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Enron Mail |
Jeff,
Here is what I have right now. Kern has promised to send on a expedited basis, information concerning their open season and recent Ferc settlement. 1) Kern is holding an open season for request to California & Neveda on an indefinite basis. They are suggesting "no limit" to the potential size of the project (assuming customer demand) but acknowledged that 250-300 mmcfd probably is optimum. 2)The firm rate effective 1/1/00 is daily reservation : $0.5892/dth the volumetric rate is $0.0667/dth plus fuel 3) New shippers willing to make a 10 to 15 year commitment now can get a rate of $0.42/dth 4) Existing shippers (whom Kern will refer IGS to) that have indicated a desire to relinguish their capacity can also get the TDR rate of $0.42 for an 10 year extension of contract. A third party could negotiate with these shippers (for an additional discount) and obtain adjusted TDR Kern capacity. 5) Kern anticipates refinancing their pipeline by March 2001; which will assure TDR rate levels in the future. Kern rep thought that no later than 2007 everyone would enjoy $.40 rates. PG&E TESTIMONY As a follow-up to my early call, a quick note about PG&E. First PG&E will be filling testimony on May 5th. The topic I am told is Wheeler Ridge They want a change to the receipt point matrix exactly like I fowarded last week. They are convinced if a change isn't made to the matrix the probable market outcome for PG&E,KRS is only 70 mmcfd. Starting with 520 less 300 of typical Kern/Socal volumes, 50 of SDG&E volumes and 100 of already done KRS commitments. Call when you can, I will be glad to review the whole landscape.
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