email_body: Rod:  As we discussed here are the bulletts that summarize what we heard from our consultants.
  Overall demand picture  Believe it will be 2006 before the California market will get back to 2000/2001 demand levels            2002           demand down approximately 900 mmcf/d           2003      demand will be flat           2004      growth in demand will begin           2005-2006 return to 2001 demand levels  Reasoning:     2001 was a dry year - the lack of hydro generation created an additional    600 mmcf/d demand for gas in California    Anticipated generation capacity overbuild in California - new more    efficient power plants with better heat rates will displace older gas    fired generation, reducing the amount of gas required to generate a MW    of electricity on the margin    California electricity rate increases have curtailed demand for power    and subsequently, gas  Gas transmission capacity into the state  Over the next two to three years there will be an additional 2.0 Bcf/d of transmission capacity into California     800 mmcf/d in 2002    900 mmcf/d in 2003 (Kern River expansion)    300 mmcf/d                 (El Paso conversion of All American oil line    and power up)  San Juan basin gas  San Juan basin production is declining     first half of 2001 vs. first half of 2000 production off by    approximately 200 mmcf/d    Rockies gas will not replace declining production in the San Juan    San Juan gas will move closer to Permian pricing    The consultants believe that the combination of these factors will put decontracting pressure on existing transmission into the state of California, and especially the El Paso and Transwestern lines.
  However, the "wild card" in their view is unforeseen California power demand growth.
  As we discussed, JPMorgan would like to hear your views on the above issues.
  Please give me a call when you have had sufficient time to digest and we can set up a conference call to make the most efficient use of your time.
  Thanks Rod  Brent  Also, when you have had a chance to look at sales gas volume growth please e-mail the volume numbers to me...thanks
  
subject_line: Consultant's view on gas transmission into California
  