----- Forwarded by John J Lavorato/Corp/Enron on 01/21/2001 08:38 PM -----


	Christopher F Calger@ECT 01/21/2001 04:00 PM 	   To: Barry Tycholiz/NA/Enron@ENRON  cc: John J Lavorato/Corp/Enron@Enron  Subject: California QFs - Gas Hedging	


Barry,

FYI the California QF's are negotiating a settlement deal with Edison and the state of California which would fix energy payments over five years.  Currently the energy payments are indexed to Socal Border because a majority of the Edison QF's buy spot gas.  If this settlement happens, the QF's will likely want to buy financial swaps.  The Edison gas-fired QF's represent about 500MMCF/Day of gas.

Chris