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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Alan Comnes X-To: Tim Belden, Mike Swerzbin, Michael M Driscoll, Matt Motley, Robert Badeer, Diana Scholtes, Sean Crandall, Chris Mallory, Jeff Richter, Tom Alonso, Mark Fischer, Phillip Platter, Carla Hoffman, Christopher F Calger, Michael Etringer, Steve C Hall, Christian Yoder, Tim Heizenrader, Stephen Swain, Jeff Dasovich, Susan J Mara, Joe Hartsoe, Ray Alvarez, Elliot Mainzer, Bill Williams III, Linda J Noske, Steve Walton, Phillip K Allen, Mike Grigsby, Leslie Lawner, Rebecca W Cantrell, Harry Kingerski, Jess Hewitt, Jeff Dasovich, Ray Alvarez, Sarah Novosel, Mark Palmer, Tim Belden, Neil Bresnan, Susan J Mara, Steven J Kean, Richard Shapiro, Paul Kaufman, James D Steffes, rcarroll@bracepatt.com X-cc: X-bcc: X-Folder: \Steven_Kean_June2001_4\Notes Folders\Discussion threads X-Origin: KEAN-S X-FileName: skean.nsf Here are the best clips on the FERC's Wednesday actions as of Wednesday evening. The decisons are to be out on Thursday. However the press release (attached) has some details I did not hear at the meeting. Alan Comnes ---------------------- Forwarded by Alan Comnes/PDX/ECT on 04/25/2001 10:30 PM --------------------------- djcustomclips@djinteractive.com on 04/25/2001 10:26:25 PM Please respond to nobody@mail1.djnr.com To: 301882@mailman.enron.com cc: Subject: FERC in the News: USA: UPDATE 1-FERC adopts plan to monitor Calif. power market. USA: UPDATE 1-FERC adopts plan to monitor Calif. power market. By Patrick Connole and Tom Doggett 04/26/2001 Reuters English News Service (C) Reuters Limited 2001. WASHINGTON, April 25 (Reuters) - A split U.S. Federal Energy Regulatory Commission approved on Wednesday a plan to stabilize California's volatile power market and stem market abuses. Under the plan, set to take effect in late May and last for one year, price relief measures will be imposed on California's wholesale power sales during severe energy shortages. The three-member commission split sharply on the plan, voting 2-1 for an order that the majority believe will prevent power costs from soaring out of control in California this summer. Wholesale power prices have jumped tenfold in California in the past year, the result of growing demand from the state's 34 million residents following a decade that saw no major power plants added to its electric system. FERC Chairman Curtis Hebert, a Republican, and Democrat Linda Breathitt supported the order. Democrat William Massey dissented despite 10 hours of talks aimed at reaching a consensus. "California consumers can rest assured that the commission has been attentive to their problems, and has worked tirelessly to ensure that they receive necessary relief in a manner that does not compound current problems or undemine longer-term solutions," Hebert said. DISSENTING VOTE Massey said that by limiting price relief to declared power emergencies, FERC's actions would fall short of solving the severe problems plaguing the California market. "The evidence is pervasive that the problem exists 24 hours a day, seven days a week. Now is not the time for half-a-loaf solutions," Massey said. Under the plan, price mitigation would be triggered whenever the California Independent System Operator (ISO) declares a power emergency. The ISO, which manages most of the state's power grid, uses a three-stage alert system, with a Stage One called when power reserves drop to within seven percent of actual demand on the grid. As demand eats further into the supply cushion, Stage Two and Stage Three alerts are declared, with Stage Three indicating rolling blackouts may be required to avoid overloading the grid and triggering far more widespread outages. California has ordered rolling blackouts four days so far this year, with state energy officials predicting more are likely this summer when air conditioning pushes demand to its annual peak. FINDING A FAIR PRICE The mitigation and monitoring plan's central element will require generators to offer available power in real time using a "proxy" price established a day ahead of actual delivery, FERC said. The proxy price reflects the "marginal cost of the highest-cost generator" asked to supply power to the grid. This price will vary daily according to demand, the price of fuel used by generators - such as natural gas - and the cost of complying with environmental standards. However, generators could charge more than the proxy price if they can justify the higher cost when FERC reviews their sales records, which they are required to submit at the end of each month. If those costs cannot be justified, FERC can order the generator to refund the buyer. FERC said all generators in California, even those not subject to the commission's price regulations, are