email_body: Last week, I distributed a presentation that the Brattle Group gave before  the California Inquisition (i.e., legislative gas oversight committee looking  into the gas price spikes at the Cal border).
  The Brattle Group is a consulting firm that Edison has long used to beat up  on SoCalGas (recall that Edison used to be a big gas customer when it owned  power plants).
  Edison "arranged" for the Brattle Group to be the star  witness at the Cal Leg gas hearing.
  Their job was to set up El Paso and  Dynegy for the hit at hearings that took place the following day.
  Their  message was simple (and simplistic):  El Paso and Dynegy have market power.
  They have used the market power to drive up basis and thus the price of gas  at the border (to "obscene" levels).
  That, in turn, has driven up electricity prices.
  Ken Lay is giving a gas talk tomorrow, and Rob Bradley asked that I provide  the alternative view to the Edison/Brattle rant, in the event that he gets  any questions on the topic.
  It's attached.
  Apologies, it's quick and dirty,  but it provides the basics.
  Obviously no need for us to defend El Paso or Dynegy, but might be useful to  offer a more rationale explanation than the one that the California  Legislature is peddling.
  Finally, we were also fingered somewhat as culprits at the hearing (the  California PUC FERC lawyer claimed that ENA and TW colluded to drive up basis  when ENA controlled a portion of  the capacity), but the overriding goal of  the hearing was to go after EP and Dynegy.
  Best,
  
subject_line: Some Background on California Gas Price Spikes--The Other Side of  the Story
  