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Enron Mail |
Chris,
A couple of years ago the East and the Central Desks decided that Empire State Pipeline in NY would be changed from an "East Desk pipeline" to a "Central Desk pipeline" in our scheduling and accounting systems. The reason for that decision was to fix the significant OA variances both desks were experiencing by the Sithe book liquidations, and to better control and manage all the subtle little issues under the gas sales agreement. Since the only transaction that was being done on Empire was the Sithe deal, this approach has worked great and the OA and contract problems have been corrected. Over the last month or so, Sithe pointed out to us that some days CNG North Point gas prices were high enough so that Chippawa gas could be shipped over to CNG Lysander and still make a margin. I talked to Geoff Storey about it and told him to keep that trade in mind. At the time I assumed that Sithe's IT contract would be used to ship the volumes from Chippawa to one of the new interconnects with NFGS at Pendleton or CNG at Lysander and that we would just schedule it on the Central Desk and report the transactions under our monthly revenue sharing transactions with Sithe. If ENA begins shipping gas on Empire under our own agreement, there are a couple things that I am very concerned about: o ENA has a contractual obligation to optimize Sithe's transportation assets & to split the incremental revenues with Sithe, o Empire desperately wants to Sithe's new 750 MW plant to be served through Empire and if we start doing alot of IT business on Empire the word will probably get back to Sithe, o I hope that Empire Pipeline continues to be a "Central Desk pipeline" in our systems. We can not go back to that mess we had before when the Sithe deal was split between two desks. I will be back in the office on Tuesday, maybe we can get everybody together an make sure that we can come up with a plan that works for everybody. Thanks, Ruth
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