Below is a copy of the Order lifting the $250/Mwh hard price cap for 
California ISO/PX.
FERC has also posted a notice of a  Dec. 15 special mtg. re the investigation 
into the California market last summer.
Various Enron units continue to receive informal data requests from FERC 
staff regarding current California gas/electric 
Steve Kean has asked that all inquiries be coordinated through Sarah Novosel 
in the DC office.
Leslie Lawner is preparing Enron's response to the SDG&E emergency petition 
to put a cap on gas sales.
 





              COMMISSION MOVES TO BRING RELIEF TO CALIFORNIA 
                            ELECTRICITY MARKETS

          In response to emergency conditions that exist in the
     California electricity markets, which have faced supply shortages
     and snowballing prices, the Federal Energy Regulatory Commission
     today approved a price cap change requested by the California
     Independent System Operator (ISO).   The Commission also took
     steps to permit qualifying facilities (QFs) to operate at full
     capacity.

          The ISO's purchase price cap of $250/Mwh will be lifted. 
     Bids above that amount will be allowed but will not set the
     clearing price paid to all sellers, as does the current purchase
     price cap.  This should attract more bids and alleviate chronic
     supply shortages.  
          
          Those bidding above $250 will be required to report their
     bids to the Commission on a weekly basis and provide certain cost
     information.  

          The non-profit ISO and PX began operations in California in
     1998.  The PX is the scheduling coordinator for the IOUs as well
     as other market participants.   The ISO operates and controls
     most of the transmission system in California.

          In addition to the $250 purchase price cap, the Commission
     also authorized the ISO to penalize participating generators that
     refuse to operate in response to an ISO request in an emergency.  
     They will be charged an amount equal to twice the highest price
     the ISO paid for energy for each hour in which the participating
     generator failed to respond.   

          The ISO's costs of obtaining energy through bids above the
     purchase price cap or through out-of-market dispatches will be
     assigned to scheduling coordinators who depend too much on spot
     markets.

          The Commission's second order enables QF entities to
     generate at full capacity which in the past could have caused
     them to lose QF status.  QF generators are small power producers
     that use alternative fuels, such as solar or biomass, and
     cogenerators that produce both electricity and steam for
     commercial use.   

          The order on QF entities was in response to a request from a
     California QF.

          The orders are effective immediately.

          To view the Commission orders in full go to "What's New" at
     www.ferc.fed.us.
               
     R-00-82                                                     (30)