tw bullets 12 / 8 transport options - in response to our recent ferc filing , a technical
conference has been scheduled in washington d . c . for january 9 , 2001 .
fuel hedge - with gas prices running at record highs , we hedged 5 , 000 mmbtu / d
of fuel for calendar 2002 at $ 4 . 50 , then unwound it the following day as the
market dipped allowing us to book a small gain in excess of $ 100 , 000 . we
expect prices to jump again next week with the oncoming cold snap and we ' ll
likely reset the hedge at higher numbers .
pnm - tw ' s response to pnm ' s request for transport proposal went out this
week . they are paying max rates on an east to east contract and indicated to
us they feel the rates are not currently supported by the market . ; tw however
disagrees . our response to them leaves the current rate structure in place
but has two additional tiers of volumetric incentive pricing . as their
volume increases , their rates go down . in addition , we added a seasonal it
rate to the proposal that helps them meet any swing gas demand requirements .
albuquerque lateral - ena is meeting with ipp plant owners in the albuquerque
region who would like to see alternative sources of gas supply besides the
local utility . if the operators expand the plant from a peaking unit to a
combined - cycle unit , there is potentially enough load to justify a new
delivery lateral off tw ' s mainline . part of the deal structure may include a
volume incentive rate as throughput increases in the lateral . next step for
tw is to build a rate matrix under several different operating scenarios .
responses are due to ena by friday 12 / 15 .
black mesa project - we continue to evaluate the potential of converting the
black mesa coal slurry line owned by northern border into gas service . the
big advantage for tw is it will increase our capacity to bring san juan gas
to the california border but there is also a positive environmental play for
black mesa and coal slurry along with mohave and coal pollution affecting the
grand canyon . this whole project is contingent on several factors , not the
least of which is working with mohave generating station majority owner aes
( 70 % ) to convert the plant to gas and working with the navajo who could lose
a large export market for their coal . ena has agreed to approach aes on this
project in the near future once their negotiations on the las vegas power
plant are complete . legal is checking the existing row to see if there are
limitations on the pipe usage .
burlington claim - we are assembling the volume and revenue impact figures of
the november train derailment for submission to burlington ' s claims
adjusters . this will be combined with the total operations costs .