On March 14, 01, FERC issued an "Order removing obstacles to increased 
electric generation and gas supply in the West.."  (Docket No. EL01-47).

 Most significantly, FERC authorizes industrials in WSCC to sell power to 
licensed power marketers (like EPMI and EES) effective 3/14/01 through 
12/31/01.  The industrial does not have to obtain its own power marketer 
license from FERC (subject to EPMI and EES making filings for the 
industrials).  (This is similar to the authorization that EPMI and EES 
requested nationwide earlier this year -- we should hear from FERC on that 
request by mid-May.)

In addition, FERC authorizes DSM sales at wholesale at market based rates.

Specifics:

Owners of generating facilities located at business locations in the WSCC and 
used primarily for back-up for self-generation (who will be "public 
utilities" subject to the Federal Power Act only while they sell at 
wholesale) can sell power at wholesale from such facilities to non-affiliated 
entities (like EPMI or EES) without prior notice under section 205 of FPA 
(would usually require 60 day advance notice filing).  
  -- Waives certain parts of the filing requirements for the industrial; 
however, the industrial will still be subject to shortened filing 
requirements for dispositions of facilities and interlocking positions while 
they are selling at wholesale.
 -- EPMI and EES will make the FERC quarterly filings on behalf of the 
industrials for any of these purchases.  Our report must show the names of 
the industrial; aggregate amount of capacity and/or energy purchased from 
each seller; and the aggregate compensation paid to each seller.  
Accounting/commercial folks for EPMI and EES-- please make sure these 
purchases are flagged in the accounting system, since the report will be 
separate from our big quarterly reports.
 -- This does not authorize the retail industrial customer to violate any 
rules or tariffs of its host utility.  This does not authorize an industrial 
to resell power it purchases (only can sell what it generates); unless 
otherwise allowed (or not precluded) by its retail tariff -- must file a rate 
schedule at FERC for this, but FERC will be receptive to granting waivers and 
authorizations.
 -- This authorization expires after 12/31/01.
Effective 3/14/01 through 12/31/01, retail customers in WSCC, as permitted by 
state laws and regulations, and wholesale customers are authorized to reduce 
consumption for the purpose of reselling their load reduction at wholesale at 
market-based rates.  These transactions can occur in several ways:  An 
aggregator can line up retail load to acquire enough negawatts to resell in a 
manner similar to what aggregators do when they sell power to retail load 
under retail choice programs.  In addition, wholesale and retail load with 
contract demand service could resell their contract demands if the value of 
power is greater than the value of consumption.  Similar quarterly reports 
would be due by EPMI/EES.
NOTE:  the industrial still has to obtain the interconnection agreement with 
transmission provider (may need new interconnection facilities, etc.) 
Remember that you still need to get transmission on OASIS when the power is 
wheeled away from the industrial.

Other initiatives in the order:

Utilities are encouraged to make DSM arrangements with wholesale customers.  
FERC waives the prior notice requirement for amended contracts that are 
required to be filed at FERC.
Clarifies that DSM should be treated consistenly with all other types of 
incremental and out-of-pocket costs for utilities.
Reminds transmission providers to keep ATCs current, including CBM and TRM.
Provides incentive rates for new transmission projects that can be in service 
by July 1 (and to a lesser extent -- by November 1 of 01 and 02).
Considers "rolled in" rates for generation interconnection (rather than 
direct assignment that we have now.)
Extends temporary waivers through 12/31/01 of operating and efficiency 
standards for QFs.  Allows QF to sell output above historical supply though a 
negotiated bilateral agreement at market based rates, if sold in California 
and the WSCC.
FERC will review interconnection issues that impede generation from reaching 
load (ie, if a utility does not act within time limits on interconnection 
requests, etc.)
Provides for increased staff and quicker gas pipeline additions review.

Please let me know if you would like the order.  Ray Alvarez (202-466-9170) 
and I (713-853-7007) can assist you with this.  Thanks.