New OII

Hi. Sorry for the delay. Today's big FERC hearing has had me wrapped up.
Please read the following and keep VERY confidential---it's an internal PG&E
summary. Electronic version of OII to follow.

Best,
Jeff
******************************************************************************
****************
Yesterday, the Commission issued an OII to determine the
< adequacy of Sempra Energy's, SoCalGas' and SDG&E's gas transmission
< practices and to determine what measures need to be taken to correct any
< deficiencies. The OII orders the Sempra affiliates and parent to
< demonstrate that SDG&E's gas supply and transmission system are adequate
< to provide service to present and future core and noncore customers.
<
< As you may recall, the OII sprang from an AL that SDG&E
< filed in August requesting emergency review and approval of its proposals
< to temporarily revise gas transportation service elections to its noncore
< customers. SDG&E subsequently pulled the advice letter after the
< Commission issued a resolution rejecting it and outlined an OII it was
< going to issue on this matter. The language in the OII that was issued
< yesterday is substantially similar to that which was in the Commission's
< original draft resolution.
<
< The Sempra companies have been ordered to appear at a soon
< to be determined PHC to show cause and demonstrate that:
<
< 1. SDG&E has adequate gas transmission supply for the
< 2000/2001 winter heating season, as well as the longer term supply
< throughout the year. If supply is inadequate, SDG&E shall submit plans
< for obtaining adequate supply.
< 2. SDG&E gas and transmission supply is adequate to meet
< anticipated need for gas fired generation. If not, SDG&E shall submit
< plans for obtaining adequate supply.
< 3. SDG&E's gas transmission service is not being adversely
< affected by interests of its corporate affiliate.
< 4. Recently added demands on SDG&E's capacity are not
< negatively impacting supply for SDG&E's customers. and otherwise
< consistent with representations made to the Commission.
< 5. SDG&E's current gas curtailment rules are just and
< reasonable; if not, SDG&E shall propose changes.
<
< We are going to need to keep a careful eye on this
< proceeding as it develops to make sure it stays focused on events in
< southern California. Commission Bilas gave me assurances last week before
< the OII was issued that it was a Sempra problem, not a statewide problem.
< However, given everyone's sensitivities to EG concerns, its a proceeding
< that could easily be expanded beyond its current narrow focus. I'll
< forward you all a copy of the order later today.
<
----- Forwarded by Jeff Dasovich/NA/Enron on 11/09/2000 12:02 PM -----

Susan Scott
11/09/2000 09:41 AM

To: Jeff Dasovich
cc:
Subject: New OII

The proceeding is I0011002; I think the order was issued Nov. 2.

---------------------- Forwarded by Susan Scott/ET&S/Enron on 11/09/2000
09:40 AM ---------------------------

Susan Scott
11/06/2000 02:28 PM
To: Jeff Dasovich
cc:

Subject: New OII

Jeff, I read in Gas Daily that the Cal PUC has issued an OII on the adequacy
of supply and pipeline infrastructure in southern California. Could you have
someone send me a copy of the order whenever it is issued? Steve thinks it's
something we might want to get involved in, but I need to know more.

Great to see you last week.

Ciao,
Susan