Message-ID: <3709204.1075843092977.JavaMail.evans@thyme> Date: Tue, 27 Jun 2000 14:01:00 -0700 (PDT) From: mday@gmssr.com To: jeff.dasovich@enron.com Subject: Info from Mark Baldwin re storage issues Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: MBD X-To: Jeff Dasovich X-cc: X-bcc: X-Folder: \Jeff_Dasovich_Dec2000\Notes Folders\Natural gas strategy X-Origin: DASOVICH-J X-FileName: jdasovic.nsf Baldwin reports as follows: I spoke to Jerry Miller, PG&E, today concerning the unbundled CTA storage option now being drafted in the PG&E tariff. Here is a summary of what we reviewed. Assuming that the tariffs are approved and operational by October 1st, CTA customers will have the option to elect "Alternate Resources" as prescribed in the documentation now being reviewed and avoid any future allocated storage service cost. As the new rates will separate out these storage cost components, both the market and would be suppliers of alternate resources will be able to determine the future PG&E cost avoidance. Under the current rules, CTAs are required to inject certain quantities of gas into storage during the storage injection season. These gas volumes would be purchased by the Core Procurement Group pursuant to the formula contained in Schedule G-CFS. To the extent that the customers have paid for storage services in their bundled transportation rates upto this October election, PG&E offers this perspective. Residential customers , whom generally are not currently participating in the CTA program, will not receive any compensation for bundled paid to date storage service components prior to their election. Commercial customers whom are participating in the CTA program will not receive any compensation for bundle storage cost prior to their election. However, Jerry suggest that this is not a real issue owing to the fact commercial customers do not pay for storage services until the winter period commencing November.