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I have no great interest in appealing the FERC order denying rehearing. This one is a loser as it was decided on TW-specific facts and I see no clear inconsistency between FERC's various orders on revenue sharing. Unless someone feels strongly to the contrary, lets punt. Thanks. DF
TW RP99-335
What's the status of our analysis? Has anyone heard anything from Dennis or Tino lately? I get concerned when they disappear for weeks like they sometimes do. Thanks. DF
Pueblo
I may have these at home, but just to be sure, please email me your H and W and Cell ph. #, pager #, palm pilot #, the # that connects to the steel plate in your head, your address, and any other communication coordinates you think I need to have. I'll be at the Westin La Something in San Anton, checking out Friday...
numbers
Great job at the law conf! You need to send a vcr tape up to us of the presentation so MKM and our group can use it for sensitivity training!!! On other news, whats up with this???? Related to their downsizing? Lorraine's a star--I was surprized to see this.
MAY DAY
Mike Moran has informed me that the FTC and U.S. DOJ, as part of their review of the El Paso-Coastal merger, have decided to take a close look at the merger's possible impact on competition in the Chicago-Wisconsin market. In this regard, those agencies need to set up a conference call in the next two weeks to disc...
El Paso-Coastal Merger
I understand that you guys have retained Holland and Hart to give us another set of eyes on the Navajo issues. For future reference, I have finally hooked up with the South Dakota firm I mentioned and was favorably impressed with their experience in similar matters. Don Schultz and a couple of his partners have sub...
Navajo
Tino called today to report on their meetings with DOE last week. Tino, Dennis Langley, and their outside lawyer Jim Slattery met with Bill Richardson and DOE staff to discuss the "sole source" procurement approach to DOE's obtaining an alternative power supplier for Kirtland AFB and Sandia. Tino reports that Richar...
Pueblo
I had an interesting conversation with Mark Courtney today, this time about something that doesn't cost us money. He has gained a good bit of experience on transmission availability in NW New Mexico from the Gallup electric contract negotiation. His take on transmission constraints is consistent with what Kevin and...
Pueblo
Thanks for the tip last night! I called and ragged around my thieving ins. company this morning and they are going to cough up some serious insurance for me and Sandra at suuper-cheap pre XXX prices. Cool. My only concern at this point is that my over-insured status may create undesirable incentives for the little l...
Insurance
My buddy in DC found the NE Hub testimony and is fedxing it. If you can get the egan hub testimony that would be great. Thanks. DF
MHP
I heard that NE Hub made it through the Oriskany without blowing anything up. Siggy must have been so pleased, and Penn Fuel and CNG so disappointed! Hey, I'm gonna be down the week of May 30-June 3 and would like to get together with you guys. What's going on that week? Would there be any reason, say, to bring golf...
Siggy
Following is one of the documents I got on Friday. the other will follow shortly. I think Maria forwarded this already, but you ought to make sure she got it. Thanks. DF
Revised Electronic Contracting/Legal Issues Slides
I'm OK with the language, but I want to make sure everyone is OK on the concept. When we left this (unless there have been subsequent conversations with ECS that I wasn't a part of) we rejected Courtney's proposal to reduce our up front payment by $500,000. He was to come back and propose a monthly quantity of gas ...
Supplement to Gas Letter
No problem with the plan to send a demand letter to El Paso on the measurement issue. Please include me on distribution for the draft. Thanks, DF
TW/El Paso
I got a call from Tino Monaldo today passing on the results of Dennis Langley's meeting with DOE in Albuquerque. DOE indicated that their current PNM rate is "5.3 cents, exclusive of the demand charge." Tino's consultant claims that factoring in the demand charge yields an effective rate of approximately 7 cents/KW...
Pueblo
I met with Ms Caplan yesterday and had a good discussion. I was pretty impressed with her. The only down side is that her inability to sit for the Texas bar is a hangup for a lawyer position. I suggested that she also look into getting her license in New York or D.C. as I think those jurisdictions are less reluctan...
