RE: SoCalGas - Primary and Secondary Access Rights

Brian, regarding the storage issue raised by Craig Chancellor in his note,
this is an issue about which I do not wish there to be any uncertainty.
With regard to a customer's use of on-system storage, whether the gas is
delivered on system or off system upon withdrawal, there should be no
additional "storage charge" as mentioned in Craig's note. What I understood
was that any deliveries to on system delivery points of gas withdrawn from
SoCalGas storage or any other on system storage provider (when there is one)
would not involve a double transportation fee. In other words, as happens
today, there would be a tranport charge on injection, and a regular full
tranport fee paid by the customer on withdrawal and delivery to the on
system burner tip, BUT WITH A FULL CREDIT FOR THE INJECTION TRANSPORTATION
CHARGE, so that only one net transport charge is made. Please confirm that
this is the result in such an example.

With regard to the delivery of storage gas on withdrawal to an off system
delivery point, I do not see any rationale for imposing a second transport
fee, or failing to offer the same credit as it offered for on system
delliveries from storage. This would seem to be particularly true as Lad
indicated that such deliveries would be accomplished by displacement, and
would be subject to operational restrictions so that they would only be
accomodated when SoCalGas had sufficient flow through the interconnect to
make the displacement work. Please explain the rationale, if any, for the
imposition of an entirely separate transmission charge in this circumstance.

