The order that FERC issued last Wednesday regarding the western electric 
markets1 contains some provisions that would seem to indicate a favorable 
response at FERC to Kern River's open season last week.  Specifically, the 
order asks for industry comments on proposals (1) offering blanket 
certificates for construction or acquisition and operation of portable 
compressor stations to enhance pipeline capacity to California and (2) 
offering rate incentives to expedite construction of projects that will make 
additional capacity available this summer on constrained pipeline systems.  

As to the in-state problems, FERC also recognized that "actions the 
Commission takes to expedite new capacity for gas to serve California and the 
West may only be effective to the extent there is available local 
distribution capacity to deliver gas downstream of the interstate pipeline.  
The availability of sufficient local take-away capacity, however, is a matter 
that is within the control fo the states rather than of this Commission."  
FERC asks that the pipelines coordinate their efforts with LDCs, utilities 
and state officials so that any additional gas would get to all entities that 
need the gas supply. 

1 Order Removing Obstacles to Increased Electric Generation and Natural Gas 
Supply in the Western United States and Requesting Comments on Further 
Actions to Increase Energy Supply and Decrease Energy Consumption, Docket No. 
EL01-47-000.