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Enron Mail |
Kay -FYI, this note was prepared by Peoples on what they believe to be the
open commercial issues. I will probably sit down with them on Friday to get their true viewpoint on the various items. They tend to be much more open with me outside the large group. If only I could work this into a happy hour we would be set. Also, Please don't acknowledge in front of Peoples that you have received this, although I believe this was prepared with input from their counsel. Thanks, Gregg ---------------------- Forwarded by Gregg Penman/Corp/Enron on 06/21/2000 10:56 AM --------------------------- Roy Rodriguez 06/20/2000 04:28 PM To: Tim.Hermann@enron.com, Gregg Penman/Corp/Enron@Enron, Paul Burgener/Corp/Enron@ENRON cc: Laura Luce/Corp/Enron@Enron @ ECT Subject: Commercial Issues on Hub Agency Contract Tim and Greg and Paul, are you available to sit down with Dave wear on Thurs (6/22) at 8:30 to discuss the following commercial issues on the Hub Agency document.. Our goal is to come to agreement on these items and forward answers to the issues for documentation. Please come prepared with any documentation that may help support any of the following items. Here is a list of outstanding business issue that PEC representatives are aware of - Note, there < may be other business issues that have been discussed at a business level < that PEC representatives are not aware of. Note, this list does not include legal/regulatory issues and is not. < < 1. Credit risk - Who will be responsible for performing credit checks < of Hub Shippers? Who will bear the risk of bad debt? Will the party < bearing such risk bear all or a portion of the risk? Will there be a < bright line rule that all unapproved Hub Shippers (unapproved for credit < reasons) or Hub Shippers exceeding their credit level must first be < approved by Peoples? < < 2. Extended Hub Transactions - Extended Hub Transactions will be < included in cumulative gross revenues but deals proposed but not executed < during term of Agency Agreement will not be included in cumulative gross < revenues. Is this correct? < < 3. Refunds - Will MEH be at risk for FERC-ordered refunds or will MEH < only be allowed to charge the rate in effect prior to a rate filing during < any period when rates are subject to refund? < < 4. Fees - What is the monthly administrative service fee and what does < this fee include? How will fee be paid - will MEH offset or send Peoples < an invoice? < < 5. Performance Standard - What will the performance standard be? What < is Peoples' remedy if MEH does not achieve the performance standard e.g. < will Peoples be entitled to terminate the Agency Agreement or obtain a < reduction in the administrative service fee? < < 6. Transition - What will the length of the transition period be after < the Agency Agreement terminates or otherwise expires? < < 7. Please discuss how this Agency Agreement will work operationally < from the point when Peoples announces available capacity through the point < in time when a Hub Shippers calls MEH for services through to the point in < time when Peoples nominates and schedules. Include anticipated timing of < the events e.g. how quickly will Peoples respond to a request from MEH. <
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