re : sale of red rock expansion capacity a couple of more things on red rock . first , shelley asked whether ena participated in the open season . if not , and if they are interested , or if mavrix or any one else who didn ' t participate in the open season is interested , we ought to put something on the ebb that says " tw is now accepting binding proposals for the capacity described in its _ _ _ _ , _ _ 2000 open season and any shippers that didn ' t participate in that open season but who are interested in capacity should contact a tw marketing rep . " or something like that . is there any problem with that ? second , the jeffs ( fawcett and dasovich ) and perhaps others will be talking to danny shortly about a possible next phase expansion into california . someone please take point on passing info from that meeting on to shelley and mkm and me . shelley may want to have stan tell madden that we are looking at an additonal large expansion beyond the one we are about to file . the pr mileage might be useful but shelley will need to know as much as we can disclose outside about what we are up to . if we get serious about looking at something that goes beyond the cal border we may want to hold that internally for a while and not tell madden . on the other hand , i don ' t have any problem with stan telling madden that we have general concerns about whether pipe expansions within california will keep pace with interstate expansions to the border . jeff d ' s analogy of the " four lane superhighway turning into a dirt road " is too good not to use with madden ! df
susan scott
02 / 15 / 2001 05 : 33 pm
to : mary kay miller / et & s / enron @ enron , keith petersen / et & s / enron , drew fossum @ enron , sstojic @ gbmdc . com , fkelly @ gbmdc . com
cc : maria pavlou / et & s / enron , lee huber / et bid accordingly
- bids will be evaluated based on highest rate .
- minimum term is 5 years .
- if there are tie bids that all qualify as highest rate and quantities bid upon exceed quantity available , the tie bids will be allocated pro rata .
- shippers should indicate whether they would be willing to have their bid capacity prorated in case an allocation is necessary .
- bids should include : 1 ) service request and 2 ) offer letter stating material terms ( rate , term , points , quantity ) . offer is binding . it can include a regulatory " out , " but cannot be " subject to management approval . "
the only shippers that will be contacted are those that responded to the nov . open season in a timely fashion . ( drew , i found out this includes calpine ) .
explanation :
the commercial group decided ( pending steve harris ' s approval ) that they prefer the " highest rate with a minimum stated term " over highest net present value because it is consistent with stan ' s stated preference for " front loading " the contracts . in other words , a shipper that bids $ 0 . 60 for 5 years beats a shipper that bids $ 0 . 35 for 15 years because it has bid the highest rate .
questions ? comments ? please reply soon .
our marketers want to contact shippers tomorrow . competing pipelines are already out soliciting bids for their expansions . . .
re : sale of red rock expansion capacity
a couple of more things on red rock . first , shelley asked whether ena participated in the open season . if not , and if they are interested , or if mavrix or any one else who didn ' t participate in the open season is interested , we ought to put something on the ebb that says " tw is now accepting binding proposals for the capacity described in its _ _ _ _ , _ _ 2000 open season and any shippers that didn ' t participate in that open season but who are interested in capacity should contact a tw marketing rep . " or something like that . is there any problem with that ? second , the jeffs ( fawcett and dasovich ) and perhaps others will be talking to danny shortly about a possible next phase expansion into california . someone please take point on passing info from that meeting on to shelley and mkm and me . shelley may want to have stan tell madden that we are looking at an additonal large expansion beyond the one we are about to file . the pr mileage might be useful but shelley will need to know as much as we can disclose outside about what we are up to . if we get serious about looking at something that goes beyond the cal border we may want to hold that internally for a while and not tell madden . on the other hand , i don ' t have any problem with stan telling madden that we have general concerns about whether pipe expansions within california will keep pace with interstate expansions to the border . jeff d ' s analogy of the " four lane superhighway turning into a dirt road " is too good not to use with madden ! df
susan scott
02 / 15 / 2001 05 : 33 pm
to : mary kay miller / et & s / enron @ enron , keith petersen / et & s / enron , drew fossum @ enron , sstojic @ gbmdc . com , fkelly @ gbmdc . com
cc : maria pavlou / et & s / enron , lee huber / et bid accordingly
- bids will be evaluated based on highest rate .
- minimum term is 5 years .
- if there are tie bids that all qualify as highest rate and quantities bid upon exceed quantity available , the tie bids will be allocated pro rata .
- shippers should indicate whether they would be willing to have their bid capacity prorated in case an allocation is necessary .
- bids should include : 1 ) service request and 2 ) offer letter stating material terms ( rate , term , points , quantity ) . offer is binding . it can include a regulatory " out , " but cannot be " subject to management approval . "
the only shippers that will be contacted are those that responded to the nov . open season in a timely fashion . ( drew , i found out this includes calpine ) .
explanation :
the commercial group decided ( pending steve harris ' s approval ) that they prefer the " highest rate with a minimum stated term " over highest net present value because it is consistent with stan ' s stated preference for " front loading " the contracts . in other words , a shipper that bids $ 0 . 60 for 5 years beats a shipper that bids $ 0 . 35 for 15 years because it has bid the highest rate .
questions ? comments ? please reply soon .
our marketers want to contact shippers tomorrow . competing pipelines are already out soliciting bids for their expansions . . .