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A:
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No more.
On the strength of your co-operation in this matter, I have made a decision
to discontinue the utilization of credit for Pastoria's and Homestead's
invoice on our standard term deal. I believe it is only fair for our
customers to have this provision in place considering the credit given in
return.
I have already been made aware by Power Trading that they are presently in
agreement with all their customers (myself included) to continue to give the
benefit of credit for invoices, but only under the terms and conditions of
the standard term deal. Therefore, I have had no choice in the matter, as
the only choice I have to make would be to cease the use of credit for these
two pipelines. It is my opinion that this situation is the same as if we
were giving benefits in return for transportation capacity. To me, this
represents an extension of credit, and we have already agreed to their terms
and conditions as stipulated under the Master Contract, so I must be
consistent in my approach.
We continue to give them the benefit of credit under their capacity deal with
Unify. I have attempted to explain to Unify that, under capacity, the
pipeline is going to take a loss, and we as a customer have agreed to do
something in return. I have been given some very good explanations as to how
they are handling the situation, but they still feel that the ability to give
the benefit of credit is appropriate. I have not given this any more thought
in light of this decision, but since the pipeline is going to make a loss,
this is another source of revenue.
I am available if you have any questions.
D
---------------------- Forwarded by Daren J Farmer/HOU/ECT on 02/21/2000
09:10 AM ---------------------------
Stacey Neuweiler@ENRON
02/16/2000 04:50 PM
To: Daren J Farmer/HOU/ECT@ECT
cc: ac619d1d87
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