Motion

Specifically, SCE's emergency motion requests the Commission to:

1. Authorize SCE to use the August gas price indices from its August avoided cost posting in its September 2000 avoided cost posting;

2. Authorize SCE to use the lower of the August gas price indices and the then current indices for all future postings beginning with the October 2000 avoided cost posting until the review of the integrity of the Topock border indices is concluded;

3. Authorize SCE to establish a tracking account to monitor short-run avoided cost (SRAC) payments made pursuant to items (1) and (2) above, and those that would have been made if this motion had not been granted, so that appropriate payment adjustments can be made if the Commission ultimately concludes they are necessary.

According to SCE's motion, Natural Gas Week, the one index that was available at the time its motion was filed, included a price as high as $7.00/MMBtu for gas delivered at Topock. This price represents an increase of $2.50/MMBtu over the posted August gas price. SCE projects that this increased price would increase avoided cost payments to SCE's qualifying facilities by approximately $29 million over the preceding month. After the motion was filed, additional index prices became available and were included as Exhibit A to SCE's September 13, 2000 comments. The resulting Topock average price is $6.46/MMBtu, just under $2.00/MMBtu higher than the August price.

On September 1, 2000, the California Cogeneration Council (CCC) and Independent Energy Producers Association (IEP) filed a preliminary opposition to the motion. CCC/IEP asks the Commission to issue an order enjoining SCE from making the proposed provisional avoided cost posting. CCC/IEP argues that action on the motion will force qualifying facilities to operate at a loss during September because they have already purchased gas at the market prices reflected in the avoided cost transition formula. CCC/IEP recommend the motion be rejected. On September 5, 2000, SCE filed a preliminary reply to CCC/IEP's opposition and a supplemental affidavit regarding gas index prices.

On September 14, 2000, SDG&E filed a motion to take official notice of Commission records wherein it notified the parties that it had unilaterally reposted its avoided cost using the August gas price.