---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/19/2000 
02:45 PM ---------------------------


"The Alliance of Energy Suppliers" <alliance@eei.org>@ls.eei.org on 
12/19/2000 02:08:58 PM
Please respond to "The Alliance of Energy Suppliers" <alliance@eei.org>
Sent by: bounce-app-ippexecs-33275@ls.eei.org
To: "Generation and Power Marketing Executives" <app-ippexecs@ls.eei.org>
cc:  
Subject: Alliance Info Alert


Dear Generation/Power Marketing Executive:

This Alliance Info Alert includes three items of interest:
1)  The weekly Alliance Express newsletter
2)  Listing of recent filings at FERC
3)  Timeline for FERC action on California Markets  (attached)


                       Alliance of Energy Suppliers ExpressDecember 19, 2000

INSIDE WASHINGTON   FEDERAL AFFAIRS

***FERC De-Federalizes California Markets, Adopts Other Structural Reforms***

At a special meeting Friday afternoon, FERC unanimously approved its eagerly 
awaited final order reforming the California wholesale markets, adopting the 
major outlines of its November 1 proposed order and sending back to 
California the responsibility for addressing state-related matters.  At the 
same time, FERC deferred consideration of retroactive refund issues as well 
as the imposition of region-wide price caps.  FERC reiterated their earlier 
conclusions that under certain circumstances, California ratepayers were 
subjected to unjust and unreasonable power rates due to California's 
"seriously flawed" market structure and rules in conjunction with tight 
demand and supply conditions throughout the West.

FERC adopted the November proposal to eliminate, effective immediately, the 
state's mandatory requirement that the state's investor-owned utilities buy 
and sell electricity through the PX, and allow these utilities to purchase 
electricity through forward contracts and other alternative mechanisms to 
manage supply risks.  FERC terminated the PX's rate schedules effective at 
the close of business on April 30, 2001.  In effect, as Chairman James 
Hoecker stated, the order de-federalizes 60 percent of the California 
wholesale market established under the state's restructuring law, returning 
ratemaking authority over company-owned generation to the California Public 
Utilities Commission (CPUC).

The agency also modified the effective period of the $150/MWh "soft cap" 
proposal, limiting its application through April 2001, whereupon a 
"comprehensive and systematic monitoring and mitigation program which 
incorporates appropriate thresholds, screen and mitigation measures" must be 
in place.  In a related move, FERC ordered a technical conference early next 
year to develop such a program by March 1, 2001, so that these measures can 
be place by the May 1, deadline.

***Energy Secretary Issues Order to Power Generators and Marketers To Bolster 
California's Supplies***

Energy Secretary Bill Richardson has responded to the severely constrained 
power supply situation in California by issuing an order, pursuant to Section 
202(c) of the Federal Power Act, to require generators and marketers to make 
power available to meet the state's electricity needs.  The emergency 
directive requires that, if the California independent system operator (ISO) 
certifies that there is an inadequate supply of electricity, certain 
suppliers would be required to make power available to the ISO if they have 
power available in excess of the amount needed to satisfy service to firm 
customers. Those suppliers that have provided power to the California power 
exchange (PX) and the ISO over the last 30 days that have firm capacity 
available would be subject to the order.

Under the order, the ISO is required to provide notice to each supplier 
subject to the order of the amount and type of service requested by 9:00 pm 
EST on the day before the requested service.  The ISO must, to the extent 
feasible, allocate the requests in proportion to the amount of each 
supplier's available power.  The price for the power provided pursuant to the 
order will be set by an agreement between the ISO and the supplier.  If no 
agreement is reached, FERC is to determine the just and reasonable rate at a 
later date.   The order will remain in effect until 3:00 am EST on December 
21, 2000 unless modified.

***EPA Sets Plans to Regulate Plants' Mercury Emissions***

EPA Administrator Carol Browner, in a long-awaited announcement, indicated 
last week that the Administration will require reductions of mercury 
emissions from coal- and oil-fired power plants.  The agency stated that it 
plans to propose new regulations in December 2003, and hopes to finalize new 
rules by December 2004.

In the wake of the decision, EEI called on EPA to make certain that any 
program to control utilities' mercury emissions be based on the best 
scientific information available in order to assure the protection of public 
health.  "EEI urges EPA to maintain its commitment to resolving the key 
scientific and technological issues," said Paul Bailey, EEI Vice President, 
Environmental Affairs.  Given these uncertainties, EEI is disappointed that 
the regulatory determination includes statements regarding public health 
threats and hazards that are unsupported by current science," said Mr. Bailey.

