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Enron Mail |
To the Core Aggregator Group:
As you know, SoCalGas filed its formal gas industry restructuring settlement agreement with the CPUC yesterday (April 17). Over the past two weeks, the core aggregator group worked extensively with SoCalGas and the other settlement parties to make sure that the settlement language tracked the agreed upon principles that were included in the "term sheet" that was filed with the CPUC on April 3. Based upon my review of the document, I believe that the settlement agreement fairly reflects the deal that we reached with SoCalGas. The CPUC's Presiding Judge in the case - - Andrea Biren - - has established the procedural schedule for an evidentiary hearing in this proceeding. Under this schedule, prepared direct testimony (in support of the settlement) is due to be submitted by May 5. Rebuttal testimony (opposing the competing settlement that was filed by SCGC and TURN) is due to be submitted by May 19. The hearing will begin on May 30. In discussions with SoCalGas and the other settlement parties, it was agreed that all of the industry groups that have participated in the SoCalGas settlement should present testimony in support of the settlement. This means that the core aggregator group (or individual members of the group) should present one or more witnesses who can testify to the benefits that the settlement will provide to the core aggregation program. This effort must commence immediately in order to achieve a May 5 deadline. I believe that it would be efficient for the core aggregator group (SPURR, REMAC, CUB, Greenmountain.com, utility.com, United Gas, Enron, TXU, Shell Energy Services) to jointly sponsor a single witness to testify concerning all the benefits of the settlement for the core aggregation program. This testimony would address the following features: * Core interstate unbundling * Core storage unbundling * Unbundled (daily) balancing for core customers * Unbundled core backbone transmission * Avoided cost billing credits (and process to redetermine) * Core brokerage fee (and process to reconsider role of utility's core procurement department) * Elimination of the cap on core customer participation in core aggregation, and reduction of the threshold for core aggregation groups * Elimination of core subscription gas sales option If a witness is to be engaged by the group, this will need to be done very soon. In addition, if the group wants to have one attorney representing the group, this also should be decided very soon. Alternateively, individual core aggregators may prefer to proceed on their own. I estimate that the fees for an outside expert witness to testify on the above-referenced matters would be approximately $9,900. This estimate is based upon an hourly rate of $180.00, and an estimate of 55 hours, as follows: Activity Hours Draft prepared testimony and 25 (possibly) rebuttal testimony Prepare for hearings, including 20 responses to discovery requests and mock cross-examination Hearing time 10 ________________________ _____ TOTAL: 55 Hours At $180 per hour, the expert witness fees would be $9,900. This does not include "costs". Our group should discuss, at the earliest possible time, how to proceed with the presentation of prepared testimony. Please respond promptly to this e-mail and provide your availability for a conference call within the next two days to discuss this matter. Thank you for your attention to his request. - John Leslie ************** CONFIDENTIAL Luce, Forward, Hamilton & Scripps LLP 600 West Broadway Suite 2600 San Diego, CA 92101-3391 (619) 236-1414 The information contained in this electronic mail transmission is confidential and intended to be sent only to the stated recipient of the transmission. It may therefore be protected from unauthorized use or dissemination by the attorney-client and/or attorney work-product privileges. If you are not the intended recipient or the intended recipient's agent, you are hereby notified that any review, use, dissemination, distribution or copying of this communication is strictly prohibited. You are also asked to notify us immediately by telephone and to return the original document to us immediately by mail at the address above. Thank you in advance for your cooperation.
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