thanks, paul.  apologies, i dont' even remember seeing this.  leslie, can we discuss on thursday.  i  can update you on everything underway w.r.t. cal gas.  thursday work for you?

best,
jeff




	Paul Kaufman/ENRON@enronXgate 07/03/2001 10:22 AM 	   To: Jeff Dasovich/NA/Enron@Enron  cc:   Subject: FW: California state regulatory matters	


Knowing your swamped and all ... did you respond to this e-mail or contact Phillip Allen?

 -----Original Message-----
From: 	Lawner, Leslie  
Sent:	Wednesday, June 27, 2001 11:00 AM
To:	Kaufman, Paul; Dasovich, Jeff; Steffes, James
Cc:	Kingerski, Harry; Cantrell, Rebecca; Fulton, Donna; Allen, Phillip K.
Subject:	California state regulatory matters

Paul and Jeff,

Becky, Donna and I (gas girls) met with Phillip Allen (ENA West) to discuss FERC gas issues today, and Phillip had some issues that were more state than federal, and I told him I would bring them to your attention.

He is interested in seeing incentive rates or more hedging on the part of the CA LDC's so that all their needs are not being served by the spot market.  In the current market, hedges (longer term contracting and financial) are being done primarily by the producers and marketers, which results in a thin and probably off-kilter market (the LDCs buying for the customers are not participating).  I know we have to square this with the EES positions, but I am not up to speed on what is going on in CA on this issue.

Phillip also made that point that while the LDCs are focusing on their core load, no one is doing system planning on the macro basis, taking into account the ability of the physical systems to meet the needs of all customers, core and non-core and making sure the system will be adequate.

Finally, he is very interested in seeing the CA LDC rates unbundled.

Any updates we can provide to Phillip (and the gas girls) would be appreciated, as well as what our plans are to address these issues.

From our side, El Paso is having a conference in July and we will be taking up a number of allocation and transportation issues at that time.

Thanks.