IN: This is an email
As we breifly, ECS is developing a product for gas driven (as opposed to electric driven) horse power. Essentially, the value proposition involves "wrapping" an existing gas horspower station with a Compression Service Agreement and allowing the Pipeline to pay for the shaft horspower in commodities other than (or solely in) cash. ECS provides shaft horsepower (meaning that we bring gas, as opposed to elecricity) to the compressor. Because Shippers would continue to pay for its fuel per the existing tariff, the Pipeline would utilize shipper fuel to pay for shaft horsepower. This structure represents an avenue for the Pipeline to hedge the value of the molecules it collects from Shippers or simply to levelize their fuel burn. Timing and basis differences could, presumably, be included to increase the value to the Pipeline and potentially passed through to the Shippers. Attached is a deal example that I recently presented to Great Lakes Gas Transmission that solves a fuel levelization problem they have on their system....they overcollect in the Winter and undercollect in the Summer. It may be of some use in reviewing to help ascertain answers to the following: 1) Would a gas compression service deal be required to be filed by the FERC? My sence is that the answer is no. This is simply an O&M service contract and lease agreement. 2) If a Pipeline is on an annual gas tracker, what would be the tracker implication? It should be flat, as technically, ECS has not changed the amount of fuel collected/utilized....we have only provided optionality as to hedgeing??? Please give me a call to discuss. Thanks

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OUT: Gas on Gas ompression Deal

IN: This is an email
Here is the revised file. Brenda - I added the remaining producer service variances for 0003 production - the Texas guys have reviewed those variances. Please give me a shout with any questions. Thanks. PL

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OUT: Producer Service entries

IN: This is an email
John: I hear that you are trying to trade in the name of Enron North America Corp. while you sit in London. Althought both ECT Investments, Inc. and Enron North America Corp. have agreements with Instinet Corporation, those companies are all U.S. companies without any presence in the U.K. (those companies do not pay U.K. taxes!) I have asked the ENA tax lawyers to review the implications of your proposed activity. I will try to speak with you Monday before things go too far. Please provide an immediate response and copy the tax lawyers noted above. Thanks. Sara

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OUT:
Instinet Corporation