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El Paso's CA Capacity Goes Up for Bid Again

El Paso's CA Capacity Goes Up for Bid Again

Shippers hoping to line up California capacity coming open on El Paso better be ready to fight for it, according to Jerry Strange, El Paso director of transportation marketing.

"There's 1.3 Bcf coming up the first of January. It will be subject to a right of first refusal posting around the first of September. The timeline on that will be 20 business days for open bidding, and there's a couple days to select a contract, and there's a five-business-day period where Dynegy has the right of first refusal on those contracts and then another two or three days to award the contracts.

"Those of you who went through our sale of this before, we will sell it the way it's most effective for El Paso on an economic basis because that's the reality of the world. The paradigms all crashed in '96 on how capacity like this is sold. And so my admonition to everybody is bid early and bid often because it's going to be a very competitive situation."

Strange made his remarks in Dallas Tuesday at GasMart/Power '99. Delivery points on the capacity to be auctioned will be limited to California, and the capacity is broken up into three blocks, two of which have limitations on access rights to receipt or delivery point, Strange said. "In addition to that we have 100 million a day coming up on our right of first refusal to Window Rock, which is the delivery point from El Paso into Transwestern in eastern Arizona that also will go up some time in the fall. The capacity is available the first of January, but it has a similar right of first refusal." Strange said dealing with its "huge capacity turnback" is the biggest challenge El Paso now faces.

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