"In the meantime, the electric power industry will continue to work with all 
stakeholders to determine the extent to which additional mercury reductions 
from power plants may be needed, and how those cuts should be achieved," Mr. 
Bailey concluded.

MERGERS & ACQUISITIONS

 ***Calpine Completes Acquisition of EMI Power Assets***

Calpine Corporation has announced that it has completed the acquisition of 
power assets from Energy Management, Inc. (EMI).  In the deal, Calpine 
acquired the remaining interest in three recently constructed, combined-cycle 
power generating facilities located in New England, as well as a joint 
marketing venture between Calpine and EMI.  Prior to the transaction, Calpine 
held a 50 percent net interest in the projects.

"We are very pleased to have completed the acquisition of these new and 
highly efficient power plants.  The Dighton, Tiverton, and Rumford facilities 
were among the first merchant power plants to enter commercial operation in 
New England," said Calpine Senior Vice President Bob Alff.  "Combined with 
our other announced project in the Northeast, we have created a coordinated 
system of low-cost assets, with excellent geographic diversity, to provide 
power to a very attractive New England market," added Alff.

***Exelon Completes Acquisition of 49.9 Percent of Sithe***

Exelon Corporation and Sithe Energies have announced the completion of 
Exelon's acquisition of 49.9 percent of the stock of Sithe.  The completion 
of the acquisition finalizes an agreement in which PECO Energy Company agreed 
to purchase 49.9 percent of Sithe's assets in North America for $682 
million.  PECO has since merged with Unicom Corporation to form Exelon 
Corporation.

Under the terms of the agreement, Exelon has the option to purchase the 
remaining 50.1 percent of Sithe within two to five years at a price based on 
prevailing market conditions when the purchase option is exercised.  Exelon 
and Sithe will continue to operate independently, said the companies.

ENERGY DATA

*** Weekly Electric Output (Week 50)***

Electric output reached 74,737 GWh for the week ending December 9 (Week 50), 
with the highest increase over 1999 levels in the Mid-Atlantic region, which 
had a 15.8 percent increase over 1999.  Looking at year-to-date information, 
the Pacific Southeast leads the nation in growth of output.  For more 
information, email alliance@eei.org.

WHO'S WHO

***Allegheny Energy Announces Leadership Change***

Allegheny Energy, Inc. this week announced the appointment of Michael 
Morrell, Senior Vice President and CFO, as President of its unregulated 
supply business, Allegheny Energy Supply Company, effective February 1, 
2001.  Morrell will replace Peter Skrgic, current President, who will be 
retiring on that date after 37 years of service to the company.

In his new position, Mr. Morrell will direct and continue the growth of 
Allegheny's energy supply business, which operates and markets competitive 
retail and wholesale electric generation throughout the eastern US.  
Additionally, Morrell will identify new opportunities to expand the Company's 
generation holdings, announced a press release.

The Alliance Express is a free news service sponsored by the Alliance of 
Energy Suppliers.  This document can be redistributed.  Please send 
questions, comments, or requests to alliance@eei.org, or telephone 
202/508-5680.


***Due to the holidays, the Alliance Express will not be published next 
Tuesday, December 26.



                                             == RECENT FERC FILINGS ==

(1)  RTO DEVELOPMENTS

*  The following entities filed comments regarding the California wholesale 
electric market.  EL00-95-000, et. al.  Filed December 13, 2000.

-  AMERICAN PUBLIC POWER ASSOC.:  "Market Power: Will We Know It When We See 
It?  The California Experience"
-  SOUTHERN CALIFORNIA EDISON CO.: "Proof that Soft Price Caps Do Not Result 
in Lawful Rates" and request for rehearing
-  SOUTHERN CALIFORNIA EDISON CO.: Request for immediate modification of the 
December 8, 2000 Order
-  SAN DIEGO GAS & ELECTRIC: Motion to clarify the record

*  The following entities filed motions for an immediate modification and to 
intervene regarding the Commission's emergency order December 8 approving the 
CA ISO's tariff amendments.  ER01-607-000, ER00-95-000 et. al.  Filed 
December 13, 2000.

-  WESTERN POWER TRADING FORUM
-  RELIANT ENERGY POWER GENERATION
-  PACIFIC GAS AND ELECTRIC
-  CA ISO
-  DYNEGY POWER MARKETING

*  SOUTHERN ENERGY COMPANIES filed a supplemental protest regarding PJM's 
Order 2000 Compliance Filing.  RT01-2-000.  Filed December 14, 2000.


(2) OATT/TRANSMISSION

*  UGI UTILITIES filed an interconnection agreement with ALLEGHENY ENERGY 
SUPPLY CO.  ER01-617-000.  Comments due by December 28, 2000.

