FYI.  QFs are beginning to stop operating due to non-payment.  In addition, 
Enron Wind is a partner in some QF plants (not the General Partner so they 
couldn't do anything) that has filed a Breach of Contract against SCE.

Jim


----- Forwarded by James D Steffes/NA/Enron on 03/08/2001 06:44 AM -----

	Hap Boyd
	03/07/2001 03:38 PM
		 
		 To: Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron
		 cc: 
		 Subject: Calif ISO: Qualifying Facils Capable Of 1,800 MW Off-Line

FYI. It's starting to get ugly!
Hap
---------------------- Forwarded by Hap Boyd/EWC/Enron on 03/07/2001 01:50 PM 
---------------------------


"John Shahabian" <js@cleanpower.org> on 03/07/2001 11:49:07 AM
To: "V. John White \(E-mail\)" <vjw@cleanpower.org>
cc:  

Subject: Calif ISO: Qualifying Facils Capable Of 1,800 MW Off-Line



?
?

[The Wall Street Journal Interactive Edition]
March 7, 2001

Dow Jones  Newswires

Calif ISO: Qualifying Facils Capable Of 1,800 MW Off-Line

Dow Jones Newswires

(This article was originally published Tuesday.)

NEW YORK -- Small, independent power plants in California that are capable 
of  generating 1,800 megawatts of power are shut down because their owners 
haven't  been paid by the state's two main utilities, the California 
Independent System  Operator said Tuesday.

The decline in small-plant output has contributed to the state's 
power-supply  problems the past two months. Partnerships involving El Paso 
Corp. (EPG), for  example, shut down 350-MW of generation this weekend due to 
nonpayment, the  company said Tuesday.

Edison International's (EIX) Southern California Edison hasn't paid the  
owners of the smaller generators, known as "qualifying facilities," since 
early  December, which means the generators are still owed for electric 
production in  October. PG&E Corp. (PCG) has paid only a small percentage of 
its qualifying  facility bills since its last full payment in early January.

Almost all of the closed generators are fueled by natural gas. Many of the  
companies haven't been able to pay their gas suppliers and have been cut off  
from their gas supply.

The California Senate Energy Committee plans to vote on legislation to 
create  a new pricing system for all qualifying facilities this week. The 
plants,  one-third of which are powered by renewable sources like wind and 
solar power,  meet almost 30% of California's electricity needs.

The proposed bill would cut the prices to qualifying facilities from about 
17  cents a kilowatt-hour the past eight months to about 8 cents/kwh, 
depending on  the price of five-year natural gas contracts the generators can 
sign. The plants  that run on renewable resources would be paid 5.37 
cents/kwh.

In addition, the utilities would continue to pay qualifying facility owners  
for some of their fixed costs. The bill, if enacted, would also require the  
utilities to pay all past-due bills by June 1.

To take effect immediately as an emergency act, the bill requires approval 
by  two-thirds of both the state's Senate and Assembly. If the bill is 
passed, a  process for quickly determining the five-year gas price would 
begin.

PG&E and Sempra Energy's (SRE) San Diego Gas & Electric support the  bill, 
while Southern California Edison opposes it, said sources with the  utilities 
and qualifying facility companies.

-By Mark Golden, Dow Jones Newswires; 201-938-4604;  mark.golden@dowjones.com

URL for this  Article:
http://interactive.wsj.com/archive/retrieve.cgi?id=DI-CO-20010307-003175.djml


Copyright , 2001 Dow Jones & Company, Inc. All  Rights Reserved. 

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