Subject: fyi - el paso
el paso merchant ordered to relinquish data
ferc yesterday ordered el paso merchant energy to stop stonewalling and turn
over protected materials to parties involved in a complaint case in which
it ' s alleged the affiliate received preferential treatment when it acquired
1 . 2 bcf / d of firm capacity on el paso natural gas .
specifically , the commission denied el paso merchant ' s request for rehearing
of a june 2000 order that granted in part the discovery sought by the
california public utilities commission , and rejected rehearing of a september
protective order . the latter directed el paso merchant to make available to
all intervening parties , who agreed to the terms of the protective order , all
of the materials that were being submitted to the cpuc and ferc in the case .
so far , el paso merchant has refused to release the information to these
parties , claiming the materials being filed with the cpuc and ferc are for
" government eyes only . " it also argues that the protective order offers
inadequate protection of commercially sensitive information .
the commission disagreed . " el paso merchant has not substantiated or
sufficiently justified its broad claim that all of the ' protected materials '
provided to cpuc and this commission warrant the designation ' government eyes
only . ' indeed , all of the information that el paso merchant seeks to
shield . . . relates directly to the issues , " the order said [ rpo 0 - 241 ] . also ,
ferc finds that the protective order provides " sufficient protection for el
paso merchant ' s commercially sensitive documents . "
the cpuc brought the complaint last april . it is seeking to abrogate the $ 38
million contract arrangement between el paso and el paso merchant . the agency
alleges the affiliate was given " preferential treatment " by el paso during
the open season for the capacity , and thus the contract arrangement should be
declared void .
the cpuc and others contend the contract arrangement , which awarded more than
one - third of el paso ' s capacity rights to the california border to el paso
merchant , is largely responsible for the high natural gas and electric prices
in the state . they have urged ferc to " act immediately " on the merits of the
complaint , but the commission has yet to do so .