With regard to the Commission's limitations on the right of first refusal, Order 637 provides for grandfathering of discounted long-term contracts that are now subject to ROFR. The Commission's rationale was that grandfathering gives all shippers notice of the new limitation and the opportunity to re-execute current contracts. The TW Commercial Group has asked whether we should challenge the grandfathering of existing contracts. In limiting the right of first refusal, the Commission has expressly acknowledged that if a customer is truly captive and has no alternatives for service, it is likely that its contract will be at the maximum rate. Shippers that are not captive and have alternatives in the marketplace do not need the protection of ROFR, and the pipeline should be able to negotiate with other interested shippers upon expiration of the contract. In light of these conclusions, there should be no reason to grandfather the ROFR rights of shippers under existing discounted contracts. Such shippers would not be harmed by removal of the right immediately upon the effective date of a pipeline's tariff filing to limit the right of first refusal (assuming the service contract incorporates tariff terms on an "as amended" basis). Consistent with the Commission's order, it would not be unfair to make these shippers compete with others for the capacity upon expiration of the contract.
Q: What is a potential subject line for this email?
answer: Order 637: TW Comment on Rehearing Request
Due to absences, and this morning's floor meeting, the Jeff Hodge/Barbara Gray staff meeting has been cancelled. Should you need further information or assistance, please feel free to contact me. Thank you for your attention to this matter. Regards,
Q: What is a potential subject line for this email?
answer: Today's Group Meeting
Elizabeth - Here are the comments from me and Dede. I have given it to our Credit Dept. and asked for comments but I doubt they will have much to add. Call me if you have any questions with what we wrote. With regard to the full-blown WSPP Collateral Annex, Dede and I think it would be better to get the EEI one in a final form before converting it over to fit into the WSPP. Otherwise, we could be revising the 2 documents in parallel. I am planning to get the short draft WSPP Collateral Annex over to you today. Thanks!
Q: What is a potential subject line for this email?
answer: EEI Collateral Annex and Cover Sheet
California: Legislative - In an unprecedented bipartisan effort the Senate and Assembly both approved a bill making $2.2 billion in cuts in the current fiscal year state budget. Additionally, these cuts, primarily in the areas of salaries to award teacher excellence and program expansions, will amount to $2.9 billion in cuts toward the upcoming fiscal year estimated deficit of $12 billion. I99-07-003 SoCalGas Unbundling. The Southern California Generation Coalition, The Utility Reform Network and the Department of General Services have filed a request for rehearing of the CPUC's decision to adopt the Comprehensive Settlement Agreement to unbundle the SoCalGas system. No new issues were raised as the rehearing request reiterates their support for the Interim Settlement which didn't go as far to unbundle the system. A01-09-024 SoCalGas BCAP. The ALJ has issued the procedural schedule. SoCal will file its revised application and testimony to reflect the impact of unbundling by March 4th. Interested parties will file testimony on July 12th and Evidentary Hearings will begin August 27, 2002.
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answer:
Weekly Report of 2/1/02