Message-ID: <24499181.1075857922083.JavaMail.evans@thyme> Date: Mon, 21 May 2001 05:43:00 -0700 (PDT) From: john.shafer@enron.com To: larry.campbell@enron.com, keith.petersen@enron.com Subject: FW: Removing impediments to electric generation in western states - w hat's in it for the pipelines Cc: stephen.veatch@enron.com, robert.kilmer@enron.com, mary.miller@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: stephen.veatch@enron.com, robert.kilmer@enron.com, mary.miller@enron.com X-From: John Shafer X-To: Larry F Campbell, Keith Petersen X-cc: Stephen Veatch, Robert Kilmer, Mary Kay Miller X-bcc: X-Folder: \Larry_Campbell_Jun2001\Notes Folders\Notes inbox X-Origin: Campbell-L X-FileName: lcampbel.nsf Interesting development - Huh? John -----Original Message----- From: "Terry D. Boss" @ENRON Sent: Monday, May 21, 2001 10:34 AM To: Andrew Theodos; Claudio Urencio (E-mail); Daniel Martin (E-mail); Johnson, David L.; Dee Morris (E-mail); Denise Hamsher (E-mail); Donald M. Wishart (E-mail); Greg P. Bilinski (E-mail); Henry P. Morse Jr. (E-mail); Jack Lucido (E-mail); James M. Elkouri (E-mail); Jeffrey L. Barger (E-mail); Jeryl L. Mohn (E-mail); John C. Earley (E-mail); John D. Kobasa (E-mail); John Pustulka (E-mail); John R. Ellwood (E-mail); John Shafer (E-mail); Larry Borski (E-mail); Lisa S. Beal (E-mail); Michael L. Jablonske (E-mail); Michael Terraso (E-mail); Paul R. Amato (E-mail); Randy Zobell (E-mail); Robert Bahnick (E-mail); Robert T. Howard (E-mail); Terry Boss (E-mail); Tony J. Finneman (E-mail); Victor Gaglio (E-mail); Walter L. Ferguson (E-mail); William Danchuk (E-mail); William Sparger (E-mail); Winston Johnson II (E-mail); Anna V. Cochrane (E-mail); Anne Bomar (E-mail); Brian White (E-mail); Carl Levander (E-mail); Catharine Davis (E-mail); Chris Kaitson (E-mail); Claire A. Burum (E-mail); Cyril Zebot (E-mail); Daniel Collins (E-mail); David Reitz (E-mail); Jake Hiatt (E-mail); James Peterson (E-mail); Place, Janet; Janice Alperin (E-mail); Jeffrey Bruner (E-mail); Joan Dreskin; Judy Neason (E-mail); Keith A. Tiggelaar (E-mail); Kristine Delkus (E-mail); Lenard G. Wright (E-mail); Marc A. Halbritter (E-mail 2); Marsha Palazzi (E-mail); Mary Kay Miller (E-mail); Michael E. McMahon (E-mail); Paul Diehl (E-mail); Peggy Heeg (E-mail); Penny Ludwig; Randall Crawford (E-mail); Richard J. Kruse (E-mail); Richard Smead (E-mail); Robert D. Jackson (E-mail); Robert Kilmer (E-mail); Rodney E. Gerik (E-mail); Scott Turkington (E-mail); Shelley A. Corman (E-mail); Stephen R. Melton (E-mail); Todd Rushton (E-mail); William Grygar (E-mail) Cc: Curtis Moffatt Esq. (E-mail); David G. Mengebier (E-mail); Denise Simpson (E-mail); Marshia M. Younglund (E-mail); Michael D. Moore (E-mail); Bagot, Nancy; Scott P. Anger (E-mail); Sharon J. Royka (E-mail); Steven E. Tillman (E-mail) Subject: Removing impediments to electric generation in western states - w hat's in it for the pipelines Attached is a Word version of the FERC EL01-47 order, Removing Impediments to Electic Generation in the Western US. The order was issued May 16. The order: (1) Temporarily waives blanket certificate regulations toincrease the dollar limitations for natural gasfacilities under automatic authorization to $10 million and for prior notice authorizations to $30 million for all pipelines that deliver gas in the WSCC http://www.wscc.com/; (2) Temporarily waives blanket certificate regulations to allow construction of mainline facilities, including temporary compression and facilities that alter mainline capacity; (3)Allows pipelines to roll-in costs costs of facilities constructed under waived blanket certificate regulations until April 30, 2002.. The FERC did NOT find it appropriate to provide a greater rate of return for pipelines into the western US. The FERC stated that the demand in the Western US market is an adequate rate incentive for the short term. In addition, there are other rate incentives, according to FERC, albeit more of a long-term nature, in esistence and at the disposal of the pipelines that deliver gas in the WSCC. Pipelines have the right to propose market-based or negotiated rates. Pipelines can propose incentive rates. In addition, pipelines can design incremental rates for projects which propose rates of return and depreciaiton rates that differ from those used on a system wide basis. The areas of interest to the pipeline industry are highlighted on pp. 29-38 of the attached order. Confidential: INGAA Member Use only Terry D. Boss VP Environment Safety and Operations INGAA tboss@ingaa.org Joan Dreskin - EL01-47_00F_TXT.doc