Another big victory for Enron in New York! In an Order issued by the NYPSC on 
March 29, the NYPSC has approved a proposal to modify the existing fixed 
backout credit of 2.8 cents per kwh for energy and capacity and replace it 
with a market-based backout credit. The additional retail adder of 0.4 cents 
per kwh would remain.  Load-serving entities (LSEs) will have the option of 
continuing to buy their energy and capacity from RG&E at the market based 
backout credit which will be determined 15 days prior to the beginning of 
each of the two six-month capability periods, and will be based on "a 
forecast of energy prices derived from Enron Corporation's (Enron) 
EnronOnline trading platform."  To my knowledge, this is the first occasion 
that a regulatory body has agreed to use Enron Online as an index!  LSEs can 
elect instead to procure their own commodity and get a market-based backout 
credit (MBBC). Under this option, the LSEs will get a market based backout 
credit. However, the Enron online prices for the six months determined as 
above will be reconciled on a lag basis against actual market prices.  The 
PSC has capped the amount of the reconciliation for any LSE to the product of 
the LSE's total load for the calendar year and $0.065 per kwh (PSC staff's 
estimate of RG&E's embedded power supply cost).  (The PSC Order actually says 
$0.015 but this appears to be a mistake since the attached settlement states 
$0.065.) A copy of the PSC's Order is available on its website:  
www.dps.state.ny.us