|
|
Enron Mail |
John,
I'm an analyst in the Generation Investments group, and we spoke regarding the Navy Yard transport curves about a month ago. I am assuming there is probably no change in the applicable transport curves, but I just wanted to verify that there are no updates. I have attached our past letters of correspondence regarding your suggestions for marking our transport expenses for the project. Thanks, Greg Ying Liu@ENRON 03/07/2001 08:59 AM To: Greg Martin/HOU/ECT@ECT cc: Subject: Re: Brooklyn Navy Yard Project Transportation Curves Request ---------------------- Forwarded by Ying Liu/NA/Enron on 03/07/2001 09:05 AM --------------------------- John Hodge 03/05/2001 01:33 PM To: Ying Liu/NA/Enron@ENRON cc: Ruth Concannon/HOU/ECT@ECT Subject: Re: Brooklyn Navy Yard Project Transportation Curves Request Attached is a spreadsheet that details the transportation charges that you requested. I recommend escalating the Iroquois and Transco charges in the same way as was done previously. Escalate 18% of the Iroquois rates at the GDP inflator and 36% of the Transco rates. This will take into account the pipeline's O&M cost increases. TCPL is a different case. Since we last looked at the Brooklyn Naval Yard assets, TransCanada has negotiated a settlement with its customers. These are the rates that begin in 1/1/2002 on the spreadsheet. However, TCPL is experiencing an inordinate amount of capacity turnback. As their customer's contracts expire, the customers are not renewing. This shoves their rate base on fewer and fewer customers and should increase their rates more quickly. The next large customer turnback should occur in 2003. For this reason, I recommend escalating TCPL's rates by 20% in 2003 and then escalating the entire rate by the GDP in the future. This should not only take into account the capacity turnback, but also consider the escalation in O&M costs. Call me if you have any questions. Ying Liu 03/01/2001 11:54 AM To: John Hodge/Corp/Enron@ENRON cc: William Keeney/HOU/ECT@ECT Subject: Brooklyn Navy Yard Project Transportation Curves Request Hi, John, Following up my phone call, I am sending a list of curve requests for you on the BNY project: Base Year: 2001 1. Trans Canada: Demand Charges Variable Charges Fuel Requirement Estimation of Trariff escalation 2. Iroquois: Demand Charges Variable Charges Fuel Requirement Estimation of Trariff escalation 3. Transco Z1 - Z6: Demand Charges Variable Charges Fuel Requirement Estimation of Trariff escalation On the Tariff escalation part, based on your inputs, we used 22%, 18%, and 36% of GDP inflation for TransCanada, Iroquois and Transco, respectively. Also, you estimated % increase in Transco Tariff from 2001 to 2007. Thanks a lot for your help! Ying X57350
|