Not the retained assets case---Wood wants to cap prices to QFs.  Jeanne, 
could you try to get any information you can from PUC staff on how they 
intend to handle PG&E's advice letter  re: "we've stopped selling power from 
out retained assets into the PX?"  (I'm assuming that the PUC would be 
sympathetic, since it should immediately lower the utility's bill for power?)

Thanks very much,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 01/11/2001 12:14 PM -----

	"Daniel Douglass" <Douglass@ArterHadden.com>
	01/10/2001 02:33 PM
		 
		 To: <Barbara_Klemstine@apsc.com>, <berry@apx.com>, <dcazalet@apx.com>, 
<BillR@calpine.com>, <jackp@calpine.com>, <glwaas@calpx.com>, 
<Ken_Czarnecki@calpx.com>, <gavaughn@duke-energy.com>, 
<rjhickok@duke-energy.com>, <gtbl@dynegy.com>, <jmpa@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>, <jsmollon@newwestenergy.com>, 
<rsnichol@newwestenergy.com>, <curtis_l_kebler@reliantenergy.com>, 
<rllamkin@seiworldwide.com>
		 cc: 
		 Subject: Draft Decision from Commissioner Wood



As you may be aware, there has been an ongoing proceeding at the CPUC  
regarding short-run avoided cost (SRAC) payments made by SCE, and the other  
utilities to QFs.? The avoided cost posting is based on a Transition  Formula 
adopted in D.96-12-028 that incorporates various border price  indices.? On 
July 28, 2000, SCE filed a petition to modify D.96-12-028 to  revise its 
Transition Formula, claiming that the existing procedure resulted in  too 
high a price.
?
The draft?decision issued by Commissioner Wood adopts a formula, to be  
updated monthly, to revise SCE's factor adopted in D.96-12-028 and adopts an  
alternative gas index to replace the Topock index adopted in D.96-12-028.?  
?
However, you may be particularly interested to see that the draft decision  
also establishes a ceiling price for payments to QFs of $67.45/MWh, based on 
the  reasonableness standard described by the FERC in its 12/15 order.
?
Dan
 - CPUC01-#87303-v1-R9911022_Wood_Comment_Dec__.doc