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scaling_mia_the_pile_00_Enron_Emails

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Itinerary for Sally Beck Enron MBA Excellence Fund Scholars Dinner September 7, 2000 Thur, Sept. 7 Southwest Flt. WN 2113 4:20 pm Depart Houston-Hobby 5:00 pm Arrive Austin - Bergstrom Int,l Dinner: Meet Rick Causey in Driskill Lobby at 6:30 PM Cocktails: 7:00 ) 7:30 PM Dinner: 7:30 PM The Josephine House at Jeffrey,s Restaurant 1601 Waterston Austin, TX Phone: 512-477-2177 Hotel: The Driskill 604 Brazos Street Austin, TX 78701 Phone: 512-474-5911 Fax: 512-474-2214 Confirmation #: 94623459 Fri, Sept. 8 Southwest Flt WN 599 8:00 am Depart Austin - Bergstrom Int,l 8:45 am Arrive Houston - Hobby	{ "pile_set_name": "Enron Emails" }
We are making a number of significant organizational changes. These changes are intended to accomplish four key objectives: First, we need to realign all our wholesale businesses around the successful business model developed over the last decade in North America and Europe. This model relies on extensive physical and transactional networks built around a relatively small strategic asset position. Second, we need to significantly streamline corporate reporting relationships. Particularly with Joe Sutton,s departure, the ability to directly manage the day-to-day activities of 15 independent business units has become increasingly difficult. Third, we need to accomplish these changes without, in any way, compromising the ongoing profitability of all our businesses and without delaying or hindering our effort to monetize a significant portion of our lower-yielding asset positions. And fourth, as always, we need to take advantage of the reorganization to redeploy our talent into our highest value opportunities. ENRON WHOLESALE SERVICES Today, we are forming Enron Wholesale Services (EWS) which will consolidate our global wholesale businesses. The closer alignment of our wholesale businesses will accomplish the following: (1) enhanced communication and coordination across business units, (2) more rapid deployment of people to higher valued opportunities, (3) more effective prioritization of opportunities across the wholesale business, and (4) more rapid extension of Enron,s wholesale business model and capabilities into new industries and markets. Enron Wholesale Services will include our current North American, European (including Japan and Australia), Global Markets, and Industrial Markets operations, and will be expanded to include Enron,s Net Works business unit as well as a new unit ) Enron Global Assets. In addition, Enron,s merchant businesses outside of North America and Europe will be integrated into this new structure as described below. Mark Frevert, currently Chairman of each of our wholesale units, will assume the role of Chairman and CEO of Enron Wholesale Services. Greg Whalley, currently Chairman and CEO of Enron Net Works, will join Mark in the Office of the Chairman as President and Chief Operating Officer. Providing further impetus for these organizational changes, several of our international business unit leaders have elected to move into new leadership positions: Rebecca McDonald, currently CEO of Enron APACHI, will join EWS as President and CEO of Enron Global Assets. Enron Global Assets will have responsibility for managing all of Enron,s existing energy asset portfolio outside of North America and Europe. Joining Rebecca in the Office of the Chairman as COO will be Jim Hughes, currently COO of Enron APACHI. Rebecca and Jim will report to the EWS Office of the Chairman. Sanjay Bhatnagar, currently CEO of Enron India, has joined EBS as CEO for the Middle East and Asia region. Sanjay will be responsible for building our broadband business in this region and the current EBS team in this region will report to Sanjay. In this role, Sanjay will report to the EBS office of the Chairman. In addition, Sanjay will continue to remain responsible for Enron,s wholesale energy business in India and will transition this business into Enron Global Assets in the near future. Diomedes Christodoulou, currently Co-CEO of Enron South America, has joined EBS as Chief Commercial Officer. Diomedes will be located in London and will focus his origination activities on global opportunities, with near term attention to the wholesale and enterprise sectors. Diomedes will report to the EBS Office of the Chairman. Jim Bannantine, currently Co-CEO of Enron South America, will be joining EES to lead EES, commercial efforts outside North America and Europe. In order to ensure a smooth transition for our South American businesses and to facilitate our asset sales activities, Jim will remain in South America for at least the next several months and continue to serve as CEO of Enron South America. Throughout the transition, Jim will report to Cliff Baxter and to the Office of the Chairman of Enron Wholesale Services. Following the transition, Jim will join EES. In addition to these changes in our international asset operations activities, we are making the following changes in our merchant wholesale businesses and the commercial support functions: Enron Net Works Louise Kitchen will assume Greg,s previous responsibilities as President and CEO of Enron Net Works, reporting into Mark and Greg. Enron Americas Concurrent with the transfer to Enron Global Assets of responsibility for operating Enron,s South and Central America asset base, all trading, marketing, and new asset development activities in these regions will report into a new entity, Enron Americas. Enron Americas will have responsibility for all wholesale merchant businesses across North, Central and South America. Dave Delainey, President and CEO, and John Lavorato, Chief Operating Officer will comprise the Office of the Chairman for Enron Americas. Enron Europe The Enron Europe organization, which includes Enron,s businesses in Australia and Japan, and Enron Metals, remains unchanged under the leadership of John Sherriff, President and CEO, and Michael Brown, Chief Operating Officer. Enron Global Markets Enron Global Markets, under the leadership of Mike McConnell, President and CEO, and Jeff Shankman, Chief Operating Officer, will continue to have responsibility for Enron,s Middle East and LNG operations. With the exception of Ecoelectrica in Puerto Rico, all operating power plants and associated personnel in the Caribbean and Central America will transfer to Enron Global Assets. Enron Global Markets will also continue to manage the commodity businesses in crude and products, coal, weather, insurance, equities, interest rates, foreign exchange, and agricultural products. Enron Industrial Markets Enron Industrial Markets, organization, under the leadership of Jeff McMahon, President & CEO, and Ray Bowen, Chief Operating Officer, remains unchanged. Commercial Support for EWS The commercial support functions for EWS will remain with, and be managed by, the individual business units. We are creating no incremental overhead in the creation of EWS, and in fact hope to reduce our operating costs by more efficient utilization and sharing of resources across EWS. To this end we have asked several people to take on an expanded role across EWS in addition to their ongoing roles within their business units. These newly defined roles are as follows: Mid and Back Office Operations ) Sally Beck will lead Mid and Back Office Operations across EWS. These services will become part of Enron Net Works, with Sally reporting to Louise Kitchen and Rick Causey, Executive Vice President and Chief Accounting Officer. This alignment creates a coordinated services organization with IT and e-commerce platforms to support the wholesale businesses and to maximize opportunities to commercialize these services. Mid and Back Office services for all commercial activities will continue to be organized with dedicated operations controllers responsible for specific commodities and/or geographic locations. Legal ) Mark Haedicke will serve in the role of General Counsel for EWS. Regulatory and Government Affairs ) This function will remain organized on a regional basis. Rick Shapiro will support all EWS businesses operating in the Americas, and Mark Schroeder, who is based in London, will support all European and Eastern Hemisphere operations. Rick and Mark will also continue to support all other Enron businesses operating in their respective regions and will continue to report to Steve Kean, Executive Vice President and Chief of Staff. Public Relations ) This function is also organized primarily on a regional basis. Eric Thode will have responsibility for North American activity, Enron Net Works, and Enron Industrial Markets. Jackie Gentle will continue in her role for Enron Europe (including Japan and Australia) and John Ambler will have responsibility for activity outside North America and Europe as well as providing support for Enron Global Markets and Enron Global Assets. These individuals will also continue to have a split reporting relationship to Mark Palmer, Vice President of Communications. Business Analysis and Reporting ) Wes Colwell will expand his role to cover EWS reporting in addition to his current role in North America. Attached for your review is an organization chart for Enron Wholesale Services which summarizes the changes described here. As this organization continues to evolve we will keep you informed of any additional changes. ENRON GLOBAL EXPLORATION AND PRODUCTION AND ENRON WIND As part of our company-wide initiative to examine our assets and investments around the world, we are considering a variety of options with respect to EGEP and EWC. As a consequence, we are putting these businesses under Cliff Baxter,s direction. Jeff Sherrick, CEO of EGEP, and Jim Noles, CEO of Enron Wind, will report to Cliff. CORPORATE STAFF We are consolidating the corporate staff functions: Human Resources, Government Affairs, Public Relations/Communications and Administration. In that regard, Cindy Olson, Executive Vice President of Human Resources and Community Relations, will report to Steve Kean, Executive Vice President and Chief of Staff. COMMITTEE STRUCTURE In light of the increased leadership opportunities created by Enron,s growth, the Executive Committee will be expanded to include more of our business unit leaders. The primary role of this committee will continue to be the communication of relevant information across Enron,s businesses and the coordination of activities across those businesses. We will also be drawing on this group to lead company-wide initiatives such as the performance review process and evaluation and creation of new businesses. The Executive Committee membership is shown on the attached list. We are also forming a new committee ) the Enron Corporate Policy Committee. This group will be responsible for overall corporate policy, personnel management policy and corporate strategy. The Enron Corporate Policy Committee membership is also shown on the attached list. We are confident that these changes will align our talent and our capital to our highest return opportunities. Please join us in congratulating and supporting all of these individuals in their new roles.	{ "pile_set_name": "Enron Emails" }
don't be a baby just because you didn't get your way! -----Original Message----- From: Maggi, Mike Sent: Monday, November 19, 2001 2:54 PM To: Nelson, Michelle Subject: RE: whatever -----Original Message----- From: Nelson, Michelle Sent: Monday, November 19, 2001 2:53 PM To: Maggi, Mike Subject: RE: i'm to lazy -----Original Message----- From: Maggi, Mike Sent: Monday, November 19, 2001 2:53 PM To: Nelson, Michelle Subject: RE: first come up here -----Original Message----- From: Nelson, Michelle Sent: Monday, November 19, 2001 2:52 PM To: Maggi, Mike Subject: RE: can you send some of it down here? i am frozen!!! and i am not liking it. come down here and you can feel the arctic breeze. -----Original Message----- From: Maggi, Mike Sent: Monday, November 19, 2001 2:48 PM To: Nelson, Michelle Subject: RE: no you should feel how much heat comes off these monitors, come up -----Original Message----- From: Nelson, Michelle Sent: Monday, November 19, 2001 2:45 PM To: Maggi, Mike Subject: RE: i think that they call that withdrawal symptoms -----Original Message----- From: Maggi, Mike Sent: Monday, November 19, 2001 2:43 PM To: Nelson, Michelle Subject: RE: sweating -----Original Message----- From: Nelson, Michelle Sent: Monday, November 19, 2001 2:42 PM To: Maggi, Mike Subject: RE: no, i'm frozen again. i need a heater. what are you doing? -----Original Message----- From: Maggi, Mike Sent: Monday, November 19, 2001 2:41 PM To: Nelson, Michelle Subject: RE: are you thawed -----Original Message----- From: Nelson, Michelle Sent: Monday, November 19, 2001 2:38 PM To: Maggi, Mike Subject: RE: i had to go thaw. -----Original Message----- From: Maggi, Mike Sent: Monday, November 19, 2001 2:33 PM To: Nelson, Michelle Subject: where did you go	{ "pile_set_name": "Enron Emails" }
Hello all: We will be out of the office June 5 through June 8. On the mornings of the 5th and the 8th we will be airborne during the usual IT trading time. As such, we would like to sell for Tuesday's gas day on Friday, June 2 (much like this past Memorial Day Weekend) and for Friday's gas day on Wednesday, June 7. Fri June 2 - sell for Sat June 3 through Tues June 6 gas days Tues June 6 - sell for Wed June 7 gas day Wed June 7 - sell for Thurs June 8 and Fri June 9 gas day Fri June 9 - back in the office, sell for Sat June 10 - Mon June 12 gas days, business as usual While we are away you can beep us at 860-260-6741. If you call 203-944-7006 and leave a message, please make it a DETAILED one, because the voicemail automatically beeps us at the above number, and we call in to listen to the messages. Please don't leave a message and then beep us anyway, you will just be delaying our response to you. You can also try us directly at the hotel - 602-955-6600. Please call either of us at the numbers below if you have any questions. Robin & Maria -- Robin Almond Contract Administrator Iroquois Gas Transmission System, L.P. 203-925-7274 [email protected] Maria Nemchek Customer Accounts Representative Iroquois Gas Transmission System, L.P. 203-944-7004 [email protected]	{ "pile_set_name": "Enron Emails" }
On the ISDA replacement front, just a reminder that we want to put Morgan Stanley Capital Group at the forefront, we have an old Energy Price Swap Agreement in place with them, and then there's always our favorite, the old AIG "Master Master", now with Sempra, that raises a whole host of other issues...you were going to talk to Bill about that one... Do you want me to put them on the list for the Legal/Credit meeting as a reminder?	{ "pile_set_name": "Enron Emails" }
My comments are included (in section 1 only)	{ "pile_set_name": "Enron Emails" }
I extended deal 559483 through Dec 01. D Aimee Lannou 03/06/2001 06:06 PM To: Daren J Farmer/HOU/ECT@ECT cc: Juliann Kemp/ENRON@enronXgate Subject: Meter 1351 - Feb 01 Daren - Meter 1351 has flow everyday for Feb. '01. The last deal associated with this meter was 559843 in Jan. '01. Let me know if you extend the deal or create a new one. This meter has an average daily flow of 102. Thanks. AL	{ "pile_set_name": "Enron Emails" }
I'm on my way back there to do so. -------------------------- Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)	{ "pile_set_name": "Enron Emails" }
Bombs away... Fletch	{ "pile_set_name": "Enron Emails" }
This discusses Dynegy's comments on FERC's Notice of Interim Reliability measure for this summer. Enron participated through EPSA (see my separate email) ---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 06/05/2000 05:25 PM --------------------------- Kathryn Corbally@ENRON 06/05/2000 05:04 PM To: Christi L Nicolay/HOU/ECT@ECT cc: Subject: dynegy This is DYN's press release that refers to the FERC 's May 18 notice...? MANY THANKS KATHRYN	{ "pile_set_name": "Enron Emails" }
We have received the executed EEI Master Power Purchase and Sale Agreement dated 5/11/2201 from the referenced CP. Copies will be given to legal and credit.	{ "pile_set_name": "Enron Emails" }
FYI, all new deals that are at NGPL/Nipsco, need to be in sitara at Nipsco/NGPL. Please shout with any questions. PL ---------------------- Forwarded by Phillip M Love/HOU/ECT on 01/23/2001 08:56 AM --------------------------- From: George F Smith 01/23/2001 08:08 AM To: Phillip M Love/HOU/ECT@ECT cc: Cora Pendergrass/Corp/Enron@ENRON, Margie Straight/HOU/ECT@ECT, Jason Williams/HOU/ECT@ECT, Patrice L Mims/HOU/ECT@ECT Subject: NGPL Nipsco Phillip, Please move the following two deals from their current location, NGPL/Nipsco, to a new location Nipsco/NGPL. We are setting up Nipsco as it's own pipeline so as to better track positions. Please make the change effective Feb. 1. Thanks, George	{ "pile_set_name": "Enron Emails" }
Hi John, We will come by and talk to you about this. Thanks Sanjeev	{ "pile_set_name": "Enron Emails" }
thanks for the email. i can't believe i am 25. i woke up saturday from a hard night of partying and thought when dad was 25 i was born and now i am 25 and i still go out and party like an idiot. oh well, it was fun. how are you feeling? i hope the dialasys is going well. let me know. love matt	{ "pile_set_name": "Enron Emails" }
<<X22480.DOC>> Here is the redraft of the SB 27X amendments based on the input of the direct access coalition yesterday. The major thrust of the bill is to allow customers to switch to direct access as easily as possible (without an exit fee) when ever there is "headroom" between DWR's firm contracts and total demand including recent load growth. Once that free DA capacity is used up, customers can still elect for DA, but must pay the exit fee. All customers will be on the hook for the financing costs they benefitted from while taking DWR procured power before they switch to DA. This will be shown to the coalition now as well. Our goal is to get approval to show this to the committee consultant and DWR and Finance today. Please comment to MBD by voice mail as soon as possible. Thanks, Mike Day - X22480.DOC	{ "pile_set_name": "Enron Emails" }
I agree with Mark's points. While we have advocated our merger with PGE (which did not concentrate market power) we have intervened in opposition to most others. Moreover, there is some hope that the German government will take the opportunity to use the proposed utility merger to force greater open access. We will likely encourage that action and may oppose the merger otherwise. Most mergers in this industry are defensive, not procompetitive, and, in my view, deserve no credit for convergence, innovation, or liberlization. ---------------------- Forwarded by Steven J Kean/HOU/EES on 09/10/99 01:17 PM --------------------------- Mark Schroeder@ECT 09/10/99 05:26 AM To: Margaret Carson/Corp/Enron@Enron cc: Joan Wasylik/LON/ECT@ECT, Danny McCarty/LON/ECT@ECT, Steven J Kean/HOU/EES@EES Subject: Speech to the British Institute of Energy Economists Margaret - apologies for the delay in getting comments to you on your speech. Due to press of other matters I will be brief. First, your speech caption, refernecing "mergers" is somewhat different than the topic shown in the agenda, i.e., "Industry Structure and Competitive Behaviour", but I trust you are wroking that out with the BIEE. Second, in your first paragraph, you note that developments in the energy sector over the last decade are due to the mergers of the last five years (a point I will retrun to later), but in any event, not entirely consistent in terms of timeframes. Third, I am surprised that the Enron Corp. view is that gas and electricity markets grew as they did over the decade due to mergers. In the past, things like unbundling and non-discriminatory third-party access have featured prominently in our advocacy. Indeed, though it was not my role at Enron, I would have thought that in many of the recent electricity mergers pre-dating Order No. 888 we would have joined the chorus of voices arguing that these mergers concentrated market power, and that such market power could only be mitigated with the provision of non-discriminatory third-party access (an argument we will be repeating in, e.g., Germany, as noted below). Finally, I would note that in the past, I thought we had questioned the value of mergers as an impediment to competitive markets, as I recall Ken Rice gave an infamous address/speech, in which he described "good" mergers and "bad" mergers, i.e., defensive mergers like Houston Industries and NorAm. I actually borrowed heavily from that speech two years ago, in paris, but if we have changed our tune, that is good to know. Even the "good" mergers identified in his/my speech, e.g., Enron/Portland, have had the "goods" thwarted, in part, by regulators, who would not let us do all we wanted to do that was pro-competitive. Also, in the past, we have used as a good example of "convergence" the arbitrage we have done at Sithe's facility in NY, pointing out that we are in an "energy" or "BTU"market, not gas alone, or electricity alone. Not clear to me that mergers in the US demonstrate this. Fourth, accepting that it is the Enron Corp. view that mergers are symbolic of the convergence of gas and electricity, and are what yield the many beneifts of competition that you dsicuss elsewhere in your speech (I do, of course, agree with all the platitueds that competition yilds more service offerings, innovation, etc.), you should be aware, coming over to this market, that a number of mergers are taking place that we have expressed concerns about in comments to the regulators, and will do so in the future. here are some you should be aware of: Veical integration in the UK electricity industry (not clear yet that this will result in better/more service, but definitely loss of counter-parties, re-bundling of business before retail unbundling/competition has taken hold); Exxon/Mobil (consolidation in the upstream sector in Continental Europe, which is already concentrated), VEBA/VIAG in Germany (probalby okay, assuming thrid-party access is allowed/enhanced to the wires). Just FYI, any objections we have are usually communicated confidentially. Fifth, if you are ging to emphasise mergers, as per your title and opening paragraph, I question the inclusion of all the discussion on privatisation, which is good, but does not seem to demonstrate the benefits of merger activity, which I read is the premise of your speech, per paragraph one. In addition, recitation of ownership of miles of gathering lines and transmission lines does demonstrate change in aggregate ownership, but not clear it is all due to mergers (e.g., I thin NNG is just capital expansion), nor does the connection get made that this has lead to innovative or enhanced service offerings. I do think excellent points can be made about the deregulation/divestment of gathering, and getting it out of federal regualtroy purview, but that is not in the speech at this point. Sixth, you describe "network industries" well, but in the broader context of your speech, I think your listeners will assume you are referring to the physical network, rather than the Enron vision, which you capture accurately, nor is it easily understood how this demonstrates or adds to your point about convergence. Seventh, in your table of converged companies, you could be asked about the fact that Duke has already disposed of the pipeline assets it acquired in the PanEnergy deal (since sold to CMS), apparently keeping only the trading business. Also, our pieeline assets to do not serve our cogen facilites in NJ, so not clear to me that thisdemonstrate convergence in the East Coast. Hope this helps. I will be travelling today and Monday, but if you have questions, please leave me voice mails, and I will return your calls. P.S. at p. 7 you describe "secular" change. I assme that this should read "sectoral" change. Mark	{ "pile_set_name": "Enron Emails" }
Hey Russell and Jon, As you are aware, we have been trying to get Engage Energy Canada, L.P. ("Engage") to execute an updated master physical firm gas purchase and sale agreement (an "Amended Physical Master") over the last two and a half years with no success. Until this week, we had received no comments from Engage with respect to our suggested amendments (despite sending four distinct forms of amendments starting in August, 1998). The matter came to a head in June of this year when the Credit department wanted to call for collateral from Engage. The existing (1994) agreement does not provide for this right. As a result, we have been pressing this counterparty to execute the Amended Physical Master. However, the counterparty has delayed providing comments repeatedly. Through Russell's diligence, the general counsel of Engage gave me another call on Tuesday and (finally) provided some comments on the agreement. In addition to a few minor nits, the general counsel has informed me that he will not provide comments on the "credit related" provisions of the Amended Physical Master. He has told me that Engage requires that we put in place credit/collateral/netting agreements which contemplate: a. physical transactions (gas and power); b. financial transactions (gas and power); c. all Enron entities which transact with Engage and Engage Energy America Corp. (i.e. ECC, ENA, EPMI and any other entity) (as a result, the agreements would have to contemplate US/Canada distinctions as well). Such counsel refuses to proceed in any other manner at this time. Further, he has expressly told me that he will not go to Westcoast Energy Inc. to provide a guarantee which is specific to the Amended Physical Master. In order to comply with Engage's demands (i.e. preparing a master netting agreement, a master credit/collateral agreement and a mechanism by which we would be able to monitor exposure across all parties and products) I believe will be a fairly large undertaking (considering the emerging nature of the physical power market, the complexities involved and the general lack of response we have experienced with Engage over the last 2.5 years). However, I understand that we have undertaken such a task on occasion in the past (albeit, without additional concept of power trading) with respect to particularly important trading partners. Frankly, I am concerned that Engage's position (although, theoretically a good concept) is just another stalling technique. Nevertheless, I will leave the decision as to the manner to proceed with Engage to you. Please give me a call to discuss this matter when you get the chance ((403) 974-6708). Thanks, Mark Powell.	{ "pile_set_name": "Enron Emails" }
John wanted legal advice today, so I passed this email on to Anne Koehler for handling. -----Original Message----- From: Allario, John Sent: Tuesday, September 18, 2001 9:50 AM To: Greenberg, Mark Cc: Jones, Tana Subject: FW: NDA with Automotive Exclusivity Mark, GM wants us to look at this new NDA with an Exclusivity clause in it. I will look into the business side of agreeing to an Exclusivity clause within the automotive sector for our proposition. From your end, what has been the general position on exclusivity. See agreement attached below. Talk soon John -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Monday, September 17, 2001 5:08 PM To: Allario, John; O'Neal, Timothy Cc: [email protected]; [email protected]; [email protected] Subject: NDA with Automotive Exclusivity John- As previously discussed, please find attached the NDA (non-disclosure agreement) which includes automotive industry exclusivity. Please review and provide feedback to Dan or I. Thanks (See attached file: NDA with EAconf.doc) Michael B. Darrow Manager, Business Development Information Systems & Services General Motors Corporation Phone: 313-665-5206 (8-255-5206) Fax: 313-667-4678 (8-257-4678)	{ "pile_set_name": "Enron Emails" }
---------------------- Forwarded by Jim Schwieger/HOU/ECT on 03/22/2001 03:07 PM --------------------------- Jim Schwieger 10/02/2000 05:52 PM To: Jim Coffey/HOU/ECT@ECT cc: Subject: Re: Working Gas - Triple Lutz No working gas available to sell to the winning bidder, but we will probably have some Cushion Gas that we will have to pay back! Swig ---------------------- Forwarded by Jim Schwieger/HOU/ECT on 10/02/2000 05:49 PM --------------------------- From: Jim Coffey on 10/02/2000 04:42 PM To: Jim Schwieger/HOU/ECT@ECT cc: Patrick Wade/HOU/ECT@ECT, Wes Colwell/HOU/ECT@ECT Subject: Re: Working Gas - Triple Lutz Jim Just to clarify, the quesiton is will there be any working gas available for sale to the winning bidder as of the end of January. Jim Schwieger 10/02/2000 03:55 PM To: Jim Coffey/HOU/ECT@ECT cc: Subject: Working Gas - Triple Lutz Jim, I wanted to clarify that we will still be pulling gas out of the ground in Febr & March. The Stg Book has always recorded hedgable volumes of 56.5 BCF. This is the difference between 117.5 BCF and 61 BCF. The Acctg Books have always recorded the working gas as everything above I believe 70 BCF. So when David says working gas will be -0- by January 31, 2001 he is correct but we will be drawing down on what the Acctg Books have recorded as Cushion Gas. Swig ---------------------- Forwarded by Jim Schwieger/HOU/ECT on 10/02/2000 03:32 PM --------------------------- Enron Capital Management From: David Baumbach 10/02/2000 01:23 PM To: Jim Coffey/HOU/ECT@ECT cc: Jim Schwieger/HOU/ECT@ECT, Edward D Gottlob/HOU/ECT@ECT, Brenda F Herod/HOU/ECT@ECT, Steve Jackson/HOU/ECT@ECT Subject: Working Gas - Triple Lutz According to the Cost of Inventory Schedule there will be no Working Gas in the ground at the end of January. That is assuming we have actually withdrawn what we have booked. Dave	{ "pile_set_name": "Enron Emails" }
