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Enron Mail |
The attached comments for ENA and EES will be filed with FERC this afternoon
in response to their request for comments on reimposition of the maximum rate price caps on short-term capacity releases into California. The request for comments was issued in the proceedings for the San Diego complaint and the LADWP complaint against El Paso. In our comments, we briefly summarize our view of how the California natural gas problems developed, explain how a basis differential differs from transportation costs, and answer the Commission's five questions. Our major points are that reimposition of the price cap will not do anything to further reduce natural gas costs, that the market is already responding to the pricing signals because several pipeline projects have been announced which would increase capacity into and within California, and that FERC should not reimpose the price caps. Please let me know ASAP if you have any problems with this filing. I will have to release it to the D.C. office for filing by no later than 2:30 this afternoon.
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