Thank you, Mike Day

-----Original Message-----
From: Craig Chancellor [mailto:craigc@calpine.com]
Sent: Thursday, March 30, 2000 8:43 AM
To: 'Cherry, Brian - TPBKC'; 'abb@eslawfirm.com'; 'agenergy@aeca.com';
'agoldberg@lgl.twc.com'; 'Alexander, Michael@sce'; 'Amirault, Paul@AEC';
'aod@newsdata.com'; 'athomas@newenergy.com'; 'awattslaw@earthlink.net';
'awodtke@aandellp.com'; 'Baldwin, Mark@IGS'; 'bbrunel@SMUD.org'; 'Beck,
Steve@PG&E'; 'Bellenger, Geoffrey@PGE'; 'Black, Larry@SWG'; 'Blue,
Greg@Dynegy'; 'bmcc@mccarthylaw.com'; 'Bosley, Kirby@Reliant';
'bradylaw@pacbell.net'; 'Bretz, Cathy@PG&E'; 'Brown, Keith@SWG'; 'Brown,
Sam@SW'; 'Brown, William@SWG'; 'Burkholder, John@cts/whb'; 'Bushman,
Tom@CellNet'; 'cbaker@ns.net'; 'Cervin, Peter@BR';
'cgoodman@bellatlantic.net'; Craig Chancellor;
'charles_doering@rmiinc.com'; 'Chau, Andrew@sShell Energy'; 'Checketts,
Bob@KR'; 'Cluff, Drew@Duke'; 'cmkehrein@ems-ca.com'; 'Collette,
Martin@Econone'; 'Comnes, Alan G.@MRW'; 'Connell, Bruce@Conoco';
'Cotroneo, Eileen@PGE'; 'Counihan, Rick@Green Mountain'; 'Cushnie,
Colin@SCE'; 'Dahlberg, Lynn@KR'; 'Dasovich, Jeff@Enron'; 'Davis,
John@KR'; 'Day, Michael@GMSSR'; 'Dickinson, Sandy@PGE';
'difellman@earthlink.net'; 'Douglass, Dan@SES'; 'dsloan@pge-nw.com';
'ecrem@ix.netcom.com'; 'ehahn@spurr.org'; 'Eisenman, Eric@PGE';
'eklinkner@ci.pasadena.ca.us'; 'Elsesser, Evelyn@IP';
'epoole@adplaw.com'; 'eric@gcnet.org'; 'ewo@jmbm.com'; 'Fawcett,
Jeff@Enron'; 'fergusonM@epenergy.com'; 'fogelmanm@steefel.com'; 'Folsom,
Bruce@Avista'; 'Foss, Rob@Coral Energy'; 'frazier@bull.som.yale.edu';
'Frost, Pete@Conoco'; 'Fullerton, Mark@WHP'; 'Gaillard, Bruno@Enron';
'ghinners@reliantenergy.com'; 'Golden, Patrick@PGE';
'gpickering@idahopower.com'; 'Graham, Roger@PGE';
'grant_kolling@cerberus.city.palo-alto.ca.us'; 'Hall, Rich@IGS';
'Hannah, Jim@TXU'; 'Harris, Mike@Reed'; 'Harris, Steve@TW'; 'Hawiger,
Marcel@TURN'; 'Healy, Bill@EPNG'; 'Hensman, Kevan@Aera'; 'Hilen,
Christopher@Reliant'; 'Hoglund, Patrick@PGE'; 'Honeycutt,
Bedellia@REMAC'; 'Huertas, A.@Enron'; 'Huhman, Steve@SoEnergy';
'inggm@sce.com'; 'jbennett@gmssr.com'; 'jgopal@energy.state.ca.us';
'Jimison, John'; 'jmct@gmssr.com'; 'jmpa@dynegy.com';
'john.walley@swgas.com'; 'Johnson, Kirk@PGE'; 'Johnson, Pamela@REMAC';
'jond@qstr.com'; 'Jordan, Richard@SWG'; 'jsqueri@gmssr.com';
'jthomson@penn.com'; 'jurewijl@sce.com'; 'Karp, Joseph@Whitecase';
'Katz, Stefanie@SET'; 'Kebler, Curtis@Reliant'; 'Keeler, Paul@BR';
'keith-sappenfield@hlp.com'; 'keith-sappenfield@reliantenergy.com';
'kirk.t.morgan@wgp.twc.com'; 'Klatt, Gregory@SCGC'; 'kmills@cfbf.com';
