Subject: "OUC Deal".

Body: Scott - Attached are my notes of the OUC deal that Jared thought you would like. Dan - We need to incorporate the terms and conditions that I have mentioned in the summary below into a confirmation sheet. I'm assuming we have a Master Firm Agreement with Orlando Utilities, but if we don't, we need to get a contract drafted as well. I will check in with you to discuss. Thanks.

Subject: "Various Topics".

Body: No memo out yet on the Doorstep process. I am still in the throws of completing the 13 reviews that I have to give - should be finished by 5:00. I will send the memo on Doorstep process to you, Fernley and Michael Brown before I leave for the day. I will be in the Calgary office Wednesday and Thursday with Peggy Hedstrom and her team. Back in the Houston office on Friday. Hope that James' visit is going well. Thanks for getting appointments organized for him. I look forward to seeing you in Dallas next week. I am glad that you, Richard and Steve will be able to participate. Are you still planning to come back to Houston after the meeting in Dallas? I fly from Dallas to Austin on Tuesday night, so that I can do a full day of interviews at UT for summer interns on Wednesday. I will be back in the office on Thursday and Friday that week. Let me know if we can help in setting up any appointments. We can do lunch on Thursday or Friday, if your schedule allows. I can also set some time aside to perhaps download from our Dallas meeting and to follow up on some other issues. I would offer dinner on Thursday night, but that is my birthday and I think (hope) that my family will have dinner plans for me that evening. Is there someone else in Houston that you would like to have dinner with while you are here? --Sally

Subject: "Revised Capacity Release".

Body: Stephanie, Attached is a further revision of the Capacity Release Doc. The comments are from counsel in the Calgary office. All the comments are consistent with the intent of the prior documents. They mainly make the Canada section symmetric to the ENA section. Please review.

Subject: "Transport Options Program".

Body:
Attached is the latest draft of the Transport Option Program filing. There are a couple of important changes from the last draft. One is that we're no longer stating that the option fee is going to be "market-based." At FERC, the term "market-based" has connotations of having to prove to FERC that a non-cost-based rate is appropriate because we lack market power. While we probably do lack market power, the consensus of the legal/regulatory team was to try to portray the option fee as a built-in feature of the transport rate, which is simply being disaggregated into a separate option fee. If this theory is not clear to you after you read the filing letter, let's discuss how it should be improved. The other significant change (also based on my meeting with legal/regulatory) is that I've structured the tariff language and the agreement so that every shipper, regardless of whether they currently use transport on TW, will have to have a firm transportation agreement when they buy an option. In other words, a shipper that does not currently have a service agreement will simply execute an agreement with a MAXDTQ of zero. This structure has two advantages: 1) it's consistent with our option-fee-as-part-of-transport-rate theory, and 2) it will help support that theory in our next rate case. I'd like to meet next week, either Wednesday afternoon or Thursday, to discuss the following topics: 1) Your comments and questions on this draft, 2) Some examples of options, to make sure the tariff provisions and contract work from a logistical standpoint, 3) The bidding process, and how bids for options will be evaluated, and 4) Comments received from shippers thus far. I'll be working on 41 tomorrow; let's talk about what would be a good meeting time. I will be out Mon. and Tues.