Subject: Allied Signal
From: [email-masked]
To: [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Wed, 22 Mar 2000 08:14:00 -0800 (PST)

Per my voicemail message to John.

I talked to Stacy Miller at TCO to better understand the SIT limitations.

TCO has something called TFE (Total Firm ???). Plants can burn up to this 
amount and plus 1.03%.

Allied has the following FTS capacity;

39095 50075
62672 3333

Total 53408
 x 1.03

Total allowed without penalty 55,010

Stacy, Cindy, Steve please verify this amount.

If Allied burns above this amount then they will be subject to penatly, even 
if SIT withdrawal is allowed. TCO has started to enforce this penatly again.

Stacy did say that we could true-up the next day to avoid the penatly, like 
we do for the Cogen's. However, you still need capacity above 55,010 to meet 
the burns. That is why Cindy was letting Allied use its SIT withdrawal and 
Aristech's contract. Unfortunately, this was cut by TCO by about 50%.

Not sure what you want to do John. You are welcome to talk to Chris and Scott 
about using Enron's Capacity... but ours is maxed out for the Cogen's in that 
area. International Paper may have some idle capacity, you would have to talk 
to Amy at Alliance 502-426-4500 x7372.

This brings up another question. When will Allied be transferred to another 
fuel manager?? Lee Tippet said it would be effective April 1st. If it is not 
April 1st, Allied needs to sign the piece of paper to allow Enron access to 
perform Allied's nominations. If Allied still refuses this to do it, you will 
need someone at CES to perform these nominations. I will not have access to 
my CES account on April 1st to do Allied's nominations.

Thanks for your patience and understanding.