Interesting  stuff....
-----Original Message-----
From: Guerrero, Gary (Corp)  
Sent: Wednesday, February 28, 2001 4:14 PM
To: Anderson,  David W (Law); Gardiner, Stuart (Law); Kurz, Edward (Law); 
Lindh, Frank (Law);  Locke, Richard (Law); Post, Jennifer (Law); Reid, Alice 
(Law); Sampson, Keith  (Law); Witalis, Lawrence (Law); Bar-Lev, Joshua (Law); 
Patrizio, Mark (Law);  Manheim, William (Law); Guardalabene, John (Law); 
Metague, Stephen; Mosley,  Judi; Witmer, Deborah F; Eshbach, Shirley; 
Malekos, Shelly; Risser, Roland;  Rubin, David; Haertle, Steven; Bell, 
Andrew; Rothfuss, Blake; Morford, Terry;  Doran, Robert; Kozlowski, Lanette; 
McLafferty, Daniel; Petersen, Kathryn; Bowen,  Bruce; Simi, Lawrence (Corp); 
Forsgard, Karen; Janis, Megan Smith (Corp);  Armato, John P; Hitson, Brian J; 
Faraglia, Annette (Law); Thomas, Dan (CGT Dir);  Jauregui, Robert M; 
Halverson, Shaun E; PGE 830 Regulars; Chovanec, Anthony C;  
'Jeff.Hitchings@gt.pge.com'; Petersen, Donald; Campbell, Benjamin; Chang,  
Armando; Henri, Joseph; Myers, Joanne; Huffman, Mark (Law); Doble, Richard;  
Gourley, John; Lee, Wing; Ray, Joseph; Risdon, Angela; Shiffman, Rhonda; 
Soneda,  Alan; Sparks, Mike; Studley, Thomas; Zemke, William; Markevich, 
Nicholas;  Heatherington, Dean; Agerter, Linda L (Law); LaFlash, Hal (Corp); 
Wong, Ernie;  Hawks, Jack; O'Neill, Sean; Richardson, Bruce; Treleven, 
Kathleen; Wilson,  Michelle (Law); Ludemann, Doreen (Corp); 
'Harry.Singh@gen.pge.com'; Post,  Charles; Jones, Sunita; Lavinson, Melissa; 
Palazzi, Marsha; Wolfgram, Steve;  Hartman, Sanford; Cahill, Jane; Meier, 
Peter E.; Vincent, Shaylene; Wilson,  Chris; Sawyer, Sarah; Smith, Phil; 
Eisenman, Eric; Morton, Kelly M (Law); Scott,  Eric; 
'marcy.collins@gt.pge.com'; Morrison, Darcy; Candlin, Jim; Johnson,  
Gerianne; Lipson, Merek (Corp); De Backer, Steven; Roscher, John; Whyte, 
Daniel;  Black, Patricia (Corp); Martyn, Rick; Chan, Eileen (Corp); Low, 
Ronald; Cooper,  Shawn (Corp); 'Rob.Gramlich@neg.pge.com'; Helgens, Ronald; 
David, John (Corp);  Chan, Eileen (Corp); Togneri, Gabriel (Corp); Fong, 
Valerie O.; David, John  (Corp); Hayes, Kathleen (Corp); Hendra, Vincent 
(Corp); O'Flanagan, Joseph; Woo,  Jeannette; Cherry, Brian; IA Support Staff 
(Corp); Gee, Dennis; Laszlo, Janos  John; Wan, Fong (Corp); Lubben, Sally; 
Lemler, Gregg; McNeece, Christopher;  Allen, Samantha; Pidcock, Paulette C 
(Corp); Stock, William; Cooper, Kenneth;  Dowling, Susan
Cc: Kline, Steven (Corp); Hapner, Dede; Peters, Roger  (Law); Herman, 
Stephen; Tomcala, Karen (Corp); Document  Retention-CPUC
Subject: FERC Daily News


[IMAGE]

FERC  Daily News

February  28, 2001

?

Here is today,s FERC Daily News.? Electronic versions of the entries are  
available by sending me an e-mail. For utility employees, note that a copy 
of  this document is automatically sent to the PG&E-- Document 
Retention-CPUC  central repository on behalf of the sender and all 
recipients.  

?

?

SPECIAL  NOTE:

o????????  Chairman  Hebert Testimony:? Attached is the Testimony of FERC  
Chairman Curt Hebert before the House of Representatives Subcommittee on 
Energy  and Air Quality of the Energy and Commerce Committee.? His testimony 
focused on natural gas  issues and the role of natural gas in national energy 
policy.? The Chairman states that one of his top  priorities is to ensure 
that needed energy infrastructure is built.? He pledges that he will do 
everything in  his power to ensure that the Commission quickly processes 
certificate  applications for new pipeline projects that bring newly 
developed gas supplies  to market and which eliminate gas transportation 
bottlenecks.? He does though indicate that to the  extent transportation 
bottlenecks reside within state jurisdiction, the states  must similarly 
undertake to improve their infrastructure.? With respect to California, he 
indicated  that the Commission is responding as quickly as possible to any 
applications to  construct new capacity, noting three certificate approvals 
in the last seven  months for 118,000 Mcf/day.? On the  same page he exhorts 
California officials to expedite considerations of  proposals to remove gas 
transportation bottlenecks within the state, which he  believes contributed 
to recent high prices in the Southern California area.? Touching on his boss, 
theme, the  Chairman also speaks to the need for constructing a natural gas 
pipeline from  the North Slope of Alaska to the lower 48 states.