required to sell into the ISO's real time price market as a condition of their use of the ISO's interstate transmission lines. Hydro-electric facilities were exempted from the plan because of their generation limitations, which fluctuate according to reservoir levels and the competing needs of others for those same water resources. REGIONAL SOLUTION The commission emphasized that the only real solution to the power supply problems affecting the western markets was to forge a regional response. Toward this goal, FERC said California ISO would need to file a plan to form a regional transmission organization (RTO) by June 1, or forfeit the so-called crutch of FERC's price-relief plan. Among the many measures contained in the order, FERC told California utilities to coordinate any temporary shutdowns of generating plants with the ISO to ensure the state has adequate electric supplies at all times. The order also formally opened an investigation by commission staff into possible abusive wholesale practices behind power sales throughout the Western region. FERC said the plan would expire in 2002 as the California power crisis eases. The state's rush to build new power plants is expected to put an additional 4,000 to 6,000 megawatts on the grid by next summer, enough to supply up to six million homes. Folder Name: FERC in the News Relevance Score on Scale of 100: 96 ______________________________________________________________________ To review or revise your folder, visit http://www.djinteractive.com or contact Dow Jones Customer Service by e-mail at custom.news@bis.dowjones.com or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511 or contact your local sales representative.) ______________________________________________________________________ Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved ---------------------- Forwarded by Alan Comnes/PDX/ECT on 04/25/2001 10:30 PM --------------------------- djcustomclips@djinteractive.com on 04/25/2001 10:42:39 PM Please respond to nobody@mail1.djnr.com To: 301880@mailman.enron.com cc: Subject: FERC: AP NewsBriefs: Wednesday, April 25, 2001 AP NewsBriefs: Wednesday, April 25, 2001 04/26/2001 AP Online Copyright 2001 The Associated Press. All Rights Reserved. Bush Comments About Taiwan Causes Stir TAIPEI, Taiwan (AP) - President Bush's bold comments about Taiwan provoked quick reactions of concern Thursday in Asia, where a war between China and Taiwan could devastate the region. Bush told The Associated Press on Wednesday that U.S. military force is "certainly an option" if China strikes Taiwan. He later said that America has an obligation to defend Taiwan if China attacks. China had no immediate comment about Bush's comments, and Taiwan's Foreign Ministry was also silent. Grafts Can Restore Sexual Function DANA POINT, Calif. (AP) - Salvaging a nerve from the ankle, surgeons have found they can rewire the penis so men achieve erections and have sex after operations to remove their cancerous prostate glands. Doctors say the nerve grafts are not as good as the original nerves, but they do allow some men to regain sexual function when they otherwise would be undoubtedly left impotent. "It seems to have promise, certainly over doing nothing," said Dr. Joseph J. Disa, a plastic surgeon who performs the surgery at Memorial Sloan-Kettering Cancer Center in New York City. Africa Ministers OK AIDS Drugs Plan ABUJA, Nigeria (AP) - African ministers agreed on a draft declaration Wednesday calling on their countries to import and produce their own generic AIDS drugs and to boost spending dramatically on AIDS programs to fight the pandemic. African heads of state are expected to sign the document Thursday at the start of a two-day pan-African summit on AIDS, tuberculosis and other infectious diseases. Governments will then be asked to ratify the agreement in their respective legislative chambers. South Pole Rescue Is Made PUNTA ARENAS, Chile (AP) - A rescue plane completed the perilous first leg of flight home from the South Pole, carrying an ailing American doctor across Antarctica before landing at a base near the coast. The propeller plane carrying Dr. Ronald Shemenski, who is suffering from a gall bladder ailment, flew from the U.S. base at the pole to Rothera research station in just over eight hours. "They've landed safely," said Valerie Carroll of U.S.