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Enron Mail |
---------------------- Forwarded by Edith Cross/HOU/ECT on 02/27/2001 09:15
AM --------------------------- Enron North America Corp. From: Edith Cross 02/22/2001 10:12 AM To: Mark Breese/HOU/ECT@ECT cc: Subject: Gas Transport Issues for OPC Here you go... ---------------------- Forwarded by Edith Cross/HOU/ECT on 02/22/2001 10:11 AM --------------------------- Enron North America Corp. From: Edith Cross 01/26/2001 03:12 PM To: Ozzie Pagan/HOU/ECT@ECT, Heather Kroll/HOU/ECT@ECT cc: Subject: Gas Transport Issues for OPC I wanted to quickly write up the conversations I have had today and yesterday with John Hodge (Gas Upstream Origination - I think this is the name of the group) related to gas transport issues for Georgia. As I said yesterday, Transco Zone 4 is at the Mississippi/Alabama border, and is not a delivered price to Georgia. The only Inside FERC SONAT index is in Louisiana. Each of these points are supply basins, and not delivered Indices. Hence the need to pay transport costs to the delivery area. Below I have detailed the issues on each of these pipes. Transco Zone 4 Currently, Enron is working on a project with Transco to expand the pipeline in Zone 4 (Project Momentum). This project is related to development sites at Athens and Hartwell. John said he thought that Athens and Hartwell were each a 500 MW combined cycle facility. The negotiated rate for capacity on this expansion is ABOVE max rate for Transco Zone 4. The current max rate for intra-zone transport is $0.21 for demand and variable costs (approximately $0.03 is variable). The negotiated rates for this expansion is $0.24 for Athens and $0.27 for Hartwell. Rememeber that the demand prices must be paid year round for the maximum capacity needed, regardless of the actual usage. These prices do not include the cost of fuel. If we were to purchase transport from Onshore Louisiana to each of these delivery points, you can expect to add another $0.05 to the above prices. Transco has informed us that if we do not continue with this project, there are plenty of people waiting to buy capacity on this expansion, and that they are already planning another expansion after this. Sonat Zone 3 Skygen (Calpine) is working with SONAT to expand their capacity (approx. 120,000/mmbtu/day) for a development in Augusta. SONAT has said that they should be able to expand this at current max rate prices. The current max rate is $0.55, which is $0.16 variable, and $0.39 demand. This expansion is from an offshore pipe through Destin pipeline to connect with SONAT. Recently, SONAT has sold their capacity at prices lower than max rate in order compete with Transco. Elba Island Theoretically, SONAT should offer Intrazonal transport from Elba Island at a discount to max rate. However, I think SONAT (El Paso) is still trying to figure out what to do since we now have access to this facility. Currently, SONAT does not want discount the transport cost. We are waiting to see what price SONAT charges El Paso to transport their gas from Elba Island. So far, they haven't reached an agreement (that we know of), but we are hoping that SONAT will offer this at a discount to El Paso, and then we will 'force' them to give us the same rate. John thinks that they will charge max rate for the transport, but embed some sort of discount into the gas price to try to get around offering Enron a discounted rate. I hope this helps! Edith
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