Amy - I'd be very interested in participating in the Applied Energy Derivatives class. Please let me know if there is still room, and if there's anything else I need to do to sign up. Thanks, Kate Amy FitzPatrick 04/30/2001 11:22 AM To: Portland West Desk cc: Subject: Derivatives I Training Course - June 4th and 5th We will be offering Derivatives I training on-site. If you are interested in attending, please let Amy FitzPatrick know no later than May 21st. Derivatives I - Applied Energy Derivatives Presented by Paradigm Strategy Group Date: Monday, June 4th and Tuesday, June 5th Time: 8:00 am to 5:00 pm This course is appropriate for all employees wishing to obtain a practical understanding of the basic natural gas and power derivative structures that are traded and marketed today. An emphasis is placed on understanding how financial tools are added to physical structures to meet the risk management needs of clients. Participants attending this seminar will be able to: Formulate customer hedge strategies based on a solid understanding of risk; its impact on capital structures and approaches to its mitigation. Develop and interpret forward prices in the context of arbitration disciplines, as well as understand the divergences from these disciplines that are characteristic of energy prices. Identify marketing opportunities through an understanding of both the forward curve and the distortions created by the physical system of production and transportation. Assemble the pricing of a transaction from a benchmark price curve. Devise cost-reducing deal structures for gas storage from an understanding of price curves and their components. Exploit differences in locational pricing with insights into the relationship between basis and transportation/transmission. Structure a natural gas and power swap to hedge a company's risk position, explaining its risks and benefits as a risk management tool. Price a swap from the price curve and customize the structure to meet various customer needs including earnings, cash flow and embedded financing. Apply basis swaps to either mitigate locational risk or to achieve a more favorable risk/reward position by altering the index location. Attain a fluency in language concepts and hedging application of options. Package strips of options to create caps, floors and zero-premium collars. Create structures that provide energy users with sub-index pricing using embedded options. Recognize options embedded in common supply contracts and their pricing implications, including swing, double-ups and index contracts with maximum prices, etc.	{ "pile_set_name": "Enron Emails" }
Lucy Ortiz on the confirmation desk is awaiting your response re: my e-mail of 10/11/99. Please let us know when you have determined the appropriate counterparty. If you have any questions, please call. Thanks. Sara	{ "pile_set_name": "Enron Emails" }
This report relates to a message you sent with the following header fields: Message-id: <3891F8E98C93214B9E3E913CB7BF600220DBAE@NAHOU-MSMBX03V.corp.enron.com> Date: Fri, 19 Oct 2001 14:10:30 -0500 From: "Keavey, Peter F." <[email protected]> To: "Dowjones1 (E-mail)" <[email protected]>, "Dowjones2 (E-mail)" <[email protected]>, "Gas Daily (E-mail)" <[email protected]>, "Iferc1 (E-mail)" <[email protected]>, "Iferc2 (E-mail)" <[email protected]>, "NGI (E-mail)" <[email protected]> Your message has been successfully delivered to the following recipients: Recipient address: [email protected] Reason: Message accepted by the message store - C.DTF Delivery-receipt-to: "Keavey, Peter F." <[email protected]> Disposition-notification-to: "Keavey, Peter F." <[email protected]> Date: Fri, 19 Oct 2001 14:10:30 -0500 From: "Keavey, Peter F." <[email protected]> To: "Dowjones1 (E-mail)" <[email protected]>, "Dowjones2 (E-mail)" <[email protected]>, "Gas Daily (E-mail)" <[email protected]>, "Iferc1 (E-mail)" <[email protected]>, "Iferc2 (E-mail)" <[email protected]>, "NGI (E-mail)" <[email protected]> Message-id: <3891F8E98C93214B9E3E913CB7BF600220DBAE@NAHOU-MSMBX03V.corp.enron.com> MIME-version: 1.0 Content-type: multipart/mixed ; boundary="{66F55626-74EF-464A-8091-1A50AA781FCE}" Content-description: Daily Price Sheet.xls content-class: urn:content-classes:message Thread-Index: AcFY0bfkgyLG5zANTMqxzjaQ/tR0Ig==	{ "pile_set_name": "Enron Emails" }
Sean asked me to look into the timing of price cap decisions. Here's what it looks like: November 7th Commission meets but highly unlikely that they adress NW price cap November 9th Written comments due to FERC November 13th ish FERC posts agenda for November 20th meeting November 20th FERC likely issues order on NW caps -----Original Message----- From: Alvarez, Ray Sent: Friday, November 02, 2001 12:16 PM To: Belden, Tim; Comnes, Alan Subject: RE: PNW Price Cap Tim, the issue is not on the agenda for the Commission's meeting on November 7. This is no surprise, however, since written comments are still pending and not due until November 9 (Alan is preparing ours with my back-up). Pat Wood said at the last Commission meeting that he doesn't wish to issue significant orders between meetings, so it is unlikely that FERC will act before its next scheduled meeting. There is time pressure because winter is advancing. Therefore our educated guess is that the order would issue at the next meeting following submittal of the comments, to be held on November 20. The meeting agenda for this meeting will be available on the 13th or 14th; as soon as it issues we will let you know if it appears on the agenda. In the meantime, if we hear anything more definitive we will let you know right away. Ray -----Original Message----- From: Belden, Tim Sent: Friday, November 02, 2001 11:59 AM To: Alvarez, Ray; Comnes, Alan Subject: PNW Price Cap When is FERC going to rule on this?	{ "pile_set_name": "Enron Emails" }
Ione can you please cc. me when Lavo or Milly have meetings to attend like these as Lavo reads his e-mails about once a week twice if he's feeling fresky. Thanks Angela Ione Irvine 01/05/2000 11:42 AM To: Scott Adams/CAL/ECT@ECT, Jason Biever/CAL/ECT@ECT, Chad Clark/CAL/ECT@ECT, Michael Cowan/CAL/ECT@ECT, Derek Davies/CAL/ECT@ECT, John Disturnal/CAL/ECT@ECT, Chris Dorland/CAL/ECT@ECT, Lon Draper/CAL/ECT@ECT, Ian Dundas/CAL/ECT@ECT, Richard Gebauer/CAL/ECT@ECT, Bill Greenizan/CAL/ECT@ECT, Jai Hawker/CAL/ECT@ECT, Kevin Heal/CAL/ECT@ECT, Rob Kehrig/CAL/ECT@ECT, Kyle Kitagawa/CAL/ECT@ECT, John J Lavorato/CAL/ECT@ECT, Derek Lynn/CAL/ECT@ECT, Jonathan McKay/CAL/ECT@ECT, Rob Milnthorp/CAL/ECT@ECT, Grant Oh/CAL/ECT@ECT, Cyntia Pastega/CAL/ECT@ECT, Doug Paterson/CAL/ECT@ECT, David Redmond/CAL/ECT@ECT, Beverly Reid/CAL/ECT@ECT, Barry Tycholiz/CAL/ECT@ECT, Ryan Watt/CAL/ECT@ECT cc: Subject: PIRA Oil Briefing PIRA will be conducting an oil briefing session on Wednesday, January 12 at 3:30 p.m. in our 34th floor main boardroom. Please advise me by return e-mail if you wish to attend. thanks,	{ "pile_set_name": "Enron Emails" }
Could you please extend the guest id that expired for FTEnergy, the publisher of gas daily. Please call me when this is completed. We need to have these folks view our daily indices. Thanks, Kevin Ruscitti x3-6320	{ "pile_set_name": "Enron Emails" }
I agree with you that par. 4 doesn't give NMNG anything beyond what the tariff and general contract law gave them. The "subject to agreement by Transwestern" language is redundant since the previous clause says " by mutual written agreement." Additionally, its confusing and innacurate because the "provided, however, that" clause isn't even binding if we mutually agree to eliminate it. I therefore think we ought to take par. 4 out, or at least remove the "provided however" clause. I don't agree that we can only decrease their MDQ by using capacity release. We can mutually agree to terminate their contract or reduce their MDQ without using cap. release. I suppose we would need to use cap. release if the termination or reduction of their MDQ was a sham designed to get the capacity from NMNG to another shipper, however. I would propose one change to Par. 3 just to make the discount more clear. The par. talks about primary delivery points but is silent on primary receipts. I'd add this, after the words "Appendix A" at the end of the current first sentence: "and receipts at the primary points of receipt set forth on Appendix A. The discounted rate shall also apply to receipts at alternate receipt points in Transwestern's East of Thoreau (EOT) area." I'm a fan of being extremely clear when we limit availability of discounts, and think we should always fully explain what the discount applies to at both the receipt and delivery end of the deal. Susan, please work with Christine to get these changes made. I'd like to eliminate par. 4 entirely, but I can live with it if the business people want to leave it in, as long as we eliminate the "provided however" clause. With these changes, I'm OK with the contract. Thanks. From: Susan Scott 01/24/2000 03:29 PM To: Mary Kay Miller/ET&S/Enron@ENRON, Drew Fossum@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON cc: Subject: Transwestern Contract Approval Request The only problem I can see with this is that paragraph 4 could be construed to encourage NMNG to request amendment not only to increase the MAXDTQ but also to decrease it (if the MAXDTQ has been increased by a previous amendment). I worry that this might mislead NMNG that the parties can decrease the MAXDTQ by agreement rather than NMNG using capacity release procedures. However, the paragraph does not obligate TW to do anything & doesn't give NMNG any rights, since any change in the MAXDTQ must be by mutual agreement (and it's subject to available capacity). Since it does not seem to give either party anything they do not already get under the tariff, I think I would recommend we omit it. However, NMNG might insist on this or similar language to reflect the "deal" --- or at least the conversations of the parties. If that's the case, I suppose I would advise the marketing folks to limit the language of paragraph 4 to an increase in MAXDTQ and explain that any decrease would have to be thru capacity release. Comments? ---------------------- Forwarded by Susan Scott/ET&S/Enron on 01/24/2000 03:10 PM --------------------------- Christine Stokes 01/24/2000 11:15 AM To: Susan Scott/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON, Christine Stokes/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Bill Cordes/ET&S/Enron@ENRON cc: Audrey Robertson/ET&S/Enron@ENRON Subject: Transwestern Contract Approval Request TRANSWESTERN CONTRACT APPROVAL REQUEST Please review the attached discount letter for New Mexico Natural Gas, Inc. (NMNG). The contract's five year term provides for EOT-EOT receipts and deliveries at a $.05/Dth/day transportation rate. The contract's MAXDQ varies by month and is show on the Appendix A of the discount letter. Please indicate your approval via REPLY WITH HISTORY. Officer approvals will be faxed to Bill Cordes for final Officer approval. ]	{ "pile_set_name": "Enron Emails" }
http://www.dancingpaul.com/ I was forwarded this website....Try it out! Kind of funny...something to pay with when you need a break from work. Call me when you get home. I am actually running earlier than I thought. Micah and I were supposed to run later, but that changed! I will have already taken my shower and have the dogs walked by the time you get home. Talk with you in a little bit!	{ "pile_set_name": "Enron Emails" }
Mark, I just wanted to follow up with you to see if you had a chance to talk with David Minns in Sydney about their Deemed ISDAs. Thanks, Jana x30972	{ "pile_set_name": "Enron Emails" }
Thanks Mark! Jimmy > -----Original Message----- > From: Guinney, Mark [SMTP:[email protected]] > Sent: April 13, 2001 5:47 AM > To: "[email protected]" ; "[email protected]" ; > "[email protected]" ; "[email protected]" ; > "[email protected]" ; "[email protected]" > Subject: Netscape > > Jimmy, > > I've plugged in a lot of the qualitative answers to the questions > (attached) > although I still have some more to do. If you are working on the > quantitative > elements, I'll hold off for now so we are not redundant. > > > > ********************************************** > Mark D. Guinney, CFA > Consultant > Watson Wyatt Investment Consulting > 345 California Street, Ste. 1400 > San Francisco, CA 94104 > (415) 733-4487 ph. > (415) 733-4190 fax > > > ____________________Reply Separator____________________ > Subject: Re: BF Good Case > Author: "[email protected]" <SMTP:[email protected]> > Date: 04/13/2001 12:02 AM > > Just an FYI guys, I have started working the calculations for the Netscape > case. I will send you the results and my comments by Friday night. > Please > give me some feedback by a resonable time Saturday so I can wrap this > thing > up Saturday night. I'd rather not spend Easter Sunday working on this > case. > Jimmy > << File: Netscape.doc >>	{ "pile_set_name": "Enron Emails" }
Ellen, With this added information, can you generate the contemplated confirmation? ----- Forwarded by Dan J Hyvl/HOU/ECT on 12/12/2000 10:29 AM ----- Janet H Wallis 12/12/2000 09:57 AM To: Dan J Hyvl/HOU/ECT@ECT cc: Russell Diamond/HOU/ECT@ECT Subject: Re: New Deals Forget the greenhouse requirements and just make it requirements up to 50 MMbtu a day. The meter number is #1598. Also, the GTC method is fine with me. Thanks, J Dan J Hyvl 12/12/2000 09:44 AM To: Janet H Wallis/HOU/ECT@ECT cc: Ellen Wallumrod/NA/Enron@ENRON, Bob Bowen/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT Subject: Re: New Deals Janet, Two items regarding the Panther deal. What is meant by "Greenhouse requirements"? New delivery point, can be get a better description about this point, is it currently in existence, if so, how was it put in, who was the deal maker for the installation, etc. After this information is provided, I see no reason why this shouldn't be documented by the confirm desk using a standard GTC confirm. Janet H Wallis 12/12/2000 09:17 AM To: Dan J Hyvl/HOU/ECT@ECT cc: Subject: New Deals Panther I will send the Entex deal later, thanks. Janet	{ "pile_set_name": "Enron Emails" }
I'm trying to find good in this announcement but not much is coming from it. I did have a good interview at Duke Business School last week. I should be hearing from NYU-Stern and Duke in the next couple of weeks. What is my next option? Any suggestions regarding writing letters to anyone you know at Duke or NYU? Ben	{ "pile_set_name": "Enron Emails" }
I'm lost! I compliment you? Leaving the in-laws. Wasn't near as bad as I thought. Going home to pack and then headed to Dallas. Maybe I should just stay there for good. How are things with you? -------------------------- Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)	{ "pile_set_name": "Enron Emails" }
Gentlemen, As Dave and John know, I'm working on a deal for ENA (and with Jude) which has as one aspect a cost plus EPC contract for the construction of a power plant. We need to put together the T's and C's for a cost plus contract, and since it is possible that NEPCO might be the contractor, I wanted to use something that is acceptable to NEPCO. I will then take the laboring oar in order to get a working draft prepared for this project. As always, I'm on a short time frame, so your response would be appreciated. Thanks, Kay	{ "pile_set_name": "Enron Emails" }
We are looking to schedule our next meeting for OCT. 23 as this works w/Mark H's schedule. Before I set-up the video conferencing, would you ket me know if 10/23 works for you w/ a 10/9 date as a back-up? Thanks --- Stacy Stacy Carey Policy Director International Swaps and Derivatives Association 600 5th Avenue, 27th Floor Rockefeller Center New York, NY 10020 (212) 332-1202 ph (212) 332-1212 fax (917) 543-9622 cell [email protected]	{ "pile_set_name": "Enron Emails" }
Here's the presentation. I've discussed it with Jeff and Mona.	{ "pile_set_name": "Enron Emails" }
Greg, I have never been to a tasting before. Will there be some small foods to go along with the wine? Enron Capital & Trade Resources Corp. From: "Greg Giordano" <[email protected]> 07/26/99 08:22 PM To: [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], "Bonny McLoud" <[email protected]>, [email protected], [email protected], Shirley A Hudler/HOU/ECT, [email protected], [email protected], [email protected], Suzanne Ferlic/HOU/ECT, [email protected], [email protected], [email protected], [email protected], Lawrence Lawyer/HOU/ECT, [email protected], [email protected], "Paul Aranowitz" <[email protected]>, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, [email protected], "Eric Brown" <[email protected]>, "Tim Kelly" <[email protected]>, "Wade and Marcia" <[email protected]>, [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], Kortney Brown/HOU/ECT, [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], katherine.beeson@sci_us.com, [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], Kim Zachary/HOU/ECT, [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], Mike Shannon/HOU/ECT, [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], "[email protected]"@sys32.hou.wt.net, [email protected], [email protected], Gerald Nemec/HOU/ECT, [email protected], [email protected], [email protected], [email protected], "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], "[email protected]"@sys32.hou.wt.net, [email protected], "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, [email protected], "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net, "[email protected]"@sys32.hou.wt.net cc: Subject: Tasting List for August 5th The next La Joie du Vin wine tasting is fast approaching! Our "Italian Reds" tasting is August 5th and the deadline to reserve a seat - Monday, August 2nd - is less than a week away. Admission is $30 for our members and $35 for nonmembers. To ensure seats, mail your check to 3262 Westheimer, #123, Houston, Texas, 77098. Our tasting will will be a tour of Italy's wine growing regions: From Sicily, Planeta 'La Segreta' 1998 Rosso; From Umbria, Falesco 'Vitiano', 1998; From Abruzzo, Contaldi Madonna 1997 Montepulciano d'Abruzzo; From Tuscany, Fontodi 1996 Chianti; From Veneto, Zenato 1996 Ripassa; and From Piedmont, Vignaioli 1995 Barbaresco. As always, visit our website at http://www.lajoieduvin.org/events/1999august.htm for more detailed information. Sincerely, Greg Giordano Director If you would like to be removed from our mailing list, please reply to [email protected] with the word "Remove" in the subject heading. - att1.htm	{ "pile_set_name": "Enron Emails" }
-----Original Message----- From: Symes, Kate Sent: Monday, July 23, 2001 3:14 PM To: DL-Portland Real Time Shift Subject: We have entered into another lending agreement with El Paso for Tuesday, 7/24. I've entered deals to show this in our system as a purchase from El Paso at $4 (fee for lending - to be changed if we end up actually purchasing from El Paso) and a sale to STSW. This is a 25 mw on peak schedule (tag entered by Lisa Gang) to be delivered at Palo Verde. We need to send 25 mws (zero price) to EPE real-time at PV to fulfil our part of the agreement. Following are the terms of these deals: 697528 - STWBOM buys EPE HLH @ PV 25 mw @ $4 (This price represents El Paso's fee for lending) 697536 - STWBOM sells STSW HLH @ PV 25 mw @ $68 Let me know if you have any questions. Thanks, Kate	{ "pile_set_name": "Enron Emails" }
As instructed in the Data Room and Site Visit Procedures, Southern Energy, Inc. would like to request the following dates for site visits: Lincoln Energy - Monday, Oct. 16th Wheatland - Tuesday, Oct. 17th We will have approximately 10 team members on our due diligence team and will provide Enron with a list of names, titles and employer (for any outside consultants, etc.) once we have been confirmed. If you have any questions, please call me at 770-821-7623. Thanks!	{ "pile_set_name": "Enron Emails" }
These numbers are based on the current regulation (i.e. prior to the Board's January changes, which are not yet final) and are not adjusted to reflect those changes. Most of the credits referenced in these numbers, however, were earned prior to 2001 and therefore will not change. The Board's changes will be retroactive to MY 2001 placements but not for earlier placements. "Taylor, Michael E" wrote: > Chuck, > > Are the numbers below expected to change with the final approval of the > program which may happen near the end of this year? > > FOR EXAMPLE: I believe the ZEV credits earned by a NEV will change from > 1:1 to 4:1. Therefore, if a company sold 1 NEV in early 2001 and has > earned 1 credit it will change to 4 credits after the proposed rules are > approved. > > Will the new rules change the numbers below, or they have they already > been adjusted? > > Thanks, > Michael Taylor > Coal and Emissions Trading > Enron Global Markets > (713) 853-1885 > > > > -----Original Message----- > From: Chuck Shulock [mailto:[email protected]] > Sent: Monday, October 01, 2001 10:54 PM > To: Taylor, Michael E > Subject: Re: Certified ZEVs > > Here are the credit numbers you requested. Please note that as we > researched this we ran across discrepancies among various information > sources that we have received. We were able to resolve some but not > all. > So these are not final, but rather the ballpark figures you requested. > > Sorry about the delay. > > ZEV credits earned to date, by manufacturer. This does not include > vehicles > placed pursuant to manufacturer MOAs with ARB (vehicles placed for MOA > compliance do not earn ZEV credit). > > Chrysler: 50 > Ford: 100 > GM: 1,350 > Honda: 20 > Toyota: 500 > > Aproximate total of 2,000 > > "Taylor, Michael E" wrote: > > > Chuck, > > > > I know I have been contacting you weekly, but I am very interested in > > getting those numbers. Thanks for all your help up to this point. Do > > you have any numbers yet? I would take ballpark numbers at this > point. > > > > Can I have the contact info to the person or persons responsible for > > this data, just so I could get a feel for the numbers? > > > > Sincerely, > > Michael Taylor > > 713-853-1885 > > > > -----Original Message----- > > From: Chuck Shulock [mailto:[email protected]] > > Sent: Wednesday, September 19, 2001 1:46 PM > > To: Taylor, Michael E > > Subject: Re: Certified ZEVs > > > > No I will not have info today. Getting the numbers is turning out to > be > > more complicated than I thought. > > > > "Taylor, Michael E" wrote: > > > > > Chuck, > > > > > > Any chance those numbers will be available today? (The number of > ZEV > > > credits earned by each manufacturer.) > > > > > > Sincerely, > > > Michael Taylor > > > > > > -----Original Message----- > > > From: Chuck Shulock [mailto:[email protected]] > > > Sent: Wednesday, September 12, 2001 11:43 AM > > > To: Taylor, Michael E > > > Subject: Certified ZEVs > > > > > > Attached is spreadsheet that shows currently certified ZEVs. Please > > > note that although the Corbin Sparrow is listed, it is not eligible > to > > > earn ZEV credit because it is not a "passenger car" under California > > > law. > > > > > > I am tracking down the info regarding credits already earned by > > > manufacturers. > > > -- > > > The energy challenge facing California is real. Every Californian > > > needs to take immediate action to reduce energy consumption. For > > > a list of simple ways you can reduce demand and cut your energy > > > cost, see our web site at http://www.arb.ca.gov > > > > > > > ******************************************************************** > > > This e-mail is the property of Enron Corp. and/or its relevant > > affiliate and may contain confidential and privileged material for the > > sole use of the intended recipient (s). Any review, use, distribution > or > > disclosure by others is strictly prohibited. If you are not the > intended > > recipient (or authorized to receive for the recipient), please contact > > the sender or reply to Enron Corp. at > > [email protected] and delete all copies of the > > message. This e-mail (and any attachments hereto) are not intended to > be > > an offer (or an acceptance) and do not create or evidence a binding > and > > enforceable contract between Enron Corp. (or any of its affiliates) > and > > the intended recipient or any other party, and may not be relied on by > > anyone as the basis of a contract by estoppel or otherwise. Thank you. > > > > ******************************************************************** > > > > -- > > The energy challenge facing California is real. Every Californian > > needs to take immediate action to reduce energy consumption. For > > a list of simple ways you can reduce demand and cut your energy > > cost, see our web site at http://www.arb.ca.gov -- The energy challenge facing California is real. Every Californian needs to take immediate action to reduce energy consumption. For a list of simple ways you can reduce demand and cut your energy cost, see our web site at http://www.arb.ca.gov	{ "pile_set_name": "Enron Emails" }
Okay as drafted; however, I would still prefer it if we could get them to sign and return the confirm to us on these fixed priced deals. Ellen Wallumrod@ENRON 05/04/2001 01:22 PM To: Dan J Hyvl/HOU/ECT@ECT cc: Subject: One Year Deal on GTC - OK ? Dan, Please take a look at the attached deal confirmed on GTC - is it OK to go out ? Rgds, Ellen x54099	{ "pile_set_name": "Enron Emails" }
Greg here is our info: John,Dina and Michael Lavorato 6437 Mercer 77005 Phone Home 713-661-6096 Work 713-853-7991	{ "pile_set_name": "Enron Emails" }
Bob / Steve, This is to inform you that, at last, I heard from the OMLX yesterday afternoon that they have signed the documentation for ECTRIC's Prop trader membership of the OMLX. Please note that this does not mean at this stage that ECTRIC is a trading member of the Exchange as this is dependant on the following: 1. The OMLX are sending back to me the Clearing Agreement and one other document which require the signature of our clearer, E.D.&F Man International Ltd in London. (Apparently, although the OMLX has signed them, they require us to forward them to Man rather than for them to do this!!!!). Once Man's have signed them, then I shall need to file them with the OMLX once again. Accordingly, please let me have: (i) details of our contact at E.D.&F Man International Ltd in London; and (ii) his/her telephone number so that I can speak to them and then arrange for these documents to be sent to them. 2. Steve needs to arrange to take his SFA examination. Once passed, he needs to let me (and Lin Richardson) know. Under the OMLX's application procedure, I shall then need to write to the Exchange to let them know formally that Steve will be EEFT's trader and that he has passed his SFA exams. Only once 1 and 2 have been completed will ECTRIC be admitted as a Prop trading member of the Exchange. I look forward to hearing from you. Mark	{ "pile_set_name": "Enron Emails" }
535228 - broker fee added per Tom Alonso Kerri Thompson@ENRON 03/26/2001 01:08 PM To: Kate Symes/PDX/ECT@ECT cc: Subject: apb fees kate can you check on these 2 deals 517814 broker has fee of .0075 535228 broker has fee of .0075 thanks	{ "pile_set_name": "Enron Emails" }
I just found the deal, and as I suspected, it had the incorrect broker on it. 525180 Sell Avista Mid-C 2/19-2/20 25 mw 325.00 PREBON Thanks, Kate Evelyn Metoyer@ENRON 02/16/2001 02:33 PM To: Kate Symes/PDX/ECT@ECT cc: Subject: Re: 2/16 Prebon Checkout Has Diana called you back on this missing deal yet!! Kate Symes @ ECT 02/16/2001 02:57 PM To: Evelyn Metoyer/Corp/Enron@ENRON cc: Subject: Re: 2/16 Prebon Checkout 525523 - Enron buys Duke, March, NP-15, 50 mw, $265 - MISSING BROKER - I'VE ADDED PREBON Mike just entered his deal - 525558 Can't locate the last deal - left message for Diana - I'll let you know. Evelyn Metoyer@ENRON 02/16/2001 12:31 PM To: Kate Symes/PDX/ECT@ECT cc: Subject: 2/16 Prebon Checkout Diana I am missing the following deal: Enron sell to Avista daily Mid-C at $325 Sean I am missing: Enron buys Duke March NP-15 at 50mw at $265 Mike I am missing: Enron buys from Mirant Q3'01 PV 25 mw at $410. Thanks!!	{ "pile_set_name": "Enron Emails" }
I guess so, cause I got your e-mail. Just in case, it's [email protected]. -----Original Message----- From: [email protected]@ENRON Sent: Tuesday, November 13, 2001 11:17 AM To: Heard, Marie Subject: e-mail update Marie, Just wanted to drop you a line and check and see if this is a good e-mail address. I haven't sent you any corny jokes in a while. Love, your older adopted brother, Carroll	{ "pile_set_name": "Enron Emails" }
Debra, Based on further discussions with the customer, Jill Zivley has negotiated a revised price for the amendment that you recently prepared for the Aspect, Helmerick & Payne, et al. contract. The revised pricing should be 80% of FOM at IF Houston Ship Channel less .075 and 20% of FOM at GD less .065. Please let me know if you have any questions regarding these changes to the amendment. We need to send this to the customer by tomorrow morning. Thanks, Judy	{ "pile_set_name": "Enron Emails" }