-based Raytheon Polar Services, which organized the airlift. Calif. Energy Prices Limited WASHINGTON (AP) - Federal energy regulators Wedneday directed limited price controls on California's wholesale electricity markets, but the order fell short of the sweeping price caps California officials have wanted. The Federal Energy Regulatory Commission voted 2-1 to order that wholesale prices be capped in California when electricity reserves fall below 7.5 percent, triggering an emergency alert by power grid managers. Bush Debuts As Fund-Raiser-In-Chief LITTLE ROCK, Ark. (AP) - President Bush stepped out as the GOP's fund-raiser in chief tonight, headlining an Arkansas dinner that netted at least $700,000 for a key political ally, Sen. Tim Hutchinson. "I'm here for one simple reason: This man needs to be returned back to the United States Senate come election 2002," Bush told hundreds of donors. Bush spoke largely about his own tax-reduction proposals, which he cast as a matter of fairness. Problems Delay Space Station's Arm CAPE CANAVERAL, Fla. (AP) - Computer trouble prevented astronauts from steering the international space station's new giant robot arm with a 1 1/2 -ton load Wednesday and resulted in a cascade of other woes. Communication between the space station and Mission Control was disrupted, and the orbiting outpost was left to fly on autopilot. In addition, an orbit-raising maneuver by the docked space shuttle Endeavour was put on hold. Feds: Airlines Fly Too Much WASHINGTON (AP) - The Federal Aviation Administration reported Wednesday that so many flights have been scheduled at certain airports that there is no way all of those planes can take off or land on time. The problem is so acute at eight airports that at least three of every 100 takeoffs or landings are delayed by more than 15 minutes. At LaGuardia, 16 percent of all takeoffs and landings were delayed last year, more than any other airport, FAA statistics show. Newark was second, at 8 percent, followed by O'Hare with 6 percent. Tokyo Stocks Rise TOKYO (AP) - Tokyo stocks rose in early trading Thursday as the Nikkei rose 141.43 points to 13,968.93 points. Bucks 103, Magic 96 MILWAUKEE (AP) - Fired up by a flagrant foul from Andrew DeClercq, Ray Allen scored a personal playoff-best 27 points as the Bucks beat Orlando 103-96 Wednesday night and took a 2-0 lead in their best-of-five series. Tracy McGrady scored 35 points, but just five in the fourth quarter as the Magic, trying to be more physical than finesse, lost for the 11th straight time to Milwaukee. AP NewsBrief by VINCENT K. WILLIS Folder Name: FERC Relevance Score on Scale of 100: 80 ______________________________________________________________________ To review or revise your folder, visit http://www.djinteractive.com or contact Dow Jones Customer Service by e-mail at custom.news@bis.dowjones.com or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511 or contact your local sales representative.) ______________________________________________________________________ Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved ---------------------- Forwarded by Alan Comnes/PDX/ECT on 04/25/2001 10:30 PM --------------------------- djcustomclips@djinteractive.com on 04/25/2001 10:54:19 PM Please respond to nobody@mail1.djnr.com To: 301880@mailman.enron.com cc: Subject: FERC: USA: The U.S. Federal Energy Regulatory Commission on Wednesday approved the ... USA: The U.S. Federal Energy Regulatory Commission on Wednesday approved the formation of RTO West... 04/25/2001 Reuters English News Service (C) Reuters Limited 2001. 24OEC/???WASHINGTON, April 25 (Reuters) - The U.S. Federal Energy Regulatory Commission on Wednesday approved the formation of RTO West, an eight-state system combining the transmission assets of nine utilities in the Pacific Northwest. U.S. regulators and Energy Secretary Spencer Abraham believe RTO West is a step forward in addressing reliability issues in the region. The federally owned Bonneville Power Administration is one of the utilities in the RTO design. An RTO is an organization that manages a bulk electricity transmission system. RTOs are expected to play a greater role in maintaining the nation's power grid as markets deregulate. As part of the approval for RTO West, the commission also accepted a proposal from some of the utilities to form a transmission company (TRANSCO) to operate within the broader RTO West. The FERC asked the RTO to make a submission to it by December 1 of this year on its plans for including Canadian transmission and widening the scope of its operations in a broader regional system. RTO West first submitted its plans to the FERC last October. It includes nine electric utilities serving eight western states with some 50,000 miles of transmission lines. The nine are Avista , BPA, Idaho Power , Montana Power , Nevada Power , PacifiCorp , Portland General Electric , Puget Sound Energy and Sierra Pacific ---------------------- Forwarded by Alan Comnes/PDX/ECT on 04/25/2001 10:30 PM --------------------------- djcustomclips@djinteractive.com on 04/25/2001 11:07:48 PM Please respond to nobody@mail1.djnr.com To: 301882@mailman.enron.com cc: Subject: FERC in the News: FERC Orders Limited California Price Controls FERC Orders