Message-ID: <29774179.1075842450470.JavaMail.evans@thyme> Date: Wed, 6 Dec 2000 11:02:00 -0800 (PST) From: lynn.blair@enron.com To: lindy.donoho@enron.com Subject: Re: TW Cc: susan.scott@enron.com, drew.fossum@enron.com, maria.pavlou@enron.com, mary.miller@enron.com, glen.hass@enron.com, mary.darveaux@enron.com, lynn.blair@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: susan.scott@enron.com, drew.fossum@enron.com, maria.pavlou@enron.com, mary.miller@enron.com, glen.hass@enron.com, mary.darveaux@enron.com, lynn.blair@enron.com X-From: Lynn Blair X-To: Lindy Donoho X-cc: Susan Scott, Drew Fossum, Maria Pavlou, Mary Kay Miller, Glen Hass, Mary Darveaux, Lynn Blair X-bcc: X-Folder: \Drew_Fossum_Dec2000_June2001_1\Notes Folders\All documents X-Origin: FOSSUM-D X-FileName: dfossum.nsf Lindy, your example is correct for settling operator imbalances. If we have a payable operator imbalance and we settle volumetrically, then we get fuel and transport. But, I thought the "netting and trading" in Order 637 was on Shipper imbalances only. I am not sure what we mean by "no additional cost, etc" mentioned below. I'll call you in the morning (Thursday) to discuss further, since I am not familiar with the PNM protest. Thanks. Lynn Lindy Donoho 12/06/2000 11:19 AM To: Susan Scott/ET&S/Enron@ENRON cc: Drew Fossum/ET&S/Enron@ENRON, Maria Pavlou/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Lynn Blair/ET&S/Enron@ENRON Subject: Re: TW I think the example of when quantities may be subject to transportation and fuel is when an Operator overpulls at a delivery point and then cashes out the imbalance, TW could be out the transport and fuel. For example, DP is SoCal/Needles: scheduled volume is 700,000/d actual volume delivered is 720,000/d imbalance is 20,000/d, SoCal owes TW TW collects transport & fuel on 700,000/d (bill on scheduled volume) SoCal cuts a check to TW for dollar value of 20,000/d TW doesn't collect transport & fuel on 20,000/d Payback in-kind doesn't have this problem: The 20,000/d transport gets scheduled at Needles, TW collects the transport & fuel (bill on scheduled volume), but we physically give SoCal 20,000/d less on that day Is this the correct example? I'm copying Lynn Blair to verify. Susan Scott 12/06/2000 09:20 AM To: Drew Fossum/ET&S/Enron@ENRON cc: Maria Pavlou/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Lindy Donoho/ET&S/Enron@ENRON Subject: Re: TW We did not answer protests to our Order 637 filing. The gist of PNM's protest in RP00-626 is that we shouldn't be able to charge a transport or fuel fee for our imbalance netting and trading service. I agree with PNM that our tariff language is vague in this regard. What exactly do we mean by "no additional cost...unless through the allocation process, quantities may be subject to transportation and fuel"?? Can someone help me with this? Since we really did not want to make this compliance filing anyway, I would say we probably wouldn't mind if FERC rejected our tariff sheet outright. However, it's more likely that they will just instruct us to clarify our language. Or they could tell us to remove the "subject to transportation and fuel" provision. If we want to preserve our right to charge transport and fuel, it might be worthwhile filing something in the way of an answer. However, I am going to need some assistance in understanding what the language means and why we think we can do it, so I can justify it to FERC. Any comments you have in this regard would be appreicated. From: Drew Fossum 12/05/2000 05:18 PM To: Maria Pavlou/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON cc: Mary Kay Miller/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON Subject: TW Should we respond to PNM's protest of the dollar valuation of imbalances prior to netting and trading? Did we already respond to this issue when they filed their protest of the 637 filing? DF