Enron Mail

From:robert.kilmer@enron.com
To:blair.lichtenwalter@enron.com, teb.lokey@enron.com
Subject:FW: Weekly Report of 10/5/01
Cc:
Bcc:
Date:Tue, 9 Oct 2001 12:06:49 -0700 (PDT)

I guess we need to work with Glenn and marketing to determine what TW's pos=
ition if any needs to be.

-----Original Message-----
From: =09Hass, Glen =20
Sent:=09Friday, October 05, 2001 10:51 AM
To:=09Bagot, Nancy; Call, Josie; Harris, Steven; Kilmer III, Robert; Kirk, =
Steve; Kissner, Tim; Loeffler, Michael; Miller, Mary Kay; Petersen, Keith; =
Stanton, Lon; Watson, Kimberly
Subject:=09Weekly Report of 10/5/01

ETS State Government Report:

California

I00-11-002 Adequacy of SoCal System. Since no parties challenged TW's tes=
timony supporting SoCal's receipt point capacity proposal in Opening Commen=
ts, Transwestern did not file Reply Comments last week. Most comments by i=
ntervenors focused on other issues such as their open season mechanism, cur=
tailment, backbone transmission capacity addition planning, slack capacity =
and barriers to new interstate pipeline service.

A01-09-024 On Sept. 21, 2001, SoCalGas filed its Biennial Cost Allocation =
Proceeding (BCAP) application. The purpose of the filing is to revise rate=
s to reflect the updated allocation among customers of non-gas commodity co=
sts of service effective January 1, 2003. In addition to the required rate=
revisions, SoCal requested authority to revise and simplify various tariff=
s and to implement several new programs. Of interest is the proposal for a=
llocation of firm receipt point capacity into their system. Other proposa=
ls address procedures for open seasons to expand the backbone system, an in=
-kind fuel charge for transportation and an expansion of the unbundled stor=
age program including gas loaning services. The application, testimony and=
exhibits have been distributed to Marketing, Legal and Regulatory for revi=
ew. Interventions will be due at the time of the pre-hearing conference wh=
ich was proposed by SoCal to be held in late October.

Infrastructure Report. The California Energy Commission approved its Natur=
al Gas Infrastructure Issues Report on a 4-0 vote after several months of d=
iscussion and revisions to various drafts. Most recently certain commenter=
s encouraged the CEC to include an assessment of El Paso's impact on prices=
through market power and manipulation. Instead the CEC report references =
the FERC proceedings addressing this issue and the fact that the CPUC which=
filed the complaint will represent the interests of California ratepayers.=
Numerous factors are addressed as contributing toward the high prices exp=
erienced during the last heating season, these included insufficient receip=
t point takeaway capacity within California, insufficient capacity on the E=
l Paso pipeline system, high demand for gas fired electric generation, low =
storage levels and extremely dry weather conditions which led to lower hydr=
oelectric output. Recommendations included encouraging additional in-state=
gas production, re-evaluate design criteria to expand intrastate systems, =
encourage the creation of new and independent storage facilities and revise=
curtailment rules.

New Mexico

01-121-PL The rescheduled Sept 12th public meeting on the NMPRC's Safety N=
OI was held last week. Rick Smith made the TW presentation. Albino Zuniga=
, the lead NMPRC person did not attend. Participation was low and uneventf=
ul.

Week of 10/8 Schedule:

Houston=09Monday & Tuesday
Omaha=09=09Wed. - Friday