Sure makes sense.  One concern.  If they buy up to 80% of load, do we run the 
risk of "stranded cost" problem later down the road when we hit the 
backwardated part of the curve.  Hinges on the term of the contract.  Sort of 
chicken and egg problem.  If the buy for short terms, the prices will be 
high, if they buy for longer terms, the prices will be lower, but the risk of 
stranded cost rises.  Thoughts?



	Margaret Carson
	10/18/2000 08:33 AM
		 
		 To: Jeff Dasovich/NA/Enron@Enron
		 cc: James D Steffes/NA/Enron@Enron
		 Subject: IDEA RE ISSUE OF UTILS IN CALIF WANTING $100 PRICE CAP

Jeff   Is  there   merit  in  California's  regulators     requiring  that  
utilities first  buy up blocks
of firm  power   to meet,  say, 80 percent of their load  before  they are  
allowed a
price  cap (be  it   $100  or whatever)    on the  rest.  It certainly  makes 
lously  economic  sense
to  price    cap ALL of it..    Even  pro-utility commissioners  can  see 
through  that kind of  bail out  strategy  ..
your comments appreciated ...   Margaret...