CONFIDENTIAL AND PRIVILEGED 
ATTORNEY WORK PRODUCT 

-----Original Message----- 
From: rkruse@duke-energy.com [mailto:rkruse@duke-energy.com] 
Sent: Monday, December 11, 2000 4:25 PM 
To: jdreskin@INGAA.org 
Subject: 


M E M O R A N D U M 


To:?????? Joan Dreskin 

From:????????? Richard J. Kruse 

Re:?????? Docket No. PL00-1, Marketing Affiliate Rules 

???? Attached is Duke Energy Gas Transmission's draft of the sections which 
Duke? agreed? to? prepare.? We look forward to discussing these with you in 
more? detail.?? Duke? believes? that? it? is? critically important that the 
distinction be made between gas and electric industries since that seems to 
be? a? topic? that? is? high on the FERC Staff's mind and you will see this 
reflected? in our draft.? In addition, we would echo the thoughts forwarded 
to? you? by? Janice Alperin about the need to employ an expert.? As you can 
see,? many? of? the? arguments? in this draft need support from an economic 
expert. 

???? Duke? believes that INGAA should view of the utilization of experts on 
a long-term basis, not just for comments to be filed on January 5, 2001, or 
the? presentation? on? January? 31,? 2001.? This is likely to be an ongoing 
dialogue and that there well may be opportunities for further presentations 
and? for reply to anecdotal evidence presented by others.? Also, we believe 
that? the? use? of? more? than? one policy expert would be appropriate.? In 
particular,? we? feel it would be helpful to have an expert with a national 
reputation? that? could address the issues from a broad policy and economic 
prospective? and? we? would like to discuss specific recommendations at our 
next meeting. 

???? Duke? will? make? available? whatever internal resources are needed to 
help in developing the INGAA comments for filing on January 5, 2001, and in 
the? preparation? of? the? presentation? to? be? made? on January 31, 2001. 
However, Duke believes that this is a long-term effort that ought not to be 
limited? by? the? short-term? time? deadline? we? currently? face.? In some 
respects,? it? may be preferable to "wait and see" what the allegations are 
from the other side and weigh in at that time. 

???? We? look? forward? to? further? discussions? with you at your earliest 
convenience. 

??????????????????????????????????? RJK 

Attachment 

(See attached file: Dec11INGAAPotentialApp.doc) 

? 
 - Dec11INGAAPotentialApp.doc