New rules propose to:
1. Expand the list of who is a marketing affiliate
2. Require pipeline to keep detailed records of communications with affiliates 


 -----Original Message-----
From: 	Thames, Davis  
Sent:	Tuesday, March 19, 2002 1:22 PM
To:	Corman, Shelley
Subject:	RE: affiliate rule

Great, thanks - that gets to the heart of it.  I suppose that with respect to planning, separateness would apply.  Out of curiosity, are the changes going to be more restrictive or less?

 -----Original Message-----
From: 	Corman, Shelley  
Sent:	Tuesday, March 19, 2002 1:20 PM
To:	Thames, Davis
Subject:	RE: affiliate rule


The FERC is presently deliberating on more restrictive rules, but I'll answer in the context of the current rules.

There are three main principles behind the current rules:
1. Pipeline can't share shipper information with affiliate
2. Pipeline can't share transportation info with affiliate -- unless pipeline is willing to publicly post info, and
3. Pipeline and affiliates must operate as separately as reasonably possible.

There is no prohibition on the pipeline having affiliate information, but the real root of your question is whether the entities are operating separately.  For example, pipeline gets forward price curve info from affiliate -- we'd argue that this is just info that helps pipeline do its job better.  But, compare with scenario where pipeline has a detailed list of all affiliates sales obligations - price, terms, etc. -- the argument can be made that the entities are not operating separately and the only reason that the pipe has this info is to favor affiliate business.  There was a real case to this effect.  The pipeline & affiliate attended a joint strategy meeting each morning.  The pipeline claimed that it only listened during the meeting.  FERC found that the pipeline and affiliate were not operating separately and fined the pipeline.

So, I'd say that the rules are asymmetric for the case where the pipeline wants access to research/training/historical type info, but probably symmetric when it comes to matters of day to day contracts of transactions.

 -----Original Message-----
From: 	Thames, Davis  
Sent:	Tuesday, March 19, 2002 12:29 PM
To:	Corman, Shelley
Subject:	affiliate rule

Shelley, dumb question, but I'm thinking in terms of general synergies for reorgco.  I am familiar with restrictions that prohibit operating info and preferential treatment to marketing affiliates of pipeline co's, but do the regulated pipeline co's have unrestricted access to the info from marketing affiliates?  My guess would be that the rule is asymmetric, but Enron always seemed to treat it as a two-way street.
Thx-
Davis