GADSDEN RESEARCH  SERVICES'
 
FERCwatch?  
?Issued?April?26,?2001
?
ELECTRIC?/  HYDRO?Report:


?
COMMISSION ESTABLISHES PROSPECTIVE  MITIGATION
AND MONITORING PLAN FOR  CALIFORNIA WHOLESALE
ELECTRIC  MARKETS

San Diego Gas & Electric Company, et al., Docket Nos.  EL00-95-012, et al.
(04/26/01)
[View  Order]
[View?complete  press release]
?
(the following is excerpted from FERC  press release)
?
The Federal Energy Regulatory Commission announced a plan designed  to
bring price relief to the  dysfunctional California electric market, provide 
greater price
certainty to buyers and sellers of  electric power, and promote conservation 
while
encouraging investment in generation  and transmission.
?
The California plan, striking a  balance between energy suppliers and 
consumers,
provides for forward-looking price  mitigation, ongoing market monitoring and
development of demand reduction  programs. Prices should be mitigated before 
they are
charged, not after, be  market-oriented and adopt market solutions, the 
Commission said.
The plan will be in place for a  period not to exceed one year.
?
Chairman Curt L. H,bert, Jr. said,  "Today's order reflects bold and 
imaginative
thinking by the Commission staff and  my colleague, Commissioner Linda K. 
Breathitt.
California consumers can rest assured  that the Commission has been attentive 
to their
problems, and has worked tirelessly  to ensure that they receive necessary 
relief in a
manner that does not compound current  problems or undermine longer-term 
solutions."
?
The mitigation plan directs the  California Independent System Operator (ISO) 
to
file a regional transmission  organization (RTO) proposal with the Commission 
by June 1,
2001.

?
COMMISSION ACCEPTS OUTLINE OF BROAD  WESTERN RTO, ITC;
NOTES IMPORTANCE OF INTERRELATED  WESTERN ENERGY MARKET

RTO West, Docket Nos. RT01-35-000 and RT01-15-000
(04/26/01)
[View  Order]
[View complete press  release]
 
?
(the following is excerpted from the  FERC press release)
?
 
The Federal Energy Regulatory Commission today  accepted as a "first step" key
parts of a proposal for a broad regional  transmission organization (RTO) 
that will span
eight western states. Today's order also accepts a  proposal for an 
independent
transmission company (ITC) within the RTO structure  (RT01-15-000).
?
Noting the recent power market problems experienced  in California and
throughout the West, the Commission emphasized the  regional nature of the 
electric
marketplace and said these issues highlight the  substantial benefits that an 
RTO will
provide. RTO West can serve as an anchor for the  ultimate formation of a 
West-wide
RTO, the Commission said.
?
RTO West, a non-profit organization with an  independent board that will act 
as
the independent system operator, includes Avista  Corporation, the federal 
utility
Bonneville Power Administration, Idaho Power  Company, Montana Power Company,
Nevada Power Company, Pacificorp, Portland General  Electric Company, Puget 
Sound
Energy, Inc. and Sierra Pacific Power Company  (RT01-35). RTO West will 
operate
more than 90 percent of the high voltage  transmission facilities from the 
U.S.-Canadian
border to southern Nevada, the Commission noted.  The RTO will not own 
transmission
facilities, but will control each participating  owners' transmission 
facilities.
?
In today's order, the Commission addressed RTO  West's proposals on 
governance,
scope and configuration, and liability  issues.
 
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_________________________________________________________
______________________________
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NATURAL GAS /  OIL?Report:
?





Southern Natural Gas Company,?CP01-161-000  (04/20/01) -- Pipeline 
certificate application for North System  Expansion II Project to increase 
the capacity of Southern's system by 33,000 Mcf  per day to provide additonal 
winter service to Alabama Gas Corporation and the  City of Sylacauga, Alabama 
and to provide 52,000 Mcf of system capacity  available during the summer 
season to Calhoun Power Company I,  LLC.
VIEW  DOCUMENT
REQUEST A COPY:  ?grs4ferc@starpower.net.
?

Georgia Strait Crossing Pipeline LP,  CP01-176-000, CP01-177-000, 
CP01-178-000?(04/24/01) -- Application  for the necessary authorizations?for 
the construction and operation  of?pipeline?facilities in the State of 
Washington as part of the  Georgia Strait Crossing Project in conjunction 
with an associated Canadian  pipeline system proposed by GSX Canada Limited 
Partnership.?  The?GSX-US system will have an interconnect with Westcoast 
Energy Inc. at  the U.S./Canadian international boder at the market hub at 
Sumas,  Washington/Huntingdon, British Columbia, providing direct access to 
the Canadian  pipeline grid and an interconnection with Northwest Pipeline 
Corporation to  provide direct access to the U.S. pipeline grid.? From the 
interconnects at  the Sumas/Huntingdon market hub, the GSX-US system will 
extend through Whatcom  and San Juan Counties, Washington to an offshore 
interconnect at the  international?border with GSX-Canada.? The GSX-Canada 
system will  extend approximately 37.5 miles from the interconnect with 
GSX-US to an  interconnect with the existing system of Centra Gas British 
Columbia Inc., a  distribution affiliate of Westcoast, near Shawnigan Lake on 
Vancouver Island,  British Columbia.? An open season for firm transportation 
capacity on the  GSX-US system resulted in a binding Precedent Agreement with 
Powerex Corp., an  energy marketing affiliate of British Columbia Hydro and 
Power Authority, which  requires the capaicty to meet BC Hydro's obligations 
to supply natural gas to  two new generating plants on Vancouver Island.? The 
agreement with Powerex  is for 100% of the initial certificated design 
capacity of GSX-US (94,000 Dth  per day) for a 30-year term.? GSX-US is 
sponsored by Williams Gas Pipeline  Company, and?GSX-Canada?by BC Hydro .
VIEW  DOCUMENT
REQUEST A COPY:  ?grs4ferc@starpower.net.

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