*  PUBLIC SERVICE COMPANY OF NEW MEXICO filed proposed revisions to its FERC 
Electric Tariff, a statement of Policy and Code of Conduct governing the 
relationship between itself and wholesale power marketing affiliates and a 
notification of a change in status relating to its authorization to sell 
power at market-based rates.  ER01-615-000.  Comments due by December 28, 
2000.

*  AMERICAN ELECTRIC POWER SERVICE CORP. (AEP) filed an executed 
interconnection agreement between INDIANA MICHIGAN POWER CO. and DUKE ENERGY 
BERRIEN.  The agreement is pursuant to AEP COMPANIES' OATT.  ER01-626-000.  
Comments due by December 29, 2000.

*  COMMONWEALTH EDISON CO. filed revisions to its OATT to reflect the 
creation of a new generation subsidiary of EXCELON CORP., COMED's holding 
company.  ER01-628-000.  Comments due by December 29, 2000.

*  DETROIT EDISON COMPANY filed a Service Agreement for Network Integration 
Transmission Service under the Joint OATT between itself and CONSUMERS 
ENERGY.  The Service Agreement is between itself and NORDIC MARKETING.  
ER01-622-000.  Comments due by December 28, 2000.

*  DETROIT EDISON COMPANY filed service agreements for short-term firm and 
non-firm point-to-point transmission service under the joint OATT between 
itself and CONSUMERS ENERGY. The Service Agreement is between itself and H.Q. 
ENERGY SERVICES.  ER01-621-000.  Comments due by December 28, 2000.

*  LOUISIANA GENERATING filed a motion to intervene and protest regarding 
SOUTHWESTERN ELECTRIC POWER COMPANY's Restated and Amended Electric System 
Interconnection Agreement between SOUTHWESTERN and LOUISIANA GENERATING.  
ER01-504-000.  Filed December 13, 2000.

*  ALLIANT ENERGY CORPORATE SERVICES filed a response to several protests 
regarding its proposed amended OATT.  ER01-312-000.  Filed December 14, 2000.

*  ELECTRICITIES OF NORTH CAROLINA, PIEDMONT MUNICIPAL POWER AGENCY and the 
CITIES OF ORANGEBURG and SENECA, SC filed a motion to intervene and protest 
regarding DUKE ENERGY, CAROLINA POWER & LIGHT and SOUTH CAROLINA ELECTRIC & 
GAS' proposed accounting and rate treatment of start-up costs associated with 
establishing a new RTO.  EL01-13-000.  Filed December 14, 2000.

*  SOUTHERN COMPANY SERVICES filed a proposed amendment to its OATT in order 
to incorporate creditworthiness criteria, interconnection procedures and 
source and sink requirements.  ER01-668-000.  Filed December 14, 2000.

*  BONNEVILLE POWER ADMINISTRATION filed a petition for declaratory order 
stating that its proposed OATT satisfies the Commission's reciprocity 
compliance principles.  NJ01-1-000.  Filed December 14, 2000.

*  AMERICAN TRANSMISSION CO. filed proposed Open Access Transmission rates 
and requested expedited consideration.  ER01-677-000.  Filed December 15, 
2000.


(3) MARKET COMPLAINTS

*  H.Q. ENERGY SERVICES filed for an Order directing the NY ISO to restore 
the original market clearing prices for energy on May 8, 2000.  EL01-19-000.  
Comments due January 2, 2001.

*  NEW ENGLAND POWER CO. filed an answer to the RHODE ISLAND ATTORNEY 
GENERAL's protest regarding the application of the joint owners of the 
undivided interest in the Millstone 3 nuclear plant to transfer ownership to 
the DOMINION Applicants.  EC00-137-000 and ER00-3639-000.  Filed December 13, 
2000.


(4) MERGERS/CORPORATE RESTRUCTURING


(5) MISCELLANEOUS

*  CA ISO filed an amendment to schedule 1 of the Participating Generator 
Agreement between CA ISO and SIERRA PACIFIC INDUSTRIES.  ER01-619-000.  
Comments due by December 28, 2000.

*  AUTOMATED POWER EXCHANGE filed a new rate schedule under which it will 
provide its auction and scheduling service in its California market.  
ER01-658-000.  Filed December 14, 2000.

*  AUTOMATED POWER EXCHANGE filed a new rate schedule under which it will 
provide its auction and scheduling service in a new geographic market, known 
as the APX Midwest Market.  ER01-659-000.  Filed December 14, 2000.


Nancy Tarr
Manager, Business Development
ntarr@eei.org
202-508-5680


_________________________________________________________

 - Timeline.doc