IN: There are no changes... There will be no substantial heat in California this week. In fact, temperatures wil actually average below normal for Monday-Wednesday before warming at the end of the week. Although there is some possibility of above to much above normal temperatures in California and the Desert Southwest, it seems more likely that at least a partial start to the monsoon thunderstorms will occur. Since the normal high is 104 in Phoenix, I would opt for 1-2 degrees above normal as an average for the week. The Pacific Northwest will see below normal temperatures for the next 10-14 days on average. Above normal precipitation for the time of year... Dave

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OUT: Sunday Update

IN: UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION Texas Gas Transmission Corporation Docket No. RP01-278-002 NOTICE OF COMPLIANCE FILING (October 22, 2001) Take notice that on October 17, 2001, Texas Gas Transmission Corporation (Texas Gas) tendered for filing as part of its FERC Gas Tariff, First Revised Volume No. 1, the following tariff sheets to become effective October 1, 2001: Primary Third Revised Sheet No. 181 Third Revised Sheet No. 182 Third Revised Sheet No. 183 Sheet No. 184 (reserved) Second Revised Sheet No. 185 Alternate Alternate Third Revised Sheet No. 181 Alternate Third Revised Sheet No. 182 Alternate Third Revised Sheet No. 183 Texas Gas states that this filing is being submitted in compliance with the Commission's Order issued on September 19, 2001 in the above-referenced docket. As directed, the tariff sheets removed the daily high/low index price for cash-out. In response, Texas Gas proposes to establish a cash-out price based on a weekly high/low index price determined from the weeks within the applicable month, plus the first week of the following month. The primary and alternate sheets require in-kind make-up of imbalances up to 2% and use the same index price for imbalances above 5%. However, the primary sheets also propose to eliminate cash-out for all imbalances up to 5% by also requiring a mandatory in-kind make-up level from 2% to 5% and by eliminating any use of the 100% price index for this tier of imbalance. Texas Gas states that copies of the revised tariff sheets are being mailed to Texas Gas's jurisdictional customers and interested state commissions.

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OUT: Texas Gas Case

IN: Dan, Victor and I did discuss the demurrage claim. As I understand the facts, this does not appear to be a valid claim. I am looking to your group to evaluate the merits of the claim. If you conclude that the claim is valid, please prepare memo to Victor with copy to me, explaning why the claim is valid. If on the other hand, you conclude the claim is not valid, then please prepare a letter to Cabot ( for Victor's signature) explaning why the claim is not valid. Rick

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OUT: Ship Demurrage Claim

IN: Max, congrats on the Decero PPA - we need to wrestle up another 100 to 200 MW. This should be a priority given the profit potential of this deal as per Oz and Doug (+50M in 2000). Is there an ability to let Sabine or Irvin run with Vitro and get your attention on this item asap. I know that the Monterrey project is eating into your time. Do we need to augment your resources? On a different note, the current Monterrey control budget is showing a $5.3M negative variance from the original control budget. Is this accurate? Does this reduce the profitability or is it absorbed by the PPA's? Regards

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OUT:
Various