Subject: FERC news release on Ca. relief emergency
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked]
Date: Wed, 13 Dec 2000 09:32:00 -0800 (PST)

----- Forwarded by Cynthia Sandherr/Corp/Enron on 12/13/2000 05:32 PM -----

	Nancy Bagot
	12/13/2000 05:31 PM
		 
		 To: Linda Robertson/NA/Enron@ENRON, Cynthia Sandherr/Corp/Enron@ENRON, Joe 
Hartsoe/Corp/Enron@ENRON, Donna Fulton/Corp/Enron@ENRON, Sarah 
Novosel/Corp/Enron@ENRON
		 cc: 
		 Subject: FERC news release on Ca. relief emergency

FERC has issued a press release on the California situation.
URL is http://www.ferc.fed.us/news1/pressreleases/ca-relief.pdf

Text is below:

NEWS RELEASE
News Media Contact: For Immediate Release
Hedley Burrell 

December 8, 2000
(202) 208-0680 Docket Nos. ER01-607-
000; EL00-95-000; EL00-98-000

COMMISSION MOVES TO BRING RELIEF TO CALIFORNIA
ELECTRICITY MARKETS

In response to emergency conditions that exist in the California electricity
markets, which have faced supply shortages and snowballing prices, the 
Federal Energy
Regulatory Commission today approved a price cap change requested by the 
California
Independent System Operator (ISO). The Commission also took steps to permit
qualifying facilities (QFs) to operate at full capacity.

The ISO's purchase price cap of $250/Mwh will be lifted. Bids above that 
amount
will be allowed but will not set the clearing price paid to all sellers, as 
does the current
purchase price cap. This should attract more bids and alleviate chronic 
supply shortages.
Those bidding above $250 will be required to report their bids to the 
Commission
on a weekly basis and provide certain cost information.

The non-profit ISO and PX began operations in California in 1998. The PX is 
the
scheduling coordinator for the IOUs as well as other market participants. The 
ISO
operates and controls most of the transmission system in California.

In addition to the $250 purchase price cap, the Commission also authorized the
ISO to penalize participating generators that refuse to operate in response 
to an ISO
request in an emergency. They will be charged an amount equal to twice the 
highest
price the ISO paid for energy for each hour in which the participating 
generator failed to
respond.

The ISO's costs of obtaining energy through bids above the purchase price cap 
or
through out-of-market dispatches will be assigned to scheduling coordinators 
who
depend too much on spot markets.

The Commission's second order enables QF entities to generate at full capacity
which in the past could have caused them to lose QF status. QF generators are 
small
power producers that use alternative fuels, such as solar or biomass, and 
cogenerators
that produce both electricity and steam for commercial use.

The order on QF entities was in response to a request from a California QF.
The orders are effective immediately.

To view the Commission orders in full go to "What's New" at www.ferc.fed.us.
R-00-82 (30)