Hi.  Sorry for the delay.  Today's big FERC hearing has had me wrapped up.  
Please read the following and keep VERY confidential---it's an internal PG&E 
summary.  Electronic version of OII to follow.

Best,
Jeff
******************************************************************************
****************
Yesterday, the Commission issued an OII to determine the
> adequacy of Sempra Energy's, SoCalGas' and SDG&E's gas transmission
> practices and to determine what measures need to be taken to correct any
> deficiencies.  The OII orders the Sempra affiliates and parent to
> demonstrate that SDG&E's gas supply and transmission system are adequate
> to provide service to present and future core and noncore customers.
> 
>       As you may recall, the OII sprang from an AL that SDG&E
> filed in August requesting emergency review and approval of its proposals
> to temporarily revise gas transportation service elections to its noncore
> customers.  SDG&E subsequently pulled the advice letter after the
> Commission issued a resolution rejecting it and outlined an OII it was
> going to issue on this matter.  The language in the OII that was issued
> yesterday is substantially similar to that which was in the Commission's
> original draft resolution.
> 
>       The Sempra companies have been ordered to appear at a soon
> to be determined PHC to show cause and demonstrate that:
> 
>       1. SDG&E has adequate gas transmission supply for the
> 2000/2001 winter heating season, as well as the longer term supply
> throughout the year.  If supply is inadequate, SDG&E shall submit plans
> for obtaining adequate supply.
>       2. SDG&E gas and transmission supply is adequate to meet
> anticipated need for gas fired generation.  If not, SDG&E shall submit
> plans for obtaining adequate supply.
>       3. SDG&E's gas transmission service is not being adversely
> affected by interests of its corporate affiliate.
>       4. Recently added demands on SDG&E's capacity are not
> negatively impacting supply for SDG&E's customers. and otherwise
> consistent with representations made to the Commission.
>       5. SDG&E's current gas curtailment rules are just and
> reasonable; if not, SDG&E shall propose changes.
> 
>       We are going to need to keep a careful eye on this
> proceeding as it develops to make sure it stays focused on events in
> southern California.  Commission Bilas gave me assurances last week before
> the OII was issued that it was a Sempra problem, not a statewide problem.
> However, given everyone's sensitivities to EG concerns, its a proceeding
> that could easily be expanded beyond its current narrow focus.  I'll
> forward you all a copy of the order later today.
> 
----- Forwarded by Jeff Dasovich/NA/Enron on 11/09/2000 12:02 PM -----

	Susan Scott
	11/09/2000 09:41 AM
		 
		 To: Jeff Dasovich
		 cc: 
		 Subject: New OII

The proceeding is I0011002; I think the order was issued Nov. 2.

---------------------- Forwarded by Susan Scott/ET&S/Enron on 11/09/2000 
09:40 AM ---------------------------


Susan Scott
11/06/2000 02:28 PM
To: Jeff Dasovich
cc:  

Subject: New OII

Jeff, I read in Gas Daily that the Cal PUC has issued an OII on the adequacy 
of supply and pipeline infrastructure in southern California.  Could you have 
someone send me a copy of the order whenever it is issued?  Steve thinks it's 
something we might want to get involved in, but I need to know more.  

Great to see you last week.

Ciao,
Susan