Re: FW: Sempra OII

thanks very much. can you email me a copy of the OII? let's get together
for coffee sometime and discuss things.

"Cherry, Brian" <BKC7@pge.com<
11/07/2000 06:59 PM

To: "'Dasovich, Jeff'" <jdasovic@enron.com<
cc:
Subject: FW: Sempra OII

Jeff - Here is a synopsis of the Sempra OII.

< -----Original Message-----
< From: Cherry, Brian
< Sent: Friday, November 03, 2000 8:16 AM
< To: Cherry, Brian; Williams, Ray; Johnson, Kirk; Thomas,
< Dan (CGT Dir); Katz, Michael; Campbell, Benjamin; Bellenger, Geoffrey;
< Berkovitz, Trista; Gee, Dennis; Buchner, Les; Lindh, Frank (Law);
< Litteneker, Randall (Law); Niven, Andrew (Law); Sivley, Paul; McLafferty,
< Daniel; Lieu, Lisa; Anderson, David W (Law)
< Cc: Guliasi, Les
< Subject: Sempra OII
<
<
< Yesterday, the Commission issued an OII to determine the
< adequacy of Sempra Energy's, SoCalGas' and SDG&E's gas transmission
< practices and to determine what measures need to be taken to correct any
< deficiencies. The OII orders the Sempra affiliates and parent to
< demonstrate that SDG&E's gas supply and transmission system are adequate
< to provide service to present and future core and noncore customers.
<
< As you may recall, the OII sprang from an AL that SDG&E
< filed in August requesting emergency review and approval of its proposals
< to temporarily revise gas transportation service elections to its noncore
< customers. SDG&E subsequently pulled the advice letter after the
< Commission issued a resolution rejecting it and outlined an OII it was
< going to issue on this matter. The language in the OII that was issued
< yesterday is substantially similar to that which was in the Commission's
< original draft resolution.
<
< The Sempra companies have been ordered to appear at a soon
< to be determined PHC to show cause and demonstrate that:
<
< 1. SDG&E has adequate gas transmission supply for the
< 2000/2001 winter heating season, as well as the longer term supply
< throughout the year. If supply is inadequate, SDG&E shall submit plans
< for obtaining adequate supply.
< 2. SDG&E gas and transmission supply is adequate to meet
< anticipated need for gas fired generation. If not, SDG&E shall submit
< plans for obtaining adequate supply.
< 3. SDG&E's gas transmission service is not being adversely
< affected by interests of its corporate affiliate.
< 4. Recently added demands on SDG&E's capacity are not
< negatively impacting supply for SDG&E's customers. and otherwise
< consistent with representations made to the Commission.
< 5. SDG&E's current gas curtailment rules are just and
< reasonable; if not, SDG&E shall propose changes.
<
< We are going to need to keep a careful eye on this
< proceeding as it develops to make sure it stays focused on events in
< southern California. Commission Bilas gave me assurances last week before
< the OII was issued that it was a Sempra problem, not a statewide problem.
< However, given everyone's sensitivities to EG concerns, its a proceeding
< that could easily be expanded beyond its current narrow focus. I'll
< forward you all a copy of the order later today.
<