Message-ID: <20896879.1075858863415.JavaMail.evans@thyme>
Date: Mon, 29 Oct 2001 05:46:46 -0800 (PST)
From: j..porter@enron.com
To: kay.miller@enron.com, steven.harris@enron.com, kimberly.watson@enron.com, 
	teb.lokey@enron.com, dave.neubauer@enron.com, kent.miller@enron.com, 
	drew.fossum@enron.com, maria.pavlou@enron.com, steve.kirk@enron.com, 
	joe.hartsoe@enron.com, robert.kilmer@enron.com, 
	jo.williams@enron.com
Subject: RE: Columbia Gulf order on negotiated rates
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X-From: Porter, Gregory J. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=GPORTER>
X-To: Miller, Mary Kay </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mkmiller>, Harris, Steven </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sharris1>, Watson, Kimberly </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Kwatson>, Lokey, Teb </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Tlokey>, Neubauer, Dave </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dneubau>, Miller, Kent </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Kmiller2>, Fossum, Drew </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dfossum>, Pavlou, Maria </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mpavlou>, Kirk, Steve </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Skirk>, Hartsoe, Joe </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jhartso>, Kilmer III, Robert </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rkilmer>, Williams, Jo </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jwillia3>
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I think we ought to discuss the Order with Columbia Gulf.  Its possible we =
are ok.  The problem FERC seems to have is that under the negotiated contra=
ct it is impossible for anyone but Columbia and the Shipper to know what th=
e rate is at the time of the transaction.  Columbia's deal contains a defau=
lt rate (based on index differentials) applicable if the parties are unable=
 to agree on a basis price used to determine the "Negotiated Daily Reservat=
ion Charge".   To avoid the application of the default rate, the "Negotiate=
d Daily Reservation Charge" requires Columbia and the shipper to negotiate,=
 and agree,  to a basis number on a daily basis.  The parties did not speci=
fy particular index's for the purpose of calculating basis.  Thus, under Co=
lumbia's deal only the default rate can be determined at the time of the tr=
ansaction.  In contrast, Transwestern's deals appear to be similar to Colum=
bia's default rate; i.e., a rate based upon index's where the index's are a=
greed upon and stated upfront.  Thanks.  Greg  =20

 -----Original Message-----
From: =09Miller, Mary Kay =20
Sent:=09Friday, October 26, 2001 3:35 PM
To:=09Harris, Steven; Watson, Kimberly; Lokey, Teb; Neubauer, Dave; Miller,=
 Kent; Fossum, Drew; Pavlou, Maria; Kirk, Steve; Porter, Gregory J.; Hartso=
e, Joe; Kilmer III, Robert; Williams, Jo
Subject:=09Columbia Gulf order on negotiated rates

I received a copy of an order issued by the FERc on Columbia negotiated rat=
e transaction, which includes a formula ie indexed rate.  They accepted the=
 negotiated rate deal but they are requiring  them to file in their tariff =
within ONE DAY after the rate has been determined the contract and actual r=
ate. ( Each time the actual rate changes during the term)   Just think abou=
t this for the upcoming TW_ USGT deal and NNG"- Reliant deals.    Notwithst=
anding the time to actually make the filing, the cost to serve it each day =
if the negotiated rate is different by day and then the service when an ord=
er is issued each day---  I believe this is FERC's way to attempt to elimin=
ate negotiated rate indexed based deals-  they are punishing themselves as =
well, as each filing will require a notice etc-  so every day they could ne=
ed to issue an order.  =20

I feel we need to discuss with Columbia, INGAA and join in filing for rehea=
ring on this administrative nightmare.  An alternative would be to require =
you to post on Internet website the day of the transaction the actual rate,=
 so similarly situated customers would have access to the actual rate.  I'm=
 sending you guys a copy of the order. 