Enron Mail

From:d..steffes@enron.com
To:janine.migden@enron.com, roy.boston@enron.com, l..nicolay@enron.com,ben.jacoby@enron.com, adam.cooper@enron.com, d..cisneros@enron.com
Subject:RE: CGE Gas Rate Case
Cc:
Bcc:
Date:Mon, 20 Aug 2001 08:29:17 -0700 (PDT)

Janine --

What's the gas delivery tariff on CGE for generation services? Do they have a standard service? Do they have a good generator interconnect agreement on the power side?

Jim

-----Original Message-----
From: Migden, Janine
Sent: Monday, August 20, 2001 10:22 AM
To: Steffes, James D.; Boston, Roy; Nicolay, Christi L.; Jacoby, Ben; Cooper, Adam; Cisneros, Michelle D.
Subject: CGE Gas Rate Case

Fyi...

CIncinnati Gas and Electric Company has filed for a $700 million rate increase which is enormous given the size of their company. They are claiming that they need to replace their current low pressure gas system with a high pressure gas system and are looking to amortize the costs over ten years as opposed to the usual twenty years. They plan to allocate the cost of this primarily through doubling the customer charge. One of theories behind this rate increase is that Cinery wants to expand its business as an Exempt Wholesale Generator by building more gas fired turbines and it needs the high pressure gas to serve those turbines. The concern therefore is whether captive ratepayers might be cross-subsidizing a competitive activity.