Emma Caplan
Please take a look at this response. I'm reviewing Mike's draft answers from last week and would like to forward to Britt and Barrett all the input we have by noon or so. Thanks. DF
Answer #9
Please give me a call ASAP on marketing affiliate issue on TW Enron Online deal. Cell 402-630-8461 or home 402-572-8595. I'm in tomorrow around 7:45. Gracias. DF
EComm
Another Tino-gram. DOE disclosed to Team Tino that they pay a $7.06/mo demand charge per KW in addition to the $.053/kwh energy charge. Tino didn't know whether that was per KW of monthly demand, per KW of non-coincident peak usage, or what. The PNM tariff for govt. service is priced at $7.16/KW of "demand above 10...
Pueblo
I saw in the press that N.M. has delayed electric open access until Jan 1, 02 for residentials and small commercials and to July 1, 02 for large industrials. That increases the likelihood that the Pueblo project will have to dump power in the wholesale market at 4 Corners for a while before retail markets start to ...
Pueblo
I couldn't get the email through to Bill Gang, so lets try William. Bill V, if this doesn't show Bill G as an addressee, please forward from your computer. Thanks. DF
Pueblo
I recall that we set up a warning flag approach with market services last year to make sure that Sempra never "goes physical" without us manning the battle stations and deciding what to do. Do you guys know who the noms would come in to in Market Services if Sempra ever decided to try to take their gas out of Cunni...
last year's deal
This is a problem your people should be aware of because I think our usual practice when we want to verify ownership structure is to call the corporate secretary's office. If they are behind, I don't know who we should go to in the future. Maybe we need to run everything by corp. tax from now on. Ugh. DF
Corporate Secretary's Data Sheets
Do you know anyone in ROW who could give me a sense of what ROW currently is going for in $/ mile, in New Mexico? Please forward this to anyone you think might be able to give me some insight on recent right of way procurement by enron or others. Thanks. DF
NM ROW
I reviewed the latest draft of AA's management rep. letter and caught a few innaccuracies in the way AA described the deal. I attach a revised draft of the letter, with a redline version to highlight for you the changes I think we need to make to keep it accurate. First, AA only listed two of the four agreements t...
Mgt. Rep. Letter
Per our discussion, I've modified the letter to remove reference to the monthly pack agreement and made a couple of other minor changes. I wasn't able to get ahold of Bill on Friday afternoon to discuss who will sign, so for now I've left it with signature blocks for Bill and Rod only. I hope we are getting closer ...
Mgt Rep Ltr
Britt- great memo. I'm sure you guys are in the course of discussing these very issues, but here's my two cents worth. 1. Once we decide on an optimal forum, the key step before filing a lawsuit is the assessment of our probability of success--for different reasons than
El Paso
These guys don't give up. I'll forward any information Tino gives me on their latest DOE strategy. Rockey--do you have any interest in following up
Power plants
Here's a thought that didn't occur to me when I marked up the mock trial script. Should we have the consultants prominantly feature "IPEC Busters"??? Unless we are pretty sure the judge will keep it out on relevance grounds, it might be useful to at least get some juror reactions to it. With or without the specific...
Mock Trial
Just got an update on the project that won't go away. Dennis has a meeting lined up with DOE decisionmakers on the 25th. He is going to pitch the project as an approximately 100 mw power plant, to be owned by (read "financed by") DOE, with the gas pipeline owned by Dennis and\or third parties (read "Enron"?). Denni...
Pueblo
Congratulations to you both! Your designation as V.Ps. is richly deserved! Just among us "constrained technical" people, however, couldn't they have come up with a better description of our category? It makes us sound like we are deficient in something other than just career choice! See you soon--beers are on me! D...
The Memo
Thinking about bailing out of the big O for a couple of days w/o rugrats or Sandra. Taking Kari out of her native biome is more hassle than its worth these days. Might just blow up for a long weekend and do some fishing and beer drinking. Send me the name of that book on flyfishing in the Hills--I
book
Sorry, I neglected to forward this to you earlier. You've gotta give these guys credit for being tenacious! I'll keep you posted on any meaningful developments after their meeting with DOE on the 25th. Thanks for your patience. DF
Pueblo
FYI. Interesting, and no significant deviations from what we discussed. Dan was up here yesterday with Stan. He seems like a good guy and is pretty gung ho about getting on board. Lets keep in touch. DF
GPG Organization Announcement
Leslie Lawner called and asked if TW could help with the funding of this organization. As you will recall, the "NM First" group has taken positions on right of way issues that are consistent with TW/Enron's view on Indian right of way issues. Leslie asked if we could kick in $1000. I leave this to you guys to weigh...
