Spreadsheet: james_steffes__12817__Enron ES Security Requirement v2
Sheet: Sheet1

Enron ES Security Requirement
Payment Risk (1) (13)
 | Storage Transportation and Storage Charges Security Requirement Calculation
 |  | Coverage x (((FSSRC Vol x FSSRC Rate)+(FSSCC Vol x FSSCC Rate)+(SSTRC Vol x SSTRC Rate))/365)
 |  |  | Coverage  = coverage period (days) | 92
 |  |  | FSSRC Vol = FSS reservation charge billable volume (2) | 2773
 |  |  | FSSRC Rate = FSS reservation charge tariff rate (4) | 1.536
 |  |  | FSSCC Vol = FSS capacity charge billable volume (3) | 173752
 |  |  | FSSCC Rate = FSS capacity charge tariff rate (4) | 0.0295
 |  |  | SSTRC Vol = SST reservation charge billable volume (2) | 1386
 |  |  | SSTRC Rate = SST reservation charge tariff rate (4) | 6.058
 | Inventory Account Commodity Charges Security Requirement Calculation
 |  | Coverage x ((Wthdl Vol x (Wthdl Rate + Wthdl Trptn Rate))/365)
 |  |  | Coverage  = coverage period (days) | 92
 |  |  | [NAME] = 25% of estimated throughput (6)
 |  |  | Wthdl Rate = withdrawal tariff rate (5) | 0.0153
 |  |  | Wthdl Trptn Rate = withdrawal transportation tariff rate (5) | 0.0132
 | Balancing Charges Security Requirement Calculation
 |  | Coverage x (([NAME] x DC Rate) + (Bal Vol x MD Rate) + (Bal Vol x (VA-Res Rate + VA-Cml Rate + VA-GMA Rate)))/365
 |  |  | Coverage  = coverage period (days) | 92
 |  |  | [NAME] = 33% estimated throughput (6)
 |  |  | DC Rate = DC tariff rate (excludes reconciliation charges) (5) | 0.0142
 |  |  | MD Rate = MD tariff rate (excludes reconciliation charges) (5) | 0.0103
 |  |  | VA-Res Rate = VA residential tariff rate (excludes reconciliation charges) (5) | 0.0161
 |  |  | VA-Cml Rate = VA commercial tariff rate (excludes reconciliation charges) (5) | 0.0086
 |  |  | VA-GMA Rate = VA group metered apartments tariff rate (excludes reconciliation charges) (5) | 0.0075
Total Security Required for Payment Risk (7)
Delivery Risk (1)
 |  | Coverage x DDR - (Storage + Peaking) x NYMEX Futures Price
 |  |  | Coverage = coverage period (days) | 60
 |  |  | DDR = design day requirement (8)
 |  |  | Storage = 25% of DDR (9)
 |  |  | Peaking = 25% of DDR (9)
 |  |  | NYMEX Futures Price = highest of next 12 months NYMEX Futures Price (10) | 3.19
Collection Risk (13)
 |  | Coverage x (Usage x NYMEX Futures Price) x Loss Rate
 |  |  | Coverage = coverage period (months) | 3
 |  |  | Usage = Customer usage based on estimated throughput (6)
 |  |  | NYMEX Futures Price = highest of next 12 months NYMEX Futures Price (10) | 3.19
 |  |  | [NAME] = percentage of non-collectable accounts to total accounts (12) | 0.015
Total Security Required (12)
(1) The security required will be adjusted twice per year (May and [NAME]) to reflect changes in tariff rates and the marketer's customer base.
(2) Equals the Columbia Gas Transmission ("TCO") FSS swing storage of 396,649 dth/day times the marketer's share of system load (MSSL).
(3) Equals the Columbia Gas Transmission ("TCO") FSS capacity storage of 24,857,198 dth/day times the marketer's share of system load (MSSL).
(4) Tariff rates are the latest Columbia Gas Transmission rates.
(5) Tariff rates are the latest Washington Gas rates.
(6) The estimated throughput is based on Washington Gas' estimate of throughput during January 2002.
(7) Equals the sum of storage transportation and storage charges, inventory account commodity charges, and balancing charges.
(8) Equals Washington Gas' estimate of the maximum amount of the marketer's customer consumption based on historically determined design conditions.
(9) DDR is reduced to reflect the marketer's amount of storage and peaking that is available for WG to use to meet customer needs.
(10) This equals the highest NYMEX futures price for the period September 2001 - August 2002, as published in the September 4, 2001 Wall Street Journal.
(11) DS-BP estimate of WG's charge-off rate.
(12) Equals the sum of delivery risk, payment risk, if applicable, and collection risk, if applicable.
(13) Washington Gas bills a portion of Enron's customers, approximately 60%.  As a result, Washington Gas experiences both Payment Risk and Collection Risk.
The estimated throughput for the Payment and Collection Risk calculation has been adjusted to reflect the appropriate levels of risk.