Mike,

His comment on the vintage of our transport agreement causes me to think that we'd better look pretty hard at any penalties that do come back to us that might be administered under a broader policy.  I recall seeing margin notes on a term sheet that was received by Tenaska when they asked TXU for quotes on a second unit which indicated to me that they were surprised by the proposed hourly imbalance provisions (which would be the case if the existing unit weren't subject to similar penalties).  I don't think this changes our communication with Brazos, as they need to know that if penalties are incurred, they eat 'em.  However, let's make a mental note to reveiw the Feb-Mar LS invoices to make sure they're being issued in accordance with our contract.  

-----Original Message-----
From: Mazowita, Mike 
Sent: Friday, March 01, 2002 12:03 PM
To: Parks, Joe; Hill, Garrick; Ken Riesz (E-mail)
Subject: FW: PPEP Spreadsheet




-----Original Message-----
From: jeffsmirin@txu.com [mailto:jeffsmirin@txu.com]
Sent: Friday, March 01, 2002 12:02 PM
To: Mazowita, Mike
Subject: RE: PPEP Spreadsheet



I understand your pain.  We are just stating what has been told to us by
the Gas Control group.

The answers to your questions are as follows:

1) The OFO will probably be in effect until sometime on Monday.

2) The Tenaska IV Texas Partners contract is very old and was written
before TXU LSP put hourly swing imbalance penalty provisions in the
Electric Generation contracts.   The main remedy for TXU LSP in the
contract is to physically resrict flow to the power plant to stay even with
gas receipt volumes or to demand that the power plant bring in receipt gas
to meet its burn.

I hope this helps.






"Mazowita, Mike" <Mike.Mazowita@ENRON.com> on 03/01/2002 11:29:34 AM

To:   <jeffsmirin@txu.com>
cc:
Subject:  RE: PPEP Spreadsheet


Jeff:

The problem with all of the power plants is that somebody has to swing on
load to follow the electric profile. This may be us.

Also, how long is this OFO going to be in place??

Secondly, namely because I haven't thoroughly read the contract, what are
the imbalance penalties??




-----Original Message-----
From: jeffsmirin@txu.com [mailto:jeffsmirin@txu.com]
Sent: Friday, March 01, 2002 10:52 AM
To: Mazowita, Mike
Subject: Re: PPEP Spreadsheet



Thanks for the load profile.  The official word is still that TXU LSP is
requesting that all power plants stay as even as possible on their hourly
pulls with respect to their nominations.






"Mazowita, Mike" <Mike.Mazowita@ENRON.com> on 03/01/2002 09:48:26 AM

To:   <jeffsmirin@txu.com>
cc:
Subject:  PPEP Spreadsheet


Jeff,

See attached, ready to print.



 <<HourlyRate_3_02.xls>>

Michael Mazowita
Director of Asset Management
White Pine Energy, LLC
6073 Riverton
Troy, MI 48098-1899
Phone: (248) 813-1063
Fax: (248) 813-1064
Cell: (248) 345-4002
Email: Mike.Mazowita@enron.com





**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate
and may contain confidential and privileged material for the sole use of
the intended recipient (s). Any review, use, distribution or disclosure by
others is strictly prohibited. If you are not the intended recipient (or
authorized to receive for the recipient), please contact the sender or
reply to Enron Corp. at enron.messaging.administration@enron.com and delete
all copies of the message. This e-mail (and any attachments hereto) are not
intended to be an offer (or an acceptance) and do not create or evidence a
binding and enforceable contract between Enron Corp. (or any of its
affiliates) and the intended recipient or any other party, and may not be
relied on by anyone as the basis of a contract by estoppel or otherwise.
Thank you.
**********************************************************************

(See attached file: HourlyRate_3_02.xls)