NM First Town Hall Energy Summary
No wonder you are oblivious to our meager organizational changes up in Omaha! You are out doing zillion dollar deals for EBS!!! Congratulations--sounds like a very cool deal! Lets get together soon down
Enron and Blockbuster to Launch Entertainment On-Demand Service
Does anyone find it interesting that we've heard nothing but silence from Dennis and Tino? I suspect that their big meeting with DOE on the 25th didn't go so well. If you hear anything let me know, otherwise I'll try to get ahold of Tino sometime next week to find out what DOE said. DF
Pueblo
Assuming we keep Arthur Anderson on board this afternoon and assuming Enron is still in the business of doing asset monetizations like this one (which better be the case since its in the TW 4th Q plan @$2.5 mm), the following things need to happen on roughly the following timetable: 1. Mike talks to Hanover and we ...
TW Compressor Monetization
Here is the draft letter agreement. We are still discussing it with ECS and can make whatever changes are appropriate. Note that the letter agreement ties back to Article 6 of the Compression Services Agreement. That article, you may recall, is where ECS agreed to create a computerized system that would monitor Con...
TW Letter Agreement
Bill, attached is a memo prepared by Susan Scott that does a good job of answering the several questions that you had about the situation at Topock. Note that in Susan's first answer, PG&E has no obligation to Transwestern to accept gas at Topock. They may well have obligations to their own transportation customers ...
PG&E: PRIVILEGED AND CONFIDENTIAL--ATTORNEY WORK PRODUCT
Ugh. We'll keep working this angle if their new attorney shows up on deck, but I think Susan and I have done as much as can be done with Howard H. Do any of you know what the Red Cedar facilities look like? I.e. how many miles of line, any big diameter line, any compression, etc? Howard must have read some old cas...
Red Cedar
I called Tino today to let him know that our affiliates are sniffing around a power plant opportunity and potential gas bypass pipeline in Albuquerque. Kevin, you should be getting a call from a guy in Portland whose name I can't seem to find right now. He had gotten my name from Thome out there and called to let me...
Pueblo
In case you haven't already marked your calendars, tomorrow will be my two year anniversary with the company. The good Lord willing (and with Stan's and Mike's continued acquiescence) I may even surpass the tenure of my two most recent and very illustrious predecessors. Given your meteoric career tracks, however, I...
Endurance
I noted in the Finance and Accounting report that you guys are setting up a meeting with AA to talk about the draft risk management document that folks had been working on a year ago. Please include Tony and I. We had some questions and concerns that I have long since forgotten but will renew and talk to you about ...
Risk Management
I thought Becky's draft answer to protests looked great. Her mention of the amount of TW capacity held by the Indicated Shippers was an elegant touch. No changes. Thanks. DF
El Paso-ENA Deal
Now that the celebrating has died down, lets decide whether to seek rehearing or clarification of the order. If there is anything in it that disadvantages us, we should consider rehearing, particularly since it is a nearly certain that our friends at SoCal will file a nasty one. (It might be good for Steve H. or Bi...
Gallup Order: PRIVILEGED AND CONFIDENTIAL, ATTORNEY CLIENT PRIVILEGE
I heard there was an article in the WSJ a few days ago on Blockbuster and that mentioned the Enron deal--could you send it to me? Thanks. dF
Blockbuster
Congratulations on your new responsibilities. I look forward to working with you on the Litigation Unit stuff (as Eric will advise you, a very pleasant task!). DF
Changes in Administrative Responsibilties
Congrats big guy! I look forward to showing you the sights in the Big O. Since that will only take about 10 minutes, we'll have plenty time to go out for a beer afterwords! DF
Organizational Announcement
The Market Services bullets listed a capacity release deal between MUD and Oxy at 102% of max. rates. Please let me know whatever we know about that deal--points, term, etc. Very interesting. DF
Release
Did you all see the blurb in Sep. 29 gas daily on Williams' deal with PROS on a revenue management system? May be useful to use with our management if there is anxiety about going forward. DF
Rev. Mgt.
