Subject: EOL transport intent and suggested EOL language
From: [email-masked]
To: [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Tue, 8 Aug 2000 05:48:00 -0700 (PDT)

Gerald, here are some things to think about before our meeting.  EDG

HPL's intent for initiating EOL service:

Sell interruptible transport in stated volume increments
Develop daily, weekly and monthly markets in transport that parallel the 
Texas desk business (price the transportation service required to supply a 
peaking deal or a week day only deal.)

Proposed EOL language by Steve Hotte with Northern's IT group. He is the lead 
on this project from an EOL perspective

A transaction under which the specified Enron natural gas pipeline will 
transport, on an interruptible basis, a maximum daily volume (stated in MMBtu 
per day) equal to the volume identified on the website.  The gas will be 
transported from the specified receipt point(s) to the specified delivery 
point(s).  The bid and offer rates are stated as one-part rates in $(US) per 
MMBtu.  If a transaction is consummated, the shipper will be billed the 
one-part rate, which is inclusive of all applicable surcharges, based on 
usage.  In addition, the shipper will be billed the applicable charge for 
fuel.  The term of the transaction will correspond to the dates shown on the 
website.

Additional considerations for HPL's participation, EOL language and GTC (?) 
language.

HPL needs a two part rate, the first part to be billed regardless of use (a 
demand charge).   Colleen suggested a very small charge ($.0025/MMBtu) to 
keep counterparties from buying capacity and leaving us high and dry.  The 
second part is the total rate less the demand charge that will be billed on a 
commodity basis.  The rate billed will never be larger than the rate 
transacted on EOL.

HPL will not have a bid at this time.  Theoretically, HPL owns all the 
interruptible transportation capacity and it would be purchasing capcity from 
itself.  In short, HPL will not be showing bids.

Points will really be market zones with well defined pipeline points within 
them.  Bouncing between points (as capacity at each point allows) will be 
permitted as long as the shipper continues to utilize the path purchased.

The transaction is good for the time purchased, if there is a break in the 
shipper's use during the transaction, the capcity must be renegotiated, in 
any event the demand charge will be billed for the full term of the 
transaction.