Jeff - Here is a synopsis of the Sempra OII.


>    -----Original Message-----
>   From:  Cherry, Brian
>   Sent: Friday, November 03, 2000 8:16 AM
>   To: Cherry, Brian; Williams, Ray; Johnson, Kirk; Thomas,
> Dan (CGT Dir); Katz, Michael; Campbell, Benjamin; Bellenger, Geoffrey;
> Berkovitz, Trista; Gee, Dennis; Buchner, Les; Lindh, Frank (Law);
> Litteneker, Randall (Law); Niven, Andrew (Law); Sivley, Paul; McLafferty,
> Daniel; Lieu, Lisa; Anderson, David W (Law)
>   Cc: Guliasi, Les
>   Subject: Sempra OII
>
>
>   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.
>