Message-ID: <12412042.1075840728778.JavaMail.evans@thyme> Date: Thu, 7 Dec 2000 04:45:00 -0800 (PST) From: john.forney@enron.com To: portland.shift@enron.com Subject: FERC Attorney Says California May Not Ban Power Exports Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: John M Forney X-To: Portland Shift X-cc: X-bcc: X-Folder: \mark guzman 6-28-02\Notes Folders\Notes inbox X-Origin: GUZMAN-M X-FileName: mark guzman 6-28-02.nsf ---------------------- Forwarded by John M Forney/HOU/ECT on 12/07/2000 12:48 PM --------------------------- Mary Hain 12/07/2000 12:18 PM To: Tim Belden/HOU/ECT@ECT, Robert Badeer/HOU/ECT@ECT, Jeff Richter/HOU/ECT@ECT, Greg Wolfe@ECT, Chris H Foster/HOU/ECT@ECT, John M Forney/HOU/ECT@ECT, Mike Swerzbin/HOU/ECT@ECT, Sean Crandall/PDX/ECT@ECT@ECT, Diana Scholtes/HOU/ECT@ECT, Tom Alonso/PDX/ECT@ECT, Matt Motley/PDX/ECT@ECT, Mark Fischer/PDX/ECT@ECT cc: Subject: FERC Attorney Says California May Not Ban Power Exports FYI ---------------------- Forwarded by Mary Hain/HOU/ECT on 12/07/2000 12:24 PM --------------------------- Enron Capital & Trade Resources Corp. From: "Ronald Carroll" 12/07/2000 08:23 AM To: , , , , , , , , cc: Subject: FERC Attorney Says California May Not Ban Power Exports FYI - according to this article, a FERC commissioner informed Dow Jones that FERC does not plan to expand the price cap to the entire Western region. DJ FERC: Davis Can't Force Generators To Sell Pwr In Calif Copyright , 2000 Dow Jones & Company, Inc. LOS ANGELES (Dow Jones)--A move by California Gov. Gray Davis which seeks to bar in-state generators from exporting their abundant power supply is a violation of interstate commerce rules - and therefore will never be implemented, an attorney with the Federal Energy Regulatory Commission told Dow Jones Newswires. Last month, energy officials proposed to Davis the possibility of forcing in-state generators to sell all of their power into California, especially during statewide power emergencies. Davis said Tuesday night he may still seek legislation to force generators to sell their power supply here, which would help the state's grid operator avoid rolling blackouts. But according to federal law, the state cannot prohibit companies from doing business with other states, the attorney said, adding that it violates interstate commerce rules. Part of the reason energy companies export some of their power is that other states are willing to pay far above California's wholesale electricity price cap of $250 a megawatt-hour. Tuesday, with the state teetering on the brink of rolling blackouts, Northern California irrigation districts - government operated utilities that supply water and power to farmers - sold about 400 MW of excess power to the Northwest, reaping huge profits because customers there are not bound by a price cap. The ISO - forced to compete with companies willing to pay $1,000/MWh for electricity - narrowly avoided rolling blackouts Tuesday by paying about $1.1 million for 1,000 MW of power, which is $1,100 a megawatt-hour. Still, Gov. Davis is pushing FERC to impose a $100/MWh regional price cap. But a FERC commissioner told Dow Jones Newswires that the commission will very likely impose a $100/MWh price in California only. FERC's final order on remedies California must undertake to repair its flawed market is due next week. But the FERC commissioner said it's the state's current price cap of $250/MWh that's destroying the wholesale market and resulting in generators exporting their power for a profit. "If they can make $275/MWh in Nevada they have an obligation to their shareholders," the FERC commissioner said. State lawmakers, meanwhile, want to force generators who conduct business in the state to report all wholesale electricity transactions to a state energy panel and register before selling power. -By Jason Leopold; Dow Jones Newswires; 323-658-3874; mailto:jason.leopold@dowjones.com (END) Dow Jones Newswires 06-12-00 2308GMT