Yes.




	Leslie Lawner 07/05/2001 09:05 AM 	   To: Rebecca W Cantrell/HOU/ECT@ECT, Donna Fulton/Corp/Enron@ENRON, Phillip K Allen/Enron@EnronXGate, Harry Kingerski/NA/Enron@Enron, Paul Kaufman/Enron@EnronXGate, Jeff Dasovich/NA/Enron@Enron, Stephanie Miller/Enron@EnronXGate, Roger O Ponce/HOU/EES@EES, Jess Hewitt/HOU/EES@EES, Don Black/HOU/EES@EES  cc: Rubena Buerger/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT  Subject: California state regulatory matters	


Let's try and set up a call to talk about the California intrastate gas issues noted below (LDC hedging, rate unbundling and system upgrades/expansions).  Does Tues. July 10 at 3:00 Central work for everyone?

(Roger please pass on to EES folks who should be on).

Thanks.

----- Forwarded by Leslie Lawner/NA/Enron on 07/05/01 08:54 AM -----


	James D Steffes 07/03/01 03:23 PM 	   To: Leslie Lawner/NA/Enron@Enron  cc:   Subject: California state regulatory matters	


Leslie --

Can you organize a call that goes through these issues and begins to rationalize the information requested by Phillip?  While these issues are important, I don't see the CPUC doing anything in the near-term to help fix the problems.

Jim

---------------------- Forwarded by James D Steffes/NA/Enron on 07/03/2001 03:22 PM ---------------------------
From:	Leslie Lawner on 06/27/2001 12:59 PM
To:	Paul Kaufman/Enron@EnronXGate, Jeff Dasovich/NA/Enron@Enron, James D Steffes/NA/Enron@Enron
cc:	Harry Kingerski/NA/Enron@Enron, Rebecca W Cantrell/HOU/ECT@ECT, Donna Fulton/Corp/Enron@ENRON, Phillip K Allen/Enron@EnronXGate 

Subject:	California state regulatory matters

Paul and Jeff,

Becky, Donna and I (gas girls) met with Phillip Allen (ENA West) to discuss FERC gas issues today, and Phillip had some issues that were more state than federal, and I told him I would bring them to your attention.

He is interested in seeing incentive rates or more hedging on the part of the CA LDC's so that all their needs are not being served by the spot market.  In the current market, hedges (longer term contracting and financial) are being done primarily by the producers and marketers, which results in a thin and probably off-kilter market (the LDCs buying for the customers are not participating).  I know we have to square this with the EES positions, but I am not up to speed on what is going on in CA on this issue.

Phillip also made that point that while the LDCs are focusing on their core load, no one is doing system planning on the macro basis, taking into account the ability of the physical systems to meet the needs of all customers, core and non-core and making sure the system will be adequate.

Finally, he is very interested in seeing the CA LDC rates unbundled.

Any updates we can provide to Phillip (and the gas girls) would be appreciated, as well as what our plans are to address these issues.

From our side, El Paso is having a conference in July and we will be taking up a number of allocation and transportation issues at that time.

Thanks.