Thanks.  Let me know how the desk sees it.  Also, please make sure that we talk with EES gas (Don Black).

Jim

 -----Original Message-----
From: 	Lawner, Leslie  
Sent:	Monday, November 12, 2001 10:52 AM
To:	Steffes, James D.; Cantrell, Rebecca W.
Subject:	EPSA filing on capacity releases

I reviewed the EPSA filing, and I have no problems, but Becky is going to run it by the desk to make sure it is okay with them.  Becky and I have been talking about what we will file and I plan to work on that today and tomorrow, but here is the thumbnail of it.

FERC is trying in the rule to give intraday recall rights to releasing shippers.   If this applies to all transactions, it obviously devalues and degrades capacity releases.  The proper approach is let the parties negotiate the arrangements they want and for the payment to reflect the level of firmness actually given.  In other words, if a releasing shipper wants the recall rights that FERC would give them as a matter of law in this rule, then they spell those rights out in their posting and negotiate the deal with that on the table.  If a shipper is willing to release capacity and forego any recall rights, they should be able to do this, and receive payment that reflects the nature of that service.  But having a rule that mandates recall that cannot be negotiated is uncalled for and contrary to the purposes of capacity release and open access.