Message-ID: <4773020.1075848206845.JavaMail.evans@thyme> Date: Tue, 22 May 2001 10:00:00 -0700 (PDT) From: nancy.bagot@enron.com To: stanley.horton@enron.com, steven.kean@enron.com, shelley.corman@enron.com, mary.miller@enron.com, drew.fossum@enron.com, robert.kilmer@enron.com, janet.butler@enron.com, dari.dornan@enron.com, glen.hass@enron.com, bambi.heckerman@enron.com, frazier.king@enron.com, teb.lokey@enron.com, dorothy.mccoppin@enron.com, ray.neppl@enron.com, maria.pavlou@enron.com, michele.winckowski@enron.com, james.steffes@enron.com, richard.shapiro@enron.com, ray.alvarez@enron.com, donna.fulton@enron.com, sarah.novosel@enron.com, linda.robertson@enron.com, john.shelk@enron.com, tom.briggs@enron.com, carin.nersesian@enron.com, rebecca.cantrell@enron.com, leslie.lawner@enron.com, jennifer.thome@enron.com Subject: FERC requests comments on re-imposing price cap on releases Cc: joe.hartsoe@enron.com, dbva@radix.net Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: joe.hartsoe@enron.com, dbva@radix.net X-From: Nancy Bagot X-To: Stanley Horton, Steven J Kean, Shelley Corman, Mary Kay Miller, Drew Fossum, Robert Kilmer, Janet Butler, Dari Dornan, Glen Hass, Bambi Heckerman, Frazier King, Teb Lokey, Dorothy McCoppin, Ray Neppl, Maria Pavlou, Janet Place/Enron@EnronXGate, Michele Winckowski, James D Steffes, Richard Shapiro, Ray Alvarez, Donna Fulton, Sarah Novosel, Linda Robertson, John Shelk, Tom Briggs, Carin Nersesian, Rebecca W Cantrell, Leslie Lawner, Jennifer Thome X-cc: Joe Hartsoe, dbva@radix.net X-bcc: X-Folder: \Steven_Kean_June2001_4\Notes Folders\Ferc X-Origin: KEAN-S X-FileName: skean.nsf This afternoon the Commission has issued an Order Requesting Comments in the SDG&E and LA Dept. of Water & Power petition proceedings on the short term capacity release price cap (RP01-180, RP01-222). The order requests comments on "whether...[to] reimpose the maximum rate ceiling on short-term capacity release transactions into California and the effects of such action on the California gas market." Order and attachment are attached at the bottom of this email. Print to read all footnotes (original came in WordPerfect). Note that in footnote 2, the order explains the current comprehensive Commission approach to the gas market in California, and that they're reaching out for the gray market: "On May 18, 2001, in Docket No. RM01-9-000, the Commission issued an order proposing to impose certain reporting requirements on natural gas sellers and transporters serving the California market. The proposed reporting requirements are intended to provide the Commission with the necessary information to determine what action, if any, it should take within its jurisdiction. Our order today coupled with our May 18 order continues to focus on issues related to natural gas prices in California and actions we may take to address capacity release transactions and bundled sales (i.e., the "gray market")." To note in this order, the discussion includes an explanation that FERC Staff's analysis of capacity release data between Nov. 2000 and April 2001 shows that only .09 to 1.2 percent of the volume of capacity releases into CA were above the maximum tariff rate. In light of this information, the order requests comment on whether the price cap into California would be reimposed on short term releases prior to Sept. 30, 2002. Comments are due in 20 days. Questions asked in the order are: (1) Would reimposition of the maximum rate ceiling on short-term capacity release transactions into California have any significant effect on the price of gas at the California border; (2) Should the reimposition of the maximum rate ceiling on short-term capacity release transactions be limited to California or extended to pipelines delivering into the Western Systems Coordinating Council (WSCC) region; (3) What effect do capacity release transactions have on wholesale electric prices; (4) What would be the effect of reimposing the maximum rate ceiling on short-term capacity release transactions into California given firm shippers' ability to make bundled sales at the California border; and (5) How will reimposing the maximum rate ceiling for short-term capacity release transactions into California impact shippers' ability to obtain short-term firm capacity. An excel attachment to the order details the Staff findings on Transportation Release Transactions above the max. rate Nov. 2000 - April 2001