weekly update 10/26 ,
 Sun Devil: 
Sonoran Pipeline -  Calls to various levels of Kinder-Morgan management have elicited no response.  Sources indicate their project is still moving forward but is having "marketing issues".
ROW - A large diameter water line that serves Palo Verde runs from West Phoenix to the nuclear plant.  One thought was to use the ROW to install the gas line and reach the new generation plants in the area.   However, AZ Public Service indicated that the water line is constantly being replaced due to corrosion and repair work may interfere with any other line in the same easement.
Cost estimate - Current fully-loaded cost estimate (including interest, overheads, ROW, etc.) is $680mm based on a reduced scale project of 500,000 MMBtu/d capacity to Phoenix.  Various deal structures are being analyzed to present several pricing options to the market.  Likely minimum term will be 20 years based on the cost.
Marketing -
	Duke - Met 10/25.  They have a need for 40,000 - 120,000 MMBtu/d and would likely take capacity on Sun Devil at a "competitive" rate.  Preparing rate 	offerings for their review 11/5.
	AZ Public Service -  Met 10/24.  They are very interested in the project and would commit today if they were given an economic out based on unfavorable 	outcome of El Paso / FERC full requirements proceeding.  Working to develop an MOU with out clause if they fund the early EIS work.
	Sempra - No response yet.
	Southwest Gas - Still interested in the project but unwilling to commit due to El Paso full requirements issue.  They are however interested in doing a JV to 	utilize their Phoenix lateral to enable the Sun Devil project to tie into the El Paso south system.
	Panda Energy - Meeting set in Dallas on 11/2.  Panda has the capability to be the anchor shipper for the project.

Preparing detailed supply basin study for management review.
El Paso / FERC  - waiting on response from Regulatory to review recently submitted comments.  Shippers indicate some decision likely from FERC as early as Dec 2001 or as late as March 2002.  
Copper Eagle Gas Storage - Open season for the proposed West Phoenix storage facility began 10/15 and was to close 10/24 but was extended an additional week for market participants.
eric.gadd@enron.com, susan.wadle@enron.com