Problem: BODY: Hi Jeff, Ozzie Pagan's team is working on a project for VEPCO. The power plant will be located in Edgecombe County, North Carolina. I've been told that getting gas for the plant is a significant issue due to local gas supply conditions. One alternative has been to buy gas from the City of Rocky Mount, which has a take or pay contract with the local supplier, and is not using all of their gas, especially in the summer. We have developed a preliminary draft of the LOI, which I am attaching for your review. I would appreciate the opportunity to discuss it with you to get your input, etc. Of particular concern is that Rocky Mount wants ENA to deal exclusively with them during the term of the LOI (this isn't reflected in the draft). Thanks,
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A: SUBJECT: Gas supply for VEPCO project

Problem: BODY: FERC today issued Draft Orders denying rehearing in the following: Kern River, CP01-31 (2002 Expansion Project) Rejected arguments of the Firm Customers that the project should not have been approved or, alternatively, the rights of the expansion shippers at Wheeler Ridge should be subordinate to those of the existing shippers. PG&E Gas Transmission, NW, CP01-141 (2001 Expansion) Rejected Newport Northwest LLC's assertion that requiring the expansion shippers to pay a fuel cost surcharge to recover any incremental fuel costs due to the additional compression approved for this project is contrary to FERC precedent and the policy statement on expansion facilities. These orders should be issued within the next few days, and we will circulate copies. Let Melinda know if you want to see the draft copies before then (they are not available electronically).
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A: SUBJECT: FERC Draft Orders on Kern River and PG&E Projects

Problem: BODY: Please keep this confidential at this point. It's the agenda for the California "subcommittee" meeting on Tuesday that I mentioned in an earlier note. They were unable to reschedule the meeting, which starts at 10 AM tomorrow, but we're on the subcommitte and will have very good access to the final product, so I'm not too concerned about missing the "kickoff" meeting. Folks in California are really looking to us to help figure out item #2 "forward contracting." It would be very useful to discuss this outline tomorrow while we're all together. Best,
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SUBJECT: Agenda for December 5 Meeting