Lisa J. Mellencamp
Enron North America Corp. - Legal
1400 Smith St.
Houston, TX  77002
Tel:  (713) 853-7986
Fax: (713) 646-3393
E-mail:  Lisa.Mellencamp@enron.com
----- Forwarded by Lisa Mellencamp/HOU/ECT on 05/17/2001 01:10 PM -----

	"BENNETT YOUNG" <BYOUNG@LLGM.COM>
	05/17/2001 12:49 PM
		 
		 To: Lisa.Mellencamp@enron.com, Michael.Tribolet@enron.com
		 cc: "CARL EKLUND" <CEKLUND@LLGM.COM>, "JOHN KLAUBERG" <JKLAUBER@LLGM.COM>, 
"JAMES HUEMOELLER" <JLHUEMOE@LLGM.COM>
		 Subject: 4799756092ca99bf88256a4a00045971OpenDocument


Judge Montali has issued a tentative ruling on the MidSet QF's motion to 
suspend performance under their PPA's.  Click on the link below to view a pdf 
file containing the 27 page decision.

In summary, the Court's tentative ruling is to deny the QF's request to 
suspend the PPA's, to decline to set a deadline for PG&E to assume or reject 
the contract and to find that the reasonable rate that PG&E must pay the QF 
for energy delivered post petition pending assumption or rejection is the 
rate determined by the CPUC in the Wood decision.

The Court then goes on to note that this case is an extraordinary one 
requiring extraordinary relief.  The Court therefore tentatively ruled that 
PG&E should pay some undetermined portion of the pre-petition arrearages to 
the QF's in order to ameliorate the burden on the QF's and help get them back 
(or keep them) online.

The Court therefore ordered PG&E, MidSet and the Committee to meet and confer 
and attempt to reach a resolution of the amount of the arrearage to be paid.  
Judge Montali states that "he has it in mind" that the amount perhaps should 
be equal to the difference between the Wood rates and the market price.

Call me if you have any questions or have an trouble with the link.

Ben Young

 
http://www.canb.uscourts.gov/canb/Documents.nsf/bf0c3519af9731c88825671d006664
79/4799756092ca99bf88256a4a00045971?OpenDocument


Bennett G. Young
One Embarcadero Center, Suite 400
San Francisco, California 94111
(415) 951-1167
byoung@llgm.com


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