An email received today reflects a somewhat interesting development in the  
distributed generation proceeding.? 

Honeywell Power Systems, Inc., in its Phase One testimony, opposed UDC  
ownership of distributed generation due to concerns regarding possible 
market  manipulation and dominance.? However, Honeywell now says that it, 
"wishes  to restate its position due to the extraordinary times in 
California  characterized by last summer's high energy pricing and the 
continuing 'tight'  generation market.? Furthermore, the recent Federal 
Energy Regulatory  Commission (FERC) proposal (Market Order Proposing 
Remedies for California  Wholesale Markets, dated November 1, 2000) has 
suggested 'demand response  programs be implemented as well as adding 
generation to the system.....In  addition, there are certain intrinsic 
values, both quantitative and qualitative,  to all stakeholders, including 
the ratepayer, by allowing UDC ownership of  distributed generation.? 
?
Accordingly, Honeywell now feels that the ratepayer and customer benefits  
through utility ownership of DG outweigh the potential negative aspects. The  
forecast for next year, especially the summer months, is higher energy 
demand  with no appreciable increase in the state's capacity.? Given these  
extraordinary circumstances, Honeywell feels it is counterintuitive not to 
allow  the utilities to serve the ratepayer in the quickest and most 
practical manner  available."? 
?
Even though WPTF has not been actively involved in this case, this seemed  to 
be an interesting development.
?
Dan