Scott/Hedy/Mike:
What's the status of the DG bill?  As I recall, Burton amended the bill in a 
way that explicitly prohibit diesel DG units from helping California avoid 
rolling black outs this summer. I believe the exclusion was made on grounds 
that running diesel would be too environmentally damaging?  Could you provide 
a brief update?  Is there anything in the bills that addresses the 
restrictions on the number of hours that these units are permitted to run?  
Thanks very much.

Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 03/08/2001 11:05 AM -----

	Roger A Larson@EES
	03/08/2001 10:58 AM
		 
		 To: Susan J Mara/NA/Enron@ENRON
		 cc: Mark Dobler/HOU/EES@EES, Tom Riley/Western Region/The Bentley 
Company@Exchange, Jeff Dasovich/NA/Enron@Enron
		 Subject: Emergency Diesel Generators in California

We have been analyzing various opportunities of providing electric power into 
California.  One idea is to modify existing customer emergency diesel 
generators such that we could turn them on and supply power to the grid when 
the customer does not need the power.

We believe current regulations limit use of diesel (#2 fuel oil) fired 
emergency generators to only be operated when the utility is not currently 
supplying power to the facility and in that case, maximum of 500 hoursper 
year for hospitals and other critical services but only 200 hours per year 
for all others.

There may be legislation currently being submitted to the California 
legislature or other regulatory body (EPA?) to change this based on current 
need for power in that area.  Could you please advise me if there is 
currently any legislation like this under consideration and/or when this may 
occur?  

Thank you for your assistance.

Roger