bullets 9 / 8 team - - in my absence please submit additional bullets this week to audrey by
10 : 00 am fri . thanks
main line west outage - west flow capacity has been reduced by approximately
200 , 000 mmbtu / d for five days beginning 9 / 6 for pipeline testing . to
accommodate the market and customer needs , we have negotiated transport for
50 , 000 mmbtu / day from pg & e to needles for max rate of $ . 25 for the five day
outage . we also did a market center lend for 40 , 000 mmbtu / day @ $ 0 . 10 .
estimated incremental revenue for the 5 day outage at this time is $ 82 , 500 .
kn / oneok contract - we negotiated a 12 month max rate agreement with oneok
for 20 , 000 mmbtu / d of west flow capacity starting february 1 , 2001 . we also
negotiated in the contract a provision whereby if oneok releases any of the
capacity above the max rate , then tw shares 50 / 50 in the incremental
revenue . all executed documents have been received .
ferc / california power prices - the ferc plans to convene a public meeting
the week of september 11 in california to take comments from interested
parties regarding the recent price spikes of wholesale electricity and power
transmission in the state . in addition , socal edison filed a motion late
last week with the california public utility commission seeking emergency
relief from high spot gas prices on which its power purchase rates are based .
the company told the cpuc that southern california border ( topock , az ) prices
in the last month have risen by $ 2 . 50 / mmbtu possibly because of market
manipulation , in particular the withholding off of the market of pipeline
transportation capacity between the supply basins and the california border .
" there is substantial and compelling evidence that the basis differential has
been and continues to be grossly distorted by market power abuse , collusion
and affiliate self dealing of out - of - state gas suppliers and merchants , "
edison told the cpuc .
the company noted the cpuc already has filed a section 5 complaint with ferc
regarding this issue and is seeking a recision of " certain allegedly
collusive contracts which it contends have permitted out - of - state natural gas
suppliers and their affiliates to drive up artificially california border gas
prices by wrongfully withholding capacity . " it notes the complaint
" conservatively estimates that the anti - competitive manipulation of the basis
differential has already damaged california gas and electricity users by $ 100
million annually since the beginning of 1998 . "
jeff dasovich from the enron california office will attend the ferc meeting .