Tue, 28 Nov 2000 17:19:28 -0600 Date: Tue, 28 Nov 2000 17:19:28 -0600 Message-Id: <[email protected]> To: [email protected] From: David Theroux <[email protected]> Reply-to: [email protected] X-Mailer: Perl Powered Socket Mailer Subject: THE LIGHTHOUSE: November 28, 2000 THE LIGHTHOUSE "Enlightening Ideas for Public Policy..." VOL. 2, ISSUE 46 November 28, 2000 Welcome to The Lighthouse, the e-mail newsletter of The Independent Institute, the non-partisan, public policy research organization <http://www.independent.org>. We provide you with updates of the Institute's current research publications, events and media programs. ------------------------------------------------------------- IN THIS WEEK'S ISSUE: 1. Paul Craig Roberts Assails the Criminal Justice System 2. Californians Need More Electricity Deregulation, Not Less 3. Urban Riots and Small Business ------------------------------------------------------------- PAUL CRAIG ROBERTS ASSAILS THE CRIMINAL JUSTICE SYSTEM The discovery that a Texas-based crime lab technician fabricated phony evidence used by criminal prosecutors to convict innocent people only adds to an already strong case against the American criminal justice system, according to Independent Institute Research Fellow Paul Craig Roberts. "The criminal justice system has lost the ability to screen out unbalanced people who use their offices not to serve justice, but to serve bureaucratic success indicators such as conviction rates, propagandistic causes and tort lawyers. If truth be known, some of the worst criminals in the country are ensconced in the offices of the criminal justice system." "The public was shocked to learn that the highly respected FBI Crime Lab was manufacturing false evidence to aid prosecutors. The public was shocked again when it was discovered that the Los Angeles Police Department had framed hundreds of people sent to prison. "These injustices, committed by people whom society trusts to determine guilt and innocence, are not aberrations. If the premier crime lab and a premier police department are corrupt, you can imagine the situation elsewhere. And indeed, wherever we look we witness the cruelty of a bureaucratized system driven not by justice but by conviction rates." For more, see "How Justice Was Lost," by Paul Craig Roberts, at http://www.independent.org/tii/lighthouse/LHLink2-46-1.html. See also Bruce Benson's suggestions for reforming the criminal justice system in the Independent Institute book, TO SERVE AND PROTECT: Privatization and Community in Criminal Justice (The Independent Institute, 1999), at http://www.independent.org/tii/lighthouse/LHLink2-46-2.html. ------------------------------------------------------------- CALIFORNIANS NEED MORE ELECTRICITY DEREGULATION, NOT LESS The huge jump in electricity rates in parts of California last summer caused many to believe that the state's deregulation of the electric power industry was a mistake. In response, the state's "Independent System Operator" (ISO), the quasi-government agency that manages electricity transmission, imposed short-term price ceilings on wholesale electricity rates; its renewal of the price caps last month, extending indefinitely, appears to be the beginning of electricity re-regulation. However, the ISO's price caps ensure that Californians will face future problems, writes Scott Esposito, public affairs intern at The Independent Institute, in a new op-ed. "The ISO's price caps are a case of a remedy that is far worse than the disease," writes Esposito. "By capping the price that generators may sell their electricity at $250 per megawatt hour, the ISO,s proposal would make California a market that no sane generator would enter. Why sell electricity in California for, at most, $250 per megawatt hour, when you can sell it in New York for up to $1300 per megawatt hour?" Californians would be better served by abolishing the ISO and opening electricity transmission to the free market, thereby encouraging the development of new transmission capacity, Esposito argues. "Massive rate hikes leading to $400 August electricity bills in San Diego, and extensive blackouts in San Francisco, have made utility deregulation look like a mistake. However, the real mistake lies not with utility deregulation per se but with its incomplete execution." For more, see "Californians Need More Electricity Deregulation, Not Less," by Scott Esposito, at http://www.independent.org/tii/lighthouse/LHLink2-46-3.html. For more on electricity deregulation, see "Of Stranded Costs and Stranded Hopes," by Fred S. McChesney (THE INDEPENDENT REVIEW, Spring 1999), at http://www.independent.org/tii/lighthouse/LHLink2-46-4.html. ------------------------------------------------------------- URBAN RIOTS AND SMALL BUSINESSES Despite pleas by the Bush and Gore camps that their supporters abide by the rule of law (if only they could agree on which election rules and court rulings are applicable), the election mess may turn decidedly uglier -- especially if Florida's presidential vote is sent to the Florida Legislature, a possibility described in last week's LIGHTHOUSE. That's why it is imperative that Ralph Nader, Jesse Jackson, sundry agit-prop talk show personalities, and other self-appointed spokespersons for the "disenfranchised," voice their commitment to civic order. The lesson of the urban riots of the 1960s is instructive. The long, hot summers of 1965 to 1968 saw more than three hundred riots, resulting in two hundred deaths and the destruction of several thousand businesses, according to historian Jonathan J. Bean, writing in the fall issue of THE INDEPENDENT REVIEW. Egged on by ideologues, rioters looted unprotected stores to the chant of "burn, baby, burn." After the rioting stopped, a cottage industry of politicians, academics and celebrities explained away the mob violence by dwelling on the rioters' "context." But the injustices suffered by the mobs' victims were completely ignored, and some inner-city neighborhoods never recovered, as evidenced by the hackneyed image of politicians visiting blighted inner cities and promising, if elected, to do for it what his opponent cannot. If political operatives in the current election mess wish to cultivate an image of statesmanship before things get too ugly they could, as Bean implores policymakers to in general, "delegitimize 'political' violence by refusing to romanticize the actions of a lawless mob." For Jonathan Bean's article, ",Burn, Baby, Burn,: Small Business in the Urban Riots of the 1960s" (THE INDEPENDENT REVIEW, Fall 2000), see http://www.independent.org/tii/lighthouse/LHLink2-46-5.html. For an updated version of "Presidents, Courts, and the 'Political Questions Doctrine,'" by Rob Latham, public affairs director of The Independent Institute, see http://www.independent.org/tii/lighthouse/LHLink2-46-6.html. ------------------------------------------------------------- If you enjoy receiving THE LIGHTHOUSE ... please help us support it. Your supporting Independent Associate Membership enables us to reach thousands of other people. So, please make a contribution to The Independent Institute. See http://www.independent.org/tii/lighthouse/LHLink2-46-7.html to donate, or contact Ms. Priscilla Busch by phone at 510-632-1366 x105, fax to 510-568-6040, email to <[email protected]>, or snail mail to The Independent Institute, 100 Swan Way, Oakland, CA 94621-1428. All contributions are tax-deductible. Thank you! ------------------------------------------------------------- For previous issues of THE LIGHTHOUSE, see http://www.independent.org/tii/lighthouse/LHLink2-46-8.html. ------------------------------------------------------------- For information on books and other publications from The Independent Institute, see http://www.independent.org/tii/lighthouse/LHLink2-46-9.html. ------------------------------------------------------------- To subscribe (or unsubscribe) to The Lighthouse, please go to http://www.independent.org/subscribe.html, choose "subscribe" (or "unsubscribe"), enter your e-mail address and select "Go." Copyright , 2000 The Independent Institute 100 Swan Way Oakland, CA 94621-1428 (510) 632-1366 phone (510) 568-6040 fax [email protected] http://www.independent.org	{ "pile_set_name": "Enron Emails" }
Jeff- Sorry, I am a bit out of it today. -April ----- Forwarded by April Hrach/SF/ECT on 10/18/2000 10:21 AM ----- April Hrach 10/18/2000 09:40 AM To: Jeff Dasovich/NA/Enron cc: Subject: 2 logos Jeff- Here are the two logos. If you set them up on the page the way you want them, then I will print them out for you. -April	{ "pile_set_name": "Enron Emails" }
Daren - There was flow at meter 1351 for Dec 2000. It flowed every day, with an average flow of 151/day. The last deal associated with this meter was 274772 in October '00. It also flowed in November with no nom, it is currently on stranger's gas. Can you please take a look at this? Thanks. Aimee	{ "pile_set_name": "Enron Emails" }
Please do what you can to find out what is going on. I know you forwarded these to Carolyn, but I would still appreciate it if you could investigate, or ask Carolyn to do so. Kay ---------------------- Forwarded by Kay Mann/Corp/Enron on 01/14/2001 08:04 AM --------------------------- "Boyd J. Springer" <[email protected]> on 01/12/2001 01:22:11 PM To: [email protected] cc: Subject: invoices Kay: We recently received payment of our June, 2000 invoice. Previously, we had received payment of the September, 2000 invoice. This leaves outstanding the invoices for July, 2000 (30492348; $9,810.19); August, 2000 (30502885; $3273.75); October, 2000 (30526950; $1819.73), November, 2000 (30539817; $1510.45); and December, 2000 ($1675.29). At the request of your assistant, I forward the information re the invoices through November to the Enron accounts payable help desk, but I did not hear back. Anything you can do to expedite payment of theses invoices would be appreciated. ========== The preceding e-mail message (including any attachments) contains information that may be confidential, be protected by the attorney-client or other applicable privileges, or constitute non-public information. It is intended to be conveyed only to the designated recipient(s). If you are not an intended recipient of this message, please notify the sender by replying to this message and then delete it from your system. Use, dissemination, distribution, or reproduction of this message by unintended recipients is not authorized and may be unlawful. ==========	{ "pile_set_name": "Enron Emails" }
Hey what are you doing after work?	{ "pile_set_name": "Enron Emails" }
Please see the following articles: Bay City News, Wed 3/21: "Blackouts Not Expected Today" Dow Jones Newswire, Wed 3/21: "Calif State Controller:General Fund Surplus Dn To $3.2B" CBS.MarketWatch.com, Wed 3/21: "Davis says regulators will act to pay QFs Electricity providers insist they need to be paid" Long Beach Press, Wed 3/21: "Rash power bill may need fix" SF Chron, Wed 3/21: "PUC considers rewarding producers that sign long-term contracts" Sac Bee, Thurs, 3/22: "State claims $5.5 billion overcharge: Refunds by wholesale generators sought" Sac Bee, Thurs, 3/22: "Power solution eludes Davis: Lawmakers grow edgy as crisis drags on" Sac Bee, Thurs., 3/22: " Legislators learn some details of power contracts" San Diego Union, Thurs, 3/22: "Federal judge orders major power wholesaler to sell to California" San Diego Union, Thurs., 3/22: "Controller: State's power spending imperils its financial health" San Diego Union, Wed, 3/21: "Governor says utilities must pay in advance for some power" LA Times, Thurs, 3/22: "Energy Overcharge of $5.5 Billion Is Alleged" LA Times, Thurs, 3/22: "Power Strain Eases but Concerns Mount" LA Times, Thurs, 3/22: Graphics: Overcharges Alleged San Fran Chron, Thurs, 3/22: "Net Complex A Dilemma For San Jose SERVER FARM: Plant would tax grid" San Fran Chron, Thurs, 3/22: "Contracts Won't Meet Summer Demands DETAILS: 2004 before full impact felt" Mercury News, Thurs, 3/22: "California overcharged $5.5 bln for wholesale power" Orange Cty Register, Thurs, 3/22: Commentary: "If the Power Goes Off" Orange Cty Register, Thurs, 3/22: Commentary: "Socialized Electricity" San Fran Chron, Thurs, 3/22: "Bush's Energy Policy Will Backfire, Feinstein Warns / She wants federal price controls now" Dow Jones Newswires, Thurs, 3/22: "Reliant Still In Power Pact Talks With Calif. DWR" Dow Jones Newswires, Thurs, 3/22: "CPUC Must Address Rates In QF Repayment Order - SoCal Ed" Dow Jones Newswires, Thurs, 3/22: "Calif Small Pwr Producers To Shut Plants If Rates Capped" ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ Blackouts Not Expected Today Bay City News Following two consecutive days of rolling blackouts, California's power picture looks much brighter today, but conservation is still needed. The California Independent System Operator is urging consumers to continue conservation measures during today's Stage One Electrical Emergency. "The conservation efforts of Californians, particularly Tuesday evening, were significant and helped to reduce the duration and impact of yesterday's blackouts,'' according to officials. "The California ISO asks customers to continue their voluntary reductions during this time of tight supply." More than 11,500 megawatts of in-state generation remain unavailable with power plants completing repairs and needed maintenance. However, several generating units returned to service today and the level of imported power has increased, boosting the supply. "The ISO is cautiously optimistic that customer outages will be avoided today,'' according to officials. Today's Stage One alert is in effect through midnight tonight. Stage One Emergencies are declared when power reserves fall below 7 percent. Stage Two kicks in when reserves fall below 5 percent. Stage Three is initiated when reserves drop to below 1.5 percent. ------------------------------------------------------------------------------ -------------------------------------------------------------------------- Calif State Controller:General Fund Surplus Dn To $3.2B 03/21/2001 Dow Jones Energy Service (Copyright (c) 2001, Dow Jones & Company, Inc.) LOS ANGELES -(Dow Jones)- California State Controller Kathleen Connell Wednesday said the state's general fund surplus has dropped to $3.2 billion from $8.5 billion in January, mostly because of electricity purchases made by the state's Department of Water Resources, a press release said. Connell also denied Gov. Gray Davis' request to transfer an additional $5.6 billion from the general fund to the Special Fund for Economic Uncertainties, the release said. Connell noted that, given the rapid depletion of the general fund on power purchases, the state would need to borrow $2.4 billion in order to tranfer the $5.6 billion from the general fund to the special fund. "We started this year with a generous budget surplus. The energy crisis has taken much of that away, and this transfer on top of the electricity purchases would put the fund at risk," Connell said. Connell called on Davis to ensure that the CDWR completes by the end of May 2001 the revenue bond sales that will be used to buy power and repay the general fund. She also asked that the CDWR notify her of all power purchases made and contracts negotiated thus far and requested that she be told within 7 days of any purchases and contracts negotiated in the future. Connell also said she wanted to be told within 24 hours of any power buys that exceed $55 million and asked that the Department of Finance be directed to prepare new general fund cash flow estimates for the next 30 and 60 days, and for the end of the fiscal year. The state's Department of Water Resources has been buying power since January in lieu of Edison International (EIX) utility Southern California Edison and PG&E Corp (PCG) utility Pacific Gas and Electric Co, because suppliers refused to sell to the nearly-bankrupt utilities. -By Jessica Berthold; Dow Jones Newswires; 323-658-3872; [email protected] Gov. Davis' office said, in response to Connell's comments, that the state budget was solid and the economy remained strong. "We will be getting the money back we've paid for energy and it should have no significant effect on the state's finances from the Wall Street perspective," said Davis press secretary Steve Maviglio. -By Jessica Berthold; Dow Jones Newswires; 323-658-3872; [email protected] ------------------------------------------------------------------------------ -------- Davis says regulators will act to pay QFs Electricity providers insist they need to be paid By Russ Britt, CBS.MarketWatch.com Last Update: 9:45 PM ET Mar 20, 2001 LOS ANGELES (CBS.MW) - California Gov. Gray Davis said regulators will act Tuesday on a plan to guarantee that independent power generators are paid. Independent power producers provide about 30 percent of California's electricity from a variety of sources including wind, solar and other sources. Because many of the companies, known as Qualifying Facilities, or QFs, haven't been paid they've begun to withhold power, contributing to blackouts in the state Monday and Tuesday. "We are anxious to pay the QFs because they're falling like flies," Davis said at a news conference late Tuesday. "If they don't get paid, the lights will go out." Davis said the state's PUC order will require the state's nearly bankrupt utilities to enter five-year contracts with the QFs at rates of 7.9 cents per kilowatt hour, or 10-year contracts for lower rates. The structure is similar to rates Davis claims he was able to negotiate for long-term power contracts from out-of-state generators. ------------------------------------------------------------------------------ ------------------------------------- Rash power bill may need fix By Will Shuck From our Sacramento Bureau SACRAMENTO Even as lawmakers lament the slow pace of solving California's energy crisis, the cost of haste has cropped up in their first major act, a multibillion dollar measure that put the state in the power-buying business. AB1X, the highly touted bill that put California in the power-buying business, may have been so rashly crafted that it will take another piece of legislation to fix it, an influential senator said Tuesday. At issue is vague wording that makes it unclear when and to what extent Southern California Edison and other utilities have to repay the state for buying power. State Sen. Debra Bowen, chairwoman of the Senate Energy, Utilities and Communications Committee, said the bill apparently has left room for utility lawyers to argue that their companies needn't repay the state until they have covered other costs. But Bowen, a Redondo Beach Democrat who represents downtown and western Long Beach, said "the legislative intent is crystal clear" that the state wanted to be repaid directly for supplying about a third of the power utility companies deliver to their customers. "We need a cleanup bill" to set the matter straight, she said. Although AB1X illustrates the flaws that come with speed, Bowen said, the Legislature can't afford to delay. "I think we are much too slow in our response," she said. "But that has to be balanced against things we've done in a tearing hurry and then have had to fix later." No matter what the Legislature does in the coming weeks, she said, California is in for a tough summer, and only determined conservation efforts will put much of a dent in a precarious supply-demand equation. ------------------------------------------------------------------------------ ------------------------------------------- PUC considers rewarding producers that sign long-term contracts Greg Lucas, Lynda Gledhill, Chronicle Sacramento Bureau Wednesday, March 21, 2001 ,2001 San Francisco Chronicle Sacramento -- Some cash-strapped producers of wind, solar and other alternative forms of energy will get long-delayed financial relief under a proposed order by state regulators, Gov. Gray Davis said yesterday evening. A proposed order by the Public Utilities Commission is designed to reward energy producers who sign long-term contracts with utilities at lower rates. Alternative energy producers that voluntarily enter such contracts, which would start on April 1, would be paid within 15 days, said Davis, who requested the order. Those that do not would have to wait until the utilities that buy their power return to solvency. Davis blasted Pacific Gas & Electric Co. and Southern California Edison for not paying the alternative generators -- know as qualified facilities, or "QFs" -- even though the companies have been collecting money through rates. "It is wrong and irresponsible of the utilities to pocket and withhold the money designed to compensate the QFs," Davis said. "It's immoral and has to stop." Alternative producers -- ranging from massive co-generation facilities at oil refineries to tiny biomass plants -- produce about a third of the state's supply of electricity. But many are shutting down because utilities have not paid them since November. The loss of some 3,000 megawatts from tapped-out alternative energy producers contributed to the blackouts that snarled California yesterday and Monday, according to the Independent System Operator, which manages the state's power grid. The PUC's proposed order -- which will be considered at the board's Tuesday meeting -- offers the generators a choice of agreeing to a five-year contract at $79 per megawatt or a 10-year deal at $69 per megawatt, Davis said. The order does not address the more than $1 billion already owed to the more than 600 alternative energy producers around the state. Davis said to favor one creditor over another in past debt could bring on bankruptcy proceedings from other creditors. The Legislature would also need to act to make the order work. "It is critical to keep these facilities up and online," said Sen. Debra Bowen, D-Marina del Ray, who estimates that Edison has $1.5 billion in cash on hand, and PG&E $2.5 billion. "The utilities owe it to the people of the state to pay them." Edison said yesterday that it opposed any attempt to place alternative producers ahead of their other creditors. But Tom Higgins, a senior vice president for Edison International, which owes alternative producers some $835 million, said his company was talking to the governor's office about possible payment structures. Alternative energy producers, particularly those that use high-priced natural gas to fire their generators, say that without an immediate infusion of cash they must close their plants. "We've been obsessed with the health of the utilities and (have) forgotten the health of everyone else," said V. John White, legislative director of the Clean Power Campaign, which lobbies for alternative energy producers. CalEnergy Operating Corp., which operates eight geothermal plants in the Imperial Valley producing 268 megawatt hours for Edison has sued the utility asking to be paid and to be temporarily released from their contract with Edison which has paid them nothing since November. CalEnergy has a court hearing tomorrow on its Edison contract. Edison owes the company $75 million, and the debt increases by $1 million a day. "We've lived up to our end of the bargain but Edison hasn't. We're now not in a position to make a property tax payment on April 10 and we're the largest employer in the county," said Vince Signorotti, CalEnergy's property manager. Unlike Edison, PG&E is paying its creditors 15 cents on the dollar. "We have offered over the past five days to prepay for future power not yet delivered to keep as many of them operating as possible, but the state needs to decide how its going to divvy up the limited money under the frozen rates," said John Nelson, a PG&E spokesman. The PUC's sudden attempt to recast the rates paid to alternative generators comes after several months of inaction, partly a result of waiting for legislative negotiations on the issue to conclude. Those negotiations eventually failed to move forward. ------------------------------------------------------------------------------ ------------------------------------- State claims $5.5 billion overcharge: Refunds by wholesale generators sought By Dale Kasler Bee Staff Writer (Published March 22, 2001) In its boldest attempt yet to extract refunds from wholesale power generators, the state's grid operator accused the generators Wednesday of overcharging Californians by $5.5 billion for electricity since last May. The state's Independent System Operator, which manages the state's transmission grid, plans to tell a federal regulatory agency today that power generators consistently took advantage of their stranglehold on the California market to ratchet up prices. The federal agency, the Federal Energy Regulatory Commission, recently threatened to order generators to refund $134.8 million for overcharges, mostly covering January and February. But those refunds amounted to just a fraction of what the grid operator was seeking. The ISO, which has been complaining about market abuses for several months, says FERC must do more. "We're happy that (FERC) took this first step, but we think there's a long way to go," said Anjali Sheffrin, the ISO's director of market analysis. "As far as I'm concerned, it's been too little, too late. ... The refunds they have acted on (so far) have been minimal." She said the report covers five major power suppliers and 16 other power importers. FERC Commissioner William L. Massey said it would be improper for him to comment on a report that has not yet been filed. But when told of the $5.5 billion total, Massey told the Los Angeles Times: "That doesn't shock me in any way." "Prices over the past 10 months in California have greatly exceeded the federal standards of just and reasonable prices, and I think they have exceeded the standards by possibly billions of dollars," he said. However, most FERC critics are skeptical that the federal agency, which is a strong believer in letting free markets run their course, would order a refund anywhere near as large as $5.5 billion -- even though it has found that California prices at times have been "unjust and unreasonable." The big power generators, saying their charges were reasonable, are disputing the $134.8 million refunds proposed so far and have vowed to fight the ISO's latest effort. If the ISO were to prevail, the $5.5 billion in refunds could go a long way toward remedying California's energy mess. They could help restore the financial health of Pacific Gas and Electric Co. and Southern California Edison, which have nearly been bankrupted by the prices charged by the power generators. They also could ease the strain on the state treasury, which is spending billions to purchase electricity for Californians because PG&E and Edison can't. Sheffrin said her department studied sales made by the power generators to ISO, which makes last-minute power purchases to balance supply with demand, and the California Power Exchange, the now-bankrupt entity where most of California's wholesale electricity was bought and sold until December. She said the study made "very generous" allowances for natural gas expenses, costly air-pollution credits and other factors, including the scarcity of electricity. The result was $5.5 billion worth of charges "in excess of competitive costs," she said. In many cases, the companies used their market clout to submit bids that were "way beyond their costs," she said. "It was insufficient competition," Sheffrin said. "They got away with a lot." She said the refund request isn't just a shot in the dark. FERC, she noted, "has already found that prices in the California wholesale energy market have been unreasonable. We took it upon ourselves ... to show FERC how they got to be so high." FERC proposed refunds totaling $124 million for January and February sales, declaring that generators' prices were too high. In a separate case the federal agency, for the first time, accused two generators last week of taking plants offline to force prices up. ------------------------------------------------------------------------------ --------------------------------------- Power solution eludes Davis: Lawmakers grow edgy as crisis drags on By Emily Bazar and Amy Chance Bee Capitol Bureau (Published March 22, 2001) Gov. Gray Davis likes to compare the state's energy crisis to a complicated "three-cornered" billiard shot. But as California plunged into another round of power blackouts this week, Davis has yet to line up the angle on an ultimate solution. The state's short-term power bill is nearing $4.2 billion, and legislators are balking at the administration's requests for additional money. Getting even the least controversial pieces of the puzzle through the Legislature is taking weeks longer than expected. While the Democratic governor has insisted secrecy about details of his power purchases is necessary to protect the state's bargaining position, other state officials are complaining vigorously about the lack of information. And critical deals the governor hoped to reach with energy suppliers and utility companies are proving difficult to close. "I think we all