RE: Transwestern Negotiated Rate Deals

Youare doing a good job keeping us up to date. Thank you.

-----Original Message-----
From: Cantrell, Rebecca W.
Sent: Wednesday, July 25, 2001 1:49 PM
To: Miller, Stephanie; Tholt, Jane M.; Kuykendall, Tori; Gay, Randall L.; Sullivan, Patti; Allen, Phillip K.; Grigsby, Mike; Shireman, Kristann; Superty, Robert; Calcagno, Suzanne; McMichael Jr., Ed; Smith, George F.
Cc: Lawner, Leslie
Subject: Transwestern Negotiated Rate Deals

Thought you'd be interested in hearing that FERC is setting a hearing on the recent negotiated rate deals that TW did with Sempra, Richardson Products, Reliant, BP, and Astra to look into why those shippers entered into negotiated rate deals based on index prices that went as high as $28/dth when the recourse rate was 38 cents and why TW had capacity available for those deals when it didn't have any recourse capacity available. This was a discussion item at the meeting today, and Commissioner Wood noted that some of these shippers were the same ones who may be having to refund their "overcharges" for electricity.

FERC also approved the rulemaking order on reporting requirements for California markets. Apparently, the reporting requirement will be effective for 6 months, with probable extensions through 9/30/02, which is the term of the mitigation order for the electric market.

Will forward a copy of the orders when we get them.