between ECS and Transwestern--that would permit ECS to communicate to us the details on how to access teh key info. from CDEC. That sounds like a BS excuse from ECS, but it that's what they are saying, let me know and we can figure out a solution. Thanks. DF James Centilli 12/14/2000 02:49 PM To: Susan Scott/ET&S/Enron@ENRON cc: Steven Harris/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON, Rod Hayslett/FGT/Enron@ENRON, Dan Fancler/ET&S/Enron@ENRON, Randy Rice/OTS/Enron@ENRON Subject: Gallup Rebate Would you please contact Gerald Nemec and review the Gallup Compression Service Contract in respect to the Load Control Management. My understanding was that ECS was to provide a means to access CDEC's online profile in order for us to make a decision to avoid running the compressor during CDEC's peak load periods. We have not received access to this information which has resulted so far in additional electric cost of $200,987.33 for the period of July through September. Additional cost will be incurred for the remainder of this year, that I have not been able to review yet. This cost is averaging $79,000 per month if we continue to run the compressor as we have in August and September.
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