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Enron Mail |
Greetings:
Joe, I just ran into some El Paso guys that I know (I'm in L.A.) and asked them about the Lukens study. They said that they weren't sure that it had been released yet. They intend to submit it with their testimony in the FERC case. Best, Jeff James D Steffes 05/02/2001 11:15 AM To: Phillip K Allen/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT, Ray Alvarez/NA/Enron@ENRON, Alan Comnes/PDX/ECT@ECT, Leslie Lawner/NA/Enron@Enron, Rebecca W Cantrell/HOU/ECT@ECT, Robert Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Christi L Nicolay/HOU/ECT@ECT, Jeff Dasovich/NA/Enron@Enron cc: Joe Hartsoe/Corp/Enron@ENRON Subject: Natural Gas Basis Differential - Why so Big? Joe Hartsoe received a call from Commission staff at FERC to try and understand why basis differentials into California were so big and why the large basis continues. Clearly with the new Electricity Order, natural gas is one of the primary factors on electricity prices in California. Our key fear, however small, is that FERC (or someone else) recognizes the huge implication of natural gas prices and seeks to cap natural gas sales for resale of P/L affiliates (such as ENA). There is some fear that the real monopoly is the holder of LT firm capacity, not the gas production firms. We need to develop a good story as to why the basis gas continues and messaging it quietly into the right FERC staff to keep the pressure of additional Investigations from happening. Joe is trying to get his hands on the Lukens study presented to the California study Committee on natural gas abuse to help guide our analysis. Jim
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