Subject: Transport p&l--Market East
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Wed, 31 May 2000 04:16:00 -0700 (PDT)

This is just FYI-

I think we really need to ask Dan, Judy and Chris to dedicate some time to 
map the market area points accurately.  (What I mean is making sure each 
location has the proper valuation attached to it in Sitara.)  Just so you 
know, when I print out the market area transport p&l, there are 85 
tickets/paths set up, and only 19 of those show a positive p&l.  I know that 
we are not using that much transport that is out of the money--I'm sure this 
is just a case of no one going in and making sure the mappings for each 
location in the market area are accurate.  I would just go ahead and do this, 
but I I do not know the market area points and valuations well enough.  There 
are a few simple things I could point out that need fixing (i.e., TCO pool vs 
TCO citygate--as prices go up and cost of fuel goes up, no one is adjusting 
the curves between the two points, so your transport starts out in the money 
and ends up out of the money; another example is CNR--the gathering charge on 
CNR is now $.44, but we still have our curve set at TCO pool minus $.32.)

Anyway, I know the market area is a bit more difficult because of valuation 
issues, but I have to believe we could do better than 19 out of 85.  (And on 
some pipes, like Tennessee, the ration is 0/33).

I know this is a pain to fix, but one day I do envision that we will have 
automatic notification of capacity being in or out of the money, but that 
will be meaningless if we are not set up to value points properly.