The IPA will report its findings to each institution, and will negotiate with prospective interstate transportation and storage providers to develop advantageous capacity packages that improve upon the economics and reliability of traditional third party bundled proposals. The IPA will also negotiate flexible receipt, delivery and volume provisions with interstate pipeline providers to allow for Aggregated-Pool load factors on behalf of the MHEC group. In the MHEC Natural Gas Initiative, there is no cost obligation to participating institutions until such time that the institution decides to make a purchase through the program . When a purchase is made, the Institution pays Enron a discounted management services fee as specified in the MHEC master agreement. That fee is added to the actual cost of the commodity purchased under the program, and will include a small service fee collected by MHEC to help support program management and oversignt.
Participation involves a simple five step process.
The first four steps are non-binding on your instition. The Independent Procurement Agent will present its market analysis to all members of the group, and will make recommendations outlining cost savings opportunties. If your institution decides to purchase natural gas, a Purchase Transaction Agreement will be prepared for execution. Participation in Steps 1-4, including intering into a Management Services Agreement, does not place your institution or agency under any financial or other obligation. The local distribution services that you now receive from your local utility will remain the same.