By its January 8 order, the FERC clarified that it did not intend to preclude 
the PX from engaging in bilateral forward contracting  and that the PX was 
free to remove spot market components from its forward contracting rate 
scheduling.  In its request for rehearing, the PX argued that: (1) FERC had 
failed to fix a just and reasonable rate, (2) FERC did not remove the ongoing 
prohibition on the IOUs trading in its markets, (3) the January 8 order 
prohibited it from operating a spot market and that prohibition was unduly 
discriminatory, and (4) FERC failed to provide a viable alternative to its 
forward market rate schedule.  FERC dismissed the PX's request for rehearing 
of its January 8 order, finding that all of the PX's concerns emanate from 
the FERC's December 15 order not its January 8 order..   See attached order.  
- EL00-95.1