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Enron Compression Services Optionality Examples for Great Lakes Gas Transmission

Enron Compression Services Optionality Examples for Great Lakes Gas Transmission. Gas Bank – (Firm Park and Lend). GLGT monetizes “over collected” Winter gas via structured horse power package: Creates fuel levelization for over collection GLGT fronts ECS Winter gas

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Enron Compression Services Optionality Examples for Great Lakes Gas Transmission

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  1. Enron Compression ServicesOptionality Examplesfor Great Lakes Gas Transmission

  2. Gas Bank – (Firm Park and Lend) • GLGT monetizes “over collected” Winter gas via structured horse power package: • Creates fuel levelization for over collection • GLGT fronts ECS Winter gas • ECS repays GLGT with Summer Gas • GLGT is paid: • Interest on fronted (winter) gas • Majority share of seasonal spread • Additonal value can be created by providing: • Basis differentials (different location for gas swap) • Timing variances (within season, month, and/or week) • Cross commodity swap or index based payments • Scalability (transaction weighted for pring, timing, etc.)

  3. Park and Lend

  4. Park and Lend (Fuel Levelization) – Step 2 Motor/Asset Lease and O&M Services Lease and O&M Payments (In $s) Enron Wholesale Enron Compression Services GLGT Horsepower Entire Year Nov. ’01 – Mar. ’02 Fronted Gas Nov. ’01 – Mar. ’02 Fronted Gas Value of Nov. ’01 – Mar. ’02 Strip (In $s) Apr. ‘02 – Jun. ’02 Gas Apr. ‘02 – Jun. ’02 Gas Sharing of Seasonal Spread Value of Apr. ’02 – Jun. ’02 Strip (In $s) Annual Charge (Lease/O&M Recovery)

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