Message-ID: <25033921.1075844042112.JavaMail.evans@thyme>
Date: Wed, 15 Nov 2000 00:40:00 -0800 (PST)
From: jeffery.fawcett@enron.com
To: steven.harris@enron.com, kevin.hyatt@enron.com, tk.lohman@enron.com, 
	christine.stokes@enron.com, michelle.lokay@enron.com, 
	lorraine.lindberg@enron.com
Subject: Kern River expansion
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We'd expected the expansion to actually be in the 200 - 250 MMcf/d range,=
=20
although
as intimated in this press release, we might see a follow-on expansion noti=
ce=20
for more volumes later.
My gut feeling is that they're waiting for more certainty regarding=20
permitting/certification on a couple
of the Bakersfield area IPP projects first before proceeding with the secon=
d=20
phase.  The good news is that an expansion on the order they're describing=
=20
here should not materially affect the overall Western U.S. gas balance with=
=20
over 6.0 Bcf/d being consumed in California alone.

Gas Daily 11-15-00
Kern River casts its lot with California expansion
Looking to accommodate demand for gas-fired generation in California,=20
Williams has plans
under way to expand its Kern River Gas Transmission system. The company=20
announced
yesterday that it would file an application with FERC to add an additional=
=20
124,500 dth/d of
firm transportation capacity from Wyoming to California markets.
The proposal  called the California Expansion Project  would tap into=20
increased production
in the Rocky Mountain basin. And the California Expansion could pave the wa=
y=20
for a
second expansion of Kern River. According to a company release, Williams=20
plans on holding
an open season later this year to gauge interest in additional capacity on=
=20
the pipeline.
A combination of rapid growth and the development of new gas-fired power=20
generation
facilities in California is fueling expansion of the system, said Kirk=20
Morgan, director of business
development for Kern River and Northwest Pipeline. Kern River is=20
well-positioned to
pursue an economically attractive expansion of its mainline.
The $80 million project proposal calls for adding three new compressor=20
stations, as well
as boosting or retooling existing facilities in Wyoming and Utah. Williams=
=20
also plans to upgrade
two meter stations. The project=01,s anticipated in-service date is May 1, =
2002.
Back in August, Kern River held an open season to determine interest in fir=
m=20
year-round
gas transportation service in Nevada and California and to determine intere=
st=20
for capacity relinquishment
by existing shippers (GD 8/18). The pipeline landed a number of contracts=
=20
providing
for delivery of Rockies supply into California.
According to Williams, demand for new capacity out of Wyoming is being driv=
en=20
by a
number of factors, including a shift in downstream markets for Canadian=20
supply and strong
economic growth in Kern River=01,s market areas. Surging demand for gas-fir=
ed=20
generation has
also played a role.
Morgan said a ramp-up in Rockies production coupled with demand for=20
competitive transportation
promises a solid base for future expansion.  An expansion on Kern River in=
=20
2003
could help bring that production to market, he said.
The 922-mile Kern River system delivers Rockies and Canadian supply to=20
markets in California,
Nevada and Utah.  At present, the system has a design capacity of 700 milli=
on=20
cfd.