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Enron Mail |
FYI. QFs are beginning to stop operating due to non-payment. In addition,
Enron Wind is a partner in some QF plants (not the General Partner so they couldn't do anything) that has filed a Breach of Contract against SCE. Jim ----- Forwarded by James D Steffes/NA/Enron on 03/08/2001 06:44 AM ----- Hap Boyd 03/07/2001 03:38 PM To: Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron cc: Subject: Calif ISO: Qualifying Facils Capable Of 1,800 MW Off-Line FYI. It's starting to get ugly! Hap ---------------------- Forwarded by Hap Boyd/EWC/Enron on 03/07/2001 01:50 PM --------------------------- "John Shahabian" <js@cleanpower.org< on 03/07/2001 11:49:07 AM To: "V. John White \(E-mail\)" <vjw@cleanpower.org< cc: Subject: Calif ISO: Qualifying Facils Capable Of 1,800 MW Off-Line ? ? [The Wall Street Journal Interactive Edition] March 7, 2001 Dow Jones Newswires Calif ISO: Qualifying Facils Capable Of 1,800 MW Off-Line Dow Jones Newswires (This article was originally published Tuesday.) NEW YORK -- Small, independent power plants in California that are capable of generating 1,800 megawatts of power are shut down because their owners haven't been paid by the state's two main utilities, the California Independent System Operator said Tuesday. The decline in small-plant output has contributed to the state's power-supply problems the past two months. Partnerships involving El Paso Corp. (EPG), for example, shut down 350-MW of generation this weekend due to nonpayment, the company said Tuesday. Edison International's (EIX) Southern California Edison hasn't paid the owners of the smaller generators, known as "qualifying facilities," since early December, which means the generators are still owed for electric production in October. PG&E Corp. (PCG) has paid only a small percentage of its qualifying facility bills since its last full payment in early January. Almost all of the closed generators are fueled by natural gas. Many of the companies haven't been able to pay their gas suppliers and have been cut off from their gas supply. The California Senate Energy Committee plans to vote on legislation to create a new pricing system for all qualifying facilities this week. The plants, one-third of which are powered by renewable sources like wind and solar power, meet almost 30% of California's electricity needs. The proposed bill would cut the prices to qualifying facilities from about 17 cents a kilowatt-hour the past eight months to about 8 cents/kwh, depending on the price of five-year natural gas contracts the generators can sign. The plants that run on renewable resources would be paid 5.37 cents/kwh. In addition, the utilities would continue to pay qualifying facility owners for some of their fixed costs. The bill, if enacted, would also require the utilities to pay all past-due bills by June 1. To take effect immediately as an emergency act, the bill requires approval by two-thirds of both the state's Senate and Assembly. If the bill is passed, a process for quickly determining the five-year gas price would begin. PG&E and Sempra Energy's (SRE) San Diego Gas & Electric support the bill, while Southern California Edison opposes it, said sources with the utilities and qualifying facility companies. -By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.com URL for this Article: http://interactive.wsj.com/archive/retrieve.cgi?id=DI-CO-20010307-003175.djml Copyright , 2001 Dow Jones & Company, Inc. All Rights Reserved. Printing, distribution, and use of this material is governed by your Subscription Agreement and copyright laws. For information about subscribing, go to http://wsj.com
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