Subject: CES contract - Choice Demand Swings in April 2000 - PLEASE READ
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Sun, 9 Apr 2000 11:34:00 -0700 (PDT)

Colleen need your help with this one. Choice is having huge temperature 
swings causing drastic demand changes. Also, the new Choice SST contract mdq 
was reduced from 134,000 to 54,000 in April. There are several cold days that 
are causing ENA to service Choice via IT ($0.05/dkt) and Contract Overruns 
($0.21/dkt).
Do these charges get passed back to CES?

The TCO schedulers are trying to be proactive, by looking at Intraday Temps. 
Unfortunately, we are having a hard time estimating the actual burn. The CDC 
posts a forecast, one day before gas flow. CDC does not post intraday temps, 
we look at the National Weather Service. CDC only posts actuals, once the gas 
day is ended. Once the gas day is ended, TCO and CDC only allow adjustments 
on the SST contract as a no-notice storage withdrawal adjustment. Because the 
burns are increasing during the cold periods, we are overrunning the 
contracts.

Just want to ensure everyone is on the same page before ENA receives TCO's 
April bill, and CES receives ENA's April bill. I have not discussed this with 
CES yet, wanted to ensure ENA is on the same page.

So far this month:

4/4 IT = 25,589 Overrun = 6000
4/8 IT = 22,226 Overrun = 8000
4/9 IT = 12,404 Overrun = waiting on actuals
4/10 IT = 8,200 Overrun = waiting on actuals

Accumulated Estimated Cost

IT = $3421 Overrun = $2940

There was another suggestion to use the Idle transport for Hopewell and Calp. 
At this time, I strongly advise not using the swing transport. If Hopewell 
and Calp come up... it is usually late intraday... and does not give us 
enough time to switch the transport with the CDC's. The penalty for Choice 
gas not showing up is $25/dkt and getting kicked out of the Choice program. 
The CDC's do not accept retro's for Choice gas. Believe me... I have tried 
several times!!!! Usually CES has enough behind the citygate pool gas to help 
balance for minor differences (under 100 dkt). Also, TCO is not as friendly 
as they used to be in doing retro's for Choice gas.

Thank you for your help.