'Kramer, Daniel@CIPA'; 'kschellin@mtpower.com'; 'Larmour, Jack@Dynegy';
'Latterel, Maria@PGE'; 'Ledene, Ben@WGS'; 'Leslie, John@Luce'; 'Lindh,
Karen@CIG/CMA'; 'Lins, Steve@Glendale'; 'Litteneker, Randall@PGE';
'Lizak, Greg@Itron'; 'Louttit, Craig@PGE'; 'Lu, Frank@LADWP'; 'Maan,
Raveen@Cerberus'; 'malcantar@aandellp.com'; 'Masuda, Scott@LADWP';
'McClay, Shelley@Coral Energy'; 'mcclintocke@epenergy.com'; 'McConn,
Kathy@EPNG'; 'McCrea, Keith@CIG/CM'; 'mdjoseph@adamsbroadwell.com';
'Meadows, Ted@UDS'; 'Meadows, Ted@Ultramar'; 'Miller, Jerry@PGE';
'Miller, Preston@WGP'; 'Moench, Mark@KR'; 'mtran@energy.state.ca.us';
'nge@value.net'; 'O'Donnell, Mike@PGE'; 'office@mccarthylaw.com';
'O'Loughlin, Matthew@SCE'; 'Orr, Carl@PGE'; 'Oshirock@pacbell.net';
'Pate, Michael@OEM'; 'paul.macavoy@yale.edu'; 'Pedersen, Norm@SCGC';
'Pelote, Roger@Williams'; 'Pettinato, Bob@LADWP'; 'phanschen@gj.com';
'placourciere@sf.whitecase.com'; 'Pocino, Mark@RC'; 'Pocta, Mark@ORA';
'Porter, Doug@SCE'; 'Power, Patrick@LB'; 'Radtke, Otto@CO'; 'Ramirez,
Jaime@SWGas'; 'rbw@mrwassoc.com'; 'Reid, Al@PanCanadian';
'rgloistein@orrick.com'; 'rhc@mrwassoc.com'; 'rliebert@cfbf.com';
'rmccann@cal.net'; 'rnemec@mediaone.net'; 'robertg@greenlining.org';
'Rochman, Michael@CUB'; 'Rochman, Michael@SPURR'; 'Rosmon,
Lewis@Tractebel'; 'Ross-Leech, Diane@PGE'; 'Roth, Rosalie@Solutions';
'Roth, Tom@ET'; 'rtask@norm.com'; 'salleyoo@dwt.com';
'scarter@nrdc.org'; 'scohn@SMUD.org'; 'Shively, R.@Energynamics';
'Silva, Larry@Glendale'; 'simonsen@rmi.net'; 'Skaff, Andy@Dynegy';
'sneiman483@aol.com'; 'Soong, Gwen@IGS'; 'sscott3@enron.com';
'stomashe@energy.state.ca.us'; 'Stout, M.@sempra-slns'; 'Sullivan,
Catherine@Southernenergy'; 'Sutton, J.C.@scana'; 'Sweeney,
Richard@CVernon'; 'tbeach@vdn.com'; 'thompson@wrightlaw.com'; 'Tisdale,
Roger@Occidental'; 'toca@compuserve.com'; 'tomb@crossborderenergy,com';
'vhconsult@earthlink.net'; 'ward@phaser.com'; 'Weil, James@Aglet';
'Wesson, Parks@Astra'; 'whited@paceresources.com'; 'Wood, Bill@CEC';
'Wraff@adnc.com'; 'Wright, Elizabeth@LB'; 'Yap, Cathy E.'; 'Yu, Peter';
'Zaiontz, Jean@BP'; 'Zanaboni, Kathy@RES'
Cc: Morrow, Rick - TP3RMM; Sullivan, Glen J.; Follett, B. David - TPDBF;
Wright, Gillian - TP1GXW; Harrigan, James P. - TP1JPH; Lorenz, Lad -
TPLPL; Van Lierop, Jan - TP2JXV; Brill, Thomas R.; Sakarias, Wayne P.;
Purves, Ralph A.; Nilarp, Margarita - TP3MXM; Angeles, Zenee G. - TPZGA;
Watson, Steven - TP2SAW; Betonte, Robert - TP2RSB; Reed, William; Brill,
Thomas R.; Schavrien, Lee
Subject: RE: SoCalGas - Primary and Secondary Access Rights

