Dan Watkiss argues that FERC has no authority to override the state, even 
though the rules go far beyond what is critical or necessary. 

Per Christi's thoughts, we may want to gauge Congressional interest in 
pushing something as an add-on to EPAct '92 that allows only safety / public 
interest reasons for an EWG to be restricted in its siting by a State.

Jim

---------------------- Forwarded by James D Steffes/NA/Enron on 04/19/2001 
06:58 PM ---------------------------
From: Christi L Nicolay@ECT on 04/19/2001 09:10 AM
To: Marchris Robinson/NA/Enron@Enron, James D Steffes/NA/Enron@Enron
cc:  

Subject: Re: FLORIDA Matters

I talked with Dan briefly about this to verify my conclusion that FERC would 
not get involved at this point.  The Florida issue seems similar to 
California (or any other state that has idiosyncratic siting issues) in that 
FERC has encouraged California to speed the siting of generation, but has not 
ordered it.  What I am not sure about is whether the possible DOE or 
Congressional emergency electricity legislation that Jim sent out yesterday 
(on demand side management payments) could also include language that would 
allow the federal government to override the certain state generation siting 
issues, such as the Florida law.
---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 04/19/2001 
08:59 AM ---------------------------


"Dan Watkiss" <dwatkiss@bracepatt.com> on 04/19/2001 08:15:45 AM
To: <Christi.L.Nicolay@enron.com>
cc:  

Subject: Re: FLORIDA Matters


Christi, the Florida certificate process controls siting and licensing of 
generators.  Both are topics over which FERC has no authority.   
Consequently, FERC would have no authority to override the state.

>>> <Christi.L.Nicolay@enron.com> 04/18/01 05:45PM >>>

---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 04/18/2001
04:45 PM ---------------------------

From: Marchris Robinson@ENRON on 04/18/2001 09:58 AM

To:   Christi L Nicolay/HOU/ECT@ECT
cc:

Subject:  FLORIDA Matters

Christi:

Does FERC have the authority to act per question no. 2?  Please advise.

MR
----- Forwarded by Marchris Robinson/NA/Enron on 04/18/2001 09:57 AM -----

                    James D
                    Steffes              To:     Marchris 
Robinson/NA/Enron@Enron
                                         cc:     Steven J 
Kean/NA/Enron@Enron, Steve Montovano/NA/Enron@Enron,
                    04/18/2001           Richard Shapiro/NA/Enron@Enron, 
Christi L Nicolay/HOU/ECT@ECT
                    09:47 AM             Subject:     FLORIDA Matters





Marchris --

Some things on follow-up from Ken Lay's call with Jeb Bush (could you have
answers by End of Week) -

1.   What is the process post the FL Supreme Court decision.  Did anyone
appeal to the Federal Courts?  Outcome of that action, if taken?

2.   Is it possible for the FERC to simply act to waive the CCN need?  Did
we ever discuss with FERC counsel the ability for that agency to "override"
the CCN for any filing EWG?  What would they need to do?  Would FERC need
to take on the FPSC or Fla Supreme Court?  A state should have the right to
worry about safety and reliability, but not interfere with wholesale
competition.

3.   Have we calculated a "back of the envelope" $ value for the margin the
Utilities (FPL, TECO, FPC) will obtain by transferring generation at book?
I would think that nuke should be at book (this is a gimme) with the fossil
analyzed as the difference between average book ($/kw) and market value
($/kw - see Ben Jacoby).  What is the total $?

My understanding is that Steve Kean is heading into Florida to meet with
Sect of Environment next week.  We need to try and get a read from the
Utilities on how much $ would they be willing to give back in rate
decreases as a Generation Stranded Benefit to see this deal through before
the meeting.

Thanks,

Jim