GIR: FELLOW SIGNATORIES TO THE COMPREHENSIVE SETTLEMENT

FYI. Under the settlement with SoCal, PG&E and countless others, Altra was
going to provide the platform for the (unregulated) secondary markets in
intrastate storage, capacity and imbalance trading rights. Altra declined
and SoCal and PG&E will now look for someone else to provide the service.
---------------------- Forwarded by Jeff Dasovich/SFO/EES on 09/06/2000 08:52
PM ---------------------------

"Angeles, Zenee G. - TPZGA" <ZAngeles@sempra.com< on 09/06/2000 07:27:23 PM
To: "Alexander, Michael@sce" <alexanms@sce.com<, "Amirault, Paul@AEC"
<paulamirault@aec.ca<, "Bayless, David@Utility" <david.bayless@utility.com<,
"Beach, Thomas@Crossborder" <tomb@crossborderenergy.com<, "Burkholder,
John@cts/whb" <burkee@cts.com<, "Chancellor, Craig@Calpine"
<craigc@calpine.com<, "Counihan, Rick@Green Mountain"
<rick.counihan@greenmountain.com<, "Dasovich, Jeff@Enron"
<jdasovic@enron.com<, "Day, Michael@GMSSR" <mday@gmssr.com<, "Dingwall,
Brian@UEM" <bdingwall@unitedgas.com<, "Elsesser, Evelyn@aelaw"
<eke@aelaw.com<, "Johnson, Pamela@REMAC" <johnson_pamela@lacoe.edu<, "Jun,
Christine@aelaw" <chj@aelaw.com<, "Karp, Joseph@Whitecase"
<karpjos@sf.whitecase.com<, "Keeler, Paul@BR" <pkeeler@br-inc.com<, "Leslie,
John@Luce" <jleslie@luce.com<, "McCrea, Keith@CIG/CM" <kmccrea@sablaw.com<,
"Paul, Joe@Dynegy" <6266273191@messaging.sprintpcs.com<, "Pocta, Mark@ORA"
<rmp@cpuc.ca.gov<, "Porter, Doug@SCE" <porterdk@sce.com<, "Rochman,
Michael@CUB" <rochmanm@cubjpa.org<, "Rochman, Michael@SPURR"
<rochmanm@spurr.org<, "Scott, Susan@TW" <sscott3@enron.com<, "Worster,
Gerard@TXU" <gworster@txuenergy.com<, "Zaiontz, Jean@BP" <zaiontj@bp.com<
cc: "Sullivan, Glen J." <GSullivan@sempra.com<, "Lorenz, Lad - TPLPL"
<LLorenz@socalgas.com<, "Suwara, J.- TPJUS" <JSuwara@sempra.com<, "Betonte,
Robert - TP2RSB" <RBetonte@socalgas.com<, "Follett, B. David - TPDBF"
<DFollett@sempra.com<
Subject: GIR: FELLOW SIGNATORIES TO THE COMPREHENSIVE SETTLEMENT - ALTRA

Dear fellow signatories to the Comprehensive Settlement:

On Friday of last week, SoCalGas and PG&E informed ALJ Biren that Altra had
definitively declined to offer the electronic trading services that both the
already-approved PG&E settlement and the pending SoCalGas/SDG&E Comprehensive
Settlement contemplated would be provided specifically by Altra for at least
an intial period.? Both SoCalGas and PG&E sent a letter and email to to the
full service list yesterday (Tues, 9/5) informing parties of this development.

SoCalGas believes that some modification to the Comprehensive Settlement in
necessary to take this development into account, and that we then need to
file the modification as soon as possible with the Commission.? The ALJ has
indicated to us that some formal filing with the Commission in response to
this development will be necessary.

We want to work with the signatories to the Comprehensive Settlement to reach
a consensus as soon as possible.? Our goal is to cause little or no delay in
the processing of a decision on the Comprehensive Settlement.

What SoCalGas has in mind is modifying the settlement to remove the specific
naming of Altra and to insert language saying that SoCalGas will select and
contract with a third-party provider for a specified period of time, without
identifying in the settlement who that will be.?? We also need to consider
whether we should address in the revision to the settlement how we will
handle the possibility that the third-party provider will not be ready to
operate by the April 1, 2001 date the settlement provides for the monthly
imbalance trading, OFO day imbalance chip trading, and storage rights
trading.? SoCalGas is looking at interim arrangements that it could provide
in-house starting April 1, 2001, until the third-party provider could begin
service.? We also might consider what would happen if no third party provider
can be found.

To avoid any claims that we have not complied with the settlement rules,
today we mailed and emailed to the full service list a notice of a settlement
conference for Wednesday of next week.? We want to file something with the
Commission very promptly thereafter.

Please feel free to contact Glen Sullivan at 619-699-5027, Lad Lorenz at
213-244-3820, Bob Betonte at 213-244-3832, or June Suwara at 213-244-3504 on
this subject.?

For those of you who have not heard, Brian Cherry has submitted his
resignation from Sempra Energy's Regulatory Affairs Dept. and will be going
to work shortly for PG&E in a similar capacity.