FYI>
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----- Original Message ----- 
From: andy brown  
To: smutny@iepa.com ; steven@iepa.com ; kaplan@iepa.com ; dkk ; runwithmee ; 
Andy Brown ; Eric Janssen ; cte ; Gregory Maxim ; lmh@eslawfirm.com ; 
jdh@eslawfirm.com  
Sent: Friday, October 20, 2000 7:53 AM
Subject: FERC & California markets

Article noting that FERC will have special meeting on Nov 1 re  California 
markets, also Article that Terry Winter is having a press conference  today 
(Friday) about how the market will be fixed:  

FERC To Meet Nov 9 To Propose Remedies To Calif  
???????????????????  Pwr Mkt 
???????????????????  Friday, October 20, 2000 08:17 AM 
?  

???????????????????  LOS ANGELES (Dow Jones)--In an unusual move, the Federal 
Energy  Regulatory 
???????????????????  Commission said Thursday it will meet Nov. 1 to discuss 
remedies to  California's 
???????????????????  troubled wholesale power market.  

???????????????????  Details of a probe into California's wholesale 
electricity market will also be  released at 
???????????????????  the Nov. 1 meeting. As reported, state and federal 
regulators launched the probe  over 
???????????????????  the summer, saying the market wasn't workably 
competitive.  

???????????????????  FERC also said it expects to hold a public hearing Nov. 
9 to discuss  possible 
???????????????????  solutions to California's power crisis.  

???????????????????  The place and time of both meetings haven't been decided 
yet.  

???????????????????  Regarding Thursday's announcement, FERC Commissioner 
Curt Hebert said  "rather 
???????????????????  than waiting for Nov. 1 to release the findings of our 
staff's investigation, I  urge the 
???????????????????  chairman to release the completed report now...it can 
only help heal the raw  emotions 
???????????????????  rampant in the state of California."  

???????????????????  FERC said it was rare that it would announce details of 
its procedures.  The 
???????????????????  commission said its own rules don't allow it to normally 
announce its  procedures.  

???????????????????  "Because of the need for expeditious action to address 
the serious issues  affecting 
???????????????????  California electric power markets and California 
consumers...the commission is  taking 
???????????????????  the unusual step of announcing in advance the procedures 
it expects to follow  over the 
???????????????????  coming weeks to move forward in these proceedings," the 
FERC order  said.  

???????????????????  The commission said it will give a three-week deadline 
for parties to intervene  and to 
???????????????????  comment on the possible solutions presented by the 
commission.  

???????????????????  FERC said it anticipates issuing an order by the end of 
the year "adopting  and 
???????????????????  directing remedies to promptly address to the extent 
possible the identified  problems 
???????????????????  adversely affecting competitive power markets in 
California."  

???????????????????  If necessary, FERC said it would hold additional 
meetings to develop solutions  "to 
???????????????????  other identified problems."  

???????????????????  California's wholesale power prices soared this past 
summer. Customers of  San 
???????????????????  Diego Gas & Electric Co., a unit of Sempra Energy Corp. 
(SRE, news, msgs),  paid 
???????????????????  market-based rates for power, which resulted in 
triple-digit utility bills for  its customers. 
???????????????????  The state's three investor-owned utilities also racked 
up billions of dollars in  debt due 
???????????????????  to high wholesale costs.  

???????????????????  SDG&E customers are currently paying a fixed rate for 
their power, while  customers of 
???????????????????  the state's other two utilities are still bound by a 
rate-freeze.  

???????????????????  Generators have been accused of gouging customers and 
manipulating the  market, 
???????????????????  although no evidence has been offered up yet. However, 
the FERC investigation  may 
???????????????????  address that.  

???????????????????  -By Jason Leopold, Dow Jones Newswires; 323-658-3874; 
???????????????????  jason.leopold@dowjones.com  

Cal-ISO CEO To Announce Remedy To Lower Power 
???????????????????  Cost 
???????????????????  Friday, October 20, 2000 08:16 AM  

???????????????????  (This article was originally published Thursday)  

???????????????????  LOS ANGELES (Dow Jones)--California Independent System 
Operator Chairman  and 
???????????????????  Chief Executive Terry Winter will hold a news conference 
Friday morning to  announce 
???????????????????  a possible solution to reduce the state's electricity 
costs.  

???????????????????  An ISO spokesman wouldn't comment on the details of the 
news  conference.  

???????????????????  According to a news release, Winter will speak about 
"potential vehicles for  containing 
???????????????????  costs, while maintaining the ISO's high standards of 
reliability."  

???????????????????  The ISO controls about 75% of California's power grid 
and real-time market.  As 
???????????????????  already reported, the grid operator has come under fire 
this summer for failing  to 
???????????????????  immediately reduce a price cap in its real-time market.  

???????????????????  Currently, state Sen. Steve Peace, D-Chula Vista, is 
drafting legislation to  merge the 
???????????????????  ISO and the state's Power Exchange.  

???????????????????  -By Jason Leopold, Dow Jones Newswires; 323-658-3874; 
???????????????????  jason.leopold@dowjones.com 
???????????????????  Quote for referenced ticker symbols: EIX, PCG, SRE 
???????????????????  , 2000 Dow Jones & Company, Inc. All Rights Reserved.