FW: Proposed NARUC resolution on hedging

Something you guys might want to support....

-----Original Message-----
From: Hill, Karen [mailto:khill@aga.org]
Sent: Wednesday, June 06, 2001 2:08 PM
To: #FRCEMAIL; State Regulatory Committee; RATECTE-LDCs
Subject: Proposed NARUC resolution on hedging

Attached below is a resolution that EEI is considering proposing to NARUC
recommending that regulators allow utilities to recover the costs of
hedging. Please let me know if the language of this resolution is
acceptable to your company. One concern that has occurred to me is whether
we would always want to pass along to consumers the gains and losses
incurred under risk mitigation programs. If not, then we might want to
suggest adding some language to the effect that while such rate treatment
would certainly be appropriate, companies might opt for a program where
gains or losses incurred under risk mitigation programs are not reflected in
rates at all. Thanks for your attention and input. EEI is looking for
comments by June 13.

A. Karen Hill
Vice President Regulatory Affairs
American Gas Association
400 North Capitol Street
Washington, DC 20001
202-824-7225
202-824-9125 (fax)
khill@aga.org <mailto:khill@aga.org<

- EEI hedging resolution.doc