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----- Original Message ----- From: Steven Kelly To: Wayne Kawamoto ; Ward Scobee ; Tony Wetzel ; Thomas Heller ; Steve Ponder ; Steve Iliff ; Ross Ain ; Robert Frees ; Pete Levitt ; Paula Soos ; Paul Wood ; Nam Nguyen ; Milt Schultz ; Marty McFadden ; Ken Salvagno ; Ken Hoffman ; Jonathan Weisgall ; Joe Ronan ; Joe Greco ; Jack Pigott ; Hap Boyd ; Frank Misseldine ; Ed Tomeo ; Ed Maddox ; Duane Nelsen ; Doug Levitt ; Doug Fernley ; Dean Gosselin ; Bob Escalante ; Bob Ellery ; Bill Woods ; Bill Carlson ; Bill Adams ; Alex Sugaoka ; Lucian Fox ; Rich Dyer ; Ted Cortopassi Cc: Jan Smutny-Jones ; Katie Kaplan ; Carol Hudson ; Steven Kelly ; Doug Kerner ; Andy Brown Sent: Sunday, January 14, 2001 5:33 PM Subject: UPDATE ON QF DISCUSSIONS IN DC Late Sat. night, the Principles Group met to discuss the status of the overall progress made in various DC working groups.? At that time, it was clear that a number of outstanding issues remained unresolved, including the issue of "credit worthiness" going forward, forbearance of past amounts due, and what program (if any) would resolve the utilities' cash position while maintaining reliability.? Discussions are continuing, and Tuesday is a critical deadline as the utilities (particulalry SCE) has a large payment due that date. ? The California legislature is developing legislation to address some, or all the issues required, including we have heard QF SRAC payment reform. ? Regarding QF issues, reform of the QF energy payments is viewed by many as a critical means to increase the utilities' cash position.? While no resolution of that matter was reached as of end of day Saturday, Governor Davis indicated during the Principles meeting that the CPUC was going to render a decision on Thursday this week to address that matter.? Most people inferred from this comment that the CPUC would take up the Wood PD or some modification of that PD.? ? IEP believes that the approval of the Wood PD (or an alternate) creates serious procedural questions and legal questions.? We are drafting comments to the Wood PD which will be filed on Monday or Tuesday which will address these issues.? In addition, Jan spoke during the Principles Group meeting on Saturday, noting particularly that the Wood PD, if voted out, would raise the spector of a significant amount of in-state generation not able to operate, thereby raising significant reliability concerns. ? The QF working group addressing modifications/reform of the existing SRAC payment structure was? not able to reach consensus as of noon Sunday.? Talks are expected to continue with the utilities on Monday, in San Francisco at 11:00 a.m. at PG&E.? In addition, given the signals from the governor and others, some QFs have proceeded with bilateral discussions with their utility contract holders to work out contract modifications/reforms on a bilateral basis.? ? [Note, I haven't yet checked all my emails, but I believe we postponed the Friday Restructuring/Transmission conference call to Monday, Jan 15 at 9:00 a.m.? This will give us an opportunity to fully brief you. ? ?
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