From: mary.hain@enron.com
To: christian.yoder@enron.com, steve.c.hall@enron.com, richard.sanders@enron.com, paul.kaufman@enron.com, james.steffes@enron.com, sarah.novosel@enron.com, james.keller@enron.com, mike.smith@enron.com, harry.kingerski@enron.com, dennis.benevides@enron.com, tim.belden@enron.com, neil.bresnan@enron.com, jubran.whalan@enron.com, christopher.calger@enron.com, dave.parquet@enron.com, alan.comnes@enron.com, john.forney@enron.com, robert.badeer@enron.com, jeff.richter@enron.com, matt.motley@enron.com, mike.swerzbin@enron.com, mark.fischer@enron.com, tom.alonso@enron.com, diana.scholtes@enron.com, sean.crandall@enron.com
Date: 2000-12-11 11:50:00+00:00
Subject: FERC Order -- Special Waiver to get more QF Power -- ends 1/1/01

Susan J Mara@ENRON
12/11/2000 11:19 AM
To: Jeff Dasovich/NA/Enron@Enron, Chris H Foster/HOU/ECT@ECT, Frank W 
Vickers/HOU/ECT@ECT
cc:  
Subject: FERC Order -- Special Waiver to get more QF Power -- ends 1/1/01


----- Forwarded by Susan J Mara/NA/Enron on 12/11/2000 11:18 AM -----

	"Daniel Douglass" <Douglass@ArterHadden.com>
	12/11/2000 10:36 AM
		 
		 To: <Barbara_Klemstine@apsc.com>, <dcazalet@apx.com>, <BillR@calpine.com>, 
<jackp@calpine.com>, <glwaas@calpx.com>, <Ken_Czarnecki@calpx.com>, 
<cabaker@duke-energy.com>, <gavaughn@duke-energy.com>, 
<rjhickok@duke-energy.com>, <gtbl@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>, <rsnichol@newwestenergy.com>, 
<Nam.Nguyen@powersrc.com>, <rllamkin@seiworldwide.com>, 
<Roger.Pelote@Williams.com>
		 cc: 
		 Subject: FERC Order

The following is an excerpt from a FERC order issued on Friday:
 
"Ridgewood Power LLC (Ridgewood) filed comments suggesting that the shortage 
of supply could be remedied in part by relaxing the operating efficiency and 
other regulatory requirements pertaining to Qualifying Facilities (QFs).  
Ridgewood states that the total power production capacity of QFs in 
California is approximately 9,000 MWs, of which, between 4,000 and 5,500 MW 
are from qualifying cogeneration facilities (Cogeneration QFs) and the 
remainder from small power production facilities (Small Power QFs).  
Ridgewood states that the Cogeneration segment of the industry is 
underutilized because of operating efficiency and other QF requirements.   
With a limited waiver or other equivalent relief, Ridgewood states that these 
underutilized resources could help relieve current shortages during both peak 
and off-peak periods.  Ridgewood estimates that as much as 1,000 MWs would be 
immediately available by allowing QFs to sell to the purchasing utility or 
into the competitive market their "above-baseline" output for a limited time 
period.   Ridgewood suggests that any such sale would be made at market-based 
rates and would not be subject to the operating and efficiency 
standards......... Section 292.205(c) of the Commission's regulations 
provides that the Commission may waive any of its operating and efficiency 
standards "upon a showing that the facility will produce significant energy 
savings".   However, the Commission has exercised its waiver authority in a 
number of cases based on factors such as the limited durations of the 
requested waiver, whether further waivers would be necessary, whether the 
request was intended to remedy specific problems associated with an 
innovative technology, and whether granting waiver would fulfill PURPA's 
goals.   We find that many of these same factors are present here.  
Consistent with the goals of PURPA, we find that granting such waiver in this 
circumstance will provide for increased efficiency in the use of the 
Cogeneration facilities and improved reliability of electric service through 
increasing the availability of needed capacity.  Therefore, we will grant 
temporary waiver of the operating and efficiency standards to Cogeneration 
QFs for sales into California, effective as of the date of this order.  We 
will terminate the waiver effective January 1, 2001."
 
Let me know if you want the entire order.
 
Dan