Jim: As we have discussed, ENA is trying to close a gas supply transaction with Citizens Gas in Arizona to provide gas supply to Citizens for ultimate delivery to PP&L for the Griffith power plant. As part of this transaction, Enron Asset Management Resources (EAMR) would provide services to operate a pipeline that interconnects El Paso and Transwestern to the pipeline header system that ultimately interconnects with the Griffith power plant. To date, it has been the reasonable position of EAMR that its liability for services provided to Citizens should be "capped" at the sum of its annual fee of $144,000. Citizens wants a $1,000,000 limit. Citizens and EAMR have agreed to all aspects of the services deal except this liability question. Although it might be possible to close our gas deal without EAMR, this is far from certain. I have been trying to come up with an approach that would bridge this gap so that the ENA gas deal can be closed. This e-mail is intended to indicate the value of this transaction to Enron and get your viewpoint as to the feasibility and cost of one of two deal structures: 1) ENA buys insurance to cover the cost of our buying a policy to bridge th gap in liability from $144,000 to $1,000,000. 2) EAMR decides to increase the laibiltiy to $1,000,000 in return for increasing their earnings on the deal by the amount ENA would pay fior the insurance product - about $120,000. ENA's preference is clearly for approach 2. The attached spreadsheet indicates the value of this transaction to Enron. ENA will earn approximately $3 million on the deal. Please keep this number in confidence. In addition, we have budgeted about $120,000 for the insurance product to increase the liability of EAMR from $140,000 to $1,000,000. Can you please advise me as to the feasibility of 1) or 2) above? If there is no way we are going to get there, I need to know fairly quickly so I can explore other options. If it is possible, which of the above 2 approaches is better from you perspective? Citizens will be here today at 3:00 pm. I would greatly appreciate some feedback from you by that time. To contact me please call Kim Ward at 713/853-0685 and she will be able to find me. Thanks very much for you time. Chris
Answer: Citizen's Gas/Enron Transaction in Arizon
Will - I've passed your phone number along to Bill Williams, the Real Time group manager here in Portland. He should be contacting you shortly to discuss problems with and changes to the Scheduling Activity Report. I've checked with other groups on the floor and found that the report is only used by Real Time, and less frequently by groups assisting Real Time, so I believe Bill or someone in his group could most suitably test the new application. Let me know if there's anything else I can do, and thanks for all your help today. Kate
Answer: Changes to SAR Report
Here is another matrix of TW "Current Shipper" rates & surcharges. This one is not posted on the web. I don't know whether anyone needs/uses it, anymore, but I have been keeping it up. There is a new tab for each change in Current Shipper Rates. The latest is "200111" Elizabeth - I forgot to send this to you this morning. Jeanette - I don't recall whether I sent this along with the other TW files.
Answer: FYI 11/2001 TW Rate Matrix - same rates, different format
Hey Katy, Sorry no correspondence in a while. I wish it was a case of no news is good news, but if you've spoken with Em recently you know that is not so. Anyway, I wanted to touch base with you regarding my visit to London. I of course want to try and time it when both you and Em are in town. So...I was thinking of flying out on Oct 4 and returning Oct 9, that way I would have a weekend over there with y'all. I know you're planning a trip to Egypt around then so just get back to me and let me know if you'll actually be in London any of those days. Hope all is well with you. Talk to you soon, Susan
Answer:
What's Up?