text: Below is a copy of the Order lifting the $250/Mwh hard price cap for 
  California ISO/PX.
  FERC has also posted a notice of a  Dec. 15 special mtg. re the investigation 
  into the California market last summer.
  Various Enron units continue to receive informal data requests from FERC 
  staff regarding current California gas/electric 
  Steve Kean has asked that all inquiries be coordinated through Sarah Novosel 
  in the DC office.
  Leslie Lawner is preparing Enron's response to the SDG&E emergency petition 
  to put a cap on gas sales.
   
  
  
  
  
  
                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)