Pursuant to our meeting, I was to check the posting timelines to see if we could make the 1 day category, include 5 months or less rather than less than 5 months.  Based on a recent decision (March 16, 2001) in Columbia Gas Transmission Co,  I think we can.  In Columbia, the Commission approved Columbia's proposal to establish an interactive auction process in which firm capacity available for less than one year would be posted for an initial one hour period from 7:00 am to 8:00 a.m.   Capacity offered for one year or more would be subject to an initial posting period of  5 days.     This indicates movement by the Commission to much shorter posting periods for capacity available for less than one year.  I think we can modify our procedures to include up to 5 months in the 1 day posting category.  However, we may want to consider combining the 3 day category and 1 day category into one 1 day category for capacity offered for less than one year.    In addition, for capacity offered for one year or more, Columbia will advertise a proposed offer on its EBB one day prior to the five-day posting of the capacity.  (This supports a special posting in advance.)   Although it is good to have these internal procedures, what is important to the Commission is that pipeline tariffs set forth specific procedures regarding the availability of capacity.  

The Columbia order also gave guidance on when a pipeline has to accept a bid for max rates.     Columbia proposed that it not be required to sell capacity to shippers bidding the maximum rate for a term of less than 12 months until one day prior to the commencement of gas flow detailed in the auction package.  The Commission rejected this in favor of the Industrials' proposal:  Beginning 30 days before the capacity is available for service, Columbia must accept bids at the max rate for a term of five months to less than 12 months.  Beginning seven days before the capacity is available, Columbia must accept maximum rate bids for terms of more than one month to less tha 5 months.  Columbia must accept maximum rate bids for a term of one month or less one day before gas flows.  

Thanks, Maria

 -----Original Message-----
From: 	Hass, Glen  
Sent:	Wednesday, May 30, 2001 4:32 PM
To:	Harris, Steven; Miller, Mary Kay; Fossum, Drew; Dornan, Dari; Pavlou, Maria; Pryor, Tony; Donoho, Lindy; Watson, Kimberly; Darveaux, Mary; Fawcett, Jeffery; Lokay, Michelle; Lindberg, Lorraine; Lohman, TK; Kirk, Steve; Paladino, Ranelle
Subject:	Capacity Posting Procedures

Attached for your review is a redlined draft of TW's Capacity Posting Procedure including changes suggested at our meeting yesterday.  One remaining item is to decide whether capacity available for "less than 5 months" or "5 months or less" will be designated as 1 day postings.  Please review and advise if you have any additional comments.  Thanks.

gh

 << File: TW Capacity Posting Proc5-30.doc >>