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Enron Mail |
---------------------- Forwarded by Chris Germany/HOU/ECT on 01/09/2001 07:19
AM --------------------------- John Hodge@ENRON 01/08/2001 05:21 PM To: Frank W Vickers/NA/Enron@Enron, Scott Neal/HOU/ECT@ECT, Julie A Gomez/HOU/ECT@ECT, Colleen Sullivan/HOU/ECT@ECT, Brad McKay/HOU/ECT@ECT, Dick Jenkins/HOU/ECT@ECT, Robin Barbe/HOU/ECT@ECT, Dan Junek/HOU/ECT@ECT, Chris Germany/HOU/ECT@ECT, Scott Goodell/Corp/Enron@ENRON, Sean Boyle/Corp/Enron@ENRON cc: Subject: Tennessee's CanEast Project and Transco's MarketLink Expansion Tennessee is finalizing their CanEast project which will scoop the Independence Pipeline effort and allow Tennessee to deliver 280,000 Dthd into Leidy beginning in 11/1/01 at the same time the first phase of Transco's MarketLink begins. The first phase of MarketLink has a capacity of 166,000 Dthd and the second phase is scheduled to begin 11/1/02 with an additional 130,000 Dthd. Tennessee was the successful bidder on a recent open season that National Fuel had for 19,100 Dthd of space between Niagara and Leidy. Tennessee has executed a 10 year lease for the space. They will use this capacity and a 10 year lease arrangement that they are finalizing with Dominion Transmission for Ellisburg to Leidy capacity to form the basis of their CanEast Project. The Dominion lease will allow Tennessee to use unsubscribed Zone L to Zone 4 capacity and deliver approximately 260,000 Dthd from the Gulf Coast to Leidy. (Dynegy negotiated an index-based, revenue sharing contract with Tennessee for delivery into Dominion using this capacity for the 11/1/00 - 10/31/01 period). Tennessee is currently negotiating with shippers to subscribe to the CanEast capacity. They are willing to negotiate contracts less than ten years and have negotiated terms that synch up with the second phase of MarketLink. This should allow available capacity from the Gulf Coast or Niagara to Leidy or secondary delivery points such as Dominion (since Phase I of MarketLink is set) for one year contracts. As a reminder, firm shippers with binding contracts on MarketLink are: Phase I (11/1/01 start) Volume Delivery Point Comment Aquila Energy Marketing 25,000 Dthd Manhattan(Con Ed) Option to change to 11/1/02 start date Consolidated Edison 30,000 Manhattan(Con Ed) ConEdison Energy 10,000 Manhattan(Con Ed) St. Lawrence Cement 1,000 Camden Williams Energy Marketing 100,000 Manhattan(Con Ed) Total Phase I 166,000 Dthd Phase II (11/1/02) Virginia Power Energy Marketing 100,000 Dthd Trenton-Woodbury Non-New York PPL Energy Plus 30,000 Princeton Junction Non-New York Total Phase II 130,000 Dthd Transco has until the end of April 2001 to file additional binding executed contracts with the FERC for an additional 404,000 Dthd of Leidy to New York capacity or the MarketLink Expansion as approved by FERC will be limited to the 296,000 Dthd of the first two phases.
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