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(Our Global Settlement argument is that we should be able to rely on tariff provisions, including our current restriction on changing primary points, that were implemented to mitigate the effects of turnback on TW). | dev41 |
On hourly service, I believe that we could put an hourly service into place on TW without running afoul of the Peak and Off-Peak Rates (i.e., seasonal rates) provisions of the order. | dev41 |
In other words, I think the Commission would see them as two separate kinds of service. | dev41 |
As for how to communicate with our customers, I believe Regulatory has offered to have a meeting with TW customers in early April to make a presentation on Order 637 and provide a forum for discussion. | dev41 |
I realize the order becomes effective March 27; however, compliance filings are not due until May 1, and some requirements do not even become effective until September 1. | dev41 |
Before the beginning of April, the GPG pipelines will simply not have their positions fully formed enough to make a very well-organized presentation to persons outside the company. | dev41 |
The meeting is still in the planning stages and I will fill you in on details as they are available. | dev41 |
In the meantime, if your customers have questions, I'll be happy to help answer them. | dev41 |
See my changes on the attached. | dev41 |
Donna Fulton is planning on attending the technical conference in the Amoco/Burlington complaint proceeding on El Paso's allocation procedures. | dev41 |
She has asked that we let her know, if possible, what particular issues we are interested in, as this will help her prepare for the conference. | dev41 |
Please let me know if you have any comments in this regard. | dev41 |
One caveat: the technical conference is for "interested parties" only, and since TW is not an intervenor Donna is subject to being kicked out of the conf. | dev41 |
if El Paso does not want TW represented there. | dev41 |
ENA will probably be sending a representative so at the very least we can probably get some intelligence from them. | dev41 |
Thanks, Maria, this is very helpful. | dev41 |
I'm planning on drafting something this week for everyone's review. | dev41 |
Don't know if any other pipelines have tried to do anything similar but I'll find out. | dev41 |
Here is some preliminary research on the Commercial Group's question of whether we can have a tariff provision in which shippers pay cash for fuel rather than providing fuel in kind. | dev41 |
If you want the attachments (examples of other pipelines' tariff provisions) I will send you a hard copy. | dev41 |
Comments? | dev41 |
Are there any rate case implications I should be aware of? | dev41 |
Hi Lindy. | dev41 |
Sorry I've not yet set up the meeting on imbalances...I feel I am still lacking focus so thought I'd run this by you for your comments before inviting people. | dev41 |
First of all, I believe the general topics we wanted to address were: - imbalance netting & trading - mandatory use of Park N Ride service for out of balance operators - hourly determination of imbalances Is this correct? | dev41 |
Next, the list of attendees: you, me, Darrell, Richard Hanagriff, Sheila Nacey (or someone else she designates). | dev41 |
Anyone else? | dev41 |
As far as timing, I am very flexible, so let me know what works for you, and I'll get it set up. | dev41 |
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. | dev41 |
The Commission's rationale was that grandfathering gives all shippers notice of the new limitation and the opportunity to re-execute current contracts. | dev41 |
The TW Commercial Group has asked whether we should challenge the grandfathering of existing contracts. | dev41 |
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. | dev41 |
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. | dev41 |
In light of these conclusions, there should be no reason to grandfather the ROFR rights of shippers under existing discounted contracts. | dev41 |
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). | dev41 |
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. | dev41 |
Lorraine: here's what we would have to show FERC, along with some of my comments. | dev41 |
Let me know if you have additional ideas, and I'll turn it into a draft to send around to the usual suspects. | dev41 |
1. | dev41 |
Rate impact on TW customers; method by which TW would collect the costs of the acquired capacity. | dev41 |
- I assume TW would be at risk for any undercollection of revenue associated with the PNM capacity; thus there is no cost-shift potential to other shippers. | dev41 |
- Net costs will be separately recorded. | dev41 |
2. | dev41 |
Would acquisition of PNM capacity enable TW to gain control over access to upstream capacity and supply sources in a manner which would permit TW to limit customer choices or improperly tie use of the acquired capacity to other pipeline services? | dev41 |
(I think Mary Kay will be able to help us explain the "no tying" part). | dev41 |
3. | dev41 |
Would TW's marketing affiliates receive preferential treatment? | dev41 |
- No TW marketing affiliate will be involved in the proposed transaction - Acquisition of PNM capacity will not result in any undue preference or advantage to any affiliated entity. | dev41 |
