Enron Mail

From:rebecca.cantrell@enron.com
To:richard.sanders@enron.com
Subject:DUE TODAY -- Comments on Reimposition of Price Caps
Cc:christi.nicolay@enron.com
Bcc:christi.nicolay@enron.com
Date:Mon, 11 Jun 2001 05:09:00 -0700 (PDT)

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.