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From:jeff.dasovich@enron.com
To:alan.comnes@enron.com, angela.schwarz@enron.com, beverly.aden@enron.com,bill.votaw@enron.com, brenda.barreda@enron.com, carol.moffett@enron.com, cathy.corbin@enron.com, chris.foster@enron.com, christina.liscano@enron.com, christopher.calger@enron.co
Subject:IMPORTANT CONFERENCE CALL ON QF/SRAC MATTERS SCHEDULED FOR 12:30
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Date:Sun, 21 Jan 2001 02:23:00 -0800 (PST)

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----- Forwarded by Jeff Dasovich/NA/Enron on 01/21/2001 10:21 AM -----

"Steven Kelly" <steven@iepa.com<
01/21/2001 05:42 AM
Please respond to "Steven Kelly"

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Subject: IMPORTANT CONFERENCE CALL ON QF/SRAC MATTERS SCHEDULED FOR 12:30
P.M. (NOONISH) ON SUNDAY, JAN. 21

An important conference call is scheduled for 12:30 p.m. (PST) on Sunday,
Today, Jan 21 to discuss the status of legislative meetings on QF/SRAC
matters.

Call-In number is 888-422-7124
Particpant Code is 111756


Status Report
After a marathon 12 hour meeting with Assemplyman Keeley, Senator Battin, QF
Parties, and SCE, a Keeley sponsored "deal" was proposed at 3:30 a.m. this
morning. The crux of the deal is as follows:

For renewables and non-gas fired QF, essentially ...

7.8 cents/kwh for delivered power for 5 years ["all in", i.e. includes
capacity and energy]
1.0 on losses
no 'clawback' for wind resources which may have failed to meet fixed capacity
obligations in the past
Applies "going forward" (presumedly Feb. 1)


For gas-fired QFs...

7.8 cents/kwh for five years, assuming gas is $5.60; payment will
increase/decrease tied to gas (this assumes an IER of 9821)
1.0 on line losses
applies "going forward"
Caacity True-up and "forbearance" were not addressed. Credit worthiness will
be address in the technical conference scheduled for later today (Sunday).
This program will require in part legislative blessing and direction,
followed by CPUC approval of individual contract amendments. This is
essentially the PG&E/QF "deal" for the gas guys. For the renewables, it is
more of a fixed payment approach.

A "Technical Conference" is scheduled for Sunday (today) in Sacramento to
work out some of the implementing details.