Interesting development - Huh?  John

 -----Original Message-----
From:  "Terry D. Boss" <tboss@INGAA.org>@ENRON  
Sent: Monday, May 21, 2001 10:34 AM
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(E-mail)
Subject: Removing impediments to electric generation in western states - w 
hat's in it for the pipelines


Attached is a Word  version of the FERC EL01-47 order, Removing Impediments 
to Electic  Generation  in the Western US.  The order  was issued May  16.  
The order:
 
         (1) Temporarily waives  blanket certificate regulations toincrease 
the dollar  limitations for natural gasfacilities under automatic 
authorization to  $10 million 
        and for prior notice authorizations to $30 million for  all pipelines 
that deliver gas in the WSCC http://www.wscc.com/;
        
        (2)  Temporarily waives blanket certificate regulations to allow 
construction of  mainline facilities, including temporary compression and 
facilities  that alter         mainline  capacity;
 
        (3)Allows  pipelines to roll-in costs costs of facilities constructed 
under  waived blanket certificate regulations until April 30,  2002..
 
The FERC did NOT find it  appropriate to provide a greater rate of return for 
pipelines into the western  US.  The FERC stated that the demand in the 
Western US market is an  adequate rate incentive for the short term.  In 
addition, there are other  rate incentives, according to FERC, albeit more of 
a long-term nature, in  esistence and at the disposal of the pipelines that 
deliver gas in the  WSCC.  Pipelines have the right to propose market-based 
or negotiated  rates.  Pipelines can propose incentive rates.  In addition, 
pipelines  can design incremental rates for projects which propose rates of 
return and  depreciaiton rates that differ from those used on a system wide  
basis.
 
The areas of interest to  the pipeline industry are highlighted on pp. 29-38 
of the attached  order.
Confidential: INGAA Member Use  only 
Terry D. Boss 
VP Environment Safety and Operations 
INGAA 
tboss@ingaa.org 
Joan  Dreskin
 - EL01-47_00F_TXT.doc