got lulled into a little complacency a few weeks ago. All these things seemed to be going along, and the governor was making all these warm and fuzzy comments," said Assemblyman John Campbell, R-Irvine. "But it only takes one deal to go sideways and we're all blacked out," he added. "The governor is running around basically saying, 'Trust me.' I'm not sure he's deserving of the trust at this point." Davis and his aides insist they are working around the clock on plans to boost power generation, encourage conservation and reach an agreement with utilities that will keep them out of bankruptcy. The utility plan, they say, is the equivalent of a large corporate merger that simply can't be accomplished overnight. Davis notes that earlier deregulation efforts might have benefitted from a little more time. Although the state has reached a broad "agreement in principle" with Southern California Edison to obtain its power transmission lines in exchange for help paying off its debts, a final, detailed deal has not been reached. The initial agreement with Edison was announced Feb. 23. And the governor has yet to achieve a tentative agreement with Pacific Gas and Electric Co., which is driving a harder bargain over price and other elements of a potential rescue plan. Joseph Fichera, one of several consultants receiving more than $11 million from the administration for advice on the energy crisis, said many people don't realize the complexity of the deal they're brokering. In their bid to achieve a public takeover of the investor-owned utilities' transmission lines, he said, negotiators have to pore over thousands of documents related to the transmission lines alone. "We are doing what is normal in a transaction of this magnitude, which is investigate, document, circulate, redocument, agree, move forward," said Fichera, an investment banker with Saber Partners in New York City. "The governor has put a 'I want this yesterday' fire" under his negotiating team. The negotiator, however, declined to say when he expects final agreements to be reached with the companies. "It could be days, it could be weeks," he said. There were signs, meanwhile, of trouble brewing on another front: the giant bond sale the state must make to repay the money it has spent so far on electricity and to finance future long-term contracts for energy. State Treasurer Phil Angelides said Wednesday the utilities are appealing a ruling by the state Public Utilities Commission that essentially ensures the state will be repaid, a move that he said threatens to delay the sale indefinitely. "If the utilities have decided to adopt a scorched earth policy until they get what they need and want, then it will be a significant problem," Angelides said. PG&E spokesman Ron Low said the governor is simply placing too many demands on a rate structure that doesn't compensate the utilities for their current costs. "Political rhetoric is not going to change the math," he said. In the Legislature, lawmakers are growing grumpier. Most were taken by surprise Monday when blackouts were ordered across the state, weeks before summer temperatures were expected to set in and strain the power system. "I'm more worried than ever," said Assemblyman Bill Leonard, R-San Bernardino. "A lot of the elements we thought we had a handle on in January are unraveling." A deal the governor said had been worked out weeks ago between the state and more than 600 small alternative energy suppliers collapsed last week. The alternative generators have not been paid by the utilities for months, and state leaders attempted to bargain down the price utilities pay those generators for power. But administration officials complained privately that lawmakers instead sweetened the pot for the suppliers to the point that the measure no longer helped solve the overall financial situation pushing the utilities toward bankruptcy. Under a proposal announced Tuesday by Davis, the Legislature would authorize the PUC to require the utilities to pay the alternative suppliers at prices more closely resembling the original deal. But the governor ran into immediate opposition, as some suppliers said said he would not pay them enough to cover their fuel costs. "We would go from not being paid, to losing money," said Hal Dittmer of Wellhead Electric, a Sacramento-based supplier that has been shut down for more than a month. "Almost everybody who burns natural gas is going to shut down. (Davis) got it wrong." Democrats outside the Davis administration, meanwhile, are complaining about the amount of money the state Department of Water Resources is spending on expensive, last-minute power purchases. Within a week, $4.2 billion will have been committed. State Sen. Steve Peace, D-El Cajon, chairman of the joint Legislative Budget Committee, is warning the Davis administration that he will block additional funds for last-minute purchases of power until the PUC makes progress recovering money that already has been spent. He intends to hold a hearing on the issue this morning. On Wednesday, state Controller Kathleen Connell told Davis she will refuse to make a routine budget transfer he had requested, saying she is concerned that there is "no outside check and balance" on the money the administration is spending to buy electricity on the spot market. As the statewide elected official who pays the state's bills, Connell said she has yet to receive information from the Department of Water Resources about how much it is spending. "We really need an accounting as to the total amount of liability they have accumulated," she said. "I understand they're in an emergency situation ... but it begins to imperil the state's ability to manage its cash flow." Meanwhile, a bill to provide $1 billion for conservation programs, aimed at reducing power needs this summer, also has languished for several weeks in the state Senate. While Davis has focused his attention elsewhere, Republican lawmakers have opposed the measure as too expensive. Democrats argue that each two-week delay prevents the state from saving as much energy as one "peaker" plant will produce this summer. Peaker plants are designed to help meet the peaks of electricity demand. "I'm the eternal optimist, but we have to keep working on all fronts," said Sen. Byron Sher, D-Palo Alto, who hopes to take his energy conservation bill up for a vote in the Senate again today. "It's a formidable challenge." Bee staff writer Dale Kasler contributed to this report. ------------------------------------------------------------------------------ ------------------------------------------- Legislators learn some details of power contracts By John Hill Bee Capitol Bureau (Published March 22, 2001) The veil of secrecy surrounding the state's electricity contracts lifted Wednesday -- a little. Gov. Gray Davis gave state legislators a report laying out some of the details of long-term contracts designed to help the state pull out of its energy crisis. But the report left legislators and others clamoring for more. "The information raises more questions," said Assemblyman George Runner, R-Lancaster. "I liken it to watching a parade through a knothole in a fence. You get to look at one float, but you're not sure about what's coming up and what you've missed." Davis had previously disclosed that the state had signed or was close to signing 40 long-term contracts, at an average price over 10 years of $69 per megawatt-hour. The contracts are part of the state's strategy for trying to avoid a fiscal shellacking in the energy spot market while making sure there's enough electricity to avoid more blackouts. Davis also previously disclosed that the contracts were for an average of about 9,000 megawatts a year, and that the total cost exceeded $40 billion. But Davis has resisted telling more, saying the state would jeopardize its ability to get the best prices if electricity generators knew what their counterparts were getting. On Wednesday, the governor's office released a March 15 report from S. David Freeman, general manager of the Los Angeles Department of Water and Power, to the state Department of Water Resources. The state agency has been given the responsibility of making power purchases, and Freeman was brought in to lead the negotiations. As of March 15, the state had signed 19 contracts with seven suppliers for periods ranging from 14 months to 20 years, with many for three or five years, the report says. Some of the contracts are for electricity to meet the state's everyday power demand, while others are only for times of peak use, such as hot summer days. The state had "agreements in principle" for an additional 25 contracts. Runner said he has been told that two of these contracts have since been finalized. The amount of power provided reaches a peak in 2004 of more than 10,000 megawatts. As the long-term contracts start to expire around then, the state is hoping that demand can be met with new contracts or spot purchases at prices expected to be much cheaper. The report says nine more long-term contracts were under discussion. Some of the contracts are with power generators, while others are with marketers who may get the power from a number of sources. In some cases, the state may supply the natural gas used to generate the electricity, or power costs may be pegged to the going rate for the fuel. Some suppliers can cancel if the state fails to sell bonds by a certain date to cover power costs or fails to maintain an investment grade credit rating. Some depend on the construction of power plants, but Freeman said they were firm commitments. "We were pretty careful not to put a hope and a dream in the portfolio," he said. More contracts will have to be signed to meet summer demand, and these agreements will probably be more expensive, the report says. One item not in Freeman's report was a secret deal to relieve several major generators from having to pay for polluting the air beyond allowable limits. The long-term power contracts include language that would have the state pay the costs of "pollution credits" that allow power plants to exceed their permitted levels of smog-forming pollutants, the governor's office confirmed Wednesday. Spokesman Steve Maviglio said that several generators are being relieved from having to pay those costs. V. John White, a Sierra Club lobbyist close to the negotiations, said Dynegy Inc., which has power plants in El Segundo, Encina and Long Beach, is one of them. Dynegy officials did not return calls to The Bee on Wednesday. Freeman said that generators were demanding hefty premiums for having to deal with air quality regulators in the summer and he figured it would be cheaper just to pay for the pollution credits. In other energy-related developments: With more power plants back online, grid operators dropped down to a Stage 1 electricity alert. The state Independent System Operator was expecting supplies to gradually increase over the next few days. The state Public Utilities Commission issued a revised draft decision that would impose the prices outlined Tuesday by Davis for power produced by alternative energy companies -- $79 a megawatt-hour for five-year contracts or $69 a megawatt-hour for 10 years. The proposal is scheduled for a PUC vote March 27. A federal judge ruled that one of the nation's major electricity generators must continue supplying California with emergency power. In imposing an injunction on Reliant Energy Services Inc., U.S. District Judge Frank C. Damrell Jr. noted the "rolling blackouts (that have) darkened the California landscape" and said the loss of Reliant's production "poses an imminent threat." Bee staff writers Carrie Peyton, Chris Bowman and Denny Walsh contributed to this report. ------------------------------------------------------------------------------ ---------------------------------------- Federal judge orders major power wholesaler to sell to California By Don Thompson ASSOCIATED PRESS March 21, 2001 SACRAMENTO ) A federal judge issued a preliminary injunction Wednesday ordering a major electricity wholesaler to continue selling to California despite its fear that it will not get paid. U.S. District Judge Frank C. Damrell Jr. said Californians were at risk of irreparable harm if Reliant Energy Services stopped selling power to the Independent System Operator, which oversees the state's power grid. The ISO buys last-minute power on behalf of utilities to fill gaps in supply to try to fend off blackouts. Damrell dismissed Reliant's attempt to force the state Department of Water Resources to back the ISO's purchases for the state's two biggest utilities. The state has been spending about $50 million a day on power for Pacific Gas and Electric Co. and Southern California Edison, both denied credit by suppliers after amassing billions of dollars in debts. Controller: State's power spending imperils its financial health Governor says utilities must pay in advance for some power ? The judge said he had no authority to force the DWR to pay for that power. Gov. Gray Davis has said the state isn't responsible for purchasing the costly last-minute power ISO buys for Edison and PG&E, despite a law authorizing state power purchases on the utilities' behalf. ISO attorney Charles Robinson said the ruling gives ISO operators "a tool to assist them in keeping the lights on in California." "Had the decision gone the other way, one could expect other generators to simply ignore emergency orders," Robinson said. Damrell's preliminary injunction will remain in effect until the Federal Energy Regulatory Commission rules on the matter. Damrell denied the ISO's request for preliminary injunctions against three other wholesalers, Dynegy, AES and Williams, who agreed to continue selling to the ISO pending the FERC ruling. The ISO went to court in February after a federal emergency order requiring the power sales expired. The judge then issued a temporary restraining order, requiring the sales, but dropped it after the suppliers agreed to continue sales to California, pending his Wednesday ruling. The ISO said it would lose about 3,600 megawatts if the suppliers pulled out, enough power for about 2.7 million households. One megawatt is enough for roughly 750 homes. Grid officials said Reliant's share alone is about 3,000 megawatts. Reliant said the amount at issue actually is less than a fourth of that, because most of the power is committed under long-term contracts. Reliant, which provides about 9 percent of the state's power, worries it won't get paid due to the financial troubles of PG&E and Edison. PG&E and Edison say that together they have lost about $13 billion since June due to soaring wholesale electricity costs that California's 1996 deregulation law bars them from passing onto customers. At the same time, the state has faced a tight electricity supply, due in part to California power plant shutdowns for maintenance and to a tight hydroelectric supply in the Pacific Northwest. Managers of the state power grid imposed rolling blackouts across the state Monday and Tuesday as supply fell short of demand. Wednesday, cooling temperatures and the completion of repairs at several power plants allowed the state to avoid blackouts. State Controller Kathleen Connell said Wednesday that the energy crunch also imperils California's financial health. Connell said the state's power-buying on behalf of Edison and PG&E is is gutting its budget surplus. Since the state started making emergency power buys in January, the surplus has fallen from $8.5 billion to about $3.2 billion, she said. Connell ordered an audit of the state's power-buying, saying Davis is withholding key financial information from her office and the Legislature. She is refusing a request by Davis and the Legislature to transfer $5.6 billion into a "rainy day fund" she said was set up to impress Wall Street as the state prepares to issue $10 billion in revenue bonds to cover its power-buying. Transferring the money would leave the state general fund $2.4 billion in debt, Connell said. Sandy Harrison, spokesman for the state Department of Finance, and Keely Bosler of the Legislative Analyst's Office, said such transfers are routine and required by law. They put the state's budget surplus at $5.6 billion. "The law says she has to do it. The law does not give her the power to demand that kind of audit information," Harrison said. He said the state's budget isn't in danger because it will be repaid with the $10 billion in long-term debt. Wells Fargo & Co. chief economist Sung Won Sohn said he sees little progress in efforts to fix the state's power problems and end state electricity purchases. "If we're going to pour money into a bottomless pit, I would worry about the state's finances," he said. "At some point we're going to run out of money." The controller's criticism of fellow Democrat Davis won support from Assembly Republicans and Secretary of State Bill Jones, a Republican considering challenging Davis next year. Jones said he wants to announce his own plan to solve the state's energy woes, but can't unless Davis releases more financial details. Davis spokesman Steve Maviglio dismissed the criticism. "Political grandstanding doesn't generate one more kilowatt of energy for California in this time of emergency," he said. Maviglio said the administration has released the financial information it can without jeopardizing negotiations for long-term power contracts with wholesalers. ------------------------------------------------------------------------------ ---------------------------------------------- Controller: State's power spending imperils its financial health By Don Thompson ASSOCIATED PRESS March 21, 2001 SACRAMENTO ) California's power-buying on behalf of two strapped utilities is gutting its budget surplus and putting the state at financial risk, the state controller said Wednesday. The surplus dropped from $8.5 billion in January, when the state began buying electricity for Pacific Gas and Electric Co. and Southern California Edison, to $3.2 billion now, Kathleen Connell estimates. Connell ordered an audit of the state's power-buying, saying Gov. Gray Davis is withholding key financial information from her office and the Legislature. Wednesday marked the first time in three days the state avoided rolling blackouts. Power grid officials credited cooling temperatures and the completion of repairs at several power plants. Connell said the energy crunch now imperils the state's budget as well as its electric grid. California has been spending about $45 million a day ) $4.2 billion so far ) to buy power for Edison and PG&E, both denied credit by electricity wholesalers. The two utilities, California's largest, say they are nearly $14 billion in debt due to soaring wholesale power costs the state's deregulation law blocks them from recovering from customers. Meanwhile, the state has faced high natural gas costs and a tight power supply driven in part by power plant repairs in California and scarce hydroelectric power in the Pacific Northwest. Standard & Poor's has put the state on a credit watch due to its power purchases and chastised Davis, the Legislature and state regulators for not taking more aggressive steps to assure the utilities can pay their bills. On Wednesday, Connell said she is refusing a request by Davis and the Legislature to transfer $5.6 billion into a "rainy day fund" she said was set up to impress Wall Street as the state prepares to issue $10 billion in revenue bonds to cover its power-buying. Transferring the money would leave the state general fund $2.4 billion in debt, Connell said. Sandy Harrison, spokesman for the state Department of Finance, and Keely Bosler of the Legislative Analyst's Office, said such transfers are routine and required by law. They put the state's budget surplus at $5.6 billion. "The law says she has to do it. The law does not give her the power to demand that kind of audit information," Harrison said. He said the state's budget isn't in danger because it will be repaid with the $10 billion in long-term debt. Connell said the scope of the proposed transfer is unprecedented and amounts to a "shell game" that disguises the power purchases' impact on the state budget. Wells Fargo & Co. chief economist Sung Won Sohn said he sees little progress in efforts to fix the state's power problems and end state electricity purchases. "If we're going to pour money into a bottomless pit, I would worry about the state's finances," he said. "At some point we're going to run out of money." The controller's criticism of fellow Democrat Davis won support from Assembly Republicans and Secretary of State Bill Jones, a Republican considering challenging Davis next year. Jones said he wants to announce his own plan to solve the state's energy woes, but can't unless Davis releases more financial details. He said his plan may involve giving the utilities low-interest loans with their transmission lines held as collateral. Davis spokesman Steve Maviglio dismissed the criticism. "Political grandstanding doesn't generate one more kilowatt of energy for California in this time of emergency," he said. Maviglio said the administration has released the financial information it can without jeopardizing negotiations for long-term power contracts with wholesalers. ------------------------------------------------------------------------------ --------------------------------------------- Governor says utilities must pay in advance for some power By Jennifer Coleman ASSOCIATED PRESS March 21, 2001 SACRAMENTO ) The state's two largest utilities will be ordered to pay environmentally friendly power generators in advance, a move Gov. Gray Davis hopes will bring a quick end to the power blackouts that darkened California this week. The statewide blackouts that stretched from San Diego to Oregon on Monday and Tuesday were caused in part by the failure of Southern California Edison and Pacific Gas and Electric Co. to pay millions of dollars they owe "qualifying facilities" or QFs, Davis said. Such suppliers use cogeneration ) steam from manufacturing plus natural gas ) or solar, wind and other renewable energy to generate electricity. This week California lost about half the power those generators normally provide. Controller: State's power spending imperils its financial health ? Several of them said they hadn't been paid by Edison and PG&E in weeks and can't afford to keep operating their plants. Davis accused the utilities of taking in money from customers while failing to pay the QFs. The state has been spending about $45 million a day since January to buy power for customers of Edison and PG&E, which are so credit-poor that suppliers refuse to sell to them. "It's wrong and irresponsible of the utilities to pocket this money and not pay the generators," the governor said at a Capitol news conference Tuesday evening. "They've acted irresponsibly and immorally and it has to stop." PG&E called the governor's statements "inappropriate and unjustified," adding that it was negotiating a payment plan with the QFs. Edison said it is intent on paying creditors and working with the California Public Utilities Commission to pay QFs for future power sales. Controller Kathleen Connell warned Wednesday that the state's $2 billion-a-month power purchases are jeopardizing California's budget. The state's budget surplus dropped from $8.5 billion in January, when the power purchases began, to $3.2 billion now, Connell estimates. She blamed Davis for withholding key financial information, and ordered an audit of the state's power spending starting next week. She blocked a request by the Legislature and Davis administration to transfer $5.6 billion from the state's general fund into a special "rainy day" fund, saying that would have left the general fund $2.4 billion in debt. The Legislative Analyst's Office said such transfers are routine; Connell agreed, but said the size of the transfer is unprecedented. "We started this year with a generous budget surplus," Connell said. "The energy crisis has taken much of that away and this transfer on top of the electricity purchases would put the fund at risk." Meanwhile, keepers of the state's power grid were optimistic California would get through Wednesday without another day of rolling blackouts. Two plants down for repairs returned to service. Several power plants that were taken down for repairs are also expected come online by the end of the week, reducing the likelihood of blackouts, said Jim Detmers, ISO vice president. Power may flow to homes and businesses, but it could soon cost consumers more, said Assemblyman Fred Keeley, one of the Legislature's leaders on energy issues. "I think it's intellectually appropriate and honest to tell people as soon as it's apparent" that a rate increase is warranted, the Boulder Creek Democrat said Tuesday, indicating that time had come. He estimated that the state Public Utilities Commission may soon have to raise rates by about 15 percent to cover the state's costs and its utilities' bills. "My sense is that people will appreciate having some certainty and being able to plan for it," he said. "They don't have to like it but I think they'll appreciate it." Davis said he is confident the utilities and the state can pay their bills without further rate increases for Edison and PG&E customers. In the meantime, the Independent System Operator, keeper of the grid, is counting on continued conservation by residents and businesses to avoid more blackouts. Conservation accounted for about 300 megawatts in savings during Tuesday's peak usage, enough to power 300,000 homes. Roughly a half-million homes and businesses were affected by Tuesday's blackouts, which snarled traffic and plunged schools and businesses into darkness across the state. The outages began at 9:30 a.m. and continued in 90-minute waves until about 2 p.m., when the ISO lifted its blackout order. They were blamed for at least one serious traffic accident. Two cars collided at an intersection in the Los Angeles suburb of South El Monte where the traffic lights were out. Two people were seriously hurt, said California Highway Patrol Officer Nick Vite. In San Francisco's Chinatown, souvenir shops normally bustling with visitors were forced to shut down. Nearby, irritated customers waited for a bank to reopen. The blackouts, like Monday's, were caused by a combination of problems, including unseasonably warm weather, reduced electricity imports from the Pacific Northwest and numerous power plants being shut down for repairs. Adding to those troubles, the state lost about 3,100 megawatts from the QF plants. Senate Energy Committee Chairwoman Debra Bowen, D-Marina del Rey, estimated Tuesday that Edison has amassed more than $1 billion and PG&E more than $2 billion that they have not paid to generators. Davis said the PUC planned to issue an order next week directing the utilities to pre-pay their future QF bills. PG&E said its prepayments hinge on an upcoming PUC decision on whether the utility's rates are sufficient to pay its bills and cover the state's power purchases on its behalf, which amount to $4.2 billion since early January. Edison and PG&E say they have lost more than $13 billion since last June to climbing wholesale electricity prices, which the state's 1996 deregulation law prevents them from passing on to ratepayers. ------------------------------------------------------------------------------ ----------------------------------------- Energy Overcharge of $5.5 Billion Is Alleged Power: Money should be refunded to taxpayers and utilities, the state grid operator says, citing evidence of market manipulation. Suppliers deny the accusation. By TIM REITERMAN and NANCY RIVERA BROOKS, Times Staff Writers ?????Wholesale electricity suppliers overcharged California by about $5.5 billion between May and last month, and that money should be refunded to the state's taxpayers and financially strapped utilities, the state power grid operator said Wednesday. ?????Generators engaged in market manipulation and consistent patterns of bidding far above costs in the deregulated energy market, the California Independent System Operator found in a study of pricing data. The findings support the widespread belief that these suppliers reaped massive additional revenue by manipulating the market. ?????Spokesmen for the companies denied the accusation. ?????The study, prepared for a filing with federal regulators today, is central to Cal-ISO's efforts to seek reimbursement for what it considers excessive charges by electricity suppliers during the state's energy crisis. ?????"This might be the first time we told them the total impact and magnitude [of the overcharging]," said Anjali Sheffrin, Cal-ISO's director of market analysis. "We think the entire amount deserves consideration for refunds." ?????Using confidential bidding data on tens of thousands of electricity sales, Cal-ISO found that five companies that together supply about 30% of the power delivered to customers of the state's investor-owned utilities engaged in two types of behavior that tended to push up prices: ?????* They effectively withheld supplies by bidding at excessive prices, even though they could have made some money selling more electricity. ?????