|
|
Enron Mail |
Mime-Version: 1.0
Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit X-From: Jeff Dasovich X-To: Alan Comnes, Angela Schwarz, Beverly Aden, Bill Votaw, Brenda Barreda, Carol Moffett, Cathy Corbin, Chris H Foster, Christina Liscano, Craig H Sutter, Dan Leff, Debora Whitehead, Dennis Benevides, Don Black, Dorothy Youngblood, Douglas Huth, Edward Sacks, Eric Melvin, Erika Dupre, Evan Hughes, Fran Deltoro, Gayle W Muench, Ginger Dernehl, Gordon Savage, Harold G Buchanan, Harry Kingerski, Iris Waser, James D Steffes, James W Lewis, James Wright, Jeff Messina, Jeremy Blachman, Jess Hewitt, Joe Hartsoe, Karen Denne, Kathy Bass, Kathy Dodgen, Ken Gustafson, Kevin Hughes, Leasa Lopez, Leticia Botello, Mark S Muller, Marsha Suggs, Marty Sunde, Meredith M Eggleston, Michael Etringer, Michael Mann, Michelle D Cisneros, mpalmer@enron.com, Neil Bresnan, Neil Hong, Paul Kaufman, Paula Warren, Richard L Zdunkewicz, Richard Leibert, Richard Shapiro, Rita Hennessy, Roger Yang, Rosalinda Tijerina, Sandra McCubbin, Sarah Novosel, Scott Gahn, Scott Stoness, Sharon Dick, skean@enron.com, Tanya Leslie, Tasha Lair, Ted Murphy, Terri Greenlee, Tim Belden, Tony Spruiell, Vicki Sharp, Vladimir Gorny, Wanda Curry, William S Bradford, Kathryn Corbally, Jubran Whalan, triley@enron.com, Richard B Sanders, Robert C Williams, Greg Wolfe, James Wright, Dirk vanUlden, Steve Walker, Jennifer Rudolph, Martin Wenzel, Douglas Condon, wgang@enron.com, Scott Govenar <sgovenar@govadv.com<, Hedy Govenar <hgovenar@govadv.com< @ ENRON, jklauber@llgm.com, Mike D Smith, John Neslage, Janel Guerrero, Eric Letke, Richard B Sanders, gfergus@brobeck.com, Michael Tribolet, Robert Frank X-cc: X-bcc: X-Folder: \Steven_Kean_June2001_4\Notes Folders\Discussion threads X-Origin: KEAN-S X-FileName: skean.nsf PUC considers rewarding producers that sign long-term contracts Greg Lucas, Lynda Gledhill, Chronicle Sacramento Bureau Wednesday, March 21, 2001 ,2001 San Francisco Chronicle URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/21/M N33580.DTL Sacramento -- Some cash-strapped producers of wind, solar and other alternative forms of energy will get long-delayed financial relief under a proposed order by state regulators, Gov. Gray Davis said yesterday evening. A proposed order by the Public Utilities Commission is designed to reward energy producers who sign long-term contracts with utilities at lower rates. Alternative energy producers that voluntarily enter such contracts, which would start on April 1, would be paid within 15 days, said Davis, who requested the order. Those that do not would have to wait until the utilities that buy their power return to solvency. Davis blasted Pacific Gas & Electric Co. and Southern California Edison for not paying the alternative generators -- know as qualified facilities, or "QFs" -- even though the companies have been collecting money through rates. "It is wrong and irresponsible of the utilities to pocket and withhold the money designed to compensate the QFs," Davis said. "It's immoral and has to stop." Alternative producers -- ranging from massive co-generation facilities at oil refineries to tiny biomass plants -- produce about a third of the state's supply of electricity. But many are shutting down because utilities have not paid them since November. The loss of some 3,000 megawatts from tapped-out alternative energy producers contributed to the blackouts that snarled California yesterday and Monday, according to the Independent System Operator, which manages the state's power grid. The PUC's proposed order -- which will be considered at the board's Tuesday meeting -- offers the generators a choice of agreeing to a five-year contract at $79 per megawatt or a 10-year deal at $69 per megawatt, Davis said. The order does not address the more than $1 billion already owed to the more than 600 alternative energy producers around the state. Davis said to favor one creditor over another in past debt could bring on bankruptcy proceedings from other creditors. The Legislature would also need to act to make the order work. "It is critical to keep these facilities up and online," said Sen. Debra Bowen, D-Marina del Ray, who estimates that Edison has $1.5 billion in cash on hand, and PG&E $2.5 billion. "The utilities owe it to the people of the state to pay them." Edison said yesterday that it opposed any attempt to place alternative producers ahead of their other creditors. But Tom Higgins, a senior vice president for Edison International, which owes alternative producers some $835 million, said his company was talking to the governor's office about possible payment structures. Alternative energy producers, particularly those that use high-priced natural gas to fire their generators, say that without an immediate infusion of cash they must close their plants. "We've been obsessed with the health of the utilities and (have) forgotten the health of everyone else," said V. John White, legislative director of the Clean Power Campaign, which lobbies for alternative energy producers. CalEnergy Operating Corp., which operates eight geothermal plants in the Imperial Valley producing 268 megawatt hours for Edison has sued the utility asking to be paid and to be temporarily released from their contract with Edison which has paid them nothing since November. CalEnergy has a court hearing tomorrow on its Edison contract. Edison owes the company $75 million, and the debt increases by $1 million a day. "We've lived up to our end of the bargain but Edison hasn't. We're now not in a position to make a property tax payment on April 10 and we're the largest employer in the county," said Vince Signorotti, CalEnergy's property manager. Unlike Edison, PG&E is paying its creditors 15 cents on the dollar. "We have offered over the past five days to prepay for future power not yet delivered to keep as many of them operating as possible, but the state needs to decide how its going to divvy up the limited money under the frozen rates," said John Nelson, a PG&E spokesman. The PUC's sudden attempt to recast the rates paid to alternative generators comes after several months of inaction, partly a result of waiting for legislative negotiations on the issue to conclude. Those negotiations eventually failed to move forward. E-mail Greg Lucas at glucas@sfchronicle.com and Lynda Gledhill at lgledhill@sfchronicle.com. ,2001 San Francisco Chronicle ? Page?A - 10
|