I think the safest and most efficient way to comply with this request is to have Keith and Ray briefed and ready to answer all FERC's questions without deferring any to other people. Ray and Keith, please talk to Gary Zahn and make sure you are up to speed on everything FERC has asked for and focused on so far. You...
FERC interviews in Omaha
Paul Bieniawski's phone number is 713-345-8641. Go ahead and give him a call just as a courtesy to let him what you guys are looking at at Bushton and let him know I put you up to it. If he has some useful off the cuff insights, great. If not, that's fine also. I don't expect you to send him any material or get hi...
Paul B
Please follow up with Lou on this. It sounds like something the commercial people would be in a good position to answer, so maybe start by finding out if they are already responding, either through Lou or otherwise. Then get the right people to review and supplement this list. Thanks. df
ETS Products/Services
Sorry you weren't able to join my hunting boondoggle in SoDak! It was epic. Lots of birds (the wild variety, not pen raised and tied down like at Pheasant Haven!) We saw literally 1500-2000 birds over three days of hunting, and limited out every day. Got my first double--two shots, two
??
I've talked to Lee Ferrell about this, and it sounds to me like there are serious business reasons (i.e., cost and functionality) not to use the ENA system. THe "sharing of resources" issue worries me, but might be solvable if the right people are in Networks instead of ENA. I'll call you tomorrow. DF
Risk System Alternatives Next Steps
Here is a good example of the problem to which your research project pertains. This info. could be devastating in the next rate case ( or sooner) if disclosed. How comfortable are we with our privilege arguments? DF
The memo
Tino called this morning with a quick report. They are still negotiating with DOE on a power plant deal, but it looks pretty shaky. The size of the plant has grown to 380 MW, for reasons that are unclear to me. Tino has been ordered to develop an exit strategy in case the power plant deal falls apart. He says Denni...
Pueblo
Lets talk today, susan. I need to satisfy myself that this is really one of those "shit happens" situations like everyone seems to believe, rather than a situation where we may have a cause of action and some $$$ owed to us by someone. DF
Gallup
Should we respond to PNM's protest of the dollar valuation of imbalances prior to netting and trading? Did we already respond to this issue when they filed their protest of the 637 filing? DF
TW
Congratulations on the move! Its great to see a reorg that actually seems to make so much sense! Thanks again to you and Terry for watching the three stooges on Saturday night. It was great seeing you guys again and getting the kids a chance to play for a while. We'd love to return the favor next time you come up t...
ETS on the Move...
When you guys settle on a name for NewCo, please let me know and also call Lillian Bailey at Corp. Her # is 33577. Thanks. df
NewCo
Please review this final draft at your earliest convenience and get back to Britt or me with your comments. Thanks. Martha, please print it out for me. Thanks. DF
Revised responses to Interrogs. & Req. for Production for your re view.
You guys probably don't remember this (I didn't until I checked the file) but there were a couple of exhibits to the Transwestern Gallup contracts that we left to be attached to the final contracts after execution. My recollection is that we were in such a hurry to get the Compression Service Agreement signed and s...
Transwestern Contracts
For those of you who didn't have the patience/patriotism to listen to your president for the whole hour and a half last night, let me share a highlight: Clinton announced a new $1 billion program for economic development on the reservations. Langley may be onto something. If he/we can get the first deal done in Ne...
Albuquerque Project
Well, there you have it. We waited and we blew it. What a bunch of dummies. Next time someone calls and gives me a special deal thats only available for a limited time, I'll jump on it! Kevin, please let me know what Steve, Bill, and Stan ultimately decide to do on this. Thanks. DF
TW Gallup - Gas Conversion Pricing
On Thursday last week the Commission eliminated the old "Texas Eastern" rule that required pipelines to obtain prior FERC approval before contracting for transportation and storage capacity on upstream or downstream pipelines. The new rule allows pipelines to acquire and use such capacity without going to FERC firs...
Upstream Capacity
Danny, I'm resending as I had the same problem Cindy did. I'll give you a call later today after I've talked to Harris to discuss the various Gallup scenarios to make sure you and I are on the same page. The plan that makes the most sense in my mind is to ram the 10,000/d project through asap, with no firm contrac...
Returned mail: Host unknown (Name server: enron: host not found)
Latest Tino-gram: Apparently high power prices at 4 Corners have DOE excited about the project all of a sudden. The latest configuration is in the 300-380 mw range. Tino needs us to check if the ENA guys would be interested in buying the surplus capacity on a demand charge basis (I think these are basically tollin...
