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Enron Mail |
The Donald -
Thanks for your help with this. I'll make sure an invoice is sent. dkirken@columbiaenergygroup.com on 12/11/2000 10:01:17 AM To: " - *Colleen.Sullivan@enron.com" <Colleen.Sullivan@enron.com< cc: Subject: Re: CES-CDC transaction Colleen, Thanks for this (I guess). If you would have Mary Ellenberger invoice CES for this as was done for the National Steel 11/00, 12/00 situation, I will see that Enron is paid for this. Thanks, The Donald Colleen.Sullivan@enron.com on 12/08/2000 12:01:23 PM Please respond to Colleen.Sullivan@enron.com To: Donald Kirkendall/CES/ColumbiaGas@COLUMBIAGAS cc: Mark.Breese@enron.com, Dick.Jenkins@enron.com, Jeffrey.T.Hodge@enron.com Subject: CES-CDC transaction Per our discussion, it has been brought to my attention that there is another CES transaction that ENA has been asked to serve that we have been unable to find in any of the CES/ENA contracts or paper work. It is a three month transaction for 40,000/day at the Columbia Gulf-Mainline Pool, priced at the Gas Daily Monthly Index plus $.0125. The transaction is with the Columbia Distribution Companies: Columbia Gas of Ohio, Virginia, Kentucky, Maryland, and Pennsylvania. I have sent copies of the agreements to you via fax. The good news is that this is an index transaction, so there is no forward exposure. The bad news is that, since we did not know about this transaction prior to the beginning of December, by the time CDC contacted us (because there was no nomination made), prices had risen considerably from the first of the month index. ENA immediately purchased base load supply to cover this, which at this point has drastically reduced the exposure; however, ENA will look to CES to cover the difference between the contract price and the rest of the month pricing as of 12/1/00. The weighted average price of rest of the month sales at the Henry Hub on EnronOnLine for 12/1/00 was $6.6125. Since Henry Hub is a more liquid location than Columbia Gulf-Mainline, that is how the transaction was hedged. The basis difference between Henry Hub and Columbia Mainline (per the monthly indices) was $.05, making ENA's cost to cover the CDC volumes $6.6625. This makes the total dollar amount $706,800 (40,000/d x 31 days x the difference between the contract price and the cost to cover, or $.57). Please call me once you have had a chance to review this with the proper CES representatives or if you have any questions. My number is 713/853-5514. Thanks for your assistance.
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