ETS State Government Report:

California

I00-11-002  Adequacy of SoCal System.  Since no parties challenged TW's testimony supporting SoCal's receipt point capacity proposal in Opening Comments, Transwestern did not file Reply Comments last week.  Most comments by intervenors focused on other issues such as their open season mechanism, curtailment, backbone transmission capacity addition planning, slack capacity and barriers to new interstate pipeline service.

A01-09-024  On Sept. 21, 2001, SoCalGas filed its Biennial Cost Allocation Proceeding (BCAP) application.  The purpose of the filing is to revise rates to reflect the updated allocation among customers of non-gas commodity costs of service effective January 1, 2003.  In addition to the required rate revisions, SoCal requested authority to revise and simplify various tariffs and to implement several new programs.  Of interest is the proposal for allocation of firm receipt point capacity into their system.  Other  proposals address procedures for open seasons to expand the backbone system, an in-kind fuel charge for transportation and an expansion of the unbundled storage program including gas loaning services.  The application, testimony and exhibits have been distributed to Marketing, Legal and Regulatory for review.  Interventions will be due at the time of the pre-hearing conference which was proposed by SoCal to be held in late October.

Infrastructure Report.  The California Energy Commission approved its Natural Gas Infrastructure Issues Report on a 4-0 vote after several months of discussion and revisions to various drafts.  Most recently certain commenters encouraged the CEC to include an assessment of El Paso's impact on prices through market power and manipulation.  Instead the CEC report references the FERC proceedings addressing this issue and the fact that the CPUC which filed the complaint will represent the interests of California ratepayers.  Numerous factors are addressed as contributing toward the high prices experienced during the last heating season, these included insufficient receipt point takeaway capacity within California, insufficient capacity on the El Paso pipeline system, high demand for gas fired electric generation, low storage levels and extremely dry weather conditions which led to lower hydroelectric output.  Recommendations included encouraging additional in-state gas production, re-evaluate design criteria to expand intrastate systems, encourage the creation of new and independent storage facilities and revise curtailment rules.

New Mexico

01-121-PL  The rescheduled Sept 12th public meeting on the NMPRC's Safety NOI was held last week.  Rick Smith made the TW presentation.  Albino Zuniga, the lead NMPRC person did not attend.  Participation was low and uneventful.

Week of  10/8 Schedule:

Houston	Monday & Tuesday
Omaha		Wed. - Friday