Pueblo
Lets talk about this on the 4th or 5th. I'll have Martha set up a meeting.= =20 Note that this will catch the Sempra negotiated rate deals, but not our=20 January deals (yet). DF
TW
Mark: We figured this out... In looking at CARP we found discrepancies for both purchases and sales on the 12th that explained the difference between the CP and Enpower. When I autosheduled these existing deals, our numbers equal theirs. I marked this DMS as complete. Thanks for your help.
Hafslund - DMS 12596
Lisa: Thanks for the info. yesterday. We are almost there with BPA in December. Attached is the remaining dispute. Could you provide TAGs to support our numbers? Ugh! Hopefully this is it. Jenny
BPA December
Lisa, Breakfast sandwiches and coffee could be in order this morn. Let me know if you are down and when you can go. Also tell Jsarnow. late, Darren
Break
We were cut 40 MW today by BPA for peak hours on 6/18 at COB on enpower deal number 305699. Lisa purchased replacement power from Avista at $30. Enpower 897712 We presold power to Avista at $33.50 for the month and are now buying it back from them at $30 to book out. Of course, BPA should not charge us for the 27.25 s...
BPA Cuts
Lisa: Houston found another small dispute for Dec. 2001 with BPA. Please see the attached. In sum, based on BPA's figures, it looks like we doubled up by adding numbers from the 25th to numbers for the 26th (hence, doubling the 26th) According to them: 12/26 Deal 381345 = 600 MW total (not 1200) Deal 380414.1 = 200 ...
BPA - Dec. 2001
Lisa: This is supporting documentation for a dispute from 12/01 with BPA. I will give you a hard copy of the request from Houston. Thanks!
BPA 12/01 - sale dispute
Lisa, Here's the phone list you requested. Where I found multiple numbers, I bolded the first number. Let me know if you need changes. Kathy
Phone List
Hello- For my own use, I put together the attached list of outstanding DMS requests and plan to do so at the end of each week. It occurred to me that perhaps this spreadsheet would be a helpful tool for all of you to see as well. If you have any additions/corrections (my apologies for any mistakes! ), please let me kn...
Outstanding DMS requests - week ending June 21
=09 =09 Dear Randy, I'm Washington Bureau Chief Peter Cook filling in = for Jay Rickerts. Just a reminder - On Friday, Houston Correspondent Kim = Benestante is live in Cairo, Egypt covering the OPEC meeting. Join us tomo= rrow as Kim brings us the latest on possible oil production cuts beginning = in January. We'l...
Williams Energy News Live -- today's video newscast
=09 =09 Dear Randy, I'm Washington Bureau Chief Peter Cook filling in = for Jay Rickerts. In Washington, we'll continue to examine the major ener= gy issues expected to arise during the New Year. We'll take a look at what= Congress will do with comprehensive energy and electricity legislation. O= ur Washington bur...
Williams Energy News Live -- today's video newscast
We need to protect the flows to Citizens on TW. I know you guys have been working on this, but Citizens continues to receive cuts. Please secure the supply off of TW. Let Sempra know that IB Link gas will not do. Thanks,
Citizens flows on TW
We will hold off transferring any physical positions desk to desk until the end of bidweek. After NX1, we will transfer positions at a daily EOL Index mid price. Please monitor my book and others to make certain DEC deals are not being transferred prior to NX1 at an IF monthly or GD daily mid price. Thanks,
DEC physical
I've located the Gas Nomination information that was prepared for Dec. 01 and updated to include Jan. 02 business. The Dec.01 numbers differ slightly from the initial numbers generated by James Centilli at TW as well as the numbers that Stephanie Miller conveyed in her Dec. 18th memo. These values are based on the nomi...
Dec 01 and Jan 02 Gas Nominations for ECS with TW
We just had a call with Novak, Barquin (V&E) and Tozzini on options for next Monday such as economic equilibrium, arbitration, litigation etc. We will be putting all the results together for you by Friday Morning. In the mean time, it may be helpful for you to reflect on the following (particularly the table). This...
