Greetings:
 
Recall that about 3 weeks we got a call from a CA PUC staffer asking whether 
we'd switched a particular gas customer (or two) back to the LDC.  We looked 
into it and discovered that we'd mistakenly switched the customer back due to 
a mix up about the fact that the customer had two active meters behind two 
different utilities.  We informed the PUC staffer of the mix-up and explained 
that the situation would be resolved.  

The questions from the staffer arose because the CA PUC made a bad decision a 
couple of months ago. When gas prices ran up at the California border a lot 
of large ("noncore") customers attempted to switch back to the utility tariff 
in the hope of lowering gas costs.  In response, SoCalGas filed with the 
Commission asking the PUC to prohibit customers from switching back.  The 
Commission agreed and put the prohibition in place.  The Commission is now 
concerned that if suppliers terminate their contracts with customers (for 
whatever reason), or choose not to renew the contracts when they expire, 
customers won't have the option of returning to LDC service.

Today, I received a letter from the President of the Commission asking me to 
respond to the following:

Have you "stopped selling and delivering natural gas to any non-core 
customers with whom you have an existing procurement contract, or...notified 
any of your non-core customers that you do not intend to renew an existing 
natural gas commodity procurement contract.  If your company has stopped or 
intends to stop serving non-core customers, the CPUC also needs to know

how many contracts you have terminated or expect to terminate
the natural gas volumes involved
the location of the non-core customer(s)
the reason(s) your company intends or has already acted to terminate those 
contracts."

There's a good chance that the letter from the President of the Commission is 
linked to the fact that we've recently switched our electricity customers 
back to utility service in California.  

Prior to deciding whether and how to respond to the Commissioner, I'm trying 
to get handle on whether we're re-sourcing any gas retail customers to the 
utility prior to expiration, choosing not to renew contracts once they've 
expired, etc.  Catherine, or Jim Foster, can you help out?  Thanks.

Best,
Jeff