Here is an email: I talked to John Fielder (SVP Edison) about setting up a meeting for Barry Tycholiz with Edison's CFO about hedging Edison's QF price risk. Fielder wanted to talk about the negative CTC issue. Here's what he said: They plan to "settle" with the ESPs and pay them when they pay everyone else, which he re-iterated would be sometime in Q1'02. Edison is holding firm to the notion that the negative CTC contributed to the utility's undercollection and that the ESP's share of the undercollection has to be netted against the payables attributable to the negative CTC and owed the ESP. He said that they will propose to net it out in one of two ways: 1) lump sum netting (i.e., if they owe $50MM and the share of the undercollection is $30 MM, then they pay the ESP $20 MM; or 2) future reductions in PX Credit (i.e., they pay the ESP $50 MM, and then reduce the PX going forward until the $30 MM is paid down). The numbers are illustrative only. In addition, he said that they have the view that a decision is going to have to be made about 1) whether DA customers pay for stranded costs tied to the DWR L-T contracts, and 2) whether DA customers pay going forward for stranded costs tied to the QF contracts. (Edison is clearly lobbying the PUC to get DA customers to pay for these costs.) I recommended strongly that he de-link issues 1 and 2 above from the issue of paying us ASAP what they owe us for negative CTC. He agreed. He said that the PUC judge's recently issued pre-hearing conference order requires that Edison "meet and confer" with ESPs prior to the Nov. 7th hearing, and that Edison intends to set something up with ESPs prior to that hearing. Fielder is also the point person on "getting ESPs paid" and intends to initiate settlement discussions with ESPs week after next. It was very clear from the conversation that Edison is going to do everything possible (at the expense of creditors) to maximize headroom under the settlement it struck with the PUC a few weeks ago. Edison's stalemate with the QFs is evidence of it. We shouldn't assume anything different with the Negative CTC issue. If you have any questions, let us know. Best,
What is a potential subject line for this email?
A: Conversation with Edison re: Getting Negative CTC Paid
Here is an email: Lorraine: here's what we would have to show FERC, along with some of my comments. Let me know if you have additional ideas, and I'll turn it into a draft to send around to the usual suspects. 1. Rate impact on TW customers; method by which TW would collect the costs of the acquired capacity. - I assume TW would be at risk for any undercollection of revenue associated with the PNM capacity; thus there is no cost-shift potential to other shippers. - Net costs will be separately recorded. 2. Would acquisition of PNM capacity enable TW to gain control over access to upstream capacity and supply sources in a manner which would permit TW to limit customer choices or improperly tie use of the acquired capacity to other pipeline services? (I think Mary Kay will be able to help us explain the "no tying" part). 3. Would TW's marketing affiliates receive preferential treatment? - No TW marketing affiliate will be involved in the proposed transaction - Acquisition of PNM capacity will not result in any undue preference or advantage to any affiliated entity. 4. Will TW as a holder of capacity receive preferential treatment over PNM's customers, to the detriment of PNM's customers? - No. PNM will be making the capacity available to TW only during periods in which it has unused capacity available on its system, so any impact on PNM shippers should be minimal. - Service contract under PNM's tariff does not provide for unduly preferential treatment of TW. 5. How will capacity be managed or otherwise integrated into TW's existing open access operations? - TW will enter into service agreements with PNM from time to time to transport gas on the portion of PNM's line from Blanco, NM (i.e., the Blanco Hub operated by TW) to Rio Puerco, NM, where PNM's system interconnects with TW's mainline. Resulting available capacity will be posted according to TW's tariff. - The capacity will be used to serve customers under TW's FTS-1, LFT and ITS (right?) rate schedules from the Blanco receipt point to delivery points on TW's system. - Lorraine -- we need to discuss our arrangement with PNM -- Would we be
What is a potential subject line for this email?
A: Acquisition of PNM capacity
Here is an email: Jim and Jeff, I spent 20 minutes trying to open Jeff's excell attachment. I could not. Jeff did not incorporate my notes into his. SO, Jim I guess you'll just have to go with the two pieces you got from us. Sue
What is a potential subject line for this email?
A:
Jim's requested analysis