Decision on Furnas Jan 22
Dan, Sorry I forgot. Things have been intense lately on Cuiaba. Below you will find a summary which addresses your request. Please let me know if you want more details.
projects
Cliff, Did we ever produce this? I thought we decided to wait and see if we were going to use bonds. If it exists, is there any reason why a potential buyer of Cuiaba should not see it? Tracee - There is documentation on the KFW hedge as you know. The only thing we could provide on the OPIC loan is a requirement of ...
Citi Offering Circular
I was just trying to touch base after the lender call this morning and debrief. I thought you and John were great, particularly John's step-in on the heat rate/degradation issue. Thanks to both of you. I also wanted to visit on the latest plan for the ridges. Thirdly, I wanted to discuss your thoughts on the achievab...
Calls
Rick, In preparation for the meeting with the lenders on Tuesday I was reviewing the GSA and I wonder if YPF has any force majeure claims which could impede our rights to terminate. I know they indicated at least verbally that they had encountered some problems in Argentina. Although a stretch has Dean or Novak in...
GSA revision
I spoke with Dick Vincent who indicated that we will have no problem obtaining 12 mos renewable business interruption insurance when we go operational on gas. This should solve the warranty issue with the banks because it covers defects, design, and workmanship on the turbines and includes lost profits, etc. Incide...
Warranty
I will be out on Th & FRi because my wife is having surgery. I can't have my cel on in the hospital but I will have it with me and will check voice mail from time to time. Shelly Butler with the Associate program HR indicated that by giving Tracee the short term employment we will be responsible for her termination ...
Wife's surgery and Bersani
The lenders would like a list of the potential producers in Bolivia for Cuiaba I and if info is available on their holdings please provide that as well. Can we also give the details of the Vintage transaction as an example of our capabilities? If their consent is required can you obtain? KFW is ok on relying solely ...
Vintage Gas & List of Potential Bolivian Producers
Two agreements have been negotiated with Siemens as part of the plant turnover for Provisional Completion Phase III on oil: 1) the EOT Claim Agreement between Siemens and SCC and 2) modifications to the TAA between Siemens and EPE. The changes which the lenders should review are as follows: EOT Claim Agreement 14 ...
Siemens negotiations
In preperation for our call, the memo which was requested. I will also be able to brief you on this week's progress with Furnas. I have a lawyer tracing the section reference for the Eletrobras performance guarantee which appears as brackets in the memo. I should be able to advise you of the exact reference tomorro...
GSA and Furnas Consent
According to Cliff Shedd, we would be covered by insurance if we terminated the contract with Furnas and Furnas failed to pay the termination payment. However the insurers will only pay after we receive an arbitration judgement against them and the refuse to honor the judgement. I assume we would also have to exhaus...
Insurance
I guess you got tied up on some real work. Call me back when you have time. Are you happy? The London job sounds great and sometimes the best things happen to us unexpectedly. It was nice to hear your voice briefly. I miss seeing you.
You
I need to take a day off if you do not mind Tomorrow, Friday Feb 9 to look after my son who will be out of school. Dee will be traveling with Chelsea to a dance competition. Call me on my cell if you need me.
Vacation day
On Friday we distributed RFPs for securing bridge gas. Letters went today to Chaco, TotalfinaElf, Andina, Maxus, BritishGas and Petrobras for them to quote us 6-month gas with our option to extend for another 6 months. We have given them until March 2nd to respond. Pete Weidler will meet with YPF (hopefully with Er...
GSA
Sneak Preview I'm not sure what I'm supposed to say about the Ridges and completion of the gas line in connection with the financing. Also on the Interconnection issue we are still waiting on the Tozzini memo. We either need to have someone riding herd on Tozzini on this (I thought it was Jose) or I need to go ...
Mtg w/ Rebecca Mac
I was reviewing the pictures you sent. You are not only an adventuress but also a Goddess. Happy Valentines day. I turned Pete down on the offer to stay. I guess I'm just ready to move on and this feels pretty dead end here. But I'll try and catch up with you from time to time if I can. Beija Rob
Valentines Day
Bob: not too many new ones. 1. Continued to see increased volumes and transactions on desk. As of November, we have increased volumes to over 5 Bcf/day, up from about 2 Bcf/day last six month period. We are continuing to handle month end close, and get all volumes scheduled daily. 2. Continued to give support to th...
Accomplishments