Subject: "USGT Negotiated Rate Filing/ Response to CPUC Protest".

Body: Attached is a draft of Transwestern's response to the protest filed by the California Public Utility Commission in Docket No. RP97-288-017. Your comments would be greatly appreciated. I have gotten some additional information from Mark on USGT's use of westward capacity, which I haven't had the opportunity to review or incorporate in the attached draft. From what Mark has told me, it further supports the statement in our response that USGT has not made significant use of its westward capacity and that the CUPC's claim that Transwestern is being transformed into a pipeline that is dominated by shippers using negotiated rates is greatly exaggerated. We need to file the response on Wednesday. Therefore, I would appreciate receiving any comments by noon tomorrow. Thanks.

Subject: "LNG".

Body: John: The Enron deal at Elba Island amounts to a sendoout capacity of 160mmcf/d for 17 years. This will be tough to fill as the majority of existing supply exceeds the max heat rate-I would look for Enron to get out of this in some way. Enron is currently having discussions with El Paso as to whether this contract goes into effect Oct 1st 2001 or Jan 1st 2002. Elba Island has recently said that they will be running in Q4 although many still doubt it. Attached is a file that lists the terminals, their capacity owners, facility owners, expansion plans, and supply situation. Let me know if you have any more questions.

Subject: "Columbia/New Power Asset Purchase".

Body: Mark: I received a notice in the mail in connection with Columbia Energy Services Corporation's sale of its "Mass Markets" business to The New Power Company. The purpose of the notice was to inform us that effective July 31, 2000 Columbia would be assigning its interest in the January 30, 1998 ISDA Master Agreement that it has with ENA to New Power as well as all transactions under it. Please call me if you have any questions about this. I expect that we will receive shortly a formal consent agreement.

Subject: "Managing Director and Vice President Elections".

Body:
There isn't much to the memo, but this is it! It came out well after the e= nd=20 of the work day for most folks. I believe that Patti has sent you my trave= l=20 plans for next week. Have a great weekend!=20