----- Forwarded by John J Lavorato/Corp/Enron on 01/21/2001 08:38 PM -----

	Christopher F Calger@ECT
	01/21/2001 04:00 PM
		 
		 To: Barry Tycholiz/NA/Enron@ENRON
		 cc: John J Lavorato/Corp/Enron@Enron
		 Subject: California QFs - Gas Hedging

Barry,

FYI the California QF's are negotiating a settlement deal with Edison and the 
state of California which would fix energy payments over five years.  
Currently the energy payments are indexed to Socal Border because a majority 
of the Edison QF's buy spot gas.  If this settlement happens, the QF's will 
likely want to buy financial swaps.  The Edison gas-fired QF's represent 
about 500MMCF/Day of gas.

Chris