Subject: California/FERC Update 7/25/01
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Date: Wed, 25 Jul 2001 12:13:40 -0700 (PDT)

FERC Meeting Highlights
Responding largely to the recommendation of AL Jude Curtis Wagner, FERC ordered the following regarding the California refund matter.  The order is not expected to be issued in draft form but will be published in final form within the next couple of days.
Refunds
When: Additional evidentiary hearings in 45 days to determine refunds: 15 days for parties to submit data, followed by 30 days of hearings.
Pricing :Refunds ordered for "spot market" transactions in California from October 2, 2000, through June 20, 2001. The reference price for refunds will be determined by the methodology FERC set out in its 6/19 order, with one change -- the cost of generation will be based in part on the daily spot price for natural gas, not the monthly spot price as called for in the 6/19 order.  
Additionally, FERC is ordering both jurisdictional utilities and non-jurisdictional entities (i.e. public power groups such as the Los Angeles Dept. of Water and Power) to make refunds.
Parallel hearing ordered to determine whether refunds are due for power sales in the Pacific Northwest.  Commission members said they would be flexible in defining spot power sales in the Pacific Northwest.