On November 2, 2000, the California PUC issued an Order Instituting 
Investigation into the adequacy of Sempra's, SoCal's and SDG&E's planning of 
SoCal's and SDG&E's gas transmission system and what measures should be taken 
to correct any deficiencies.  The parties have been ordered to appear and 
show cause at a hearing (to be scheduled by the assigned ALJ) demonstrating 
that:

 - SDG&E has adequate gas and transmission supply for the 2000/2001 winter 
heating season, as well as the longer term throughout the year.  If such 
supply is not adequate, SDG&E shall submit plans for obtaining an adequate 
supply.

 - SDG&E's gas and transmission supply is adequate to meet anticipated need 
for gas-fired electric generation.  If not, SDG&E shall submit plans for 
obtaining adequate supply.

 - SDG&E's  gas transmission service is not being adversely affected by 
interests of its corporate affiliates.

 - Recently added demands on SDG&E's capacity are not negatively impacting 
supply for SDG&E's customers, and are otherwise consistent with 
representations to the Commission.

 - SDG&E's current gas curtailment rules are just and reasonable; if not, 
SDG&E shall propose changes.

 A written response from the three parties on these issues is due on November 
22.  Other parties may file comments on the response within 10 days after the 
response is filed.

 The Commission also ordered SDG&E to evaluate whether an interim, 
interruptible program, which will provide cost incentives to those customers 
voluntarily electing interruptible service, is needed this winter.  If so, 
SDG&E must submit a proposal for expedited Commission consideration.

 The OII represents the Commission's response to an Advice Letter filed by 
SDG&E requesting emergency review and approval of its proposal to temporarily 
revise the gas transportation service level elections of its large electric 
generation customers.  The Advice Letter was heavily protested and was 
withdrawn by SDG&E.

 In my conversation with Mark Baldwin regarding our pending consulting 
agreement for monitoring California regulatory matters for Transwestern, I 
asked him to watch for Sempra's Nov. 22 filing and to advise whether he 
believes Transwestern should file comments or appear at the hearing that is 
to be scheduled.  I will follow up with Mark, and provide you with a copy of 
the filing.