Subject: TW Letter Agreement
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Mon, 31 Jul 2000 04:46:00 -0700 (PDT)

Here is the draft letter agreement.  We are still discussing it with ECS and 
can make whatever changes are appropriate.  Note that the letter agreement 
ties back to Article 6 of the Compression Services Agreement.  That article, 
you may recall, is where ECS agreed to create a computerized system that 
would monitor Continental Divide's electric system utilization and warn when 
their system peaks were occurring and then automatically take the compressor 
offline (subject to manual override) so we and ECS could avoid peak period 
demand charges.  Instead of creating such a system, which apparently turned 
out to be mostly a manual system anyway, ECS is going to pay us a monthly fee 
to monitor CD's system peaks ourselves and decide when we need to get off 
line.  The load management service has to do with operational management of 
the load we place on CD's electric system, and is not a jurisdictional gas 
transportation or storage service.  Note that the service goes on for 10 
years (as required by the accountants' 10 year amortization rule) and thus 
may be vulnerable to scrutiny and potential revenue crediting in TW's 2007 
rate case.  Any way to avoid that?  DF