Message-ID: <18315693.1075860885165.JavaMail.evans@thyme> Date: Wed, 13 Mar 2002 10:41:34 -0800 (PST) From: nancy.bagot@dynegy.com To: kevin.hyatt@enron.com Subject: FERC Staff proposes converting El Paso FR shippers to CD Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Nancy.Bagot@dynegy.com X-To: Greg.Porter@dynegy.com, Mary.Kay.Miller@dynegy.com, Dave.Neubauer@dynegy.com, Rita.Bianchi@dynegy.com, Barbara.Bischoff@dynegy.com, Naomi.Bourg@dynegy.com, Patrick.Brennan@dynegy.com, Josie.Call@dynegy.com, Mary.Darveaux@dynegy.com, Bret.Fritch@dynegy.com, Steve.Kirk@dynegy.com, Tim.Kissner@dynegy.com, Mike.Loeffler@dynegy.com, Donna.Martens@dynegy.com, Mike.Mcgowan@dynegy.com, Lon.Stanton@dynegy.com, Bob.Thurber@dynegy.com, Don.Vignaroli@dynegy.com, Dave.Waymire@dynegy.com, Michele.Winckowski@dynegy.com, Dave.Abraham@dynegy.com, Dari.Dornan@dynegy.com, Maria.Pavlou@dynegy.com, Tony.Pryor@dynegy.com, Kathy.Ringblom@dynegy.com, Ann.Smith@dynegy.com, Sharon.Solon@dynegy.com, Butler, Janet , Hyatt, Kevin X-cc: X-bcc: X-Folder: \Kevin_Hyatt_Mar2002\Hyatt, Kevin\Projects\Sun Devil X-Origin: Hyatt-K X-FileName: khyatt (Non-Privileged).pst No draft of this order/staff recommendation is available. Though I haven't seen a draft or a copy of the Powerpoint presentation, from the discussion at today's Open Meeting, Staff is recommending to the Commission the following (along with a technical conference to work out specifics): - The Commission convert El Paso's Full Requirements service (FR) to Contract Demand service (CD) - Allocation of CD is based on the greater of (1) a shipper's billing determinants from the 1996 settlement, or (2) coincidental peak (a shipper's own usage) based on demand on Sept. 12, 2001 - The Commission assign specific receipt point rights to shippers based on El Paso's proposed 20 pooling point configuration - A technical conference be convened, that may include attendance by the Commissioners, in the Staff recommendations During the discussion, Staff pointed out that the FR contracts in question have become unjust and unreasonable. However, as part of the required conversion, Staff recommends that the existing settlement rate structure be maintained and that FT2 FR rate schedule (for a capped amount of small customers) be maintained to protect a very few small customers. A more in depth summary of the discussion will be sent shortly. =================== Nancy Bagot Manager, Govt. Affairs Northern Natural Gas Co. 1500 K Street, NW Suite 400 Washington, DC 20005 202-216-1129 direct dial