In response to San Diego's complaint filed against all power sellers in 
California with market based rate authority, the Commission issued an order 
denying San Diego's request to cap all California power sellers' rates at 
$250.  However, the Commission in its order establishes a section 206 
proceeding to examine the justness and reasonableness of the rates of power 
sellers in the California markets.  Additionally, FERC is also ordering its 
staff to investigate whether the tariffs and institutional structures and 
bylaws of the California ISO and PX are adversely affecting the efficient 
operation of competitive wholesale electric power markets in California and 
need to be modified.  

A copy of the Commission's order is attached.  

Sarah