Limited California Price Controls By Rebecca Smith 04/26/2001 The Wall Street Journal A4 (Copyright © 2001, Dow Jones & Company, Inc.) Hewing more to the ideological position of the Bush administration than to the urgings of Gov. Gray Davis and other California politicians, a divided Federal Energy Regulatory Commission yesterday ordered limited price controls for the state's flawed electricity market. The new controls aren't likely to restrain runaway wholesale power prices this summer. The order was approved in a meeting that began 10 hours late, as the three commissioners locked horns over how far the agency should go to restrain wholesale prices that have pushed one of California's big utilities into bankruptcy and which now threatens the state's fiscal health. The commission built on a staff recommendation, issued in March, that suggested it act only at those times when electricity supplies are in shortest supply. In its order, the commission decided to intervene whenever state electricity reserves drop below authorized levels -- so-called Stage I, II and III emergencies. The price-mitigation plan appears to ignore evidence, filed by the grid-operating California Independent System Operator, that generators can substantially raise market prices even when supplies aren't technically short. The ISO had recommended imposing price caps when individual generating plants tried to charge far more than fair production costs. Commissioner William Massey dissented, in part, from the order in a sharply worded attack on the commission which he said hadn't done its duty to protect energy users by restraining generators that overcharge. As a consequence, he said, the "economic carnage" is spreading throughout the West. Mr. Massey, an Arkansas Democrat, criticized the commission for acting only when electricity reserves fall below 7%, "since this agency is obligated to ensure just and reasonable prices in all hours." Under the order, generators will be required to submit cost data to justify high prices during periods of electricity scarcity. They will be allowed to collect the price they bid so long as it doesn't exceed the price charged by the oldest, least-efficient plant operating at the time. Such "proxy price" methodology enabled plant owners to collect as much as $470 per megawatt hour in February or roughly 12 times the prevailing price a year earlier. Support for the order came from commission Chairman Curt Hebert, a Mississippi Republican, who said he didn't intend the commission to fall into a trap of limiting market forces to the extent that "we hinder efforts" to build new power plants and transmission lines that are badly needed to correct California's supply-and-demand imbalance. Linda Breathitt, a Kentucky Democrat, was the swing vote who eventually sided with Mr. Hebert. FERC staffers said she expressed doubts about whether the commission was doing as much as it should. In the meeting she acknowledged the "complexity" and "difficulty" of the task but said she remained "steadfast in my belief that market solutions . . . are preferable" to regulatory controls. The commission attached an unexpected condition to its order, saying the price-cap scheme will be revoked June 1 unless the California grid operator has filed a plan to become part of a region-wide grid-operating organization. California's ISO had such a plan ready to file but it got yanked when a new board, named by the state's governor, took control recently. In recent months, Mr. Davis has urged increased isolationism, even suggesting the state no longer export power.It isn't clear whether FERC intends to permit California to continue to operate as a stand-alone grid-running organization. More likely, it will be expected to show it intends to become part of a multistate organization to operate transmission lines in a nondiscriminatory manner. The commission gave tentative approval yesterday to formation of a regional grid operator that would encompass eight other Western states and would include the transmission system of the federal Bonneville Power Administration, the biggest power marketer and transmission owner in the Northwest. Geographically, it would be the biggest regional grid organization in the United States. Folder Name: FERC in the News Relevance Score on Scale of 100: 91 ______________________________________________________________________ To review or revise your folder, visit http://www.djinteractive.com or contact Dow Jones Customer Service by e-mail at custom.news@bis.dowjones.com or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511 or contact your local sales representative.) ______________________________________________________________________ Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved
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