* Less frequently, they had power generation available but did not bid at all. ?????The study concluded that energy suppliers commonly offered their electricity at twice their cost. For example, Sheffrin said, the average markup in August was 100% during peak hours. ?????A spokeswoman at the Federal Energy Regulatory Commission, which oversees wholesale electricity pricing across the country, declined to comment Wednesday, saying, "This is part of an ongoing proceeding." ?????FERC member William L. Massey, who has considered previous commission actions on refunds to be inadequate, said it would be improper for him to comment on a report that has not yet been filed. But when told of the $5.5-billion total, Massey said: "That doesn't shock me in any way." ?????"Prices over the past 10 months in California have greatly exceeded the federal standards of just and reasonable prices, and I think they have exceeded the standards by possibly billions of dollars," he said. ?????Cal-ISO, which oversees grid operations and an emergency energy market, previously detailed $550 million in alleged overcharges for December and January and asked FERC for refunds. But the commission has proposed refunds of only a tiny fraction of that amount. ?????The study covered five major in-state power suppliers--Reliant Energy, Dynegy, Williams/AES, Duke Energy and Mirant, formerly Southern Energy--plus 16 power importers, all of which deliver power to customers of Pacific Gas & Electric Co., Southern California Edison and San Diego Gas & Electric Co. ?????"All [21] overcharged, but some excessively and some by moderate amounts," Sheffrin said. ?????Cal-ISO's public filing will quantify the alleged overcharging by each company, but the companies will be identified only by a number. The code will be provided to FERC, Sheffrin said, and Cal-ISO lawyers will determine how much information about the companies will be made public. ?????State, U.S. Investigations ?????California electricity markets and the companies that buy and sell power in the state have been the subject of several investigations by state and federal authorities since wholesale electricity prices first skyrocketed in May. ?????Electricity suppliers have repeatedly denied manipulating the California market in any way, whether through above-cost bidding in spot markets or through physical withholding of electricity to drive up prices. ?????Reliant Energy is cooperating with FERC's requests for more data and is confident the commission will conclude that prices charged by Reliant were justified, said Joe Bob Perkins, president of the Houston-based company. ?????Perkins also bitterly disputed charges that Reliant has shut down units so that it can earn bigger profits on the power sold by the remaining plants. These charges have been leveled against all of the power-plant owners in the state. ?????Reliant Vice President John Stout said Cal-ISO's calculations typically don't include such fixed costs as salaries, taxes and the interest on bonds they sold to finance their power plants, which they acquired under terms of the state's landmark 1996 deregulation law. ?????In addition, he said, many high-priced power days have resulted from buyers bidding against each other for scarce supplies rather than sellers charging excessive amounts--like a house price being driven far above the listing price in a hot real estate market. ?????Williams Energy Services, a trading company that markets most of the power produced by plants owned by AES, also says it will be exonerated by FERC once the commission examines documentation being submitted, said Paula Hill-Collins, spokeswoman for the Tulsa, Okla., company. ?????"FERC has the obligation to investigate when these accusations are made," Hill-Collins said. "This is just a process of justification, not necessarily proof of guilt." ?????Williams/AES was recently ordered by FERC to prove that it did not take generating units out of service last year to drive up electricity prices, or refund $10.8 million to California utilities. ?????During the period studied, suppliers sold electricity in the California Power Exchange to Southern California Edison, PG&E and San Diego Gas & Electric Co. and in a backup market for last-minute electricity operated by Cal-ISO. But sky-high prices plunged Edison and PG&E deeply into debt, and most suppliers stopped selling to them in January, forcing the state Department of Water Resources to step in as the primary electricity buyer for the three big utilities' 27 million customers. ?????The Cal-ISO study, first summarized at an energy conference last week at UC Berkeley but not otherwise publicized, concluded that the companies exercised so-called market power to pump up electricity prices. ?????Severin Borenstein, director of the Energy Institute at Berkeley, said Cal-ISO's study is consistent with his research examining pricing practices in 2000. ?????"We found several billion dollars . . . in departures from competitive pricing," he said. "When the market was tight this summer, they were able to push up prices, and they did." ?????The early warning signs of electricity price spikes, the study found, appeared in May after two years of relatively stable prices of $30 to $40 per megawatt-hour under deregulation. Prices went up during the summer, dipped in September and October with lower demand, then took off in November and December as weather turned cold and the price of natural gas, which is used to generate much of the state's electricity, reached record levels. ?????"There were plant outages, and demand and supply became close," Sheffrin said. "Whatever price they bid had to be taken, and market power asserted itself." ?????Cal-ISO found that $3 billion of the alleged overcharges occurred between May and November. ?????On Friday, federal regulators ordered six wholesale power suppliers to refund $55 million to California if they cannot justify prices charged in February. The refund was limited to power sold that month in excess of $430 per megawatt-hour during Stage 3 power alerts, when supplies are so tight that rolling blackouts are threatened. (One megawatt-hour is enough electricity to supply 750 typical homes for an hour.) ?????The previous week, FERC ordered 13 suppliers to justify or refund $69 million for power sold in January at prices above $273 per megawatt-hour. ?????Massey opposed the potential refunds as too low because they were limited to hours in which a Stage 3 power emergency was in place and because the benchmark price set for each month was too high--combining to exempt more than 70,000 transactions from scrutiny. ?????"We're still looking for our lost wallet under the lamppost, which is Stage 3 alerts," said Massey, one of three commissioners on the five-member board (two seats are vacant). ?????Generators "have been given the free and clear," he said. ?????"These tinkling little refunds they have come out with recently are almost a joke," said Cal-ISO board member Mike Florio, senior attorney at the Utility Reform Network. ?????Resisting Price Caps ?????Cal-ISO contends that the last 10 months have proved that generators can no longer be allowed to receive electricity prices that are dictated by what the market will bear. ?????"FERC granted market-based rate authority on each of these suppliers' own showing that they could not manipulate prices, yet their actions have shown the contrary," Sheffrin said. "We feel FERC needs to look at the premise of allowing these generators to continue selling at market-based rates." ?????The commission is responsible for ensuring just and reasonable electricity rates. Although it has called California's power market dysfunctional and vulnerable to manipulation, the agency has resisted setting firm price caps sought by California's congressional delegation. ?????Chairman Curt L. Hebert Jr. strongly opposes caps, while Massey wants to use caps across the West as a "temporary timeout." ?????Energy Secretary Spencer Abraham, in a New York news conference Wednesday, reiterated his opposition to electricity price caps as a way to cope with California's energy crisis. ?????"If we put price caps in place, there will be more blackouts, and they'll be worse," Abraham said. ?????Cal-ISO is filing its market study as part of its comments on FERC staff recommendations on ways to thwart market manipulation. FERC's proposal includes strict coordination of power plant outages by Cal-ISO with reporting of suspicious closures to FERC, and generator-by-generator bid caps tied to costs. --- ?????Reiterman reported from San Francisco, Rivera Brooks from Los Angeles. Times staff writer Thomas S. Mulligan in New York contributed to this story. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ------------------------------------- Power Strain Eases but Concerns Mount Energy: Officials say summer prices will be high, and a state report shows that contracts with generators are far short of goals. By DAN MORAIN and JENIFER WARREN, Times Staff Writers ?????SACRAMENTO--California's fragile electricity system stabilized Wednesday, but a Davis administration report suggested troubles ahead because the state could be forced to buy most of its power for the coming summer on the costly and volatile spot market. ?????After two days of statewide blackouts, power plants that had been shut down were cranked up. Unseasonable heat tapered off. The operators of the statewide power grid relaxed their state of emergency. ?????But plenty of ominous signs remained. Many small producers remained shut down, skeptical about Gov. Gray Davis' plan for utilities to pay them. ?????State Controller Kathleen Connell issued a sharp warning about the high cost of the state's foray into the power business and announced that she will block an administration request that she transfer $5.6 billion into an account that could be tapped to pay for state purchases of electricity. ?????And a report from the administration summarizing contracts between Davis and independent power generators showed that the state has signed contracts for only 2,247 megawatts of electricity, significantly less than the 6,000 to 7,000 megawatts previously claimed. ?????While there are agreements in principle for the full amount, the report notes that generators can back out of the contracts for a variety of reasons, including the state's failure to sell bonds to finance power purchased by July 1. The Legislature has approved plans to sell $10 billion in bonds, but none have yet been issued. ?????"We are exposed enormously this summer," Senate Energy Committee chairwoman Debra Bowen (D-Marina del Rey) said after looking at the report. "We owe the people the truth about how difficult this summer is going to be. We don't have a power fairy." ?????Perhaps most significant, the report suggests that the contracts fall significantly short of Davis' stated goal of buying no more than 5% of the state's summer needs on the spot electricity market, where prices can be many times those of long-term contracts. ?????After reading the report, Frank Wolak, a Stanford University economist who studies the California electricity market, said the numbers suggested that the state's long-term contracts will cover less than half of what the state will need this summer. ?????"We're definitely short this summer, next summer and the summer of 2003," he said. ?????California was forced to start buying electricity in December--at a cost of $50 million a day--because producers refused to sell to Southern California Edison and Pacific Gas & Electric. The two utilities amassed billions of dollars in debt when prices for wholesale power soared on the spot market. ?????Vikram Budhraja, a consultant retained by Davis to negotiate deals with generators, said the report represents a "work in progress." He said the state may yet sign new contracts. ?????However, Wolak said the contract figures confirm what he and others have been dreading: that summer is going to be rife with rolling blackouts unless serious steps to cut demand are taken immediately. ?????Wolak and other experts say large industrial customers must be switched to real-time meters and pricing to persuade them to use the bulk of their energy at times of low demand. ?????The head of the Energy Foundation, a San Francisco-based nonprofit that promotes sustainable sources of power, made the same proposal to Davis on Wednesday. ?????"The government need not ask customers to swelter in the dark this summer," foundation President Hal Harvey argued in a letter. ?????He also proposed a crash campaign to boost sales of efficient appliances and lightbulbs. He said the state needs to take over the utilities' contracts with alternative energy providers to ensure they stay in business, and sign new contracts for 1,500 megawatts of new wind power--the cheapest, fastest and cleanest source of new supply. ?????Davis had proposed a formula Tuesday to force private utilities to pay the alternative producers, some of which have not been paid since November. But some of them warned Wednesday that Davis' plan offers them little incentive to turn on their generators. ?????Alternative energy producers supply more than a quarter of the electricity consumed in California. ?????Many producers generate electricity from wind, sun and geothermal sources. But most of them generate power using natural gas--and the cost of natural gas has been soaring. Several natural gas users said Davis' plan, which caps rates, won't cover their fuel costs. ?????Davis assumes that the price of natural gas will fall. But small generators say they don't have sufficient purchasing power or sophistication to gamble on future prices. ?????The Public Utilities Commission is expected to approve Davis' proposal next week. It offers producers two choices: 7.9 cents a kilowatt-hour if they agree to supply power for five years, or 6.9 cents a kilowatt-hour over 10 years. ?????"The price of natural gas is higher than that," said Marty Quinn, executive vice president and chief operating officer of Ridgewood Power LLC, which owns three natural gas-fired co-generation plants. "If we operate, we'll lose money." ?????Ridgewood is not operating, having been cut off by gas suppliers. The company sued PG&E last month seeking overdue payments and release from its contracts with the utility. ?????A hearing is scheduled in El Centro today in another lawsuit filed by a small energy producer, an Imperial Valley geothermal producer that sued Edison for refusing to let it break its contract and sell on the open market. CalEnergy says Edison owes it about $140 million for energy sold since November. ?????A company spokesman, Jay Lawrence, said CalEnergy was going ahead with its suit despite Davis' proposal. "We've had promises before," he said. ?????In other developments: ?????* A federal judge in Sacramento on Wednesday ordered Reliant Energy of Houston, a major producer, to continue selling power to California during emergencies, despite the company's argument that it may not be fully reimbursed. The order will remain in effect for 60 days or until the U.S. Federal Energy Regulatory Commission decides a related case. ?????* Connell said the state budget surplus has shrunk to $3.2 billion because the state has spent roughly $2.8 billion on electricity. She criticized the administration for withholding basic information about state finances, and said she will begin an audit on Monday of the Department of Water Resources, which is responsible for purchasing power. ?????Davis' aides said Connell took her action because the Democratic governor endorsed one of Connell's foes this week in the race for Los Angeles mayor, former Assembly Speaker Antonio Villaraigosa. A Connell aide scoffed at the notion. ?????* Sen. Dianne Feinstein (D-Calif.) said she "never has had a response" from President Bush after writing him last month for an appointment to discuss the California energy crisis. ?????In a wide-ranging lunch talk with reporters in Washington, she deplored the fact that "huge, huge profits are being made" in the California crisis, and said "an appropriate federal role" would be to guarantee a reliable source of power until the state can get nine new generators online. --- ?????Times staff writers Mitchell Landsberg in Los Angeles and Robert L. Jackson in Washington contributed to this report. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ------------------------ ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ------------------------ Net Complex A Dilemma For San Jose SERVER FARM: Plant would tax grid David Lazarus, Chronicle Staff Writer Thursday, March 22, 2001 ,2001 San Francisco Chronicle URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/22/M N236772.DTL San Jose, while trying to block construction of a new power plant, is set to approve a vast computer complex that could overwhelm California's already strained power grid. City officials gave preliminary approval last week to what would be the world's largest "server farm." The sprawling facility to handle Internet traffic would drain about 150 megawatts of power from the state electricity grid. If granted final authorization on April 3, the $1.2 billion project would add the equivalent of about 150,000 homes to California's power system, which was hit this week by rolling blackouts as demand for juice outstripped available supply. The server-farm issue highlights a vexing dilemma for the state. On the one hand, Gov. Gray Davis is calling for widespread conservation to help California overcome its current troubles. On the other, no one wants to curtail growth of the high-tech industry, which is an engine for economic vitality. "San Jose will make a lot of money from this project," said Craig Breon, executive director of the Santa Clara Valley Audubon Society. "But to not help the state out of its energy situation, there's a fair amount of hypocrisy going on." The server farm would be owned by U.S. DataPort, a San Jose data-management firm. As planned, it would occupy 10 buildings on more than 170 acres in the city's Alviso area. Total projected energy use would be 180 megawatts. About 30 megawatts would be generated by a small on-site facility, and the rest would have to be provided by Pacific Gas and Electric Co. "We're confident that the DataPort project will be approved because it's very important to San Jose and to the local economy," said San Jose Mayor Ron Gonzales. But PG&E already is saying that its power cupboard is bare. The utility "does not have sufficient existing electric infrastructure" to meet U.S. DataPort's needs, it said in a recent letter to San Jose officials. John Mogannam, U.S. DataPort's senior vice president of operations, countered that it could take as long as five years for the server farm to grow big enough to require the full 150 megawatts from the state grid. "Hopefully, by then the whole energy crisis will pass by, and we won't have a problem," he said. Mogannam stressed the positive aspects of the project, such as its ability to handle about 15 percent of global Internet traffic, the 700 jobs it would create, and the $70 million over 10 years it would generate for San Jose in property and utility taxes. "That's why the city likes it," he said. Indeed, San Jose officials are so enamored with such developments that they have all but turned a deaf ear to warnings that the server farm will exacerbate California's already dire power shortage. Andrew Crabtree, the city's senior planner, said the planning commission had barely touched the question of energy supply when it approved the server farm last week. "It wasn't incumbent on the commission to solve the state's energy-supply problems," he said. Rather, San Jose city planners focused on the environmental ramifications of the proposed facility, including air pollution from diesel generators and the impact on nearby wildlife. How it would affect dozens of burrowing owls in the area was a key topic of discussion. "We all recognized that there's a power shortage," Crabtree said. "But we couldn't do anything about that with this project." Except to make things tougher, of course. Server farms run 24 hours a day, seven days a week. They are an aspect of the high-tech boom that was never foreseen by energy experts, and which are now a major contributor to California's surging electricity demand. A server farm essentially is a large building filled with computers. Each computer handles the Web site or Internet traffic for hundreds of corporate clients that do not have the technical resources to look after such things in- house. Most server farms consume between 10 and 60 megawatts of power. At 180 megawatts, the U.S. DataPort facility is billed as the most extensive data center on the planet. "There won't be another this size anywhere in the world," said Mogannam, the company's senior vice president. "This will be the biggest." With such a vast scale, however, comes additional concerns. For example, all that hardware will generate huge amounts of heat, requiring powerful air conditioners running around the clock to keep things cool. Patrick Dorinson, a spokesman for the Independent System Operator, which oversees California's electricity network, said server farms had "a big impact" on the state's tight energy supply. "We have an economy that's increasingly based on delivery of information," he observed. "We certainly need to make sure we're building adequate generation and transmission to get it there." As it stands, no major power plants have been built in California for the past 12 years, while dozens of server farms have sprung up throughout the state. The Yankee Group, a Boston consulting firm, estimates that the amount of space taken up by server farms nationwide rose to 9 million square feet from 1999 to 2000. By 2003, it expects that figure to increase to 25 million square feet, or enough room for more than a hundred 10-story office buildings. San Francisco may be the exception. Supervisor Sophie Maxwell proposed interim zoning controls last week that would require server farms to receive special permission from City Hall to operate. San Jose, for its part, has no such reservations. It does, however, draw the line at big, fat power plants in the backyard of the city's leading corporate citizen. Gonzales is spearheading opposition to a proposed 600-megawatt generating facility in Coyote Valley because of its proximity to a residential area at the site of a planned Cisco Systems office complex. "There's plenty of opportunities to generate power in the city," he said. "This project is just in the wrong site." The matter is now in the hands of the California Energy Commission, which is expected to issue a ruling by May. Cisco, critics say, twisted the mayor's arm to fight the plant because it did not want a generating facility in its neighborhood. The area will be home to thousands of well-heeled tech workers. "It's politics," said Breon at the Audubon Society. "City officials are making political decisions rather than good planning decisions." Ted Smith, executive director of the Silicon Valley Toxics Coalition, a grassroots organization, is calling for a moratorium on construction of all new server farms in the South Bay until sufficient power can be found to keep them running. "Until they figure out how to build these things without draining the electricity grid even dryer it is, they shouldn't build them," he said. "The Internet industry is creating unintended consequences that will really screw up our future," Smith added. "They are so busy focusing on next quarter's profits that they don't stop and think about the consequences." . . SOME FAST FACTS ABOUT 'SERVER FARMS' . -- What are they? "Server farms" are facilities dedicated exclusively to housing powerful computers for Internet use. -- Who uses them? Companies and individuals pay server farms to maintain their Web sites, handle Net traffic and store vast amounts of data -- functions that otherwise would require extensive hardware and technical support. -- Why do they use them? As Internet use explodes, server farms play an increasingly vital role in managing data and keeping information moving. -- What's the problem? Server farms drain considerable amounts of electricity to keep running. E-mail David Lazarus at [email protected]. ,2001 San Francisco Chronicle ? Page?A - 1 ------------------------------------------------------------------------------ --------------------------------------------------------------- Contracts Won't Meet Summer Demands DETAILS: 2004 before full impact felt Lynda Gledhill, Chronicle Sacramento Bureau Thursday, March 22, 2001 ,2001 San Francisco Chronicle URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/22/M N230640.DTL Sacramento -- Long-term power contracts negotiated by the state won't cover California's entire demand for electricity until 2004, according to newly released details about the agreements. The information suggests that California might have to scrounge for electricity on the high-priced spot market for a couple more years even as it continues to push conservation efforts and construction of more generating plants. Details of the agreements released by Gov. Gray Davis' administration show that the contracts will provide for just over a third of the state's demand for power this year. Energy secured by the contracts will grow to meet the expected demand in three years. Short-term purchases of power have at least temporarily depleted the state's budget surplus and have raised the possibility of sharp rate increases sometime in the future for electricity customers. Davis administration officials are banking on the hope that conservation efforts and increased generating capacity will cover the shortfall along with purchases of electricity on the spot market. "We're facing an extreme challenge still this summer," said Severin Borenstein, head of the University of California at Berkeley Energy Institute. "Signing contracts doesn't create more electricity." The information released did not include the names of companies that the state has signed contracts with or the purchase prices. The sketchy details did not satisfy frustrated lawmakers, who said many questions remain, especially how much the state will end up paying under the terms of the contracts. "The fundamental question is how much is it costing the state of California to keep the lights on," said Assemblyman Tony Strickland, R-Thousand Oaks. "What we really need is total disclosure." The state started buying power in January, after generators began refusing to provide electricity to the state's investor-owned utilities. Pacific Gas and Electric Co. and Southern California Edison say they have more than $13 billion in past debt. The state has been spending $49 million a day on power purchases since Jan. 17, according to documents obtained by The Chronicle last week. Those documents said the average price of the contracts across 10 years is $69 per megawatt hour, including summer peak. The five-year average price is $79 per megawatt hour. According to one chart provided by the governor's office yesterday, the long-term contracts will fall about 35 million megawatt hours short in 2002. Based on the average price per megawatt hour the state has been paying since January, that could end up costing between $6.6 billion and $13 billion. The law creating the state purchasing authority allowed purchases up to $10 billion and extends until 2003. The governor's office said 21 contracts have been signed and another 23 agreements that have been reached but not yet signed. Several generators have said that they will not sign contracts with the state until the back debt by the utilities has been taken care of. "We have some real potential problems," said Senate President Pro Tem John Burton, D-San Francisco. Strickland and several media outlets, including The Chronicle, have filed public information requests to get more information about the prices of the contracts from the administration. Releasing the information would jeopardize the negotiations for future contracts, said Steve Maviglio, Davis' spokesman. Lawmakers, also frustrated by the lack of information given out by the Davis administration, were not given notice that the information was coming, and many said it was lost in their mail pile. The cover letter was on Los Angeles Department of Water and Power letterhead, not that of the administration. The letter was written by S. David Freeman, head of the Los Angeles system who was on leave for the month of February to help the state negotiate the contracts. Assemblyman George Runner, R-Lancaster, said the "ambiguity of the information raises more questions than it answers." "It's like watching a parade through a peephole," he said. "He's showing us another float, but I don't know what the parade looks like." Blaming the state's purchases of electricity, Controller Kathleen Connell said yesterday that the state's cash on hand had fallen from $8.5 billion in January to $3.2 billion. Connell ordered an audit of the state's power buying. Connell said she would block a transfer sought by the Davis administration of $5.6 billion from the general fund to the state's emergency reserve account, claiming it would lead to a ''serious cash flow crisis." The transfer, however, is not related to the energy crisis. The sum represents a routine rollover of unspent money from the previous fiscal year. State law requires that money to be sent