In our negotiated rate proceeding, the Commission issued a Section 5 "show cause" order.  Specifically, TW must, within 10 days of the order, show cause why its actions in offering the negotiated rate contracts (Reliant, Richardson, BP, Sempra, Astra) was not in contravention of Commission policy.  TW must explain the availability of firm capacity on TW's system, and how it has the firm capacity to move gas under the transactions under investigation, yet provide recourse service without interruption.  Drew, Maria and I will work with outside counsel to file the necessary pleading.  I'll get a copy of the order to each of you.

In other news, in CPUC v. El Paso, the Commission issued an order discussing CPUC's complaint that El Paso Merchant intentionally acquired more capacity than needed to manipulate price spreads. The order dismisses denies summary judgment and dismisses the complaint. FERC stated that El Paso Merchant has not violated any standards of conduct. With respect to the issue of market power, the current record is not considered to be complete. However, FERC will schedule a hearing to complete and review the record.