sorry--I left you off the list.  df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 02/27/2001 
12:10 PM ---------------------------


Drew Fossum
02/27/2001 11:58 AM
To: Mary Kay Miller/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@Enron, Glen 
Hass/ET&S/Enron@ENRON, Susan Scott/enron@enronXgate, Maria 
Pavlou/Enron@EnronXGate, Kevin Hyatt/Enron@EnronXGate, TK 
Lohman/Enron@EnronXGate, fkelly@gbmdc.com, sstojic@gbmdc.com
cc: Shelley Corman/Enron@EnronXGate, Michael P Moran/Enron@EnronXGate 

Subject: Data Responses

I just had a good conversation with Sempra's regulatory person who is working 
on the data responses for Stephanie Katz.  Her name is Gillian Wright, and 
she is a "regulatory case manager" whatever that is.  She was pleased to hear 
about the extension til Wed 12:00 for her responses.  The best news is that 
she was a very chatty individual and was interested in our thoughts on the 
questions.  I told her that our answer no. 1 was just going to confirm that 
the recourse rate is in fact in our tariff where it is supposed to be and it 
is always "offered."  I suggested that her question no. 1 was a little 
different and to me, indicated that FERC just didn't understand the daily 
markets at all and further didn't understand very much about index to index 
deals and how they might be the best way to contract in many circumstances.  
She took that bait and said that their answer would focus on exactly 
that--that fixed rate deals create risk issues for trading companies that 
index deals lay off.  She also said that FERC's questions looked similar to 
questions Sempra Trading has had to answer on other deals and that she 
thought her answer would be similar.  I got a high comfort level that she 
viewed this whole thing as no big deal.  Are any of you aware of where Sempra 
may have been required to answer questions like these???  Kathy R:  have you 
seen any above-max index deals involving Sempra?  It may have been CPUC 
questions she was referring to, but I didn't want to make a big deal of it.

Gillian would like to get a fax of our responses to her at 213-244-8820 as 
soon as they are ready.  Susan and Maria please make sure we get that done.  
She said she'd send hers to us as soon as she could, but I didn't push for a 
draft to review as her thinking sounds consistent with ours.   

As for Sid, Scott Walker's regulatory guy won't be available until tomorrow 
morning.  Scott is having him call me then to discuss the answers.  Scott was 
appreciative of the extension, but frankly didn't sound like he planned to 
meet the Tuesday deadline anyway.  In fact, I'm not sure he cares all that 
much about meeting the new Wed. deadline.  DF