?

?

?

SUBSTANTIVE  ISSUANCES:

o????????  Kern  River Gas Transmission Company, and, Northwest  Pipeline,  
Docket No. RP00-505-001 and RP00-506-002 (not consolidated), ORDERs ON  
COMPLIANCE FILINGs (Issued February 23, 2001)? The Commission issued an Order 
in  each of the Williams Pipeline Companies, proceedings limiting their  
proposals to restrict customers to a pro rata distribution of partial 
capacity  turnbacks.? The Commission had  required, in an earlier Order, that 
the pipelines file support for their  requirement that a shipper reducing its 
capacity in part do so on a pro rata  basis across all delivery points.?  
Shippers had objected, and in the Order issued in response to the  Compliance 
filings, the Commission firmly rejected the pro rata reduction  requirement.? 
The Commission agreed  with the intervenors comments, however, finding that 
Kern,s requirement for pro  rata reductions of receipt and delivery point 
entitlements in capacity reduction  situations could lead to unreasonable 
results, and is contrary to flexibility in  Kern,s existing tariff and 
Commission policy.? The Commission specifically rejected the  pipeline,s 
claim that allowing varied reductions would result in &cherry  picking,8 and 
distinguished this issue from the FERC,s decision not to &enhance8  shipper 
ROFR rights by allowing geographic segmentation in Order No. 637.? In the 
Northwest Pipeline Order, the  Commission made a similar finding, rejecting 
the pro rata restrictions proposed  also for capacity reductions. The 
Commission also rejected the argument that  allowing shippers greater 
flexibility would result in lost revenues and cost  shifts.? Although 
Northwest may find  it more challenging to market turned-back capacity? and 
unused capacity, rather than  allowing customers to maximize their use of?? 
existing contracts, Northwest  cannot show that it would face any immediate 
loss? of revenue, FERC stated.? FERC did acknowledge that operational  
problems might provide a valid objection by the pipeline.? In both cases, 
because the pipelines  employed a postage stamp rate structure, the customer,
s use of flexibility in  distributing partial reductions would not reduce 
pipeline revenues, the  Commission concluded.? In both  dockets, FERC 
supported the pipeline,s retention of pro rata reductions in  aggregate 
maximum daily  delivery obligations, accepting the explanation that the 
requirement is  &to maintain historic contract relationships in reductions 
situations, and to  prevent shippers from increasing flexibility under 
specific contracts at the  expense of other shippers

?

?

?

OTHER PROCEDURAL NOTICES and  ORDERS:

o????????  Sempra  Energy,  Docket No. ER01-1193-000, NOTICE OF FILING 
(February 27, 2001)? On February 16, Sempra Energy filed  a request for 
withdrawal of its February 7, 2001, Petition for Waivers, and  Blanket 
approvals in its filing for market based rate authority for the  wholesale 
sale of electric power and ancillary services for 50% of the output of  the 
El Dorado generating plant in Boulder City, Nevada.? COMMENT DATE:? Friday, 
March 9,  2001

?

?

o????????  PJM  Interconnection,  Docket No. ER01-1286-000, NOTICE OF FILING 
(February 27, 2001)  On February  20, PJM Interconnection filed a request to 
amend its Operating Agreement to  waive, for this year, the requirement that 
PJM retain an independent consultant  to propose candidates for the two seats 
on PJM,s Board of Managers for which an  election is required at PJM,s 2001 
Annual Meeting.? PJM states that the two members whose  terms are expiring 
this year are willing to continue to serve on the PJM Board,  and the PJM 
Members have therefore concluded that obtaining the services of the  
independent consultant are not necessary.?  COMMENT DATE:? Tuesday, March  
13, 2001

?

?

o????????  New  England Power Pool,  Docket No. ER01-1289-000, NOTICE OF 
FILING (February 27, 2001)? On February 20, the NEPOOL  Participants 
Committee filed to terminate the NEPOOL membership of Alternate  Power 
Source, as of March 5, unless APS cures its existing defaults.? The NEPOOL 
Participants Committee states  that APS has suspended its participation in 
the NEPOOL markets pending the  earlier of a cure of its defaults or the 
effectiveness of its termination from  the Pool.? COMMENT DATE:? Tuesday, 
March 13,  2001

?

?

o????????  Alliance  Companies,  Docket Nos. ER99-3144-003, et. al., NOTICE 
OF CONVENING SESSION (February 27,  2001)? In the January 24, 2001 Alliance  
Order, the Commission directed parties with grandfathered contracts, whose 
terms  extend beyond the transition period, to negotiate amendments or 
termination of  such contracts. To assist the parties, the Commission 
directed the Director of  the Commission's Dispute Resolution Service (DRS) 
to convene  

omeeting of the parties to explore  the use of an ADR process to foster 
negotiation and agreement.? The convening session in this matter  will be 
held on March 5 at FERC.?  The purpose of the convening session will be to 
explore options for  renegotiating or terminating the relevant grandfathered 
contracts, as directed  by the Commission.? In addition, the  meeting will 
explore whether any future sessions should be held with all parties  or with 
individual transmission companies and contracting parties.? 

?

?

?

?
 - hebert228.pdf
 - image001.jpg