FERC meeting today

I observed today's Commission meeting at 1PM ESTand will report on the
discussion had on the order adopted by the Commission in the proceeding
Removing Obstacles to Increased Electric Generation and Natural gas Supply in
the Western United States (EL01-47):

The order is intended to increase supply, enhance delivery and promote
conservation in the West. This is a follow up to and an affirmation of
FERC's prior order in this proceeding of March 14.

In the order, FERC desires to complement state and local efforts, especially
with regard to promoting conservation and siting of generation, themes that
FERC recognizes are mainly within the purview of the state and local
authorities.

The order attempts to incentivize the immediate construction/expansion of
transmission facilities via an equity return premium based on a fixed in
service deadline. The order contemplates an ROE of 11.5% plus a premium of
up to 200 basis points calculated on some sort of sliding scale relating to
timing of the project. FERC recognizes that this will have little effect
this summer, but more likely summer 2002.

In this order (and another not discussed directly at the meeting), FERC
extends QF waivers and seeks to facilitate interconnection and transmission
service for QF's, while stressing that FERC is not attempting to abrogate
existing contracts.

Commissioner Massey concurs with the order and stresses his preference for
the FERC to deal with interconnection issues in a comprehensive manner,
rather than on a piecemeal basis.

I have not received a draft order yet, so the above discussion at the meeting
is the only info I have at present. I thought you might find some aspects
interesting. If you have any questions or require additional info, please
advise. I will be able to address those as soon as the FERC makes its draft
order available (next couple of days).