Here is the draft letter agreement. We are still discussing it with ECS and can make whatever changes are appropriate. Note that the letter agreement ties back to Article 6 of the Compression Services Agreement. That article, you may recall, is where ECS agreed to create a computerized system that would monitor Continental Divide's electric system utilization and warn when their system peaks were occurring and then automatically take the compressor offline (subject to manual override) so we and ECS could avoid peak period demand charges. Instead of creating such a system, which apparently turned out to be mostly a manual system anyway, ECS is going to pay us a monthly fee to monitor CD's system peaks ourselves and decide when we need to get off line. The load management service has to do with operational management of the load we place on CD's electric system, and is not a jurisdictional gas transportation or storage service. Note that the service goes on for 10 years (as required by the accountants' 10 year amortization rule) and thus may be vulnerable to scrutiny and potential revenue crediting in TW's 2007 rate case. Any way to avoid that? DF
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TW Letter Agreement