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Enron Mail |
-----Original Message----- From: Hyatt, Kevin Sent: Thursday, February 14, 2002 3:49 PM To: Gadd, Eric; Wadle, Susan Cc: Harris, Steven Subject: weekly update 2/15 Sun Devil Marketing -- Met with Panda Energy and Tampa Electric officials and discussed the latest transport proposal. The pricing and term were well received. We have forwarded to Panda an outline of the credit terms TW will need as well as supply contacts and points available to them in the San Juan basin. We are also evaluating a reverse-tilt transport offer to provide them with a lower rate in the early years, but the rate may not be enough to provide adequate coverage ratios for the pipeline project. -- Arizona Public Service - APS responded this week to our latest offer. Their concerns were (1) TW credit in the face of the current Enron bankruptcy, and (2) our volume offer of 200,000/day in light of the current El Paso full requirements debate. As for credit, we forwarded to APS the current update on TW's efforts with the various rating agencies and our timeline for getting a new rating established. For volume, APS may be willing to sign up for less volume and forgo the "out" clause, but this puts more of the early development risk on TW for capital required to file the FERC application. -- Project Engineering - with Doug Cebryk's resignation, the Sun Devil project has been forwarded to Arnold Eisenstein.
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