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From:bkc7@pge.com
To:jdasovic@enron.com
Subject:FW: FERC Daily News
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Date:Wed, 28 Feb 2001 08:40:00 -0800 (PST)

Interesting stuff....
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Stephen; Tomcala, Karen (Corp); Document Retention-CPUC
Subject: FERC Daily News


[IMAGE]

FERC Daily News

February 28, 2001

?

Here is today=01,s FERC Daily News.? Electronic versions of the entries are=
=20
available by sending me an e-mail. For utility employees, note that a copy=
=20
of this document is automatically sent to the PG&E-- Document=20
Retention-CPUC central repository on behalf of the sender and all=20
recipients. =20

?

?

SPECIAL NOTE:

o???????? Chairman Hebert Testimony:? Attached is the Testimony of FERC =
=20
Chairman Curt Hebert before the House of Representatives Subcommittee on=20
Energy and Air Quality of the Energy and Commerce Committee.? His testimon=
y=20
focused on natural gas issues and the role of natural gas in national ener=
gy=20
policy.? The Chairman states that one of his top priorities is to ensure=
=20
that needed energy infrastructure is built.? He pledges that he will do=20
everything in his power to ensure that the Commission quickly processes=20
certificate applications for new pipeline projects that bring newly=20
developed gas supplies to market and which eliminate gas transportation=20
bottlenecks.? He does though indicate that to the extent transportation=20
bottlenecks reside within state jurisdiction, the states must similarly=20
undertake to improve their infrastructure.? With respect to California, he=
=20
indicated that the Commission is responding as quickly as possible to any=
=20
applications to construct new capacity, noting three certificate approvals=
=20
in the last seven months for 118,000 Mcf/day.? On the same page he exhort=
s=20
California officials to expedite considerations of proposals to remove gas=
=20
transportation bottlenecks within the state, which he believes contributed=
=20
to recent high prices in the Southern California area.? Touching on his bos=
s=01,=20
theme, the Chairman also speaks to the need for constructing a natural gas=
=20
pipeline from the North Slope of Alaska to the lower 48 states.

?

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SUBSTANTIVE ISSUANCES:

o???????? Kern River Gas Transmission Company, and, Northwest Pipeline, =
=20
Docket No. RP00-505-001 and RP00-506-002 (not consolidated), ORDERs ON =20
COMPLIANCE FILINGs (Issued February 23, 2001)? The Commission issued an Ord=
er=20
in each of the Williams Pipeline Companies=01, proceedings limiting their =
=20
proposals to restrict customers to a pro rata distribution of partial=20
capacity turnbacks.? The Commission had required, in an earlier Order, th=
at=20
the pipelines file support for their requirement that a shipper reducing i=
ts=20
capacity in part do so on a pro rata basis across all delivery points.? =
=20
Shippers had objected, and in the Order issued in response to the Complian=
ce=20
filings, the Commission firmly rejected the pro rata reduction requirement=
.?=20
The Commission agreed with the intervenors comments, however, finding that=
=20
Kern=01,s requirement for pro rata reductions of receipt and delivery poin=
t=20
entitlements in capacity reduction situations could lead to unreasonable=
=20
results, and is contrary to flexibility in Kern=01,s existing tariff and=
=20
Commission policy.? The Commission specifically rejected the pipeline=01,s=
=20
claim that allowing varied reductions would result in =01&cherry picking,=
=018 and=20
distinguished this issue from the FERC=01,s decision not to =01&enhance=018=
shipper=20
ROFR rights by allowing geographic segmentation in Order No. 637.? In the=
=20
Northwest Pipeline Order, the Commission made a similar finding, rejecting=
=20
the pro rata restrictions proposed also for capacity reductions. The=20
Commission also rejected the argument that allowing shippers greater=20
flexibility would result in lost revenues and cost shifts.? Although=20
Northwest may find it more challenging to market turned-back capacity? and=
=20
unused capacity, rather than allowing customers to maximize their use of??=
=20
existing contracts, Northwest cannot show that it would face any immediate=
=20
loss? of revenue, FERC stated.? FERC did acknowledge that operational =20
problems might provide a valid objection by the pipeline.? In both cases,=
=20
because the pipelines employed a postage stamp rate structure, the custome=
r=01,
s use of flexibility in distributing partial reductions would not reduce=
=20
pipeline revenues, the Commission concluded.? In both dockets, FERC=20
supported the pipeline=01,s retention of pro rata reductions in aggregate=
=20
maximum daily delivery obligations, accepting the explanation that the=20
requirement is =01&to maintain historic contract relationships in reductio=
ns=20
situations, and to prevent shippers from increasing flexibility under=20
specific contracts at the expense of other shippers

?

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OTHER PROCEDURAL NOTICES and ORDERS:

o???????? Sempra Energy, Docket No. ER01-1193-000, NOTICE OF FILING=20
(February 27, 2001)? On February 16, Sempra Energy filed a request for=20
withdrawal of its February 7, 2001, Petition for Waivers, and Blanket=20
approvals in its filing for market based rate authority for the wholesale=
=20
sale of electric power and ancillary services for 50% of the output of the=
=20
El Dorado generating plant in Boulder City, Nevada.? COMMENT DATE:? Friday,=
=20
March 9, 2001

?

?

o???????? PJM Interconnection, Docket No. ER01-1286-000, NOTICE OF FILIN=
G=20
(February 27, 2001) On February 20, PJM Interconnection filed a request t=
o=20
amend its Operating Agreement to waive, for this year, the requirement tha=
t=20
PJM retain an independent consultant to propose candidates for the two sea=
ts=20
on PJM=01,s Board of Managers for which an election is required at PJM=01,=
s 2001=20
Annual Meeting.? PJM states that the two members whose terms are expiring=
=20
this year are willing to continue to serve on the PJM Board, and the PJM=
=20
Members have therefore concluded that obtaining the services of the =20
independent consultant are not necessary.? COMMENT DATE:? Tuesday, March =
=20
13, 2001

?

?

o???????? New England Power Pool, Docket No. ER01-1289-000, NOTICE OF=20
FILING (February 27, 2001)? On February 20, the NEPOOL Participants=20
Committee filed to terminate the NEPOOL membership of Alternate Power=20
Source, as of March 5, unless APS cures its existing defaults.? The NEPOOL=
=20
Participants Committee states that APS has suspended its participation in=
=20
the NEPOOL markets pending the earlier of a cure of its defaults or the=20
effectiveness of its termination from the Pool.? COMMENT DATE:? Tuesday,=
=20
March 13, 2001

?

?

o???????? Alliance Companies, Docket Nos. ER99-3144-003, et. al., NOTICE=
=20
OF CONVENING SESSION (February 27, 2001)? In the January 24, 2001 Alliance=
=20
Order, the Commission directed parties with grandfathered contracts, whose=
=20
terms extend beyond the transition period, to negotiate amendments or=20
termination of such contracts. To assist the parties, the Commission=20
directed the Director of the Commission's Dispute Resolution Service (DRS)=
=20
to convene =20

omeeting of the parties to explore the use of an ADR process to foster=20
negotiation and agreement.? The convening session in this matter will be=
=20
held on March 5 at FERC.? The purpose of the convening session will be to=
=20
explore options for renegotiating or terminating the relevant grandfathere=
d=20
contracts, as directed by the Commission.? In addition, the meeting will=
=20
explore whether any future sessions should be held with all parties or wit=
h=20
individual transmission companies and contracting parties.?=20

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- hebert228.pdf
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