----- Forwarded by Jeff Dasovich/NA/Enron on 01/21/2001 10:29 AM -----

	"Katie Kaplan" <kaplan@iepa.com>
	01/19/2001 04:45 PM
	Please respond to kaplan
		 
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		 cc: "Steven Kelly" <steven@iepa.com>, "Carol H Hudson" <Chudson@iepa.com>
		 Subject: FW: CPUC Fastball: emergency meeting on 1/19




Greetings:

The CPUC held an emergency meeting this morning in which they restated the 
utilities obligation to serve regardless of claims of bankruptcy or any other 
insolvency. PG&E had indicated to both the ISO and CDWR that they had only 
planned to schedule for load in which they had native generation to serve. 
PG&E's logic is?probably that they will cover folks with the?assets they 
have, but since they can't buy anything, they shouldn't?carry that 
obligation.? CPUC doesn't like that logic, although if bankruptcy happens its 
about the same effect?as?imposing that obligation on DWR.? This could be 
avoided if they would just impose the rate increase?that will cover the 
costs, subject to refund, and then get the long-term?deals in place.? At this 
point the utilities have?much less to lose.? Please find the attached 
decision.? For those of you who would like to listen to the hearing you can 
listen to a rebroadcast by logging onto the CPUC web site.

?

?

Katie Kaplan

Manager of State Policy Affairs

Independent Energy Producers Association

(916) 448-9499

?
 - keep serving_4622.doc