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El Paso Natural Gas Company Docket Nos. RP00-336-002, RP01-484-000, RP01-486-000, and RP00-139-000

El Paso Natural Gas Company Docket Nos. RP00-336-002, RP01-484-000, RP01-486-000, and RP00-139-000. Robert Petrocelli, Ingrid Olson, Elizabeth Zerby. El Paso Natural Gas System. Nevada. Anadarko Basin. Arizona. San Juan Basin. Dumas Station. Havasu Line. New Mexico. Topock. Valve

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El Paso Natural Gas Company Docket Nos. RP00-336-002, RP01-484-000, RP01-486-000, and RP00-139-000

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  1. El Paso Natural Gas CompanyDocket Nos. RP00-336-002,RP01-484-000, RP01-486-000, and RP00-139-000 Robert Petrocelli, Ingrid Olson, Elizabeth Zerby

  2. El Paso Natural Gas System Nevada Anadarko Basin Arizona San Juan Basin Dumas Station Havasu Line New Mexico Topock Valve City Texas Permian-San Juan Crossover Maricopa Line CA Plains Station Eunice Station Low Pressure System Keystone Station Ehrenberg Waha Station Permian Basin High Pressure System

  3. Peak Demand(in MMcf/d) Capacity

  4. Should FR service be converted to CD service? • Staff recommends converting FR service to CD service • maintain existing rate structure • maintain FT-2 FR contracts • Benefits • provides certainty for all shippers • unspecified rights degrade firm CD service

  5. What level of contact demand should be assigned to FT-1 full requirements shippers? • Settlement Billing Determinants (BD) • Coincidental Peak Demand (CP) • Non-Coincidental Peak Demand (NCP) • Some combination of the above

  6. Benefits of Using theGreater of BD or CP • Reflects FR customer current usage (Dec. 12, 2001 system peak day) • No shipper is allocated less than the capacity they pay for under the Settlement • Maintains CD service at contract levels • Matches contract demand to system capacity to preserve reliability • Places all customers on equal footing and sends proper price signals for expansion

  7. Should specific receipt point rights be assigned? • Consistent with Commission-approved delivery point allocation order in BR/Amoco/Topock complaint case • Provides certainty of supply for all firm shippers • Eliminates daily pro-rata curtailments • Enhances value and tradability of capacity

  8. Current Pooling Areas Bondad Anadarko Basin Arizona San Juan Basin Dumas Station Blanco Anadarko Havasu Line New Mexico Topock Valve City Texas Permian-San Juan Crossover Maricopa Line Plains Plains Station Eunice Station Low Pressure System Keystone Keystone Station Ehrenberg Waha Station Waha Permian Basin High Pressure System

  9. 20 Proposed Pooling Areas MCCAMEY or LINE 2000 Anadarko Basin Arizona San Juan Basin Dumas Station Havasu Line New Mexico Topock Valve City Texas Permian-San Juan Crossover Maricopa Line Plains Station Eunice Station Low Pressure System Keystone Station Ehrenberg Waha Station Permian Basin High Pressure System

  10. Conclusion • Conversion aids shippers by restoring certainty to firm services and by providing equal access to supplies • Ensures proper relationship between rates paid and services rendered • Next step: Convene a conference to receive comments on staff’s recommendation

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