to a special reserve account for emergencies. Davis officials acknowledged that $3.7 billion in energy purchases have had an impact on state coffers, but they say the state will be repaid once bonds are issued in the coming weeks. They also said the state typically has its lowest cash reserves at this time of year. That changes in mid-April when a flood of income tax revenue pours in. "The transfer has nothing to do with energy purchases," said Sandy Harrison, a spokesman for the Department of Finance. "It's not helpful to ratepayers, taxpayers and people who want their lights to stay on to have the issue muddied with this sort of inaccurate innuendo," Harrison said. In other developments yesterday: -- After two days of statewide rolling blackouts, power grid managers avoided outages. Demand was lower because of cooler temperatures around the state and supply increased as several power plants completed repairs. -- A federal judge in Sacramento ordered a major power generator to continue supplying power to California. Reliant Energy Services Inc. had insisted that it should not be forced to sell to debt-heavy utilities unless the state guaranteed the bills. Chronicle staff writer Greg Lucas contributed to this story. / E-mail Lynda Gledhill at [email protected]. ,2001 San Francisco Chronicle ? Page?A - 1 ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ----------------- California overcharged $5.5 bln for wholesale power SACRAMENTO, Calif. (AP) -- Electricity wholesalers overcharged California $5.5 billion over the past 10 months, according to a report by managers of the state's power grid. The five companies, among other things, frequently offered electricity at prices double what it cost them to produce, concludes the California Independent System Operator study, which was published Thursday in the Los Angeles Times. ``All overcharged, but some excessively and some by moderate amounts,'' said Anjali Sheffrin, the ISO's director of market analysis. The Times said the ISO planned to file the study with federal regulators Thursday and are demanding that the money be paid back. The companies denied the allegations, adding they expect the Federal Energy Regulatory Commission will determine their prices were justified. The commission has recently stepped up its scrutiny of power companies' behavior during California's power crisis, asking suppliers to justify $124 million in sales during the first two months of the year or refund the money. Critics claim thousands of additional questionable sales are not being challenged. The ISO study alleges the wholesalers manipulated the market by bidding at excessive prices, effectively withholding supplies, or by not bidding at all when they had generation capability available. California has been spending about $45 million a day -- $4.2 billion since January -- to purchase power for Pacific Gas and Electric Co. and Southern California Edison. Both utilities, the state's largest, have been cut off by electricity wholesalers because their credit is almost worthless. State Controller Kathleen Connell said Wednesday that the state's power-buying is gutting its budget surplus. Since the state started making emergency power buys, the surplus has fallen from $8.5 billion to about $3.2 billion, she said. A federal judge issued a preliminary injunction Wednesday ordering a major electricity wholesaler, Reliant Energy Services, to continue selling to California despite its fear that it will not be paid. U.S. District Judge Frank C. Damrell Jr. said Californians were at risk of irreparable harm if Reliant stopped selling power to the ISO, which buys it at the last minute on behalf of utilities to bolster supplies and try to fend off rolling blackouts. Such blackouts hit the state twice this week. On Wednesday, cooling temperatures and the completion of repairs at several power plants allowed the state to avoid blackouts. Standard & Poor's has put the state on a credit watch due to its power purchases and chastised Gov. Gray Davis, the Legislature and state regulators for not taking more aggressive steps to make sure the utilities can pay their bills. Edison and PG&E say they are nearly $14 billion in debt due to soaring wholesale power costs. The state's deregulation law blocks them from recovering the costs from customers. Connell ordered an audit of the state's power-buying, saying Davis is withholding key financial information from her office and the Legislature. She said she would refuse to transfer $5.6 billion into a ``rainy day fund'' she said was set up to impress Wall Street as the state prepares to issue $10 billion in revenue bonds to cover its power buys. Transferring the money would leave the state general fund $2.4 billion in debt, Connell said. She called the scope of the proposed transfer unprecedented and said it amounted to a ``shell game'' that disguises the power purchases' effect on the state budget. Sandy Harrison, spokesman for the state Department of Finance, and Keely Bosler, of the Legislative Analyst's Office, said such transfers are routine and required by law. They put the state's budget surplus at $5.6 billion. ``The law says she has to do it. The law does not give her the power to demand that kind of audit information,'' Harrison said. Harrison said the state's budget isn't in danger because it will be repaid with the revenue bonds. Connell's criticism of Davis, a fellow Democrat, won support from Assembly Republicans and Secretary of State Bill Jones, a Republican who may challenge Davis next year. Jones said he wants to announce his own plan to solve the state's energy woes, but can't unless Davis releases more financial details. Davis spokesman Steve Maviglio dismissed the criticism. ``Political grandstanding doesn't generate one more kilowatt of energy for California in this time of emergency,'' he said. Maviglio said the administration has released the financial information it can without jeopardizing negotiations for long-term power contracts with wholesalers. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ---------------------------- If the power goes off Thursday, March 22, 2001 For most of us, rolling power blackouts are a nuisance. For some people, it could mean life or death. "In Laguna Hills, cancer patient Ruben Marquez said the blackout interrupted and prolonged his dialysis treatment. He was unharmed," the Register reported on Monday's blackouts, which hit about 1.2 million Californians, including 100,000 Orange County homes and businesses. What can people do to prevent disaster? "They and their families should have a backup plan," Rebecca Long, spokesperson for the Orange County Red Cross, told us. "The Red Cross recommends in general that you plan for this as you would for any disaster, making sure you have battery-operated radios and flashlights. We do not recommend candles for an emergency," because of the fire hazard. She recommended a Web site: www.prepare.org People with special health needs, such as electric-powered respirators and oxygen machines, also should register with the power company. "There's a whole classification" for such persons with health needs, Southern California Edison spokesperson Clara Potes-Fellow told us. "The list is for us to alert them that the power could be discontinued. They arrange to have power through other means, batteries or generators. We recommend that they have a battery backup of eight hours. Therefore, if the rotating outages are one hour, they will have plenty." Even though the power company has such people's names, she said, "we don't inform them in advance because we have just minutes from when the Independent System Operator," which directs where the electrons go, orders Edison to implement a power outage on the grid Edison owns. "By the time it took to call people, the outage would be over." What's the problem at the ISO? "We notify as best we can," Pat Dorinson, ISO director of communications, told us. "The object is to keep the lights on. Sometimes it's just a moment's notice" before a blackout. "It makes [giving more notice] pretty difficult. We're looking into ways to make the system better." In the meantime, citizens will have to keep taking precautions. We can't help noting that free market pricing, instead of politically-driven prices, would much more likely make electricity available, albeit at higher prices. We would expect, too, there would be hardship allowances, donations and level-pay plans to accommodate various types of needs. ------------------------------------------------------------------------------ ------------------------------------------------------------- Socialized electricity Thursday, March 22, 2001 Government control of state power won't add one watt for consumers' use TOM MCCLINTOCK Sen. McClintock, R-Thousand Oaks, represents the 19th state Senate District in the state Legislature. In a city where bad ideas never die, Sacramento is once again host to a variety of plans for the government takeover of California's power system. The private sector, it is said, has done such a terrible job of providing electricity that government must now step in to save the day. Thus, the Legislature is awash in proposals to spend billions of dollars of public money to acquire existing power facilities. Fifteen billion dollars has already been authorized for this purpose, and an additional $10 billion is pending in the Senate. Meanwhile, Gov. Davis is losing about a $1.5 billion a month day-trading in the electricity market. The irony is that after the expenditure of as much as $25 billion for "public power,'' not a single inch will have been added to the transmission lines, nor a single watt to the generating capacity of California. The root of California's crisis is a catastrophic shortage of electricity. In a shortage, prices rise or blackouts occur. To reduce prices and avoid blackouts, the only permanent solution is to increase the supply. Merely changing the ownership of existing facilities leaves Californians with exactly the same shortage, only billions of dollars the poorer for it. Government takeover advocates argue that at least a government power authority will protect consumers against price gouging and poor management. Unfortunately, government power authorities don't insulate against price gouging. The biggest price gouger in this entire crisis has been the Los Angeles Department of Water and Power, which was generating electricity for $51 per megawatt hour and selling it back to California ratepayers for as much as $1,400. Nor does a government takeover assure better management. Just a few years ago, the LADWP was buried in $7 billion in debt. The Sacramento Municipal Utilities District was a managerial laughing stock, having squandered hundreds of millions of dollars for a nuclear plant it barely used. "Say what you will,'' the government takeover advocates reply, "when push came to shove, the municipal utility districts of California are in great shape, while the private utilities are a basket case.'' But one needs to look at the reason. Ever since the state reorganized the electricity market in 1996, the municipal utility districts were allowed to trade in a free market, while the private utilities were forced to buy power exclusively in a Soviet-style power exchange where the highest bid during an hour set all prices. The municipal utilities were able to retain their generators. Government forced the private utilities to sell theirs. The municipal utilities were able to enter into long-term contracts. Government prevented the private utilities from doing the same thing. The municipal utilities were able to negotiate the lowest prices available for power. Government forced the private utilities to pay the outlandish prices on the government's power exchange. The municipal utilities were allowed to adjust their rates to reflect the actual cost of power to consumers. Government forced the private utilities to sell at astronomical losses. The final argument is simply an ideological one: that power is just too important to be left in private hands. Really? Food is a great deal more important and private hands have kept this nation well fed for centuries. Picturing the Department of Motor Vehicles running the local supermarket should sober even the most euphoric of the government takeover advocates. California's Independent System Operator is predicting a 6,000-megawatt shortfall this summer. When there is no electricity on the transmission lines, it really won't matter who owns them. During the hottest hours of the hottest days of the year, when as many as 6 million homes are without electricity, it may begin to dawn on most people that socialism doesn't work any better in California than it did in the Soviet Union. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ------- NEWS Bush's Energy Policy Will Backfire, Feinstein Warns / She wants federal price controls now Carolyn Lochhead 03/22/2001 The San Francisco Chronicle FINAL Page A.3 (Copyright 2001) Sen. Dianne Feinstein, D-Calif., warned yesterday that when blackouts intensify in California this summer, the pressure will intensify on the Bush administration to explain why it rejected price controls on wholesale electricity. "If by this summer California is, as anticipated, facing these blackouts, and the federal government won't help, I don't think the American people are going to be very pleased," Feinstein told California reporters. Asked if help means the cost-based price controls Feinstein is pushing, she said, "Right now, yes." Feinstein said California Democrats will begin to escalate their criticism of the administration, predicting that support will build among Western senators for her legislation to impose price caps on wholesale electricity in exchange for lifting the rate cap on California consumers. If it passes, she said, "the administration is really going to have to face whether they're going to help or not help." Feinstein said House Democrats from the West Coast also told her they expect that White House inaction on price caps would help them gain seats in 2002. But she refused to speculate on the political fallout from the energy crisis against Democrats in California . Feinstein characterized Energy Secretary Spencer Abraham's adamant arguments against price controls as "recalcitrant," saying his statement to a Senate committee last week "essentially said California 's on its own." She speculated that because " California is dominantly Democratic, even somebody like me that works across party lines is beginning to wonder if this isn't an unnecessarily barbed stick at California ." White House spokesman Ken Lisaius disputed the charge, saying the Bush administration is doing all it can, but can't control that demand is outstripping supply. "The federal government cannot prevent blackouts, but can only help at the margins in situations like this," Lisaius said. "The only thing that can prevent blackouts is reduced demand, increased supply and good weather." Abraham has twice in the last week argued strongly against price controls, including the cost-based ones Feinstein advocates, saying they could increase blackouts by discouraging power sales into the Western electricity grid. He also said many power providers, including the federal Bonneville Power Administration in the home district of Sen. Gordon Smith, the Oregon Republican co-sponsoring Feinstein's bill, would be exempt from federal price caps. Feinstein disputed that, but Smith's office agreed. Abraham argued that price controls would not work in part because roughly half the Western electricity market would be exempt, including federal power marketing authorities such as Bonneville, rural electric cooperatives and municipal utilities such as the Los Angeles Department of Water and Power. On another front, House Republicans omitted from their budget projected revenues from opening part of the Arctic National Wildlife Refuge to oil and gas exploration. A Budget Committee spokeswoman said Chairman Jim Nussle, R-Iowa, determined that the $1 billion in revenues from the wildlife refuge the Bush administration included in its budget were not needed and that there was "no reason to put in something that controversial, that some of our members don't even like, when you don't have to." But Rep. Gary Miller, R-Diamond Bar (Los Angeles County) said House Republicans "are not backing off at all" from opening the wildlife refuge to drilling. "Our goal is to get it passed in the House," he said, saying the Budget Committee omitted the revenue projections because the drilling has not yet been approved. PHOTO; Caption: Sen. Dianne Feinstein wants to cap wholesale electricity costs and end caps on con- sumer rates. ------------------------------------------------------------------------------ ------ Reliant Still In Power Pact Talks With Calif. DWR By Christina Cheddar 03/22/2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) Of DOW JONES NEWSWIRES (This report was originally published late Wednesday.) NEW YORK -(Dow Jones)- Reliant Energy Inc. (REI) remains in discussions with the California Department of Water Resources to sign long-term power contracts. However, issues regarding the creditworthiness of the agency remain, said Joe Bob Perkins, president of Reliant's Wholesale Division. "We want to be part of the solution," Perkins said. At the same time, Reliant is trying to protect itself from incurring additional unpaid accounts receivable, he said. The DWR has been buying power on behalf of California 's financially troubled utilities. However, Reliant has yet to sign a formal agreement with the agency because Reliant is concerned it won't be paid. During a conference call Wednesday, Perkins said he couldn't comment on a lawsuit between Reliant and the California Independent System Operator because he didn't know how it was progressing. Further court action on the case is expected Wednesday. The lawsuit stems from Reliant's desire not to be required to sell power to California if the state won't guarantee payment. The Houston energy company is concerned that it won't be paid for power being bought by the ISO on behalf of Edison International's (EIX) Southern California Edison unit and PG&E Corp.'s (PCG) Pacific Gas & Electric Co. unit. To date, Reliant is owed "some $370 million" from unpaid power sales to the utilities. Much of Perkins' presentation centered on how the power crisis in California emerged. Using data from research firm Cambridge Energy Research Associates, the company discussed the imbalance between California 's power demand and its power supply. Looking ahead to the summer, it isn't a question of whether rolling blackouts will occur, but "how many and how severe," Perkins said. Low hydroelectric availability, loss of imported power, warm weather, demand growth and plant outages could lead to a worst-case scenario in California , he said, adding that some estimates predict California could experience 1,100 hours of power outages this summer. The skyrocketing power prices in the region are a reflection of the power market's imbalance, he said. Reliant submitted only "economically sound" bids for power, Perkins said. He expects the company can document why it charged the prices it did as required by regulators. "We have been very rigorous and very disciplined in what we have submitted," Perkins said. He added that retail customer price increases are one way of sending a signal to consumers to lower consumption. He cited studies that show a 20% retail price increase could reduce consumption by 2,000 megawatts. A megawatt is enough power to serve roughly 1,000 homes. -By Christina Cheddar, Dow Jones Newswires; 201-938-5166; [email protected] ------------------------------------------------------------------------------ ------ CPUC Must Address Rates In QF Repayment Order - SoCal Ed 03/22/2001 Dow Jones Energy Service (Copyright (c) 2001, Dow Jones & Company, Inc.) (This article was originally published Wednesday) LOS ANGELES -(Dow Jones)- Any order from the California Public Utilities Commission requiring utilities to pay small, independent generators going forward must determine how that could be done within the existing rate structure, a spokesman for Edison International (EIX) utility Southern California Edison said Wednesday. The utility was responding to a PUC proposed decision that would require utilities to pay small generators, called qualifying facilities, $79 a megawatt hour within 15 days of electricity delivery. The decision will be voted March 27 by the CPUC. "We're still reviewing (the decision) and should have more to say in a day or two. To the extent that the commission orders us to pay going forward of course we will. But it needs to address how we will pay the QFs," a SoCal Edison spokesman said. SoCal Edison and PG&E Corp. (PCG) unit Pacific Gas & Electric Co. are struggling under nearly $13 billion in uncollected power costs due to an inability to pass high wholesale power costs to customers under a rate freeze. Gov. Gray Davis Tuesday blasted the utilities for not having paid their QF bills in full since December. Pacific Gas & Electric Co. has made some partial payments to QFs, but SoCal Edison has paid nothing. Together, they owe the QFs about $1 billion, but the order doesn't address that debt. An Edison executive said, in reaction to the governor's sharp comments, that the company simply doesn't have the money to pay creditors. "The root problem here is there just isn't enough money in the current rate base to pay our bills," said Edison Senior Vice President of Public Affairs Bob Foster. "We understand the financial distress (the QFs) face; we are facing financial distress ourselves." The proposed PUC order would also require the state's investor-owned utilities to offer the small generators five- and 10-year contracts for power for $79/MWh and $69/MWh, respectively. The QFs "may be able to live with" the PUC proposal, but the five- and 10-year contract prices may be inadequate if natural gas prices at one of the California borders are high, said Jan Smutny-Jones, president of the Independent Energy Producers Association. Natural gas prices into California are currently higher than anywhere in the country. But some say the proposed decision may not be enough to prevent the QFs from filing involuntary bankruptcy proceedings against the utilities for the money they are still owed. "There's still a lot of skepticism. To say our position has changed based on the CPUC decision or the governor's announcement is not accurate. A lot still has to happen," said Jay Lawrence, a spokesman for a renewable creditors committee. -By Jessica Berthold, Dow Jones Newswires; 323-658-3872; [email protected] ------------------------------------------------------------------------------ ------ Calif Small Pwr Producers To Shut Plants If Rates Capped By Jason Leopold 03/22/2001 Dow Jones Energy Service (Copyright (c) 2001, Dow Jones & Company, Inc.) Of DOW JONES NEWSWIRES (This article was originally published earlier Thursday.) LOS ANGELES -(Dow Jones)- Many of California 's independent power producers late Wednesday threatened to take their small power plants offline this week if state lawmakers pass legislation that would cap the rates the generators charge for electricity they sell directly to the state's three investor-owned utilities. At issue is a bill that would repeal a section of the state's Public Utilities Code, which links the 688 so-called qualifying facilities' electricity rates to the monthly border price of natural gas. Lawmakers, however, are poised to pass the legislation. State regulators are then expected to approve a measure that would restructure the fluctuating rates the QFs charge PG&E Corp. (PCG) unit Pacific Gas & Electric , Edison International (EIX) unit Southern California Edison, and Sempra Energy (SRE) unit San Diego Gas & Electric from $170 a megawatt-hour to $69-$79/MWh, regardless of the price of natural gas. Whereas each of the 688 QF contracts differed, largely because natural gas prices are higher in Southern California than Northern California , the state wants the QFs to sign a general contract with the utilities. The cogeneration facilities, which produce about 5,400 megawatts of electricity in the state, said the rates are too low and they won't sign new supply contracts with the utilities. "For $79/MWh, natural gas would have to be $6 per million British thermal unit at the Southern California border," said Tom Lu, executive director of Carson-based Watson Cogeneration Company, the state's largest QF, generating 340 MW. "Our current gas price at the border is $12.50." Other gas-fired QFs said the state could face another round of rolling blackouts if lawmakers and state regulators pass the legislation, which is expected to be heard on the Senate floor Thursday, and allow it to be implemented by Public Utilities Commission next week. Lu, whose company is half-owned by BP Amoco PLC (BP) and is owed $100 million by SoCal Ed, said the proposals by the PUC and the Legislature "will only make things worse." David Fogarty, spokesman for Western States Petroleum Association, whose members supply California with more than 2,000 MW, said the utilities need to pay the QFs more than $1 billion for electricity that was already produced. State Loses 3,000 MW QF Output Due Of Financial Reasons The QFs represent about one-third, or 9,700 MW, of the state's total power supply. Roughly 5,400 MW are produced by natural gas-fired facilities. The rest is generated by wind, solar power and biomass. About 3,000 MW of gas-fired and renewable QF generation is offline in California because the power plant owners haven't been paid hundreds of millions of dollars from cash-strapped utilities SoCal Ed and PG&E for nearly four months. Several small power plant owners owed money by SoCal Ed have threatened to drag the utility into involuntary bankruptcy if the utility continues to default on payments and fails to agree to supply contracts at higher rates. The defaults have left many of the renewable and gas-fired QFs unable to operate their power plants because they can't afford to pay for the natural gas to run their units. Others continue to produce electricity under their contracts with the state's utilities but aren't being paid even on a forward basis. The California Independent System Operator, keeper of the state's electricity grid, said the loss of the QF generation was the primary reason rolling blackouts swept through the state Monday and Tuesday. Gov. Gray Davis, recognizing the potential disaster if additional QFs took their units offline, held marathon meetings with key lawmakers Monday and Tuesday to try and hammer out an agreement that would get the QFs paid on a forward basis and set rates of $79/MWh and $69/MWh for five and 10 year contracts. He also said he would direct the PUC to order the utilities to pay the QFs for power they sell going forward. "After next week the QF problem will be behind us," Davis said Tuesday. "We want to get the QFs paid...the QFs are dropping like flies...and when that happens the lights go out." But this just makes the problem worse, said Assemblyman Dean Florez, D-Shafter, a member of the Assembly energy committee. "I don't know how we are going to keep the lights on," Florez said in an interview. "Many of these congenerators are in my district. They said if the legislation doesn't change they are going offline. This compounds the issue of rolling blackouts, especially now when we need every megawatt." Davis, who didn't meet with people representing the QFs, said he was handing the QF issue to the PUC because lawmakers failed to pass legislation that would have set a five-year price for natural gas and allow the QFs to sign individual contracts with the utilities. In addition, SOCal Ed opposed the legislation, saying the rates should be below $50/MWh. Some renewable power producers said they aren't vehemently opposed to the new rate structure because it guarantees them a higher rate than what was originally proposed. QFs Want Third Party Supply Contracts John Wood, who represents the SoCal Ed Gas Fired Creditors Committee, one of a handful of groups that have formed since January to explore options on getting paid by the utilities, said his group of gas-fired QF creditors want to be released from their supply contracts and sell to third parties. "Under our plan, we would be permitted to sell electricity to third parties (including the state Department of Water Resources) until a resolution to the crisis can be accomplished," wood said. Hal Dittmer, president of Sacramento-based Wellhead Electric in Sacramento, which is owed $8 million by PG&E, has 85 MW of gas-fired generation units offline. Under the state's plan, Dittmer said he risks going out of business. "I can't buy natural gas for what I would be paid under this decision," he said. "The state needs to quit kidding themselves that they don't need to raise electricity rates. All of this is being driven by an artificial construct that California can avoid raising rates." -By Jason Leopold, Dow Jones Newswires; 323-658-3874; [email protected]	{ "pile_set_name": "Enron Emails" }
Where are you now? Good luck. DG 281-304-8303 Home 832-524-6091 Cell [email protected]	{ "pile_set_name": "Enron Emails" }
