ngi article tw hearing first day transwestern denies withheld capacity boost negotiated deals transwestern pipeline executive yesterday dismissed allegations pipeline withheld firm transportation capacity bound california recourse rate shippers last winter order free capacity contracts substantially higher negotiated rates mary kay miller vice president rates certificates acknowledged transwestern may discussions exchanged faxes prior posting available capacity two shippers sempra energy richardson products ii ltd subsequently entered negotiated rate transactions stressed requests capacity sempra energy richardson considered moot pipeline available operational capacity posted even would sent fax day capacity became available would irrelevant capacity posted time said miller capacity requests came prior jan 31 day available capacity posted february contracts transwestern null void relevant ones transwestern received jan 31 noted miller spent much wednesday stand quizzed lawyers ferc producers transwestern methods notifying customers available capacity manner chooses winning bids pre posting contacts sempra energy richardson first day ferc hearing exploring charges transwestern exercised market power awarding negotiated rate contracts led shippers charged much 27 mmbtu last february far excess pipeline maximum allowed rate 38 cents mmbtu firm transportation service california border commission proceeding yesterday focused four negotiated rate contracts sempra energy richardson total 45 000 mmbtu service transwestern february march richardson sempra clearly deal entitling posted capacity posted miller said prepared rebuttal testimony two companies right capacity submitted bids posting period ended transwestern determined bids submitted contract agreed upon transwestern richardson sempra noted despite claims made ferc energy industry analyst barry e sullivan contrary transwestern withhold capacity otherwise could made available recourse rates order make capacity available substantially higher negotiated rates miller testified sullivan analyst ferc office markets tariffs rates omtr division litigation contends transwestern threatened withhold capacity unless shippers agreed negotiated rates fact believes pre posting discussions transwestern shippers intended raise doubts availability capacity maximum recourse rate shippers might willing enter negotiated rate contracts recourse rate hope securing capacity became available miller counters sullivan offers support claim noted even sempra energy richardson response data request southern california edison support transwestern claims companies replied asked whether employee transwestern transwestern affiliate ever indicated time transwestern would provide capacity maximum tariff rate capacity issue offered transwestern web site recourse rate exact manner capacity offered transwestern web site recourse rate prohibition restrictions limitation condition suggestion potential shipper could bid capacity recourse rate potential shipper including richardson sempra could submitted bid capacity recourse rate sullivan contends transwestern motive allegedly advancing negotiated rate transactions expense recourse rate deals pure profit questioning thomas j burgess ferc omtr miller conceded transwestern earned 1 8 million sempra energy contract march 1 3 million richardson march contract comparable amount richardson february contract noted pipeline received substantially higher amount result sempra february contract provide exact figure ferc sullivan estimated pipeline profit sempra february contract 5 million sullivan said much profits wound transwestern coffers would gone sempra energy richardson able acquire capacity recourse rates miller countered commission negotiated rate policy require minimum level profit shippers contemplate hindsight analysis whether shippers could gotten better deal made profits furthermore said transwestern case used consider changes negotiated rate policy sullivan suggested case wrong forum issue modifying negotiated rate policy done industry wide basis pipeline group pipeline customers competitively disadvantaged