Enron Mail

From:susan.scott@enron.com
To:
Subject:TW/Red Cedar deal
Cc:
Bcc:
Date:Mon, 27 Dec 1999 04:45:00 -0800 (PST)

Drew, here's an excerpt from a FERC letter order accepting for filing a
nonconforming agreement filed
by Dynegy Midstream...sounds a little bit like what the TW guys are trying to
do, if I understand the
concept of volumetric rates correctly. Left a message for my friend at DMP
but he (like everyone else)
is out 'til next year. But since there were no subsequent orders issued in
the docket I assume there were
no problems with the filing.

I'm still leaning towards recommending the $0 demand/ $0.02 commodity + file
as nego. rate approach.
If Steve Harris is OK with the idea of doing a deal that requires filing, I
will draft something and send it your way.

* * *
The referenced negotiated transaction provides for a transportation service
under DMP's Rate Schedule
FTS. Rather than paying a reservation charge, the negotiated agreement
specifies that KGS will pay
a volumetric rate. The volumetric rate will equal DMP's maximum interruptible
transportation service rate as
set forth in DMP's tariff. . .The contract also (a) specifies five Dth/d as
KGS' maximum daily reservation
quantity, (b) lists KGS' primary receipt as Meter # 9999999 and ©
identifies five primary delivery points for
KGS. . . Upon filing Docket No. RP99-240-000, DMP stated that it agreed to
the above negotiated rate so
that KGS could serve small residential customers on DMP's system under a firm
rate schedule.