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Enron Mail |
Ramona, "total cost commitment" in TW's tariff generally means total revenue
to be received from a transaction, taking into account reservation rate, the term of the commitment, and the commodity revenues associated with any minimum throughput commitment the shipper may make. Obviously some of these items aren't applicable in the PNR context; the language must have just been lifted from another part of the tariff. For PNR we would just multiply rate times number of days the service will be used. Practically speaking, I'm not sure how this is done if you have an interruptible service with no throughput commitment, but I think you should just be able to use the number of days in the contract term. If there's a tie (i.e. more than one shipper willing to pay at or above max rate), we just allocate the capacity pro-rata. We do not have to offer a right to match. Ramona Betancourt 06/19/2000 03:52 PM To: Susan Scott/ET&S/Enron@ENRON, TK Lohman/ET&S/Enron@ENRON, Michael Bodnar/ET&S/Enron@ENRON cc: Subject: TW Tariff Susan, I am working with TK on automating TW's PNR allocation process & I was reviewing the tariff rules for TW PNR allocation of service on sheet 37e. Section 8. Can you interpret the meaning of "total cost commitment"? We state that buyers willing to pay more than the maximum tariff rate will be considered to be paying the maximm rate and we will pro-rate amoung buyers willing to pay the same total cost commitment. Does this mean we must offer a right to match? What does the term "total cost commitment mean? Thanks Ramona
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