FERC issued three CA orders today.  Ray Alvarez sent out a summary on the 
order related to increasing Generation and Transmission in the west. The 
report below came from IEP's attorney.

Underscheduling -- Enron has been on both sides on this issue -- here's 
what's happened

One CA order rejects the requests by PG&E, SoCal Edison and the CAISO to
suspend the underscheduling penalty adopted in the December 15th Order.  The
Commission is currently reviewing data filed by the CAISO in conjunction
with a request to waive the underscheduling and will address the
underscheduling penalty in a future order.  The Order does accept the
CAISO's proposal to split the BEEP stack into Operating Reserves and
Imbalance Energy.


QFs -- Ridgewood Complaint

The second order address QF issues.  Granting, in part, Ridgewood and CCC's
request for emergency relief, the Commission ruled that when QFs sell excess
power or make third party sales as authorized by a court, the California
utilities must provide interconnection and transmission service to make
those sales.  The Commission deferred decision on whether QFs that have not
been fully paid can make third party bilateral sales.


Obstacles -- Subject of Ray's earlier e-mail

The third order addresses obstacles to increased energy supply.  The
Commission takes a number of actions, including allowing premium returns on
equity (200 basis points) and accelerated depreciation (10 years) for
projects that increase transmission capacity in the short term (July 1,
2001).  The basis points go down if the project comes on later.  The order
also allows rolled-in treatment of interconnection and upgrade costs for new
supply, broadens and extends QF waivers of operating and efficiency
standards, waives prior notice requirements and grants market-based rate
authority for sales from back-up and self-generation in WSCC, authorizes
certain demand side sales and management programs, and encourages pipeline
construction projects.

More to follow when we review the orders.

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854