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To: heraclitus who wrote (55013)	1/6/2001 4:35:31 PM
From: Ilaine	Respond to of 436258

No matter what I don't think Richardson can force them to sell below cost.

To: heraclitus who wrote (55013)	1/6/2001 5:40:57 PM
From: flatsville	Respond to of 436258

homer-- Why would a power generator being told to do this have any "surplus"? It seems it would be easy enough to shutdown plants for "required maintenance" so as to minimize any surplus. Some of the generators are suspected of doing that very thing this past fall to drive prices into the stratosphere. The ISO did an investigation, but won't release the findings. In another instance the regulators were able to coax a plant back on line in Dec. after lifting a price cap. Read the last 2/3 or so of the post. Message 15132149 Or they could just make certain they're jammed-up with delivery contracts. Today's extension of the emergency order, which was originally issued in mid-December, requires that if the California Independent System Operator (ISO) certifies there is an inadequate supply of electricity, generators would have to supply the ISO if they have surplus power not needed for customers with so-called firm delivery contracts. Suppliers that have excess firm capacity and have provided power to the California Power Exchange and the ISO over the last 30 days would be subject to the order. biz.yahoo.com

To: heraclitus who wrote (55013)	1/6/2001 6:06:17 PM
From: Ilaine	Respond to of 436258

Richardson's order doesn't really require the other utilities to sell at $64 per megawatt order - it says if the parties can't agree to a price under $64 then the price will be determined at a later time by FERC. energy.gov FERC is opposed to price caps. California just yesterday lost an emergency appeal to the DC Circuit Court of Appeals to get FERC to impose a price cap. >>Meanwhile, the D.C. Court of Appeals Friday denied SoCal Edison's request for an emergency order requiring federal regulators to set cost-based rates in the state's troubled electricity markets. In its petition late last month, the company contended that without the order there would be blackouts and if the court didn't act by Friday, "it is likely by mid-January that Edison will be unable to finance its continued purchases of electricity." The Federal Energy Regulatory Commission ruled Dec. 15 that California's power woes were the result of a flawed market structure, determining that wholesale power prices in California were "unjust and unreasonable." However, the agency didn't order compensation to the utilities, instead setting a soft price cap of $150 per megawatt hour for wholesale power.<< interactive.wsj.com