Re: daily firm on TW

The term of the FTS-1 agreement is for one day, and automatically renews from
day to day.
The discount letter provides that the discount applies to the one-day term
and each consecutive one-day term (if any). The term of the discount letter
is typically one month or 3 months. The discount letter does not obligate TW
to provide service for more than one day, but as long as the term of the
service agreement renews, the same discount would apply.

My point is that if we are already contracting for daily firm this way, it
should not matter whether the discount is effective for one month or for 12
months.

If there is a problem with the current arrangement, we should discuss it.
Nothing about the way we do these deals has changed since we discussed it
last December.

From: Mary Kay Miller 03/10/2000 12:19 PM

To: Susan Scott/ET&S/Enron@ENRON
cc: Drew Fossum@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Glen
Hass/ET&S/Enron@ENRON

Subject: Re: daily firm on TW

I do have a problem or concern with this-- how do we argue it is daily
capacity and at the same time we agree to rate to be applicable for a year?
MK

From: Susan Scott 03/10/2000 09:01 AM

To: Mary Kay Miller/ET&S/Enron@ENRON
cc: Drew Fossum@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Glen
Hass/ET&S/Enron@ENRON

Subject: Re: daily firm on TW

Yes, we did revise the language.
Commercial Group's question is whether we see a problem with making the
discount effective for one year. I think it should make no difference.

From: Mary Kay Miller 03/09/2000 05:52 PM

To: Susan Scott/ET&S/Enron@ENRON
cc: Drew Fossum@ENRON, Mary Darveaux, Glen Hass

Subject: Re: daily firm on TW

I thought we had worked on some revised language, because we had a concern
when the agreement indicated the discount was available for the month. Glen
was working with you on this I believe. MK

From: Susan Scott 03/09/2000 11:44 AM

To: Mary Kay Miller/ET&S/Enron@ENRON, Drew Fossum@ENRON
cc:

Subject: daily firm on TW

The Commercial Group has asked whether they can sell daily firm for longer
than a 3-month period. This phrasing is of course misleading; TW's daily
firm contracts are always for a term of just one day, but renew for
consecutive one-day terms unless terminated. The discount letter, on the
other hand, grants a discounted rate for each of the one-day terms for a
certain period of time (typically one month). Steve Harris wants to be able
to "sell daily firm for a one-year period." In contractual terms all this
would mean is that the contract is for renewabable one-day terms (as usual),
and the discount applicable to such terms would be effective for one year. I
see no problem with this, do you? (Apparently the current perception in
marketing is that regulatory/legal was limiting daily firm to a 3-month
period.)