Message-ID: <18636537.1075861168358.JavaMail.evans@thyme> Date: Thu, 15 Nov 2001 11:28:56 -0800 (PST) From: h..lewis@enron.com To: ann.s.chen@accenture.com Subject: RE: Calculating transportation per MMBtu --- I think I got it Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Lewis, Andrew H. X-To: 'ann.s.chen@accenture.com@ENRON' X-cc: X-bcc: X-Folder: \ALEWIS (Non-Privileged)\Lewis, Andrew H.\Sent Items X-Origin: Lewis-A X-FileName: ALEWIS (Non-Privileged).pst Just compare to the bid in chicago -----Original Message----- From: ann.s.chen@accenture.com@ENRON Sent: Thursday, November 15, 2001 12:37 PM To: Lewis, Andrew H. Subject: RE: Calculating transportation per MMBtu --- I think I got it Andy -- If that is the case, for the example we went through yesterday, the transport cost would be: (NYMEX offer + Amarillo offer)*(1/(1- fuel ratio)) + commodity charge (2.80 -0.05)*(1/(1-0.0319)) + 0.0167 2.75*1.0329 + 0.0167 = $2.86 How do you compare this transport cost to the spread between Amarillo and Chicago basis and index (12 cents) to decide whether to transport? Thanks! Ann Andrew.H.Lewis@enron.c om To: Ann S. Chen/Internal/Accenture@Accenture cc: 11/15/2001 12:26 PM Subject: RE: Calculating transportation per MMBtu --- I think I got it See correction below -----Original Message----- From: ann.s.chen@accenture.com@ENRON Sent: Thursday, November 15, 2001 12:15 PM To: Lewis, Andrew H. Subject: Calculating transportation per MMBtu --- I think I got it Is the formula for calculating transport cost: cost of gas at receipt*(1/(1- fuel ratio)) + commodity charge? ----- Forwarded by Ann S. Chen/Internal/Accenture on 11/15/2001 12:12 PM ----- Ann S. Chen To: Andrew.h.lewis@enron.com 11/15/2001 11:44 AM cc: Subject: Calculating transportation per MMBtu Andy -- I have a couple of questions as I dive more into the details of figuring out transportation costs. Still trying to figure out how you make your decision whether to transport or not. You compare the cent spread between the Amarillo(offer) and Chicago basis(bid)+Nicor Index(bid) versus the transportation cost. In the numbers you provided in your example, the spread was 12 cents. I'm still confused as to how you compute the transportation cost to compare that spread with. The fuel ratio you specified was 3.19% and the commodity was $0.0167. Thanks, Ann ----- Forwarded by Ann S. Chen/Internal/Accenture on 11/15/2001 11:31 AM ----- Ann S. Chen To: Andrew.H.Lewis@enron.com 11/14/2001 06:00 PM cc: Subject: Transportation Scenario Update Hi Andy -- Thanks for helping us understand the tranportation and storage problem today. We appreciate your patience. I know it's like teaching a baby how to walk! Anyway, just wanted to get you the updated numbers for the transportation scenario, based on the changes you made at teh meeting today. Can you also double check with Philip regarding the issue with hedging Basis with regards to transportation? Have a great weekend! Thanks! Ann (See attached file: Transportation.doc) This message is for the designated recipient only and may contain privileged, proprietary, or otherwise private information. If you have received it in error, please notify the sender immediately and delete the original. Any other use of the email by you is prohibited. - Transportation.doc << File: Transportation.doc >> ********************************************************************** This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain confidential and privileged material for the sole use of the intended recipient (s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Enron Corp. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you. ********************************************************************** This message is for the designated recipient only and may contain privileged, proprietary, or otherwise private information. If you have received it in error, please notify the sender immediately and delete the original. Any other use of the email by you is prohibited.