Message-ID: <4414974.1075846706070.JavaMail.evans@thyme> Date: Thu, 4 May 2000 03:03:00 -0700 (PDT) From: mbaldwin@igservice.com To: jfawcet@enron.com Subject: Update ofKern River Info,PG&E testimony Cc: sscott3@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: sscott3@enron.com X-From: "mbaldwin" X-To: "Jeff Fawcett" X-cc: "Susan Scott" X-bcc: X-Folder: \Susan_Scott_Dec2000_June2001_1\Notes Folders\Gir X-Origin: SCOTT-S X-FileName: sscott3.nsf Jeff, Here is what I have right now. Kern has promised to send on a expedited basis, information concerning their open season and recent Ferc settlement. 1) Kern is holding an open season for request to California & Neveda on an indefinite basis. They are suggesting "no limit" to the potential size of the project (assuming customer demand) but acknowledged that 250-300 mmcfd probably is optimum. 2)The firm rate effective 1/1/00 is daily reservation : $0.5892/dth the volumetric rate is $0.0667/dth plus fuel 3) New shippers willing to make a 10 to 15 year commitment now can get a rate of $0.42/dth 4) Existing shippers (whom Kern will refer IGS to) that have indicated a desire to relinguish their capacity can also get the TDR rate of $0.42 for an 10 year extension of contract. A third party could negotiate with these shippers (for an additional discount) and obtain adjusted TDR Kern capacity. 5) Kern anticipates refinancing their pipeline by March 2001; which will assure TDR rate levels in the future. Kern rep thought that no later than 2007 everyone would enjoy $.40 rates. PG&E TESTIMONY As a follow-up to my early call, a quick note about PG&E. First PG&E will be filling testimony on May 5th. The topic I am told is Wheeler Ridge They want a change to the receipt point matrix exactly like I fowarded last week. They are convinced if a change isn't made to the matrix the probable market outcome for PG&E,KRS is only 70 mmcfd. Starting with 520 less 300 of typical Kern/Socal volumes, 50 of SDG&E volumes and 100 of already done KRS commitments. Call when you can, I will be glad to review the whole landscape.