Attached is (hopefully) the final draft of my testimony on  behalf of 
electric generators in support of the Comprehensive Settlement  Agreement for 
SoCalGas.? I have incorporated comments from Edison, Dynegy,  CCC, IP, and 
SoCalGas.? Please let me know if you have any further  concerns, by e-mail or 
at 510-649-9790.
?
With respect to Glen Sullivan's concerns about discussing  the?rate impacts 
on EGs, I have the following comments.? Certainly, it  is difficult at this 
point to project how much backbone capacity will be  subscribed, and at what 
cost.? However, it is a fact that every end user on  the SoCalGas system will 
need to acquire and pay for backbone capacity in order  to move gas to their 
facility.? Lad and Gillian made, in my view, a  reasonable estimate that, on 
average, end users would pay $0.07 per Dth for  backbone service, based on 
total backbone costs divided by BCAP  throughput.? Some may use interruptible 
service and pay 120% of this rate;  others may obtain backbone service at a 
discount.? On average, Lad and  Gillian's numbers are a reasonable projection 
and very defensible.?  Moreover, in my view, we need to try to seize the high 
ground on the issue of  rate impacts on EGs; otherwise SCGC?will do so, 
and?our settlement  could face a real problem.
?
Tom Beach
 - EG Testimony.doc