FW: SoCal - November 1 Changes

FYI, Kim.

-----Original Message-----
From: Blair, Lynn
Sent: Wednesday, October 10, 2001 8:28 AM
To: Corman, Shelley; January, Steven; Watson, Kimberly; Lohman, TK; Giambrone, Laura; Hernandez, Bert; McEvoy, Christine; Miller, Beverly; Miller, Chris L; Minter, Tracy; Mulligan, Amy; Ward, Linda
Cc: Schoolcraft, Darrell; Blair, Lynn; Kowalke, Terry; Bodnar, Michael; Buchanan, John
Subject: FW: SoCal - November 1 Changes

We met with SoCal today to discuss the changes SoCal is making for
November 1. Here is a high level recap in relation to impacts on TW:

1. SoCal will NOT set the capacity at needles lower than 750 unless
they have operational problems. And they will maintain 750 for a gas
day (during all cycles). (Good news for TW)

2. SoCal may set a capacity higher than 750. If they do, they will
maintain that capacity for a gas day (during all cycles), unless there
are specific operational problems. (Good news for TW)

4. SoCal will have the option to call OFO's at the beginning of each cycle
for the gas day, which could cause a confirmation reduction. Today they
only call an OFO before the gas day begins. Starting Nov. 1, they can
call an OFO anytime before a GISB cycle, including Intraday 1 and
Intraday 2 which are cycles in the gas day. (This will be a major impact
to SoCal's customers)

5. SoCal says the "windowing" is gone. But, they are still giving us a
capacity and TW will continue to do the allocation if nominations
exceed their capacity.

6. SoCal can still reduce the scheduled volumes after an allocation. This
would be due to SoCal's market not burning their schedule. At that
time SoCal will confirm down to the market burn.

Overall, our process does not change. If you have any questions, please
let me know. Thanks. Lynn