Subject: Origination opportunity with Cheyenne
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Wed, 14 Feb 2001 08:59:00 -0800 (PST)

PacifiCorp terminated its service to Cheyenne Light Fuel and Power effective 
2/ 24.  Below is a summary of the 
dispute between PacifiCorp and Cheyenne and FERC resolution.  Here's your 
chance to be a hero.  

On December 20, Cheyenne Light, Fuel and Power Co. filed a complaint against 
PacifiCorp requesting 
the FERC to order PacifiCorp to continue service to Cheyenne under the rates, 
terms and conditions of the 
Power Sales Agreement (PSA) following December 31, 2000, until at least such 
time as PacifiCorp has provided 
notice of termination a minimum of 60 days in advance of the proposed 
termination date. Cheyenne is a full 
requirements customer of PacifiCorp under a power sales agreement executed 
and filed with FERC in 1995 
with a term that expires on December 31, 2000. Cheyenne has attempted to 
agree to terms with PacifiCorp for 
a replacement power sales agreement, but PacifiCorp has demanded prices many 
times higher than current 
prices under the PSA and substantially higher than the $74 per MWh benchmark 
price FERC recently established 
as a presumptively prudent long-term price for sales in the California 
markets.  PacifiCorp will terminate service 
under the PSA upon its expiration on December 31, 2000, but PacifiCorp has 
not filed with FERC a notice of 
termination of the PSA. Cheyenne stated that termination of service could 
impair Cheyenne's ability to serve its
retail customers, thereby harming both Cheyenne and its customers. On 
December 26, PacifiCorp filed a notice 
of termination for the PSA with Cheyenne. On December 27, PacifiCorp filed an 
unexecuted letter agreement with 
Cheyenne under its market-based tariff for power sales as a replacement for 
the Existing Agreement. Order issued 
February 7 (1) dismissing Cheyenne,s complaint; (2) accepting PacifiCorp,s 
notice of termination and denying its 
request for waiver of our notice requirement, to allow the PSA to terminate 
at the end of the day on February 24, 2001; 
and (3) rejecting PacifiCorp,s unexecuted letter agreement. Since the Order 
is denying PacifiCorp,s request for 
waiver of notice and accepting the notice of termination and Cheyenne opposed 
the rates under this letter agreement 
in any event, Order found no need to accept the alternative interim agreement 
offered by PacifiCorp. Requests for 
Rehearing due March 9.