----- Forwarded by Steven J Kean/NA/Enron on 02/28/2001 02:09 PM ----- James D Steffes 02/27/2001 08:30 AM To: Alan Comnes/PDX/ECT@ECT, [email protected], Harry Kingerski/NA/Enron@Enron, [email protected], Janel Guerrero/Corp/Enron@Enron, [email protected], Jeff Dasovich/NA/Enron@Enron, [email protected], Joe Hartsoe/Corp/Enron@ENRON, John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Karen Denne/Corp/Enron@ENRON, Linda Robertson/NA/Enron@ENRON, Mark Palmer/Corp/Enron@ENRON, Mary Hain/HOU/ECT@ECT, [email protected], Paul Kaufman/PDX/ECT@ECT, [email protected], [email protected], Richard Shapiro/NA/Enron@Enron, Sandra McCubbin/NA/Enron@Enron, [email protected], [email protected], Steven J Kean/NA/Enron@Enron, Susan J Mara/NA/Enron cc: Subject: Letters to Senators FYI. Here are letters Enron (Steve Kean) sent to US Senators about real solutions for California. The Feinstein / Murkowski letters are very good overviews of our recommendations on what to do and what not to do. Jim ----- Forwarded by James D Steffes/NA/Enron on 02/27/2001 07:57 AM ----- Maureen McVicker 02/26/2001 05:27 PM To: Linda Robertson/NA/Enron@ENRON, Tom Briggs/NA/Enron@Enron, Scott Bolton/Enron Communications@Enron Communications, Paul Kaufman/PDX/ECT@ECT, Susan J Mara/NA/Enron@ENRON, Joe Hartsoe/Corp/Enron@ENRON, Sandra McCubbin/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Jeff Dasovich/NA/Enron@Enron, Alan Comnes/PDX/ECT@ECT, Vance Meyer/NA/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Mark Palmer/Corp/Enron@ENRON cc: Lora Sullivan/Corp/Enron@ENRON Subject: Letters to Senators Attached are the letters sent to Senators Wyden, Feinstein & Murkowski.	{ "pile_set_name": "Enron Emails" }
A reminder that Dana Davis will be presenting to you in Conference Room 32C2 from 4-6 pm today. Rgds, Karen.	{ "pile_set_name": "Enron Emails" }
Dave, as per previous discussions, I am very concerned with Canada not using UBS AG as the contracting party. Additionally, Lou Eber has confirmed with me a number of times that UBS AG does not guarantee subsiduaries but rather UBS is " good for it". This will not work. -----Original Message----- From: Forster, David Sent: Friday, February 01, 2002 11:20 AM To: Taylor, Mark E (Legal); Keohane, Peter; Hedstrom, Peggy Cc: Kitchen, Louise; Milnthorp, Rob; Beck, Sally; Zufferli, John Subject: Canadian legal entity The name for the Canadian entity which will enter into both Master Agreements and individual commodity transactions is: "UBS Warburg Energy (Canada) Ltd.", as confirmed by Lou Eber: UBS Chief Legal Counsel. I am working on chasing down the parental guarantee issue. Dave	{ "pile_set_name": "Enron Emails" }
[IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Thursday?October?26?2000 [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] OPINION WORLD BUSINESS FINANCE SCIENCE PEOPLE BOOKS & ARTS MARKETS DIVERSIONS [IMAGE] [IMAGE] PRINT EDITION THE ECONOMIST [IMAGE]Full contents [IMAGE]Subscriptions [IMAGE] Customer service To stop receiving this newsletter, please send an e-mail with "unsubscribe" in the subject line to politics-off@ lists.economist.com If you are a registered user at The Economist website, you can sign up for or cancel the text and html versions of this newsletter or change your e-mail address by amending your details. If you would like to advise us of a new e-mail address and are not registered at The Economist website, please send an e-mail with your request to: economist- newsletters@ lists.economist.com [IMAGE] [IMAGE][IMAGE] [IMAGE] [IMAGE] [IMAGE] The world this week Oct 26th 2000 From The Economist print edition Guei outed EPA After a flawed election in C"te d,Ivoire President Robert Guei claimed victory, but was then forced by popular protest to flee. His main opponent in the election, Laurent Gbagbo, proclaimed himself president, but rival candidates called for new elections amidst more violence. See article: Cote d,Ivoire,s new presidentE+ Zimbabwe,s opposition party, the Movement for Democratic Change, started impeachment proceedings against President Robert Mugabe. Mr Mugabe responded by saying it was time to revoke the policy of reconciliation between black and white Zimbabweans. Some of the former white leaders, he said, should be tried for genocide. See article: Mugabe,s battle for survival To general surprise, including his own, Ruud Lubbers, a Dutch former prime minister, was named by Kofi Annan, the UN,s secretary-general, as the new UN High Commissioner for Refugees (UNHCR), succeeding Sadako Ogata. See article: Ruud Lubbers, refugee supremoE+ In South Africa the government launched a new campaign to inform the public about AIDS. Over 4m South Africans are said to be infected with HIV, but government statements have left many people confused about how it is transmitted. An Arab summit, the first for four years, was held in Cairo to consider the Israeli-Palestinian conflict. The Arab leaders produced a fiery statement but Egypt and Jordan both decided to keep their links with Israel. See article: After Middle East peace has crashedE+ Police muscle helped Egypt,s ruling party to dominate the first round of parliamentary elections. But the Muslim Brotherhood made surprising gains. A report by marine biologists estimated that 50-95% of the coral reefs in the Indian Ocean have died. Warmer seas over the past two years have caused the damage. See article: Coral reefs in dangerE+ Kost effective Yugoslavia,s new president, Vojislav Kostunica, persuaded supporters of his ousted predecessor, Slobodan Milosevic, in the Serbian parliament to back a power-sharing government that will rule until a general election is held in December. Mr Kostunica also went to neighbouring Macedonia for talks with other Balkan leaders, after he admitted that Serb soldiers and police had carried out large-scale killings in Kosovo last year. See article: New calculations for Kosovo EPA France said it would extend its tests for BSE, known as &mad-cow disease8, after three supermarket chains were found to have sold meat from infected herds. France,s food-safety agency also recommended a ban on the use of animal fats in feed given to cattle and sheep. Magistrates told France,s former finance minister, Dominique Strauss-Kahn, that he must stand trial on suspicion that he falsified documents when he was a lawyer. EPA Laurenz Meyer took over as general secretary of the troubled Christian Democrats in Germany, replacing Ruprecht Polenz after only six months in the job. Election nerves A senior adviser to George W. Bush, the Republican presidential candidate, said the United States should rethink its role in the Balkans and tell its NATO allies that American soldiers would no longer perform peacekeeping duties in the region. Al Gore, the Democratic candidate, said such a policy would be dangerous and risked undermining peace in Europe. See article: The battle for Florida Roger Wilson took over as Missouri,s new governor replacing Mel Carnahan, who died in a plane crash. Mr Wilson said he would nominate Mr Carnahan,s widow as senator, if her late husband won the race for the Senate. Mr Carnahan,s name cannot be replaced on ballot papers before the election. After Peru,s disgraced spy chief, Vladimiro Montesinos, flew back from exile in Panama, President Alberto Fujimori personally led a manhunt to track him down. The head of the Organisation of American States, Cesar Gaviria, arrived in Lima, the capital, for talks on democracy in Peru. Government and opposition agreed to hold new elections by April 8th. See article: Montesinos returns to PeruE+ As Colombia approached local and regional elections the campaigns were marred by violence. International donors promised $280m in new aid to promote peace, but this fell well short of what President Andres Pastrana had been hoping for. See article: Election jitters in Colombia Kimrades Reuters The American secretary of state, Madeleine Albright, said &important progress8 had been made in her two days of talks in Pyongyang with the North Korean leader, Kim Jong Il. The United States wants the North to stop making missiles, some of which have been sold to outlaw states. A possible visit to North Korea by Bill Clinton was discussed. See article: Madeleine Albright in Pyongyang Ending a lull in Sri Lanka,s civil war, Tamil Tigers attacked the country,s main naval base in Trincomalee, sinking a troop carrier and a gunboat. See article: Lynch law in Sri LankaE+ Government troops rescued three more hostages, all Malaysians, held by Muslim rebels on Jolo island, in the southern Philippines. About 6,000 people marched through Manila,s financial district, calling on Joseph Estrada to resign as president of the Philippines. There were similar demonstrations in five other cities and his vice-president echoed the call. Mr Estrada said he would step down if corruption charges are proven. [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] GO TO ECONOMIST.COM , Copyright 2000 The Economist Newspaper and The Economist Group. All rights reserved. Legal disclaimer \| Privacy Policy \| Terms & Conditions [IMAGE] [IMAGE]	{ "pile_set_name": "Enron Emails" }
Hey, Queshare, how goes it? My assistant should have some plane reservations for me by the end of the day to discuss with you! Peter Keohane 02/07/2001 02:45 PM To: Edward Sacks/Corp/Enron@Enron cc: Mary Cook/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samantha Boyd/NA/Enron@Enron, Susan Bailey/HOU/ECT@ECT, Andre Templeman/CAL/ECT@ECT, Tracy Ngo/PDX/ECT@ECT, William S Bradford/HOU/ECT@ECT, Wendy Conwell/NA/Enron@ENRON, Paul Radous/Corp/Enron@ENRON, Russell Diamond/HOU/ECT@ECT Subject: Re: Nexen Energy - Credit Worksheet Our outside counsel has confirmed that the Partnership is a General Partnership under Alberta law under the name Nexen Marketing (f/k/a CXY Energy Marketing), and the GPs are Nexen Inc., Wascana Energy Inc. and Nexen Holdings Canada Ltd. The GPs would each be jointly and severally liable for the Partnership as I outlined previously. I will fax Ed and Mary a copy of the Partnership search when I receive it.. My assistant will forward the message I received from outside counsel. Peter. ---------------------- Forwarded by Peter Keohane/CAL/ECT on 02/07/2001 01:36 PM --------------------------- Enron Capital & Trade Resources Canada Corp. From: Peter Keohane 02/07/2001 11:23 AM To: Edward Sacks/Corp/Enron@Enron cc: Mary Cook/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samantha Boyd/NA/Enron@Enron, Susan Bailey/HOU/ECT@ECT, Andre Templeman/CAL/ECT@ECT, Tracy Ngo/PDX/ECT@ECT, William S Bradford/HOU/ECT@ECT, Wendy Conwell/NA/Enron@ENRON, Paul Radous/Corp/Enron@ENRON, Russell Diamond/HOU/ECT@ECT Subject: Re: Nexen Energy - Credit Worksheet Our outside counsel tells me that there is no record at Corporate Registry of Nexen Energy Limited Parnership. I think you need to confirm the entity and the org. chart. Also, the ISDAs are kept in Houston, as legal Houston is responsible to prepare. Nonetheless, we generally keep copies, but do not seem to have an a copy of an ISDA with CXY Energy Marketing, CanadianOcccidental or Nexen Energy in the Calgary office, so I cannot confirm if it makes any reference chnage of control MACs, etc. Peter. ---------------------- Forwarded by Peter Keohane/CAL/ECT on 02/07/2001 11:16 AM --------------------------- Enron Capital & Trade Resources Canada Corp. From: Peter Keohane 02/07/2001 09:43 AM To: Edward Sacks/Corp/Enron@ENRON cc: Mary Cook/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samantha Boyd/NA/Enron@Enron, Susan Bailey/HOU/ECT@ECT, Andre Templeman/CAL/ECT@ECT, Tracy Ngo/PDX/ECT@ECT, William S Bradford/HOU/ECT@ECT, Wendy Conwell/NA/Enron@ENRON, Paul Radous/Corp/Enron@ENRON, Russell Diamond/HOU/ECT@ECT Subject: Re: Nexen Energy - Credit Worksheet Just a few points, which I explained to Ed yesterday: 1. If Nexen Energy is a Limited Partnership formed under Alberta law, and Nexen Inc. is the General Partner, Nexen Inc. is jointly and severally liable for all obligations of the Partnership until it ceases to be the GP. 2. Upon Nexen Inc. ceasing to be the GP, it will remain jointly and severally liable for all unfulfilled obligations of the Partnership incurred to us up to the time it ceases as GP unless we otherwise agree. 3. The result is therefore equivalent in substance (if not in detail) to a Guarantee from Nexen Inc. The only difference is that if a Guarantee is terminated, we have written notice of termination to act upon, whereas Credit may have to monitor the structure of the Partnership to ensure that Nexen Inc. remains as GP. 4. This is structure which we have been willing to transact on in the past in numerous other cases, subject to the following: (a) a specific MAC event for Nexen Inc. ceasing to be the GP; and (b) a specific continuing rep. of the Partnership (breach of which would result in and E of D) that it is a Limited Partnership formed under the laws of Alberta, and that its GP is Nexen Inc. 5. If Ed wanted more comfort, I suggested that we could add Nexen Inc. as a party to acknowledge that the Partnership is a Limited Partnership formed under the laws of Alberta and that it is the GP, and to covenant that it will provide written notice in the event that it ceases to be the GP. 6. In terms of what is the actual structure, although I believe credit typically resolves these issues, the contractual matters referred to above should go along way to address Ed's concerns. I also suggested to Ed that he do a preliminary search of the Nexen Inc. web page to get an org. chart and information, and then to follow-up with Nexen Inc. to get a copy of the Proof of Filing of the Certificate of Limited Partnership issued by Alberta Corporate Registry for Nexen Energy, which should indicate Nexen Inc. as the GP. In any event I have asked outside counsel to obtain a copy of the the Proof of Filing, which I will circulate upon receipt.. I trust the foregoing is helpful. Edward Sacks@ENRON 02/06/2001 07:18 PM To: Mary Cook/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Peter Keohane/CAL/ECT@ECT, Samantha Boyd/NA/Enron@Enron, Susan Bailey/HOU/ECT@ECT cc: Andre Templeman/CAL/ECT@ECT, Tracy Ngo/PDX/ECT@ECT, William S Bradford/HOU/ECT@ECT, Wendy Conwell/NA/Enron@ENRON, Paul Radous/Corp/Enron@ENRON, Russell Diamond/HOU/ECT@ECT Subject: Nexen Energy - Credit Worksheet As per the attached credit worksheet, please amend the ISDA dated 11/17/98 between ENA and Nexen Energy (formerly CXY Energy Marketing). This will need to be placed on a priority list as Andre is intending on transacting in a short time frame. In addition, I believe that it would be prudent to get some form of confirmation regarding the corporate structure (general partnership). We have historically been operating under the assumption that Nexen Inc. is general partner and I have underwritten the credit based on the financial health of Nexen Inc. Unlike a formal guaranty agreement whereby we would receive notice if the guaranty were to be revoked, this structure is difficult to monitor as there is no obligation to notify Enron of ownership changes and new transactions may be entered into without the support of Nexen Inc to the extent a change in the structure has occurred. Please reply with comments or questions. Ed Sacks	{ "pile_set_name": "Enron Emails" }
Can you arrange with Bobbi? Thanks. ---------------------- Forwarded by Sally Beck/HOU/ECT on 08/09/2000 05:16 PM --------------------------- Cindy Olson@ENRON 08/09/2000 05:11 PM To: Sally Beck/HOU/ECT@ECT cc: Subject: Re: United Way Kick Off Thanks Sal, lets have lunch soon. Could you ask your assistant to get with Bobbie to schedule..........	{ "pile_set_name": "Enron Emails" }
Hey, How's your day going? Mine's been really good...I probably shouldn't have said that. I've actually felt like I'm accomplishing something today. Isn't that novel? We have Treebeard's for lunch today, YUCK. It was actually pretty funny. We weren't supposed to have food today, but the Treebeards delivered for the traders on the wrong day, so we get a free lunch. What are you doing for lunch? I don't think I can handle Treebeards, so I was thinking of going to Subway. Wanna go? Bye. Robin	{ "pile_set_name": "Enron Emails" }
Diana just heard back from Prebon. They had it wrong, and have now fixed it. There is no deal. Let me know if you don't see this change in the next few minutes. Thanks, Kate Evelyn Metoyer@ENRON 12/01/2000 08:11 AM To: Kate Symes/PDX/ECT@ECT cc: Subject: Re: Missing Trade for 11-30-00 Any word yet on this trade? Kate Symes @ ECT 11/30/2000 05:57 PM To: Evelyn Metoyer/Corp/Enron@ENRON cc: Subject: Re: Missing Trade for 11-30-00 Sean and Diana do not recognize this deal. They tried to check with the brokers, but couldn't get a hold of anyone. I'll let you know first thing in the morning whether or not this is good and what the deal number is. Kate Evelyn Metoyer@ENRON 11/30/2000 03:08 PM To: Kate Symes/PDX/ECT@ECT cc: Subject: Missing Trade for 11-30-00 Prebon sent over a confirmation for the following trade for Sean Crandall Enron buys from Aquila January Mid-C 25 mw at $300.00	{ "pile_set_name": "Enron Emails" }
Cindy & Chris, I have sold the Equitrans metered production flowing into our Equitrans pool for a one year period to Dominion Field Services beginning November 1, 2000. Dominion will take whatever the Equitrans monthly estimate is. I will do the deal sheet and have Terry Franklin input into Sitara. John	{ "pile_set_name": "Enron Emails" }
Please make yourself available to participate in a meeting regarding the above referenced subject matter on Tuesday, October 31, from 2:00-3:00PM in 49C2. Also, invite anyone else from your respective staffs who are involved in this issue. Cindy	{ "pile_set_name": "Enron Emails" }
I don't remember if I told you that Fletch and I will be playing golf on Saturday morning. Thank You Hunter	{ "pile_set_name": "Enron Emails" }
Greetings from Amazon.com. We thought you'd like to know that we shipped your items today, and that this completes your order. Thanks for shopping at Amazon.com, and we hope to see you again soon. You can track the status of this order, and all your orders, online by visiting Your Account at http://www.amazon.com/your-account. There you can: * Track order and shipment status * Review estimated delivery dates * Cancel unshipped items * Return items * And do much more The following items were included in this shipment: --------------------------------------------------------------------- Qty Item Price Shipped Subtotal --------------------------------------------------------------------- 1 With the Old Breed : At Peleli $12.76 1 $12.76 --------------------------------------------------------------------- Item Subtotal: $12.76 Shipping & Handling: $0.99 Holiday Shipping Savings: -$0.99 Total: $12.76 Paid by Visa: $12.76 -------------------------------------------------------------------- This shipment was sent to: Eric P. Bass 4848 Pin Oak Park #1503 Houston TX 77081 via UPS Ground (3-7 business days). For your reference, the number you can use to track your package is 1Z38EW250353821372. You can refer to our Web site's Help page or: http://www.amazon.com/wheres-my-stuff to retrieve current tracking information. Please note that tracking information may not be available immediately. If you've explored the links on the Your Account page but still need to get in touch with us about your order, you can find an e-mail form in our Help department at http://www.amazon.com/help. --------------------------------------------------------------------- Please note: This e-mail was sent from a notification-only address that cannot accept incoming e-mail. Please do not reply to this message. Thank you for shopping with us. --------------------------------------------------------------------- Amazon.com Earth's Biggest Selection http://www.amazon.com/ ---------------------------------------------------------------------	{ "pile_set_name": "Enron Emails" }
Hi Nyree, I took vacation from Nov12-14. thanks, Monika -----Original Message----- From: Chanaba, Nyree Sent: Thursday, November 15, 2001 9:00 AM To: Allan, David; Bosek, Laura; Carter, Karen E.; Causholli, Monika; Daetz, Milagros; Determeyer, Peggy; Hutchinson, Elizabeth; Johnson, Jay; Kanji, Ayesha; Patel, Adnan; Singh, Vikram; Thompson, Marla Subject: Nov. 1-15 Timesheets Good morning everyone, Timesheets are due once more, please let me know if you have any exceptions (vacation, sick...) for Nov.1-15 pay-period. I would really appreciate your input by 2 pm, today. If your time is regular, simply reply with "no exceptions". Thank you, Nyree I. Chanaba 713-345-4035 EIM Fundamental Analysis	{ "pile_set_name": "Enron Emails" }
See attached. Samantha M. Slater Manager of State & Regional Affairs Electric Power Supply Association 1401 New York Avenue, N.W. 11th Floor Washington, D.C. 20005 Phone: 202-628-8200 Fax: 202-628-8260 E-mail: [email protected] Content-Transfer-Encoding: quoted-printable Date: Fri, 18 May 2001 14:02:04 -0400 From: "Mark Stultz" <[email protected]> To: "Neal Costello" <[email protected]>,<[email protected]>, "Bill Highlander" <[email protected]>, "Clare Miller" <[email protected]>, <[email protected]>, <[email protected]>, "Gloria Quinn" <[email protected]>, "Mark Palmer" <[email protected]>, <[email protected]>, "Karen O'Neill" <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, "Lisa Franklin" <[email protected]>, "John Giesser" <[email protected]>, "Joseph Bizzano" <[email protected]>, "Trudy Marshall" <[email protected]>, "Vincent Ragucci" <[email protected]>, <[email protected]>, <[email protected]>, "Maureen Phillips" <[email protected]>, "Martin Quinn" <[email protected]>, <[email protected]>, "Applebaum, David" <[email protected]>, <[email protected]>, <[email protected]> Cc: <[email protected]>,<[email protected]>, "Kimberly Blackburn" <[email protected]>, "Lynne Church" <[email protected]>, "Simone Byrd" <[email protected]>, "Samantha Slater" <[email protected]>, "Marty Wilson" <[email protected]> Subject: Pro-competition Media Campaign Mime-Version: 1.0 Content-Type: text/plain; charset="us-ascii" Content-Disposition: inline To EPSA's Public Affairs & State Issues Committees: We're just a few companies short of our necessary threshold for launching creative and production work for our voluntary paid-media campaign in support of the pro-competition lessons from California. Joining us so far in this effort are: AES NewEnergy, Duke Energy North America, Dynegy, El Paso Merchant Energy, Enron, Mirant, NRG Energy and Reliant Energy. We also are coordinating with the Edison Electric Institute's third-party earned-media efforts in the Northeast and West, as well as with the earned- and paid-media efforts of the Chamber of Commerce Alliance for Energy and Economic Growth in support of a new national energy policy. To help expedite the process, we will schedule an initial conference call for Thursday, May 24, for the pro-competition campaign funders. I'll forward the call-in details next week to the participants. We will be reviewing the messages and potential audiences, and get a time line for deliverables from Public Strategies Inc. Thanks to all of you for your consideration and support for this special project. Regards, Mark S. EPSA	{ "pile_set_name": "Enron Emails" }
Sarah & Christi -- Let's make sure that we get our comments together prior to the phone call. How about a phone call at 8:30 am CDT on Friday? Also, probably don't need everyone on the EPSA call so maybe we should organize our participation? Pls let me know. Jim -----Original Message----- From: "Jackie Gallagher" <[email protected]>@ENRON Sent: Wednesday, October 10, 2001 12:05 PM To: [email protected]; Hawkins, Bernadette; Nersesian, Carin; Nicolay, Christi L.; Fulton, Donna; Scheuer, Janelle; Hartsoe, Joe; Shelk, John; [email protected]; Noske, Linda J.; Robertson, Linda; Alvarez, Ray; Shapiro, Richard; Novosel, Sarah; Mara, Susan; Lindberg, Susan; Hoatson, Tom Subject: DRAFT Leave-Behinds for RTO Week-- Conf. Call Friday, Oct. 12th at 11: a.m. MEMORANDUM TO: Regulatory Affairs Committee Power Marketers Working Group FROM: Jim Steffes, Regulatory Affairs Committee Chair Bob Reilley, Power Marketers Working Group Chair Julie Simon, Vice President of Policy DATE: October 10, 2001 RE: DRAFT Leave-Behinds for RTO Week -Conference Call FRIDAY, October 12th, 11:00 a.m. EDT Based on discussions last week, several members suggested that EPSA create "big picture" leave-behinds for RTO Week at FERC. EPSA has drafted bullet points for the leave-behinds, designed to follow the workshop agenda for the week. We will be holding a conference call on Friday, October 12th, at 11:00 a.m. EDT to prepare for RTO week and discuss the draft leave-behinds. To access the call, dial 1-800-937-6563 and ask for the Julie Simon/EPSA call. If you have any questions, comments or suggestions, please contact Julie Simon at 202-628-8200 or [email protected]. Attachment - bare essentials.doc	{ "pile_set_name": "Enron Emails" }
Patricia, John Postlethwaite's start date in Portland will be May 25, 2001. He has used 40 hrs. of vacation in 2001 and therefore will carryover 80 hrs. of vacation to Portland. Please let me know if you have any questions. Regards Frank -----Original Message----- From: Henry, Patricia Sent: Wednesday, May 09, 2001 11:52 AM To: De Jesus, Frank Cc: Doucet, Dawn Subject: John Postlethwaite transfer to Portland Hi Frank. Do you know the date that John's transfer is effective? Will you please let us know once you have a firm date so we can take him off Canadian payroll and SAP. Thanks, Tricia Henry Canada HR Tel: (403) 974-6936	{ "pile_set_name": "Enron Emails" }
FYI.... Jane Wilson is our government affairs person in Mumbai. ----- Forwarded by Steven J Kean/NA/Enron on 12/17/2000 08:38 PM ----- Jeffrey Sherrick 12/15/2000 06:28 PM To: Cliff Baxter/HOU/ECT@ECT, James Derrick/Corp/Enron@ENRON, Steven J Kean/NA/Enron@Enron, Rebecca McDonald/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mike Stewart/Corp/Enron@ENRON, Larry Morse/Corp/Enron@Enron cc: Jack Harmuth/Corp/Enron@ENRON, Dominic Carolan/NA/Enron@ENRON, John Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jane Wilson/Enron@Gateway, Wade Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stephen Wallace/Corp/Enron@ENRON Subject: EGEP/EOGIL Customs Duty Inquiry on Offshore Production We were served summons by the Customs Office in Surat asking for meetings with our platform managers and on Dec.12th we sent two representatives (operations mgr & legal) to answer their questions. Over a two day period they inquired about production and logistical issues and asked a number of questions regarding product delivery points, pricing formulas, etc. In summary, they are trying to build a case that the gas and maybe even the crude we sell in India is subject to a 10-12% customs duty since it is produced outside of the 12 mile territorial limit. They are trying to make the case that we are importing the gas and oil into India. Obviously this is not the case and there is no merit for such consideration, but we don't want to let this idea get entered as a show/cause filing against Enron and our partners. There would be remedies such as court or arbitration, but the timing to resolve this is probably 1-2 years. Furthermore, this issue would most likely impact current efforts we have on-going. Therefore, we are taking the issue very seriously and plan to meet in Mumbai next Thursday to chart an appropriate course of action. Once we meet, we will get back to Cliff and Jim Derrick regarding our recommendation on Thursday morning December 21st Houston time. Cliff and Jim, if you are planning to be out of the office, please drop me an e-mail where you can be reached. Meeting in Mumbai next Thursday will be Chris Walker of Linklaters, local Indian counsel (Saberwal ?), myself, Mike Stewart, Dominic Carolan (EGEP legal), and certain representatives from EOGIL. We would also like to have Jane Wilson(EIPL Gov't & Regulatory affairs for India) present if she is available. Jane it is not mandatory that you are present, but if you can't attend could you send me an e-mail where I could reach you if necessary. The meeting will be at EOGIL's office and Fatima Samuel will confirm the time and place once Chris Walker's schedule is known. It is my understanding that Chris Walker will be in India on Tuesday and Wednesday working with Wade's group on other matters. This issue came up originally in 1997 right after we started producing gas at Tapti. At that time we had 3 legal opinions prepared and the legal team tells me the positions were very strong in our favor on a variety of fronts. After a few meetings and a couple of letters the issue went away and never resurfaced again until now. We suspect that this issue has been an open item since that time and for a variety of reasons (ongoing activities ?) someone feels it needs to be checked off the list. Hence, the revived interest at this time. The reason we are giving this such a high level of attention is probably obvious, but the reason we want to act upon our plan immediately once we get together next Thursday may seem less necessary. However, today our office received 3 more summons for 3 different people to report to Surat next Tuesday, Wednesday and Thursday. This time they have asked for our production manager, logistics manager and lead accountant. We have requested an extension due to the short notice and holiday season and expect to have it granted, but we will not know if it is postponed before Monday. (If we have to go we will have legal counsel attend with the individuals named) This level of back to back activity for a government office at this time year is a concern. Going into the meeting with the legal guys on Thursday, we are thinking that we need to have a highly respected person(such as Saberwal) deliver our message (to multiple groups, i.e., Surat customs, Ministry of Finance, Mopng) as to the lack of validity for this potential claim and what we would do if they proceed. By Thursday I think we will have all of the necessary "color" on this issue and with the team mentioned above we will be able to develop the right plan of action. However, due to the level of interest and activity of the Surat Customs group, we anticipate that our recommendation will be to move quickly, hence, my desire to contact Cliff and Jim next Thursday for approval to proceed. I have included Wade and Rebecca(EIPL) as well as Steve and John(PR) for information purposes at this time. This first stage plan we will be seeking approval for next Thursday will be to meet with certain people in an attempt to keep this from becoming an issue. This should be a fairly quiet issue (for Indian standards) next week and even the subsequent meetings that I'm anticipating would take place in the following two weeks ought to be very low keyed items. However, in India you never know and considering some of the existing press of recent we should get prepared and make sure we are co-ordinated. John, following our Thursday decision we should probably talk about our plan so if you'll leave me a note where you can be reached, I'd appreciate it. In summary, the odds are we will be able to manage this and it won't become a big issue. However, we need to take this very seriously and deal with it proactively and quickly before someone files something without understanding the consequences of the action. I am leaving for India on Sunday and when possible I will pick up my mail. I will also be checking voicemail if you need to leave a message. I will be the Mumbai office on Tuesday, Thursday and Friday and in Delhi on Wednesday. Jeff	{ "pile_set_name": "Enron Emails" }
