Draft Decision from Commissioner Wood

Not the retained assets case---Wood wants to cap prices to QFs. Jeanne,
could you try to get any information you can from PUC staff on how they
intend to handle PG&E's advice letter re: "we've stopped selling power from
out retained assets into the PX?" (I'm assuming that the PUC would be
sympathetic, since it should immediately lower the utility's bill for power?)

Thanks very much,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 01/11/2001 12:14 PM -----

"Daniel Douglass" <Douglass@ArterHadden.com<
01/10/2001 02:33 PM

To: <Barbara_Klemstine@apsc.com<, <berry@apx.com<, <dcazalet@apx.com<,
<BillR@calpine.com<, <jackp@calpine.com<, <glwaas@calpx.com<,
<Ken_Czarnecki@calpx.com<, <gavaughn@duke-energy.com<,
<rjhickok@duke-energy.com<, <gtbl@dynegy.com<, <jmpa@dynegy.com<,
<KEWH@dynegy.com<, <jdasovic@enron.com<, <susan_j_mara@enron.com<,
<curt.Hatton@gen.pge.com<, <foothill@lmi.net<, <camiessn@newwestenergy.com<,
<jcgardin@newwestenergy.com<, <jsmollon@newwestenergy.com<,
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cc:
Subject: Draft Decision from Commissioner Wood

As you may be aware, there has been an ongoing proceeding at the CPUC
regarding short-run avoided cost (SRAC) payments made by SCE, and the other
utilities to QFs.? The avoided cost posting is based on a Transition Formula
adopted in D.96-12-028 that incorporates various border price indices.? On
July 28, 2000, SCE filed a petition to modify D.96-12-028 to revise its
Transition Formula, claiming that the existing procedure resulted in too
high a price.
?
The draft?decision issued by Commissioner Wood adopts a formula, to be
updated monthly, to revise SCE's factor adopted in D.96-12-028 and adopts an
alternative gas index to replace the Topock index adopted in D.96-12-028.?
?
However, you may be particularly interested to see that the draft decision
also establishes a ceiling price for payments to QFs of $67.45/MWh, based on
the reasonableness standard described by the FERC in its 12/15 order.
?
Dan
- CPUC01-#87303-v1-R9911022_Wood_Comment_Dec__.doc