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Enron Mail |
Laura,
I'll be in your offices 1st thing Thursday morning. Is that a good time fo= r=20 you? Kay Laura Luce 09/12/2000 12:26 PM To: Kay Mann/Corp/Enron@Enron, Gregg Penman/Corp/Enron@Enron cc: Sheila Tweed/HOU/ECT@ECT=20 Subject: Re: Transfer price agreement =20 Kay, The below looks like a good summary of what we discussed on 8/30. The=20 pipeline is actually spelled Mahomet, but otherwise this is the right track= .=20 Let's set up a conference call (with Gregg) at your earliest convenience. = I=20 need to ensure that a document is turned to Peoples as soon as possible and= I=20 had hoped we would be further along at this point. I know we are all tryin= g=20 to juggle schedules, however; I need to determine if we have a resource=20 issue that requires additional assistance in support of our Chicago busines= s. Thanx, Laura =20 =09 =09 =09From: Kay Mann 09/11/2000 05:27 PM =09 To: Laura Luce/Corp/Enron@Enron, Gregg Penman/Corp/Enron@Enron cc: =20 Subject: Transfer price agreement I'm working on the agreement, but since it is taking longer than I had hope= d,=20 I wanted to send you my understanding of the basic premise for your input. = =20 I'll continue to refine/integrate this into a real document while you revie= w=20 the important stuff: Hub Services.=20 =01&Hub Services=018 include (a) transactions entered into by MEH or the PG= L HUB=20 which are subject to Peoples' Hub FERC operating statement, and (b) all=20 physical transactions which require the use of the Manlove or Mohammad fiel= ds=20 (also known as =01&exchange=018 or =01&enhanced hub=018 services).=20 The profit [what is profit? Obviously before tax, but otherwise a GAAP=20 standard?] from Hub Services shall be split as follows: ? For transactions entered into between February 15, 2000 through September= =20 30, 2000, the profit shall be equally shared. ? For transactions entered into from October 1, 2000 to September 30, 2001= =20 (and successive years until September 30, 2004), Peoples will receive the= =20 first $4 million in profit (cumulative, not annual), and will Enron receive= =20 the next $1million in profit. For any profit exceeding $5 million, Peoples= =20 and Enron will share any on a 50/50 basis. This arrangement excludes all agency fees paid to MEH. These fees will be= =20 shared 50/50 from the inception.=20 All internal costs incurred in the normal course of business will be borne = by=20 the party incurring same. All third party costs will be shared equally, and= =20 require MEH board approval. PERC Peaking Agreement PERC has contracts with PGL and with NICOR contracts relating to the=20 ethane/propane peaking facility. The two existing contracts pay a total of= =20 $2million (approximate or exact) in demand charges annually. Any profit=20 exceeding $2 million in a year will be shared by Peoples and Enron on a 50/= 50=20 basis. If either of these contracts is extended in any form other than the current= =20 form, then Peoples and Enron share the demand charge and the profit on a=20 50/50 basis. Other Transactions=20 Peoples and Enron will split the profit from any transactions other than=20 those described above on a 50/50 basis.=20 Kay
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