Thanks.

 -----Original Message-----
From: 	Cantrell, Rebecca W.  
Sent:	Monday, November 12, 2001 3:32 PM
To:	Steffes, James D.; Lawner, Leslie
Subject:	RE: EPSA filing on capacity releases

Mike Grigsby and Scott Neal both agree that they don't have any objection to intraday recall as long as it is an option that the releasing shipper can select as part of the initial release and they would know up front if a package they were bidding on was recallable mid-day - just another product which they would price accordingly.  Leslie thinks the optionality of it is contained in the order, but we'll file comments requesting clarification since it's not addressed head-on.  I invited Don Black to the meeting we just had, but it was over so quickly he never made it.  I will run this by him as well.

 -----Original Message-----
From: 	Steffes, James D.  
Sent:	Monday, November 12, 2001 11:51 AM
To:	Lawner, Leslie; Cantrell, Rebecca W.
Subject:	RE: EPSA filing on capacity releases

Thanks.  Let me know how the desk sees it.  Also, please make sure that we talk with EES gas (Don Black).

Jim

 -----Original Message-----
From: 	Lawner, Leslie  
Sent:	Monday, November 12, 2001 10:52 AM
To:	Steffes, James D.; Cantrell, Rebecca W.
Subject:	EPSA filing on capacity releases

I reviewed the EPSA filing, and I have no problems, but Becky is going to run it by the desk to make sure it is okay with them.  Becky and I have been talking about what we will file and I plan to work on that today and tomorrow, but here is the thumbnail of it.

FERC is trying in the rule to give intraday recall rights to releasing shippers.   If this applies to all transactions, it obviously devalues and degrades capacity releases.  The proper approach is let the parties negotiate the arrangements they want and for the payment to reflect the level of firmness actually given.  In other words, if a releasing shipper wants the recall rights that FERC would give them as a matter of law in this rule, then they spell those rights out in their posting and negotiate the deal with that on the table.  If a shipper is willing to release capacity and forego any recall rights, they should be able to do this, and receive payment that reflects the nature of that service.  But having a rule that mandates recall that cannot be negotiated is uncalled for and contrary to the purposes of capacity release and open access.