Message-ID: <25634284.1075842544561.JavaMail.evans@thyme> Date: Fri, 26 Jan 2001 07:56:00 -0800 (PST) From: drew.fossum@enron.com To: mcohn@hou-law.com Subject: Re: P G & E Credit Assurance Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Drew Fossum X-To: mcohn@hou-law.com X-cc: X-bcc: X-Folder: \Drew_Fossum_Dec2000_June2001_2\Notes Folders\Discussion threads X-Origin: FOSSUM-D X-FileName: dfossum.nsf Miles--sorry about the hurry up. Please give me a call on this at 402-398-7449. Note the issue raised by the email from Rick Dietz. Thanks. DF ---------------------- Forwarded by Drew Fossum/ET&S/Enron on 01/26/2001 03:54 PM --------------------------- Drew Fossum 01/26/2001 03:50 PM To: Rick Dietz/ET&S/Enron@ENRON cc: Rod Hayslett/FGT/Enron@ENRON, Julia White/ET&S/Enron@ENRON, Paul Cherry/GPGFIN/Enron@ENRON, Jerry Peters/NPNG/Enron@ENRON, Maria Pavlou/Enron@EnronXGate, Steven Harris/ET&S/Enron@ENRON, Lee Huber/ET&S/Enron@ENRON Subject: Re: P G & E Credit Assurance Attached is the revised version incorporating Julia and Rick's comments. Note that to avoid confusion I've labeled the new invoice as the "Prepayment Invoice" to distinguish it from the "Normal Invoice" we send out later and which we'll use as the true up mechanism. I've designated the agreement to be sent out by fax and FedEx, with two signed originals to be included to speed execution by PG&E. I think Rod is the logical candidate to sign it but have left name and title off for now--whoever signs it please add this. Please call if there are any questions and please send me a copy of the final signed version. DF Rick Dietz 01/26/2001 02:39 PM To: Drew Fossum/ET&S/Enron@ENRON cc: Martha Benner/ET&S/Enron, Rod Hayslett/FGT/Enron@ENRON, Julia White/ET&S/Enron@ENRON, Paul Cherry/GPGFIN/Enron@ENRON, Jerry Peters/NPNG/Enron@ENRON, Maria Pavlou/ET&S/Enron, Steven Harris/ET&S/Enron@ENRON, Lee Huber/ET&S/Enron@ENRON Subject: Re: P G & E Credit Assurance Rod, Paul and I spoke and have only two changes. The second one is a more significant change to the true up mechanism language in paragraph #4. Julia is in agreement with the changes. Paragraph 2: after "by wire transfer", add "according to the underlying agreements." Paragraph 4: We felt this sounded a little complicated and may appear to be a deposit. We would recommend changing the paragraph to read: "Transwestern's invoice applicable to February, 2001 business, which is to be delivered to PG&E on or before the 1st of March, 2001, will include a true up of PG&E's prepayment for February, 2001. All subsequent invoices will similarly include a true up of PG&E's prepayment for that production month." If you have any questions, please give any of us a call. Rick Drew Fossum 01/26/2001 01:21 PM To: Rod Hayslett/FGT/Enron@ENRON cc: Paul Cherry/GPGFIN/Enron@ENRON, Jerry Peters/NPNG/Enron@ENRON, Julia White/ET&S/Enron@ENRON, Rick Dietz/ET&S/Enron@ENRON, Maria Pavlou/Enron@EnronXGate, Steven Harris/ET&S/Enron@ENRON, Lee Huber/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON Subject: Re: P G & E Credit Assurance I think I beat your deadline for internal distribution, but we need a bit more time to make sure this approach will work. In particular, Julia and Rick need to take a quick look at the true up mechanism and I need to go back through it one more time to make sure I haven't forgotten something and to clean it up. I look forward to your comments. DF Rod Hayslett 01/26/2001 12:57 PM To: Paul Cherry/GPGFIN/Enron@ENRON cc: Jerry Peters/NPNG/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON Subject: Re: P G & E Credit Assurance I would agree with Paul, unless Drew thinks we can get the agreement out of here in the next 30-40 minutes. From: Paul Cherry 01/26/2001 12:46 PM To: Jerry Peters/NPNG/Enron@ENRON, Rod Hayslett/FGT/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON cc: Subject: P G & E Credit Assurance In order to comply with the request we have made to P G & E of a 12:00 P.M. CST deadline, Chris Chung of P G & E has advised that our proposal has to be submitted to him by Noon today in order to effect a wire transfer by the Monday deadline. Drew is close in the completion of generating the Agreement, however, with the internal review and approval process, it is doubtful we can achieve the timetable needed by P G & E. It would be my recommendation that we extend the deadline from Monday, January 29 at Noon to Tuesday, January 30 at Noon. This would permit our internal review with the expectation of sending P G & E our Agreement by Monday morning and allowing time for their review. I have spoken to Drew and he is comfortable with this approach. Additionally, in my conversation with Chung, I indicated that our approach and proposal would be for P G & E to wire transfer the necessary funds prior to our providing transportation for February and then payment would be expected to be made for the January transportation on the appropriate due date in February. (Approximately the tenth ) Please advise your comments at your earliest conveniece. Thanks and Regards.