Message-ID: <5449513.1075858859367.JavaMail.evans@thyme> Date: Thu, 18 Oct 2001 06:20:43 -0700 (PDT) From: glen.hass@enron.com To: drew.fossum@enron.com, douglass'.'dan@enron.com, steven.harris@enron.com, tony.pryor@enron.com Subject: RE: PG&E's Gas Accord II application Cc: robert.kilmer@enron.com, j..porter@enron.com, kay.miller@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: robert.kilmer@enron.com, j..porter@enron.com, kay.miller@enron.com X-From: Hass, Glen X-To: Fossum, Drew , 'Dan Douglass' , Harris, Steven , Pryor, Tony X-cc: Kilmer III, Robert , Porter, Gregory J. , Miller, Mary Kay X-bcc: X-Folder: \SHARRIS1 (Non-Privileged)\Harris, Steven\Deleted Items X-Origin: Harris-S X-FileName: SHARRIS1 (Non-Privileged).pst Drew, Yes I'll coordinate our comments. For the GIR proceeding, we had a conf. call with Marketing, Regulatory, Mark Baldwin and Jeff Dasovich yesterday. In Tony's absence, Greg is helping with the comments due Friday. On this one I'll work with Dan and Tony or Bill. Thanks. Glen -----Original Message----- From: Fossum, Drew Sent: Wednesday, October 17, 2001 10:12 PM To: Dan Douglass; Harris, Steven; Pryor, Tony; Hass, Glen Cc: Kilmer III, Robert; Porter, Gregory J. Subject: RE: PG&E's Gas Accord II application Glenn, are you taking point on all these new Calif. proceedings? Given Tony's commitment to other projects right now, I'd like you to, with support from Tony and Dan as needed, if Steve and Rob agree. When Bill Rapp starts in our group Monday, we can start getting him up to speed as well. Thanks. DF -----Original Message----- From: Dan Douglass [mailto:douglass@earthlink.net] Sent: Wednesday, October 17, 2001 1:34 PM To: Harris, Steven; Fossum, Drew; Pryor, Tony; Hass, Glen Subject: Fw: PG&E's Gas Accord II application Importance: High Gentlemen, Attached is PG&E's Gas Accord II application, filed as directed by the Commission last month in D.01-09-016. It is captioned as the, "Application of Pacific Gas and Electric Company (U 39 G) Proposing a Market Structure and Rules for the Northern California Natural Gas Industry for the Period Beginning January 1, 2003." The Commission Order required, "an application proposing a market structure, rates, and terms and conditions of service relating to the PG&E gas transmission and storage system for the period beginning January 1, 2003, when most of the provisions of the existing 'Gas Accord' are scheduled to expire." There is no testimony attached. Instead, PG&E notes that, "the service of supporting testimony at the time an application is filed is not required by the Commission's Rules of Practice and Procedure." They say that testimony, if any, would be filed after a prehearing conference is scheduled. The utility suggests December 17 for the conference. In summary, PG&E requests Commission authorization to extend the existing, approved Gas Accord market structure and rates for a two-year period. Under this proposal, those provisions of the Gas Accord currently scheduled to expire as of January 1, 2003, will be extended through December 31, 2004, while other provisions of Gas Accord scheduled to expire as of April 1, 2003 (consisting of certain storage-related provisions) will be extended through March 31, 2005. As noted by the utility, "This approach would not preclude parties from proposing specific, justified operational or other limited changes during the two-year extension period. However, as discussed below, parties seeking to obtain Commission approval of changes in the Gas Accord regime, and thus to alter the status quo, must bear the brden of proof on such issues." If the simple, two-year extension of the Gas Accord is adopted as requested, PG&E says it will waive the 2.5 percent escalation for the two-year Gas Accord II extension period. The application also notes that on September 20, 2001, shortly after issuance of D.01-09-016, PG&E filed a Plan of Reorganization with the Bankruptcy Court, which, if adopted, would substantially restructure PG&E's existing business operations. As proposed, the Plan of Reorganization would alter the regulation of PG&E's natural gas transmission and storage system, as the utility's gas transmission and storage operations would be transferred from PG&E to a new corporation, and operated under exclusive FERC jurisdiction. Assuming FERC accepted such jurisdiction, the CPUC would no longer would have jurisdiction over the rates or terms and conditions of service on the PG&E gas transmission and storage system. Your thoughts on this development would also be appreciated. I assume we need to review this application to determine its potential impact on Transwestern and that we should, of course, monitor the proceeding generally to determine if any active role is required at a later date. What are the fundamental issues that concern Transwestern when considering PG&E? How do you feel about FERC jurisdiction of its transmission/storage systems? Finally, note that PG&E states that, "...contributing to uncertainty in the gas markets is the large number of interstate pipeline construction projects that have been proposed. It will take at least a year or two before the viability and impacts of those various pipeline projects can be confirmed in the marketplace." The utility also includes a footnote 9 that references the Transwestern Red Rock FERC application (as well as seven other projects) as pending at FERC. Let's discuss at your convenience. Dan Law Offices of Daniel W. Douglass 5959 Topanga Canyon Blvd. Suite 244 Woodland Hills, CA 91367 Tel: (818) 596-2201 Fax: (818) 346-6502 douglass@energyattorney.com ----- Original Message ----- From: "Stewart, John C" To: ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; "'rgloistein@orrick.com'" ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; "Kauss, Kent" ; ; Cc: "Lindh, Frank (Law)" ; "Lieu, Lisa" ; ; "McLafferty, Daniel" ; "Williams, Ray" ; "Bellenger, Geoffrey" Sent: Tuesday, October 09, 2001 4:50 PM Subject: PG&E's Gas Accord II application Today, October 9, 2001, Pacific Gas and Electric Company (PG&E) filed an application with the California Public Utilities Commission (CPUC). In this application, PG&E proposes a market structure and rules for the northern California natural gas industry, beginning January 1, 2003. PG&E's filing was in response to a recent Commission order (Decision 01-09-016), which directed PG&E to file a "Gas Accord II" application. If you have any problems opening these documents, please contact me at (415) 973-8677. <> <> <> Thank you, John Stewart Case Coordinator Pacific Gas and Electric Company (415)973-8677 jcsv@pge.com