Message-ID: <19161156.1075854995468.JavaMail.evans@thyme>
Date: Wed, 22 Aug 2001 12:49:05 -0700 (PDT)
From: glen.hass@enron.com
To: robert.kilmer@enron.com, kay.miller@enron.com, lindy.donoho@enron.com, 
	steven.harris@enron.com, lorraine.lindberg@enron.com, 
	tk.lohman@enron.com, michelle.lokay@enron.com, jan.moore@enron.com, 
	kimberly.watson@enron.com
Subject: 8/22 CEC Meeting--Natural Gas Infrastructure Report
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 At the CEC meeting today, the Commission did NOT adopt the Draft Final Rep=
ort on Natural Gas Infrastructure Issues in order to give staff additional =
time to review further comments received from SoCal, Edison and others.  In=
 the draft report distributed earlier this month you may recall that the re=
port clearly indicates that the state utilties need to build additional int=
rastate capacity to provide take away capacity from the border and more clo=
sely match current and projected interstate pipeline capacity.  Lad Lorenz =
on behalf of  SoCal spoke at the meeting reiterating their viewpoint that t=
hey currently have sufficient backbone transmission facilities however he o=
ffered that the issue of getting customers to commit to long-term contracts=
 should be added to the report as a basis for increasing capacity.  A spoke=
man for Edison stated that while the report mentions the possibility that m=
arket manipulation may have contributed towards the high gas prices during =
the last heating season, they would like to see the report reflect that mar=
ket manipulation in fact did in part, cause higher prices and he went on to=
 cite the El Paso FERC proceeding as substantiation for this position.  Giv=
en these comments, the adoption of the report was delayed until staff has h=
ad a chance to conduct further analysis.  Most likely it will be on the age=
nda in Sept.