The following is an excerpt from a FERC order issued on Friday:
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"Ridgewood Power LLC (Ridgewood) filed comments suggesting that the  shortage 
of supply could be remedied in part by relaxing the operating  efficiency and 
other regulatory requirements pertaining to Qualifying Facilities  (QFs).? 
Ridgewood states that the total power production capacity of QFs in  
California is approximately 9,000 MWs, of which, between 4,000 and 5,500 MW 
are  from qualifying cogeneration facilities (Cogeneration QFs) and the 
remainder  from small power production facilities (Small Power QFs).? 
Ridgewood states  that the Cogeneration segment of the industry is 
underutilized because of  operating efficiency and other QF requirements.?? 
With a limited  waiver or other equivalent relief, Ridgewood states that 
these underutilized  resources could help relieve current shortages during 
both peak and off-peak  periods.? Ridgewood estimates that as much as 1,000 
MWs would be  immediately available by allowing QFs to sell to the purchasing 
utility or into  the competitive market their "above-baseline" output for a 
limited time  period.?? Ridgewood suggests that any such sale would be made 
at  market-based rates and would not be subject to the operating and 
efficiency  standards.........?Section 292.205(c) of the Commission's 
regulations  provides that the Commission may waive any of its operating and 
efficiency  standards "upon a showing that the facility will produce 
significant energy  savings".?? However, the Commission has exercised its 
waiver authority  in a number of cases based on factors such as the limited 
durations of the  requested waiver, whether further waivers would be 
necessary, whether the  request was intended to remedy specific problems 
associated with an innovative  technology, and whether granting waiver would 
fulfill PURPA's goals.??  We find that many of these same factors are present 
here.? Consistent with  the goals of PURPA, we find that granting such waiver 
in this circumstance will  provide for increased efficiency in the use of the 
Cogeneration facilities and  improved reliability of electric service through 
increasing the availability of  needed capacity.? Therefore, we will grant 
temporary waiver of the  operating and efficiency standards to Cogeneration 
QFs for sales into  California, effective as of the date of this order.? We 
will terminate the  waiver effective January 1, 2001."
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Let me know if you want the entire order.
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Dan