-----Original Message-----
From: 	Cantrell, Rebecca  
Sent:	Wednesday, June 20, 2001 6:14 PM
To:	Dillard, Barbara; Fletcher, Brenda H.; McMichael Jr., Ed; Ermis, Frank; Shively, Hunter S.; Tholt, Jane M.; Hewitt, Jess; Hodge, John; Townsend, Judy; Olinger, Kimberly S.; Baker, Natalie; Lucci, Paul; Tate, Paul; Allen, Phillip K.; Gay, Randall L.; Superty, Robert; Concannon, Ruth; Brawner, Sandra F.; Mahmassani, Souad; South, Steven P.; Miller, Stephanie; Pereira, Susan W.; Pollan, Sylvia S.; Walker, Terri; Kuykendall, Tori; Lamadrid, Victor; Shireman, Kristann; Muhl, Gil; Calcagno, Suzanne; Goodell, Scott; Sullivan, Patti; Smith, George F.; Kinsey, Lisa
Cc:	Pharms, Melinda
Subject:	Possible Change to GRI Rates in Jan 2002

The Gas Research Institute has filed a proposal to revise the GRI surcharges from the level previously authorized in the 1998 Settlement.  GRI's filing has not been approved yet, but the Settlement provides for an adjustment under certain circumstances so there is a good chance it will be.  We will advise you of the outcome when FERC issues an order on GRI's proposal.  The new rates would still be below the current rates.  Both sets of rates are provided below for your convenience.



Rates (cents per Dth)	Current 2001	Settlement 2002	New Proposal 2002	
Commodity	0.7	0.5	0.55	
High Demand*	9.0	6.0	6.6	
Low Demand*	5.5	3.7	4.07	
Small Customer	1.1	0.8	0.88	
  				

*refers to high load factor or low load factor customers.

If FERC approves this proposal, the rates for 2003 will likely change from those in the Settlement as well.