June EPE Buy-Resales

Holden & Lisa -

Per Holden, I've changed deal 630176 from a price of $170 to $197. Terms and reasons are as follows:

6/4/01
STSW buys EPE
49 mw/HLH

The other side of this deal is a sale to El Paso for $204. Kathy questioned the invoice she received from Houston this month, because the breakdown of transmission costs and fees we had given her (regarding buy-resales done by your desk on 6/1, 6/2, and 6/4) amounted to a spread of $14.06. The deals we entered into our system, and subsequently billed El Paso for, amounted to spreads of $14.06 for 6/1, $11.06 for 6/2, and $34 for 6/4. To remedy this, and extend a gesture of apology for the mistake, we've changed our buy from El Paso on the 4th to a price of $197, leaving a spread of $7 to cover our transmission costs.

I've explained this to Kathy at El Paso and Amy in Settlements, and wanted to give both of you a record of the change as well. Please let me know if you have any questions.

Thanks,
Kate