Re: Stagecoach

Hey Charlie:

We received 2 quotes from EES for 2 different scenarios:

If we run just winter months at the following load factor: January (80%),
February (80%), March ( 80%), April (70%), May (60%), September (60%),
October (70%), November (80%), and December (80%), the power cost is
$0.060/kwhrs.

On the other hand, if we run year round (including a 60% load factor during
the three summer months) the power cost is $0.064/kwhrs. However, there is
no call option value reflected in this scenario. EES is currently
determining the call option value for the summer months.

Please also review the attached spreadsheet for expected running hours. We
are asumming that the compressor will run during the night, 8pm to 8am, when
El Paso will be packing the line with gas. Peak usage will occur as the line
becomes more packed, closer to the morning. Curtailment (call option
available hours) can take place during the peak hours of the day from 8am to
8pm.

Let me know if you have any other questions.

Maria