This project, of all that have been proposed recently, probably has a better 
chance of success.  First, Mission Energy is already a huge player in the 
IPP/Cogen business in Kern County, and is regarded as fairly skilled at 
getting permits/authorizations through the system.  Their existing facilites 
on Texaco's leases currently produce over 1,000 MW of power.  Secondly, this 
project would sit smack dab in the middle of the Midway-Sunset field and is 
easily accessible off the West Side Lateral of Kern/Mojave's system.  As 
such, they are probably a prime candidate for either Phase I or Phase II of 
Kern River's expansion.  Also, realize that Texaco has a substantial amount 
of field area [associated oil] gas, so, depending on the structure of the 
Texaco - Mission Energy sales agreement, Mission probably has access to or 
call on this Texaco production (i.e., they have the perfect physical hedge).

Kern would seem to be the "pipeline of choice" here... particularly, when you 
consider the impact of the reduced rates under their proposed expansion.  
Without the direct connection into Kern County, TW would have a difficult 
time competing.   Also, keep an eye out for El Paso moving forward with 
commercial plans for the California leg of All American Pipeline.  A large 
end-use plant like this could be the basis for an "En-Rate" type transport 
program on El Paso-All American, particularly if they get their allocation 
problems resolved at FERC.


---------------------- Forwarded by Jeffery Fawcett/ET&S/Enron on 11/22/2000 
08:56 AM ---------------------------
Market Intelligence - Enron Transportation Services
From: Lorna Brennan on 11/22/2000 08:48 AM
To: Steven Harris/ET&S/Enron@ENRON, Jeffery Fawcett/ET&S/Enron@ENRON, 
Lorraine Lindberg/ET&S/Enron@ENRON, Kevin Hyatt/ET&S/Enron@Enron, Christine 
Stokes/ET&S/Enron@ENRON, TK Lohman/ET&S/Enron@ENRON, Michelle 
Lokay/ET&S/Enron@Enron, Lindy Donoho/ET&S/Enron@ENRON, Lee 
Huber/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON
cc:  
Subject: 


Edison Mission Energy to build power plant in California

Edison Mission Energy, an Edison International company, is purchasing the
rights to the Sunrise Power Project from Texaco Power and Gasification. A
proposed power generation facility to be located in Kern County, Calif., the
project will bring both short- and long-term generation capacity to the
state, which is in dire need of new power generation.

The Sunrise Power Project will be completed in two phases. Phase 1 will
consist of a 320-MW, simple-cycle peaking facility scheduled to be in
service during the summer of 2001. Phase 2 will convert the peaking facility
to a 560-MW, combined-cycle operation with an in-service date of summer
2003.

Final regulatory approvals should be received shortly for Phase I of the
project. Edison Mission Energy plans to seek expedited permitting approval
for the Phase II expansion in line with the fast-track approvals process
recently enacted by the California legislature.

Edison Mission Energy specializes in the development, acquisition,
construction management and operation of global power production facilities.
The company owns nearly 23,000 MW of generating capacity, including
interests in 75 projects currently under construction or operating in
Australia, Indonesia, Italy, New Zealand, Puerto Rico, Spain, Thailand,
Turkey, the United Kingdom and the United States.