Re: Transwestern IOS Approval Request ,
 Drew -- I've looked at this and it is fine; really does not deviate from what 
we have posted before.

One issue that arose Friday was whether our all-or-nothing approach (i.e., 
shipper must take all 49,000 dth of capacity or none at all -- or all 20,000 
or none at all) constitutes tying.  The 49,000 package includes 35,000 to 
North Needles and 14,000 to Topock.  So if a shipper wants the Needles space 
it has to take the Topock space too.  This looked like a clear case of tying 
to me until I remembered that this capacity is now, and has been, posted and 
available and any shipper can bid on any part of the Needles space right now 
if they wanted to and we'd sell it to them without making them take the 
Topock space.  That'll be true during the IOS too -- i.e., nothing can stop 
shippers from bidding on the Needles space outside of the IOS process.  This 
is just a situation in which we're putting a special package together with 
the expectation that the price will reflect the fact that the less desirable 
Topock space is part of that package.  

Does this make sense to you?  If not, give me a call.


   
	
	
	From:  Drew Fossum                           07/17/2000 01:35 PM
	

To: Susan Scott/ET&S/Enron@ENRON
cc:  

Subject: Transwestern IOS Approval Request

pls let me know if this looks ok to you.  thanks df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 07/17/2000 
01:30 PM ---------------------------


Christine Stokes
07/17/2000 10:28 AM
To: Steven Harris/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON, Mary Kay 
Miller/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON, Mary 
Darveaux/ET&S/Enron@ENRON, Bill Cordes/ET&S/Enron@ENRON
cc: Kevin Hyatt/ET&S/Enron@Enron 

Subject: Transwestern IOS Approval Request

TRANSWESTERN PIPELINE COMPANY 
INTERACTIVE OPEN SEASON 
APPROVAL REQUEST


Please review the attached file for the announcement of Transwestern's 
Interactive Open Season (IOS) to be held Friday, July 21, 2000.  The 
following summarizes the bidding rules and capacity definition for the two 
bid packages of East of Thoreau (EOT) to California capacity:

 Package 1:
 Volume: 20,000 Dth/d
 Term:  3 months (August - October, 2000)
 Path:  East of Thoreau to California.  Maximum available delivery capacity 
   of 12,000 Dth/d at Needles, Ca.  Remaining may be chosen between
   PG&E and Mojave.
 
Package 2:
 Volume: 49,000 Dth/d
 Term:  12 Months (November 1, 2000 - Oct. 31, 2001)
 Path:  East of Thoreau to California.  Maximum available delivery capacity
   of 35,000 Dth/d at Needles, Cal.  Remaining may be chosen between
   PG&E and Mojave.

Bidders may bid on either a 1-part or a 2-part rate structure for the entire 
capacity amount posted.   No partial volume bids are accepted.  Bid packages 
are considered mutually exclusive.     No minimum bid rate is posted 
therefore Transwestern is not obligated to accept any bids if the bids are 
valued as unacceptable.  Transwestern shall award capacity based upon Highest 
Rate criteria.

If any questions arise please contact Christine Stokes at x35702.

Please indicated approval via REPLY WITH HISTORY.
drew.fossum@enron.com