SCE-QF Update

I listed in on this afternoon's IEP call re: SCE's MOU.

According to Smutney-Jones (who was more than average mad), SCE has reneged on the "pay 10% up front" portion of the deal they struck with SCE. According to IEP, SCE says that the banks, who are spooked by TURN's success in getting a 14-day temporary suspension of the CPUC-SCE settlement, is not interested in allowing SCE to pay any creditors like QFs preferentially. SCE said the 5.37 c/kWh commitment is still there, however. IEP's was also unsuccessful in getting the effective date of 5.37 c/kWh changed in return for the loss of the 10% up front.

CCC/Jerry Bloom, who represents gas-fired QFs is seperately negotiating with SCE and may be willing to give up 10% in return for commiting to 5.37c/kwh outside of the CPUC. (They are concerned with CPUC overturning the IEP-SCE "deal.")

Several parties on the call, including CalEnergy, indicated they may sue SCE outside the CPUC over reneging on this deal.

Alan Comnes