4. | dev41 |
Will TW as a holder of capacity receive preferential treatment over PNM's customers, to the detriment of PNM's customers? | dev41 |
- No. PNM will be making the capacity available to TW only during periods in which it has unused capacity available on its system, so any impact on PNM shippers should be minimal. | dev41 |
- Service contract under PNM's tariff does not provide for unduly preferential treatment of TW. | dev41 |
5. | dev41 |
How will capacity be managed or otherwise integrated into TW's existing open access operations? | dev41 |
- TW will enter into service agreements with PNM from time to time to transport gas on the portion of PNM's line from Blanco, NM (i.e., the Blanco Hub operated by TW) to Rio Puerco, NM, where PNM's system interconnects with TW's mainline. | dev41 |
Resulting available capacity will be posted according to TW's tariff. | dev41 |
- The capacity will be used to serve customers under TW's FTS-1, LFT and ITS (right?) rate schedules from the Blanco receipt point to delivery points on TW's system. | dev41 |
- Lorraine -- we need to discuss our arrangement with PNM -- Would we be able to acquire on an as-needed basis? | dev41 |
Would it be an ordinary service agreement as provided in their tariff? | dev41 |
Which would come first, our deal with PNM or with our shipper? | dev41 |
It might be good to come up with some examples of likely scenarios. | dev41 |
6. | dev41 |
Would acquisition of PNM capacity prevent unnecessary construction of new facilities? | dev41 |
- Yes. | dev41 |
Demand currently exceeds available capacity on the San Juan Lateral. | dev41 |
Transwestern was unable to construct San Juan Phase II because of prohibitively high costs of obtaining an easement on Navajo land. | dev41 |
Using the PNM Blanco to Rio Puerco line is one of the few remaining alternatives available to TW to expand this portion of its system. | dev41 |
It would enable TW to transport an additional ______ of gas for shippers from the San Juan Basin to delivery points on the mainline of TW's system without the need for expanding the San Juan lateral. | dev41 |
The acquired capacity would benefit customers by effectively providing incremental capacity on a constrained portion of TW's system, at minimal cost to TW and no environmental disturbance. | dev41 |
Would enable both TW and PNM to use their systems more efficiently. | dev41 |
Something to keep in mind: Since FERC has implied that it considers shipper support in determining whether to allow pipelines to hold capacity on other pipelines, the more shippers we can get to intervene in our filing, the better. | dev41 |
Here are my comments, spice girl. | dev41 |
The Commercial Group has asked whether they can sell daily firm for longer than a 3-month period. | dev41 |
This phrasing is of course misleading; TW's daily firm contracts are always for a term of just one day, but renew for consecutive one-day terms unless terminated. | dev41 |
The discount letter, on the other hand, grants a discounted rate for each of the one-day terms for a certain period of time (typically one month). | dev41 |
Steve Harris wants to be able to "sell daily firm for a one-year period." | dev41 |
In contractual terms all this would mean is that the contract is for renewabable one-day terms (as usual), and the discount applicable to such terms would be effective for one year. | dev41 |
I see no problem with this, do you? | dev41 |
(Apparently the current perception in marketing is that regulatory/legal was limiting daily firm to a 3-month period.) | dev41 |
Part I: Dress Code for Female FERC Lawyers at FERC Proceedings* Skirts must be mid-calf length and of a synthetic fabric. | dev41 |
All clothing worn in FERC hearing rooms must be properly aged (12 years or more). | dev41 |
No solid-colored garments are permitted. | dev41 |
Exceptions: mauve, pink, peach, teal, harvest gold. | dev41 |
Hair must be fuzzy, multi-colored and must partially conceal the face. | dev41 |
Suntan hose must be worn at all times. | dev41 |
Open-toed shoes (preferably in a lighter color than the hem of the skirt) are preferred. | dev41 |
Those with a flair for fashion are permitted to wear inexpensive animal print garments, metallic accessories or clothing with fake fur trim, so as to attract attention to one's originality. | dev41 |
*also applicable to female practitioners at the Texas Railroad Commission and Public Utilities Commission. | dev41 |
Sorry Toby, but honestly this is the first time I've seen such a request. | dev41 |
A lot of things get sent to Susan Scott of ECT by mistake; maybe that is what happened? | dev41 |
I would never ignore you on purpose. | dev41 |
I'll call Ms. Lee and give her the correct info. | dev41 |
See especially pages 5 & 6 of the attached doc., which include the argument that existing ROFR should not be grandfathered. | dev41 |
Please send any comments you have to me. | dev41 |
Thanks!! | dev41 |
Hi! | dev41 |
Thanks for the update, it is good to hear from you. | dev41 |
Sorry Grayson is being a crybaby. | dev41 |
It is tough being a baby, I think. | dev41 |
How did the doctor's app't go? | dev41 |
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