FW: ETS Asset Development weekly update - 3/1/02 ,
 -----Original Message-----
From: 	Hyatt, Kevin  
Sent:	Friday, March 01, 2002 10:12 AM
To:	Gadd, Eric; Harris, Steven; Horton, Stanley; Dowd, Steve
Cc:	Wadle, Susan; Stark, Cindy
Subject:	ETS Asset Development weekly update - 3/1/02

Sun Devil Project

	El Paso Full Requirements contracts - this debate was stricken from FERC's agenda again this week (for the 3rd time) indicating dissent among Commissioners on how best to settle the allocation of El Paso's system serving Arizona and California markets.  We may see a draft allocation order circulated prior to the next FERC meeting on 3/14.

	Az Public Service - Conference call was held 2/28 to discuss the latest proposal.  APS remains hesitant to make any project commitment until they have a clearer direction from FERC on their EP full requirements contract.  APS is forwarding to TW their likely operating scenarios for the 2000 Mw Red Hawk plant so we can draft an SFV rate design.

	The Arizona Corporation Commission granted permit approval this week to a new 1000 Mw gas-fired power plant in southeast Arizona.  The new Bowie plant sits on the El Paso south system and is slated to be on-line in 2004.  The new plant will only add to the capacity pressure on El Paso.

	Panda Energy - credit discussions were held outlining the provisions ETS would like to see from Panda to support a transport agreement.  Panda is forwarding to us the cash waterfall language from their debt agreements that puts the fuel supply (including transport) and electric transmission payments ahead of all others (including bondholders).
bruce.tuttle@enron.com