|
|
Enron Mail |
fyi - interesting storage information.
---------------------- Forwarded by Scott Neal/HOU/ECT on 09/29/2000 07:23 AM --------------------------- Enron North America Corp. From: Rebecca W Cantrell 09/28/2000 10:09 AM To: John Hodge/Corp/Enron@ENRON, Judy Townsend/HOU/ECT@ECT, Victor Lamadrid/HOU/ECT@ECT, Scott Neal/HOU/ECT@ECT, Paul Tate/HOU/EES@EES, Robert Superty/HOU/ECT@ECT, Colleen Sullivan/HOU/ECT@ECT, Donna Greif/HOU/ECT@ECT cc: Stephanie Miller/Corp/Enron@ENRON, Melinda Pharms/HOU/ECT@ECT Subject: Dominion Transmission, Inc., Upcoming TCRA Filing FYI. We should get a copy of the filing next week and will forward. Based on this, I will probably file a protest as well. ---------------------- Forwarded by Rebecca W Cantrell/HOU/ECT on 09/28/2000 10:05 AM --------------------------- "Randall Rich" <rrich@bracepatt.com< on 09/28/2000 09:53:29 AM To: <rebecca.w.cantrell@enron.com< cc: Subject: Dominion Transmission, Inc., Upcoming TCRA Filing On September 22, 2000, Dominion Transmission, Inc. ("DTI") and its customers (and interested state commissions) continued to meet to discuss DTI's upcoming TCRA filing to be submitted to FERC on September 29, 2000. The customers had numerous questions for DTI about why its upcoming TCRA filing will result in such a large rate increase, and advised DTI that it needed to provide more information to the customers before they could make a meaningful response to DTI's settlement proposal made on September 15, 2000. DTI opened the meeting by defending its upcoming TCRA filing as prudent, in accordance with FERC's prior orders on its TCRA mechanism, and legally defensible. DTI then asked for responses to its settlement proposal made last week. The basic feedback was that the customers "were not there yet." The customers said they were still interested in discussing settlement (in an effort to reduce the impact of the upcoming TCRA filing), but they wanted more of an explanation from DTI of its proposed substantial rate increase. Much of the customer's questioning focused on DTI's "non-purchased" fuel supply (i.e., fuel gas DTI has borrowed from storage) and the continued growth in this element of its fuel supply mix over the past few years. As of June 30, 2000, DTI has borrowed approximately 23 Bcf from storage for fuel use. DTI also revealed that it had "liberated" approximately 13 Bcf of base storage gas over the last several years (i.e., reclassified base storage gas into working gas), and that this gas was "still on the system." DTI said it had a $0.31 per MMBtu basis in this gas and that it was hoping to save it for a future storage project. The liberated gas had not yet been reflected by DTI in its FERC reports or accounts. Arguably, this gas has been parked in space being paid for by the customers and the customers are paying DTI a return on this gas. During the bulk of the meeting the customers asked questions and DTI answered them. DTI volunteered little; most information had to be extracted from its representatives. The feeling of many of the customers was that DTI was not being forthright. At the conclusion of the meeting, the customers said they wanted to ask more questions and would present DTI with their questions in the near future. Only after they have a better sense of the facts would the customers seriously entertain settlement offers. Some customers expressed a desire for DTI to terminate its TCRA mechanism. The customers also said the TCRA problems need to be addressed permanently so that there is not a "TCRA crisis" every year. Accordingly, DTI will make its TCRA filing on September 29, 2000 seeking a cost increase of approximately $65 million. It appears that the customers will protest the filing and await FERC action on the filing and protests. In the meantime, another meeting to discuss these matters has been tentatively set for October 18, 2000 at 9:30 a.m. in Washington. The meeting may be cancelled if the parties do not believe it would be useful to help resolve the issues at that time. Please contact us if you have any questions about this matter.
|