Subject: RE: Az Public Service update on Sun Devil
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Mon, 11 Feb 2002 12:19:38 -0800 (PST)

Kevin Howard is the best contact on item 1.  wrt item 2, will APS provide binding, unconditional commitment on 100,000?
 -----Original Message-----
From: 	Hyatt, Kevin  
Sent:	Monday, February 11, 2002 10:37 AM
To:	Gadd, Eric
Subject:	Az Public Service update on Sun Devil
Importance:	High

I just spoke with Curt Brechtel from APS this morning.  I had called him last week asking for feedback related to our latest Sun Devil offer to them.  He reviewed our offer with Tom Carlson.  Tom has 2 issues (listed by priority):

1) Enron credit rating and where the pipelines stand with the current financial situation.

	Do we have a timeline wherein the pipes (specifically TW) will have its own credit rating?

2) Full requirements contract settlement at FERC

	APS still has no idea where this process will lead as far as their volume requirements are concerned.  APS is still comfortable committing 100,000 MMBtu/d to Sun Devil, but likely not the 200,000 we asked for (though 100,000 with an option to increase is a possibility).