RE: SCE Reaches Agreement With QFs ,
 Jeff:

Does the term renewable refer to only wind/biomass? or does it include the 
gas fired cogen's. The answer to this is extremely important? How soon can 
you answer this question? What part of the contracts require CPUC approval 
(the fixed price?) Is the fixed price the energy component only or does it 
include the capacity payment?

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Subject: SCE Reaches Agreement With QFs


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Subject: SCE Reaches Agreement With QFs



SCE Reaches Agreement With Alternative Energy Generators

PR Newswire
06/19/01, 11:20p
(Copyright , 2001, PR Newswire)



ROSEMEAD, Calif., June 19 /PRNewswire/ -- Southern California Edison (SCE) 
announced today that it has reached an agreement with most of its renewable 
Qualifying Facilities (QF) power producers that addresses past payment issues 
and future pricing considerations, and creates a mechanism for ending 
numerous lawsuits.

"We believe this agreement will help bring stability to an important segment 
of California's energy market," said SCE Chairman, President & CEO Stephen E. 
Frank.

The plan was negotiated between the utility and key representatives of the QF 
industry and facilitated by Governor Gray Davis' office. To date, SCE has 
received signed agreements from QFs representing approximately 95% of its 
renewable energy capacity and today executed those contracts. The company 
hopes that the small number of remaining producers will also agree. Certain 
elements of the agreements are subject to the approval of the California 
Public Utilities Commission.

The plan calls for generators to provide power at a fixed price -- 5.37 
cents/kWh -- over the next five years, eliminating some of the price 
volatility that has plagued California's energy markets during the current 
crisis. The plan stays all existing legal action, and assures that no new 
legal action will be initiated unless the terms of the agreement are not met.

"The people of Edison are committed to pursuing the benefits of negotiated 
practical solutions to California's energy crisis," said Frank. "The QF 
agreement and the MOU, if approved, are critical steps toward resolving the 
crisis. A bankruptcy, in contrast, would lead to years of delay and 
uncertainty for our customers and raise serious questions about the business 
climate in California." 

An Edison International company, Southern California Edison is one of the 
nation's largest electric utilities, serving a population of more than 11 
million via 4.3 million customer accounts in a 50,000-square-mile service 
area within central, coastal and Southern California. 

SOURCE Southern California Edison 

/CONTACT: Corporate Communications of Southern California Edison, 
626-302-2255/
jeff.dasovich@enron.com