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Date: Wed, 6 Sep 2000 10:10:00 -0700 (PDT)
From: kevin.hyatt@enron.com
To: bullets@enron.com
Subject: Bullets 9/8
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Team-- in my absence please submit additional bullets this week to Audrey by 
10:00 am Fri.  thanks

Main Line West Outage - West flow capacity has been reduced by approximately 
200,000 MMBtu/d for five days beginning 9/6 for pipeline testing.  To 
accommodate the market and customer needs, we have negotiated transport for 
50,000 MMBtu/day from PG&E to Needles for Max Rate of $.25 for the five day 
outage.  We also did a Market Center lend for 40,000 MMBtu/day @ $0.10.  
Estimated incremental revenue for the 5 day outage at this time is $82,500.  

KN/Oneok Contract -  We negotiated a 12 month max rate agreement with Oneok 
for 20,000 MMBtu/d of west flow capacity starting February 1, 2001.  We also 
negotiated in the contract a provision whereby if Oneok releases any of the 
capacity above the max rate, then TW shares 50/50 in the incremental 
revenue.  All executed documents have been received.

FERC / California Power Prices - The FERC plans to convene a public meeting 
the week of September 11 in California to take comments from interested 
parties regarding the recent price spikes of wholesale electricity and power 
transmission in the state.  In addition, SoCal Edison filed a motion late 
last week with the California Public Utility Commission seeking emergency 
relief from high spot gas prices on which its power purchase rates are based. 
The company told the CPUC that Southern California Border (Topock, AZ) prices 
in the last month have risen by $2.50/MMBtu possibly because of market 
manipulation, in particular the withholding off of the market of pipeline 
transportation capacity between the supply basins and the California border. 

"There is substantial and compelling evidence that the basis differential has 
been and continues to be grossly distorted by market power abuse, collusion 
and affiliate self dealing of out-of-state gas suppliers and merchants," 
Edison told the CPUC. 

The company noted the CPUC already has filed a Section 5 complaint with FERC 
regarding this issue and is seeking a recision of "certain allegedly 
collusive contracts which it contends have permitted out-of-state natural gas 
suppliers and their affiliates to drive up artificially California border gas 
prices by wrongfully withholding capacity." It notes the complaint 
"conservatively estimates that the anti-competitive manipulation of the basis 
differential has already damaged California gas and electricity users by $100 
million annually since the beginning of 1998." 

Jeff Dasovich from the Enron California office will attend the FERC meeting.