Message-ID: <8140224.1075860885261.JavaMail.evans@thyme> Date: Fri, 15 Mar 2002 09:40:24 -0800 (PST) From: kevin.hyatt@enron.com To: eric.gadd@enron.com, steven.harris@enron.com Subject: Weekly update 3/15 Cc: susan.wadle@enron.com, bruce.tuttle@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: susan.wadle@enron.com, bruce.tuttle@enron.com X-From: Hyatt, Kevin X-To: Gadd, Eric , Harris, Steven X-cc: Wadle, Susan , Tuttle, Bruce X-bcc: X-Folder: \Kevin_Hyatt_Mar2002\Hyatt, Kevin\Projects\Sun Devil X-Origin: Hyatt-K X-FileName: khyatt (Non-Privileged).pst Sun Devil Project Panda Energy - We are analyzing the pro-forma operating information for the plant submitted to us by Panda this week. Still waiting on pro-forma information from AZ Public Service. El Paso full requirements / FERC Settlement - FERC staff proposed a settlement that would convert the FR shippers on El Paso to Contract Demand (CD). The proposed settlement "will restore some certainty to firm-service obligations while providing incentives for El Paso to add significant increments of new capacity to its system." The proposed settlement will now move to a technical conference. Chairman Pat Wood also said noted the market should not look to see any more 10 year settlements as the period is too long and markets move too quickly. The impact of the above for Sun Devil is as follows: FERC is sending price signals to the market and enabling El Paso to expand its system to meet demand (which under the previous settlement, EP was unable to do). The project that meets the market demand with the best economics will win. Kern River - The Federal Trade Commission approved the sale of Kern River Pipeline from Williams to MidAmerican Energy. Gomez Lateral Working with Corporate Development to determine the process necessary to satisfy Creditor Committee requirements. A field visit with Pioneer has been tentatively scheduled for March 26. In the event we are required to hold an auction for the asset, a draft offer memo has been prepared and is being circulated for review.