Brian,

Regarding the issue of Off-System Deliveries: It is still unclear in your
document whether the rate for storage will be charged once at 120% or twice
at 240%. Calpine does not support the double charge.

Regarding new pipeline interconnects: Calpine believes that a determination
should be made regarding the ability for any primary capacity should be done
on a case by case basis and primary capacity made available if there is no
reduction in primary capacity at an existing point. Oxy is not an existing
point, yet there has been a determination made for a level of primary
capacity.

In addition, in discussing the split between local and backbone, the
inclusion of the transmission lines from Moreno compressor to Rainbow
station and the lines going south to Imperial/El Centro was never resolved.
Given the nature of these pipes (size, load, service) and similarity to
other backbone lines, it is Calpine's position that these should be
designated as backbone.

< -----Original Message-----
< From: Cherry, Brian - TPBKC [SMTP:BCherry@sempra.com]
< Sent: Tuesday, March 28, 2000 7:22 PM
< To: Cherry, Brian - TPBKC; 'abb@eslawfirm.com'; 'agenergy@aeca.com';
< 'agoldberg@lgl.twc.com'; 'Alexander, Michael@sce'; 'Amirault, Paul@AEC';
< 'aod@newsdata.com'; 'athomas@newenergy.com'; 'awattslaw@earthlink.net';
< 'awodtke@aandellp.com'; 'Baldwin, Mark@IGS'; 'bbrunel@SMUD.org'; 'Beck,
< Steve@PG&E'; 'Bellenger, Geoffrey@PGE'; 'Black, Larry@SWG'; 'Blue,
< Greg@Dynegy'; 'bmcc@mccarthylaw.com'; 'Bosley, Kirby@Reliant';
< 'bradylaw@pacbell.net'; 'Bretz, Cathy@PG&E'; 'Brown, Keith@SWG'; 'Brown,
< Sam@SW'; 'Brown, William@SWG'; 'Burkholder, John@cts/whb'; 'Bushman,
< Tom@CellNet'; 'cbaker@ns.net'; 'Cervin, Peter@BR';
< 'cgoodman@bellatlantic.net'; 'Chancellor, Craig@Calpine';
< 'charles_doering@rmiinc.com'; 'Chau, Andrew@sShell Energy'; 'Checketts,
< Bob@KR'; 'Cluff, Drew@Duke'; 'cmkehrein@ems-ca.com'; 'Collette,
< Martin@Econone'; 'Comnes, Alan G.@MRW'; 'Connell, Bruce@Conoco';
< 'Cotroneo, Eileen@PGE'; 'Counihan, Rick@Green Mountain'; 'Cushnie,
< Colin@SCE'; 'Dahlberg, Lynn@KR'; 'Dasovich, Jeff@Enron'; 'Davis, John@KR';
< 'Day, Michael@GMSSR'; 'Dickinson, Sandy@PGE'; 'difellman@earthlink.net';
< 'Douglass, Dan@SES'; 'dsloan@pge-nw.com'; 'ecrem@ix.netcom.com';
< 'ehahn@spurr.org'; 'Eisenman, Eric@PGE'; 'eklinkner@ci.pasadena.ca.us';
< 'Elsesser, Evelyn@IP'; 'epoole@adplaw.com'; 'eric@gcnet.org';
< 'ewo@jmbm.com'; 'Fawcett, Jeff@Enron'; 'fergusonM@epenergy.com';
< 'fogelmanm@steefel.com'; 'Folsom, Bruce@Avista'; 'Foss, Rob@Coral Energy';
< 'frazier@bull.som.yale.edu'; 'Frost, Pete@Conoco'; 'Fullerton, Mark@WHP';
< 'Gaillard, Bruno@Enron'; 'ghinners@reliantenergy.com'; 'Golden,
< Patrick@PGE'; 'gpickering@idahopower.com'; 'Graham, Roger@PGE';
< 'grant_kolling@cerberus.city.palo-alto.ca.us'; 'Hall, Rich@IGS'; 'Hannah,
< Jim@TXU'; 'Harris, Mike@Reed'; 'Harris, Steve@TW'; 'Hawiger, Marcel@TURN';
< 'Healy, Bill@EPNG'; 'Hensman, Kevan@Aera'; 'Hilen, Christopher@Reliant';
< 'Hoglund, Patrick@PGE'; 'Honeycutt, Bedellia@REMAC'; 'Huertas, A.@Enron';
< 'Huhman, Steve@SoEnergy'; 'inggm@sce.com'; 'jbennett@gmssr.com';
< 'jgopal@energy.state.ca.us'; 'Jimison, John'; 'jmct@gmssr.com';
< 'jmpa@dynegy.com'; 'john.walley@swgas.com'; 'Johnson, Kirk@PGE'; 'Johnson,
< Pamela@REMAC'; 'jond@qstr.com'; 'Jordan, Richard@SWG';
< 'jsqueri@gmssr.com'; 'jthomson@penn.com'; 'jurewijl@sce.com'; 'Karp,
< Joseph@Whitecase'; 'Katz, Stefanie@SET'; 'Kebler, Curtis@Reliant';
< 'Keeler, Paul@BR'; 'keith-sappenfield@hlp.com';
