fyi  -  interesting storage information.
---------------------- Forwarded by Scott Neal/HOU/ECT on 09/29/2000 07:23 AM 
---------------------------
   
	Enron North America Corp.
	
	From:  Rebecca W Cantrell                           09/28/2000 10:09 AM
	

To: John Hodge/Corp/Enron@ENRON, Judy Townsend/HOU/ECT@ECT, Victor 
Lamadrid/HOU/ECT@ECT, Scott Neal/HOU/ECT@ECT, Paul Tate/HOU/EES@EES, Robert 
Superty/HOU/ECT@ECT, Colleen Sullivan/HOU/ECT@ECT, Donna Greif/HOU/ECT@ECT
cc: Stephanie Miller/Corp/Enron@ENRON, Melinda Pharms/HOU/ECT@ECT 
Subject: Dominion Transmission, Inc., Upcoming TCRA Filing

FYI.  We should get a copy of the filing next week and will forward.  Based 
on this, I will probably file a protest as well.

---------------------- Forwarded by Rebecca W Cantrell/HOU/ECT on 09/28/2000 
10:05 AM ---------------------------


"Randall Rich" <rrich@bracepatt.com> on 09/28/2000 09:53:29 AM
To: <rebecca.w.cantrell@enron.com>
cc:  
Subject: Dominion Transmission, Inc., Upcoming TCRA Filing


On September 22, 2000, Dominion Transmission, Inc. ("DTI") and its customers 
(and interested state commissions) continued to meet to discuss DTI's 
upcoming TCRA filing to be submitted to FERC on September 29, 2000.  The 
customers had numerous questions for DTI about why its upcoming TCRA filing 
will result in such a large rate increase, and advised DTI that it needed to 
provide more information to the customers before they could make a meaningful 
response to DTI's settlement proposal made on September 15, 2000.

DTI opened the meeting by defending its upcoming TCRA filing as prudent, in 
accordance with FERC's prior orders on its TCRA mechanism, and legally 
defensible.  DTI then asked for responses to its settlement proposal made 
last week.  The basic feedback was that the customers "were not there yet."  
The customers said they were still interested in discussing settlement (in an 
effort to reduce the impact of the upcoming TCRA filing), but they wanted 
more of an explanation from DTI of its proposed substantial rate increase.

Much of the customer's questioning focused on DTI's "non-purchased" fuel 
supply (i.e., fuel gas DTI has borrowed from storage) and the continued 
growth in this element of its fuel supply mix over the past few years.  As of 
June 30, 2000, DTI has borrowed approximately 23 Bcf from storage for fuel 
use.

DTI also revealed that it had "liberated" approximately 13 Bcf of base 
storage gas over the last several years (i.e., reclassified base storage gas 
into working gas), and that this gas was "still on the system."  DTI said it 
had a $0.31 per MMBtu basis in this gas and that it was hoping to save it for 
a future storage project.   The liberated gas had not yet been reflected by 
DTI in its FERC reports or accounts.  Arguably, this gas has been parked in 
space being paid for by the customers and the customers are paying DTI a 
return on this gas.

During the bulk of the meeting the customers asked questions and DTI answered 
them.  DTI volunteered little; most information had to be extracted from its 
representatives.  The feeling of many of the customers was that DTI was not 
being forthright.

At the conclusion of the meeting, the customers said they wanted to ask more 
questions and would present DTI with their questions in the near future.  
Only after they have a better sense of the facts would the customers 
seriously entertain settlement offers.  Some customers expressed a desire for 
DTI to terminate its TCRA mechanism.  The customers also said the TCRA 
problems need to be addressed permanently so that there is not a "TCRA 
crisis" every year.

Accordingly, DTI will make its TCRA filing on September 29, 2000 seeking a 
cost increase of approximately $65 million.  It appears that the customers 
will protest the filing and await FERC action on the filing and protests.  In 
the meantime, another meeting to discuss these matters has been tentatively 
set for October 18, 2000 at 9:30 a.m. in Washington.  The meeting may be 
cancelled if the parties do not believe it would be useful to help resolve 
the issues at that time.

Please contact us if you have any questions about this matter.