Mike:  Comments looks good.  My only comment is that, in our view, the price cap (which would cover ALL capacity in the secondary market) is simply bad economic policy and won't address any problems--in fact it will only create problems. (From a practical perspective, I'm not even sure that the Commission can successfully "regulate" prices in the secondary market.)
 
Will the commission change the price cap provisions of the decision based comments advising against them?  Very unlikely.  
 
But when the caps create problems (and they will), I want to have been on record advising the Commission of why caps are bad economic policy and pointing out the bad outcomes that caps will cause.  I think that it's very important to point out the downside of caps and to be on record against them.  
 
That said, I don't want the comments to be so negative as to cloud support for the decision; nor do I think the Commission will change the cap based on our comments.  Other than that, EES and ENA can sign on.  Anyone have any objections to pointing out the fact that price caps are ill-advised?
 
Best,
Jeff

-----Original Message----- 
From: MDay 
Sent: Thu 10/18/2001 8:43 PM 
To: 'Amirault, Paul'; 'Jeff Dasovich Enron SF'; 'Michael Alexander, SCE'; 'Phil Davies, WGSI Calgary'; 'Porter, Douglas K' 
Cc: 
Subject: I. 99-07-003 Draft Comments on the Revised Proposed Decision



 <<X28621.DOC>>

Enclosed for your review are the draft comments on the Revised Proposed
Decision in the Gas Restructuring Investigation.  WGSI and Enron have
indicated a desire to file supportive comments.  Edison has indicated an
interest in reviewing our draft for the purpose of considering joining in
our comments.  Please send edited electronic versions with underline and
strikeout to MBD at this address no later than noon tomorrow. These comments
must be filed tomorrow before 5 pm.  I am sorry for the lateness of the
draft, but these are not extensive comments.  Except for the little
bombshell about extending commission jurisdiction over gas marketers, I see
little in the RPD to warrant our opposition.  Even if the Commission
proceeds with the jurisdictional grab, I believe it can be overturned by the
Court of Appeals.

I look forward to your comments.

Mike Day