< 'keith-sappenfield@reliantenergy.com'; 'kirk.t.morgan@wgp.twc.com';
< 'Klatt, Gregory@SCGC'; 'kmills@cfbf.com'; 'Kramer, Daniel@CIPA';
< 'kschellin@mtpower.com'; 'Larmour, Jack@Dynegy'; 'Latterel, Maria@PGE';
< 'Ledene, Ben@WGS'; 'Leslie, John@Luce'; 'Lindh, Karen@CIG/CMA'; 'Lins,
< Steve@Glendale'; 'Litteneker, Randall@PGE'; 'Lizak, Greg@Itron'; 'Louttit,
< Craig@PGE'; 'Lu, Frank@LADWP'; 'Maan, Raveen@Cerberus';
< 'malcantar@aandellp.com'; 'Masuda, Scott@LADWP'; 'McClay, Shelley@Coral
< Energy'; 'mcclintocke@epenergy.com'; 'McConn, Kathy@EPNG'; 'McCrea,
< Keith@CIG/CM'; 'mdjoseph@adamsbroadwell.com'; 'Meadows, Ted@UDS';
< 'Meadows, Ted@Ultramar'; 'Miller, Jerry@PGE'; 'Miller, Preston@WGP';
< 'Moench, Mark@KR'; 'mtran@energy.state.ca.us'; 'nge@value.net';
< 'O'Donnell, Mike@PGE'; 'office@mccarthylaw.com'; 'O'Loughlin,
< Matthew@SCE'; 'Orr, Carl@PGE'; 'Oshirock@pacbell.net'; 'Pate,
< Michael@OEM'; 'paul.macavoy@yale.edu'; 'Pedersen, Norm@SCGC'; 'Pelote,
< Roger@Williams'; 'Pettinato, Bob@LADWP'; 'phanschen@gj.com';
< 'placourciere@sf.whitecase.com'; 'Pocino, Mark@RC'; 'Pocta, Mark@ORA';
< 'Porter, Doug@SCE'; 'Power, Patrick@LB'; 'Radtke, Otto@CO'; 'Ramirez,
< Jaime@SWGas'; 'rbw@mrwassoc.com'; 'Reid, Al@PanCanadian';
< 'rgloistein@orrick.com'; 'rhc@mrwassoc.com'; 'rliebert@cfbf.com';
< 'rmccann@cal.net'; 'rnemec@mediaone.net'; 'robertg@greenlining.org';
< 'Rochman, Michael@CUB'; 'Rochman, Michael@SPURR'; 'Rosmon,
< Lewis@Tractebel'; 'Ross-Leech, Diane@PGE'; 'Roth, Rosalie@Solutions';
< 'Roth, Tom@ET'; 'rtask@norm.com'; 'salleyoo@dwt.com'; 'scarter@nrdc.org';
< 'scohn@SMUD.org'; 'Shively, R.@Energynamics'; 'Silva, Larry@Glendale';
< 'simonsen@rmi.net'; 'Skaff, Andy@Dynegy'; 'sneiman483@aol.com'; 'Soong,
< Gwen@IGS'; 'sscott3@enron.com'; 'stomashe@energy.state.ca.us'; 'Stout,
< M.@sempra-slns'; 'Sullivan, Catherine@Southernenergy'; 'Sutton,
< J.C.@scana'; 'Sweeney, Richard@CVernon'; 'tbeach@vdn.com';
< 'thompson@wrightlaw.com'; 'Tisdale, Roger@Occidental';
< 'toca@compuserve.com'; 'tomb@crossborderenergy,com';
< 'vhconsult@earthlink.net'; 'ward@phaser.com'; 'Weil, James@Aglet';
< 'Wesson, Parks@Astra'; 'whited@paceresources.com'; 'Wood, Bill@CEC';
< 'Wraff@adnc.com'; 'Wright, Elizabeth@LB'; 'Yap, Cathy E.'; 'Yu, Peter';
< 'Zaiontz, Jean@BP'; 'Zanaboni, Kathy@RES'
< Cc: Morrow, Rick - TP3RMM; Sullivan, Glen J.; Follett, B. David - TPDBF;
< Wright, Gillian - TP1GXW; Harrigan, James P. - TP1JPH; Lorenz, Lad -
< TPLPL; Van Lierop, Jan - TP2JXV; Brill, Thomas R.; Sakarias, Wayne P.;
< Purves, Ralph A.; Nilarp, Margarita - TP3MXM; Angeles, Zenee G. - TPZGA;
< Watson, Steven - TP2SAW; Betonte, Robert - TP2RSB; Reed, William; Brill,
< Thomas R.; Schavrien, Lee
< Subject: RE: SoCalGas - Primary and Secondary Access Rights
<
<
< Confidential Settlement Document Regarding Primary and Secondary Access
< Offered under Rule 51
<
< Attached for your review and comment is SoCalGas revised Primary and
< Secondary Rights settlement proposal in the Natural Gas Strategy/Gas
< Industry Restructuring proceeding. The first document is our revised
< proposal and the second document is the red-lined version of our original
< proposal with the current changes. We have attempted to incorporate your
< previous comments and concerns. Please provide your comment to Lad Lorenz
< (213-244-3820) or Brian Cherry (213 244-3895) as soon as possible.
<
< <<PrimarySecondary Rights Draft 3-28COM.doc<< <<PrimarySecondary Rights
< Draft 3-27redline.doc<<
< << File: PrimarySecondary Rights Draft 3-28COM.doc << << File:
< PrimarySecondary Rights Draft 3-27redline.doc <<