We'll be there at 4 pm on Sunday. Thanks Susan Pereira [email protected] on 01/17/2001 06:42:32 PM To: [email protected] cc: Subject: Re: private lesson Sunday would be okay at 4PM Helen Peters	{ "pile_set_name": "Enron Emails" }
Michael: Now that all of the immediate congratulatory calls and messages have worn down, let me (belatedly?) congratulate you on your wonderful promotion! I know you'll to an outstanding job. I look forward to visiting with you soon. Sara	{ "pile_set_name": "Enron Emails" }
Dear Alumni, ZBT's main focus for this school year is to reconnect with our alumni. We will be e-mailing you periodically about events you might be interested in attending throughout the school year. If you know of any other alumni who aren't receiving our e-mails, conatct us and we'll add their names to our e-mail data base. Thanks, Jerone Tyler web-master (ZBT) ZBT to host Benefit Concert We, the Brothers of Zeta Beta Tau, members of the Monmouth College community wish to, in an entertaining manner, give back to the community that has thus far supported us so well. In order to accomplish this, the Brothers of ZBT will host a Benefit Concert which will provide excellent entertainment for the entire community while raising money for an important local organization, Jamieson Center. The Jamieson Community Center is a private, non-profit human service agency that caters to the needs of the residents of Warren and Henderson Counties of Illinois. Present services offered by the Jamieson Community Center include a Thrift Shop, emergency food pantry, emergency services, Christmas Store and Christmas Baskets, childhood immunizations, SHARE Food Program, meals for seniors, summer feeding services for children, Women Infants and Children, domestic violence counseling, and much more. Jamieson Center provides thousands of instances of assistance each year to persons of all ages with a variety of needs. On November 10th Zeta Beta Tau will be holding the philanthropic event for the Jamieson Community Center. The ZBT Benefit Concert will be a combination of musical performances by members of the Zeta Beta Tau Fraternity, students and faculty members of Monmouth College. To reserve tickets, please call Andrew Rubia at (309) 457-3069. Donations for Jamieson Center will be accepted c/o Zeta Beta Tau at 318 N. 9th St., #491, Monmouth, Illinois, 61462. As stated before all proceeds will go to the Jamieson Community Center. The show is sure to be a great event! check out our own ZBT web-site at: http://department.monm.edu/zbt/default.htm	{ "pile_set_name": "Enron Emails" }
Sara- I am sending the resume of a friend of mine who I think is a good candidate for the associate program. Please get back to me and let me know what else I need to do to get him in for an interview. Thank you for your help. Matt Lenhart	{ "pile_set_name": "Enron Emails" }
Tonight, all 1-month West Power products will be un-tokenized. This means they will no longer roll automatically on the last day of the month (on October 1st, your November product will not change to December, but will remain November). Please contact us should you have any questions. Chris Walker 713-853-7533 Kevin Meredith 713-853-9555 Melba Lozano 713-345-8986	{ "pile_set_name": "Enron Emails" }
My motto..... Drink heavy, live fast, leave clean underwear. From: Eric Gillaspie on 10/13/99 01:22 PM To: Gerald Nemec/HOU/ECT@ECT cc: Subject: RE: CuzinMel G$, This is from my couzin, I need your profile/stats, what should I tell him about you? You're a Vodka Hound?.........?...........cross-dresser?.........or just tell him to wear something nice? FYI, see below (J arthur is my brother Jeff that you met). ---------------------- Forwarded by Eric Gillaspie/HOU/ECT on 10/13/99 01:16 PM --------------------------- Matt Gillaspie <[email protected]> on 10/13/99 12:44:20 PM To: Eric Gillaspie/HOU/ECT@ECT cc: Subject: RE: CuzinMel I called the travel agent . . . left a message for some goon there to call me back. As soon as he calls me back I will put down a deposit for myself & Gerald (my new roommate) . . . tell me something about this guy: J Arthur said he met him previously and was cool with him. 'Sup? Hot Shirley Slack has had a death in the family and is out now on an "extended" leave of absence. FYI.	{ "pile_set_name": "Enron Emails" }
We are working on this now. We have a book with all physical active trades we will be performing on, we are now working on getting the in-the-money financial trades separated into a new book. Once that book is ready and deals are moved, we will be able to report it to you. Thanks, Kam -----Original Message----- From: Wilson, Shona Sent: Friday, January 25, 2002 9:04 AM To: Hall, Bob M; Gossett, Jeffrey C. Cc: Keiser, Kam Subject: RE: financial performign Who in gas is taking the ball to figure this out? -----Original Message----- From: Hall, Bob M Sent: Thursday, January 24, 2002 4:45 PM To: Gossett, Jeffrey C.; Wilson, Shona Cc: Keiser, Kam Subject: RE: financial performign Any thing that is not terminated per legal. I am sure they will want them split between in the money and out of the money. So think about how we get there. let me know bob -----Original Message----- From: Gossett, Jeffrey C. Sent: Thursday, January 24, 2002 4:37 PM To: Wilson, Shona; Hall, Bob M Cc: Keiser, Kam Subject: RE: financial performign I know what we consider performing on the physical side. What is considered performing on the financial side????? -----Original Message----- From: Wilson, Shona Sent: Thursday, January 24, 2002 4:23 PM To: Hall, Bob M; Gossett, Jeffrey C. Subject: financial performign Hey guys, Each book should have been split into 3 books - - terminated by the counterparty - ongoing transactions (active) and - transactions that have not yet been terminated by a counterparty but that we are not going to fullfil. The DPR should only have the active transactions in it. Hope that clarifies! Regards Shona Wilson Director, Global Risk Operations X39123	{ "pile_set_name": "Enron Emails" }
Tim, that will be fine. This is a discussion topic that I want your input on for next year. Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 10/24/2000 12:12 PM --------------------------- From: Tim Belden 10/24/2000 11:44 AM To: David W Delainey/HOU/ECT@ECT cc: Subject: Delainey Request Could you shed some light on this for me? What are you looking for? I'm afraid I might lose something as it gets translated from you to Wes to Paula to me back to Paula to Wes to you. Perhaps we can discuss while you are here. ---------------------- Forwarded by Tim Belden/HOU/ECT on 10/24/2000 09:46 AM --------------------------- Paula Harris 10/24/2000 09:38 AM To: Tim Belden/HOU/ECT@ECT cc: Subject: Delainey Request Tim, Dave Delainey is looking for a target customer list, coverage metrics and goal and objectives for each of your teams: West Power Trading West Power Mid-Market/Services West Power Fundamentals/Structuring Obviously his proposed breakout of your teams (noted above) is different from the way we planned them. For expense purposes, do you want me to add Volume Management, Real-Time, Pre-Scheduling and Admins to West Power Trading? Unfortunately, we have a tight deadline because Delainey is looking for this information by the end of the week. Do you think you can provide this information to me by Thursday? Also, if you could let me know today about the expense breakout, I can start working on that now. Thanks, Paula.	{ "pile_set_name": "Enron Emails" }
Start Date: 4/25/01; HourAhead hour: 3; No ancillary schedules awarded. Variances detected. Variances detected in SC Trades schedule. Variances detected in Load schedule. LOG MESSAGES: PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2001042503.txt ---- SC Trades Schedule ---- $$$ Variance found in table tblInt_Interchange. Details: (Hour: 3 / Preferred: -575.00 / Final: -574.97) TRANS_TYPE: FINAL SC_ID: EPMI MKT_TYPE: 2 TRANS_DATE: 4/25/01 TRADING_SC: NES1 PNT_OF_INTRC: SP15 SCHED_TYPE: ENGY PURCH_SALE: 1 DEAL_NO: 1 ---- Load Schedule ---- $$$ Variance found in table tblLoads. Details: (Hour: 3 / Preferred: 1.96 / Final: 1.93) TRANS_TYPE: FINAL LOAD_ID: PGE4 MKT_TYPE: 2 TRANS_DATE: 4/25/01 SC_ID: EPMI	{ "pile_set_name": "Enron Emails" }
Robert E. Bruce Senior Counsel Enron North America Corp. T (713) 345-7780 F (713) 646-3393 [email protected]	{ "pile_set_name": "Enron Emails" }
---------------------- Forwarded by Randall L Gay/HOU/ECT on 09/19/2000 11:54 AM --------------------------- "Whitney, William J. (WJWH)" <[email protected]> on 09/15/2000 02:44:00 PM To: "'[email protected]'" <[email protected]> cc: Subject: Expression of Interest Rob, It has been some time now since I forwarded you my resume, and in that I have not heard back from you, I suspect that your particular group had no open positions. I am genuinely interested in Enron, and feel that my diverse background, experience and education could possibly benefit your company in a number of capacities. Therefore, I would greatly appreciate your assistance in advising me as to whom I should direct my expression of interest. Should it go to Human Resources, Department Heads, or perhaps specific individuals ? I am attaching hereto, a current copy of my resume should that be helpful in any way. Thanking you in advance for your assistance. Enjoy the weekend. Bill <<Resume4.doc>> - Resume4.doc	{ "pile_set_name": "Enron Emails" }
Hi, If you are doing batches, please send all correspondence concerning problems, etc., to Pete and also to Paul Jerome. I apologize for not making everyone aware of this change. Let me know if you have any questions or concerns. Thanks, Brenna	{ "pile_set_name": "Enron Emails" }
Start Date: 1/17/02; HourAhead hour: 11; HourAhead schedule download failed. Manual intervention required. LOG MESSAGES: PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002011711.txt Error: dbCaps97Data: Cannot perform this operation on a closed database !!!Unknown database. Alias: dbCaps97Data !!!Unknown database. Alias: dbCaps97Data !!!Unknown database. Alias: dbCaps97Data Error: dbCaps97Data: Cannot perform this operation on a closed database !!!Unknown database. Alias: dbCaps97Data !!!Unknown database. Alias: dbCaps97Data !!!Unknown database. Alias: dbCaps97Data Error: dbCaps97Data: Cannot perform this operation on a closed database !!!Unknown database. Alias: dbCaps97Data !!!Unknown database. Alias: dbCaps97Data Error: dbCaps97Data: Cannot perform this operation on a closed database Error: dbCaps97Data: Cannot perform this operation on a closed database Error: dbCaps97Data: Cannot perform this operation on a closed database !!!Unknown database. Alias: dbCaps97Data !!!Unknown database. Alias: dbCaps97Data !!!Unknown database. Alias: dbCaps97Data !!!Unknown database. Alias: dbCaps97Data !!!Unknown database. Alias: dbCaps97Data !!!Unknown database. Alias: dbCaps97Data !!!Unknown database. Alias: dbCaps97Data Error: dbCaps97Data: Cannot perform this operation on a closed database	{ "pile_set_name": "Enron Emails" }
Power-company profits climb along with prices By Craig D. Rose SAN DIEGO UNION-TRIBUNE STAFF WRITER October 18, 2000 A power company executive yesterday boiled California's ongoing electricity crisis down to the bottom line. "Prices are rising, and I know that's hurting consumers ) but it certainly has been beneficial for Enron," said Jeffrey Skilling, president and chief operating officer of the Houston-based energy and trading company. Enron declined to specify how much it earned from California during the past summer, when the state's deregulated electricity market sent power prices soaring. But the Texas company did say that profits of its sales and services unit ) which trades California electricity and other commodities ) increased 135 percent to $404 million. Dynegy Inc., also based in Houston, reported that income from its marketing and trade unit soared more than 300 percent to $142 million. Steve Bergstrom, president of Dynegy, said California was perhaps only the third-biggest contributor to that surge. But industry analysts said the earnings reports are the first indication of a pattern expected in coming weeks. "California clearly drove the positive momentum at both of these companies," said Carol Coale, senior analyst of Prudential Securities. "And you probably just saw the beginning of a string of strong reports (from the power industry)." She and others say they suspect that power companies derived billions in profits from the state, where tight supplies set the stage for huge price increases. Companies did not necessarily have to own generating plants to profit from the deregulated market. Enron produces no electricity in California but is the nation's largest electricity trader, buying and selling the output of power plants owned by other companies. Rep. Duncan Hunter, R-El Cajon, said the big profits should be seen in something other than a business context. "These massive profits by the energy companies translate directly into thousands of San Diegans losing savings that were planned for education, mortgage payments, health care and other .?.?. necessities," Hunter said. When the state power exchange saw dramatic price increases within a matter of hours, "it was clear that predatory pricing was producing massive profits for someone," Hunter said. Hunter insists that recent power prices violate federal law mandating that rates be "just and reasonable." He is calling for the Federal Energy Regulatory Commission to order refunds. FERC is scheduled to issue a report on the California market by Nov. 1. The political fallout from the price increases, meanwhile, appears to weigh heavily on power companies, which are reluctant to tout successes in California for fear of being singled out for profiteering. After noting that Dynegy's recent acquisitions in Illinois contributed strongly to the company's success last quarter, Bergstrom was reminded that he had omitted mention of California. "Illinois is not as politically volatile as California," Bergstrom said. He acknowledged that Dynegy did "pretty well" in California because its power plants produced far more electricity this year than last. Bergstrom also sought to correct an earlier report that Dynegy had quickly recouped the cost of power plants it recently acquired in the state. He said that was true only of the plants it owns in Long Beach and El Segundo, which it bought in 1998. Bergstrom said the cost of Dynegy's half interest in the former San Diego Gas & Electric Encina power plant in Carlsbad ) acquired at the end of 1998 ) had not been recovered. Typically, plant operators assume that it will take as long as 20 years to recoup such costs. In comments to financial analysts, Skilling, of Enron, suggested that power companies could help provide a solution to California's power problems. "Supply constraints and the resulting price pressures in California and other locations have demonstrated the need for skilled marketers like Enron to provide reliable power and stable prices," Skilling said. He predicted that California's utility companies ) which now buy much of their power from other companies ) would sign long-term contracts to stabilize prices, following an approach suggested by many power generators and traders. "If they were willing to extend the terms of their purchases to 10-year contracts, then they could get contracts for $50 a megawatt, which is not much different than they were paying two or three years ago," Skilling said. But consumer advocates have noted that long-term contracts at those levels would lock consumers into price increases and leave them with little choice about suppliers. Advocates of electrical deregulation had predicted that introducing competition would lead to reductions in power costs and to greater consumer choice. Harry Snyder, senior advocate for Consumers Union in San Francisco, said he was skeptical of solutions proposed by the power industry. "Any proposal from the industry has to be suspect because they have engaged in faking out the California public and price gouging when there are shortages," said Snyder, who advocates an end to deregulation. "They do not have consumer interests at heart." ?	{ "pile_set_name": "Enron Emails" }
Sally Here is a rough draft of my notes from our visit yesterday. Please read and see if it accurately reflects the essence of what you want to communicate. My suggestion is that you take the time early one evening and maybe visit with Brent off site. Maybe over a cocktail. I'm sure you will be both serious and concerned What you are doing is giving Brent his year end review and basically asking him to fill in the details with actions over the next four to five months. 1) Brent has a great opportunity to take his leadership skills to the next level and by focusing and delivering these challenges he will solidify his core strengths in the eyes of others and most importantly himself. 2) You need for him to step up to the plate and fully support you by insuring that he will "take care of the business, completely and totally." No hits to the P & L, zero tolerance for incompetency and complacency. You can not do what you need to do Globally without the trust and confidence in his performance Additionally he must identify and develop his successor. Get a covenant from Brent that his is fully committed to do the work Also let him know you fully support him and will continue to back him fully in this effort as long as he does his part and keeps you informed. Call me if needed. Tom - Sally Beck Notes for Brent Price August 2000.doc	{ "pile_set_name": "Enron Emails" }
Shifali, Please see the attached email. If anyone else in your group grants Middle Market Nymex Originations please forward them this email. Thank you, Robin x57478 ---------------------- Forwarded by Robin Rodrigue/HOU/ECT on 01/11/2001 09:15 AM --------------------------- Robin Rodrigue 01/10/2001 09:25 AM To: Matthew Condon/NA/Enron@ENRON, Timothy M Norton/HOU/ECT@ECT, Tracy Beardmore/NA/Enron@Enron, Joyce Kuo/NA/Enron@Enron, Stewart Range/NA/Enron@ENRON, John Swinney/HOU/ECT@ECT, Michelle Nelson/Corp/Enron@ENRON, Jeremy Mills/Corp/Enron@ENRON, John D Postlethwaite/CAL/ECT@ECT, Casey Evans/Corp/Enron@Enron, Valarie Sabo/PDX/ECT@ECT cc: Michael Benien/Corp/Enron@ENRON Subject: Origination Beginning this week an Origination report will be given to Fred Lagrasta each morning. The information for this report is taken from the Origination schedule tab of your P&L file. It is imparative that all the information is filled out for each origination granted. The item most commonly overlooked is deal volume. There is also additional information that is now required for all Middle Market Nymex Originations. Please add the following columns to your Origination Schedule: Buy/Sell Term of the Deal Price Pub Code If you have any questions or you are no longer responsible for updating the origination schedule, please call me. Thank you for your help. Robin x 5-7478 Michael Benien@ENRON 01/10/2001 08:20 AM To: Robin Rodrigue/HOU/ECT@ECT cc: Subject: Book Admins Coal - Mattew Condon Weather - Tim Norton Paper - Tracy Beardmore FX - Joyce Kuo Interest Rate - Joyce Kuo Dist - Stewart Range Dist 2 - John Swinne Opt - Stewart Range Dbrc - John Swinne Blrc - Michelle Nelson Cfrc - Michelle Nelson BWD - Jeremy Mills Alberta Power - Joihn Postlewaite Power East - Casey Evans Power West - Valerie Sabo Thats all I can think of give me a call if I am missing someone.	{ "pile_set_name": "Enron Emails" }
The Weekly Availabilty Status report and excel files are located at Eng_server:\\ Field Support \ Friday_Report \ -jr	{ "pile_set_name": "Enron Emails" }
Gregg, I have three minor changes to the agreement. I have attached a red-line version reflecting my changes. Stacy Gregg Penman@ENRON 03/27/2001 09:46 AM To: Stacy E Dickson/HOU/ECT@ECT cc: Subject: FW: Reimbursement Agreement One more for the pile. IDACORP has requested that 100% of the guaranty they receive on behalf of enovate to be issued by Peoples. Peoples has prepared the attached reimbursement agreement which would obligate ENA to 50% of any payments made by Peoples under their guaranty. We have issued several of these, going both directions. Jeff is familiar with the concept if you have any questions. Can you please review the reimbursement agreement, and if acceptable, prepare execution copies with initials? This has a lower level of priority than the storage deals with Nicor and Coral which begin April 1. Any questions or comments, please let me know. Thanks - Gregg ----- Forwarded by Gregg Penman/Corp/Enron on 03/27/2001 09:39 AM ----- [email protected] 03/21/2001 02:59 PM To: [email protected] cc: Subject: FW: Reimbursement Agreement > ---------- > From: Halfin, Simon B. > Sent: Wednesday, March 21, 2001 2:58 PM > To: '[email protected]' > Cc: Burns, Jim; Huprikar, Aparna: E-mail; Klyasheff, Mary P.; Dobson, > Richard E. > Subject: Reimbursement Agreement > > Gregg: > > Attached for your review is a draft Reimbursement Agreement between > Peoples Energy Corporation and Enron. This Reimbursement Agreement is in > connection with the guaranty which Peoples is proposing to provide to > IDACORP in connection with an underlying enovate transaction. > > Please let me know if the form of the Reimbursement Agreement is > acceptable. > > Regards, > > Simon Halfin > (312) 240-4411 > > <<Reimbursement Ag. (IDACORP).doc>> > ---------------------------------------------------------------- The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any computer. - Reimbursement Ag. (IDACORP).doc	{ "pile_set_name": "Enron Emails" }
Do you need me to do something? I had a flat tire this am and had to drop it off at the shop, so I have to leave very soon so I can pick it up. I will be here for about 10 minutes (that is if Ben will let me go). My home number is 281-363-1477 if you need to call. K- -----Original Message----- From: Mann, Kay Sent: Friday, December 14, 2001 4:32 PM To: Carnahan, Kathleen Subject: still there?	{ "pile_set_name": "Enron Emails" }
---------------------- Forwarded by Susan D Trevino/HOU/ECT on 03/17/2000 03:08 PM --------------------------- Bob Withers <[email protected]> on 03/17/2000 03:10:24 PM To: Susan D Trevino/HOU/ECT@ECT cc: Stretch Brennan <[email protected]>, Knox Westmoreland <[email protected]>, Kevin McLarney <[email protected]>, Vance L Taylor/HOU/ECT@ECT Subject: 1st rev Mar. 2000 Josey Ranch nom Here's REVISED March 2000 (effective 3/18/00 ) setup for Josey: (using 1.075 Btu/Mcf) * Gas deliveries into HPL 11,000 MMBtu/d for KRI (net reduction of <1,500> MMBtu/d) 11,000 MMBtu/d into HPL Bob Withers <*))>>< KCS Energy, 5555 San Felipe, Suite 1200 Houston, TX 77056 voice mail/page 713-964-9434	{ "pile_set_name": "Enron Emails" }
-----Original Message----- From: Richter, Jeff Sent: Wednesday, August 15, 2001 5:06 PM To: Stokley, Chris Subject: FW: 90-110 Band -----Original Message----- From: Bresnan, Neil Sent: Wednesday, August 15, 2001 4:54 PM To: Richter, Jeff Subject: 90-110 Band Chris, This is Richter, Neil had reviews to do so I finished up with the email. Hope this helps. Let me know if you need anything else. Richter Several deals have no band (1998 ) see note from Dennis + The issue with the bands is how to price them. On the surface the band is the same as selling the customer a call and a put in actual fact the customer is not going to always exercise the option on a purely economic basis. Building managers need to keep the lights on even when it is hot. + Most of our contracts contemplate the establishment of a baseline during the first year of the contract. Most of our consumption bands are settled on an annual basis giving the client a huge swing on an intramonth basis. + New clients have consumption bands which are calculated on a monthly basis and settled with the customer on an annual basis. + We don't currently manage the position aggressively. Intramonth we forecast load for clients and assume all the load is physical when in fact after a customer goes over (or under) the band we should be buy index for the over under. Chris, Richter takes over 1999 deals: most deals in 1999 have a consumption band which gets settled annually. 2000 deals as of feb - consumption bands with monthly settlements New deals - See Neil's notes above One thing to remember is that the customer is exposed to hourly index price and grid charges on every kw they use outside the band and we owe them if they underconsume. this needs to be flashed and then actualized when the data is available. One note is that all the existing contracts up to EWS taking over have this little flaw: the customer is exposed to the hourly price and we wear the risk of all the grid charges. (Not good!!!)	{ "pile_set_name": "Enron Emails" }
Realtime group- This occurs when your H drive is not mapped. To fix the mapping, follow the instructions at: http://172.17.172.62/rt/tips/mapHdrive.html Hope this helps! John Oh Enron North America 503.464.5066 121 SW Salmon Street 503.701.1160 (cell) 3WTC 0306 503.464.3740 (fax) Portland, OR 97204 [email protected] -----Original Message----- From: Anderson, John Sent: Wednesday, January 30, 2002 10:49 PM To: Oh, John Subject: Profile Error Again I had a problem with CAPS again (profile error). Last time you said that is was a problem with the mapping of the H: drive. Login: janders3 JohnAnderson Realtime	{ "pile_set_name": "Enron Emails" }
COACH.com COACH.com Last Minute Gift Solutions Last Minute Gift Solutions [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Great Gifts @ COACH [IMAGE] more gifts they will love [IMAGE] [IMAGE] Store Locator 1-888-262-6224 If you wish to unsubscribe, or change your address, click below: http://coach1.m0.net/m/u/cch/c.asp?e=MIKE.CARSON%40enron.com	{ "pile_set_name": "Enron Emails" }
Thanks for your response. My prior message to you was in error because I did enter the correct address. For example, I can get to the screen that says "Documents" but when I click on one of the choices, I get a message that says "Netscape is unable to locate the server ei-sp-data01. Please check the server name and try again." Am I doing something wrong? Should I simply call the Helpdesk here in Houston? Thanks. Sara Carlos Gustavo Azevedo@ENRON_DEVELOPMENT 07/19/99 02:13 PM To: Sara Shackleton/HOU/ECT@ECT cc: Subject: Re: Regulatory Affairs Database Sara, the correct address is http://ei-sp-data01/regulatory and not http://ei-sp-01/regulatory as you tried before. If you can access Enron's intranet or extranet you are able to get in the site. Please let me know if you still have problems accessing it. Thanks, Carlos Gustavo	{ "pile_set_name": "Enron Emails" }
Seth: There is a new senior person that was just hired in Japan to be the head of the office. You should find out that person's name and try to meet with that person in Japan as soon as you can. I think Enron should try to steer one of the committees to focus on energy regulatory matters in a material way. I am not sure what committtee that would be at this point. I think you should have this conversation with the senior person and I will work on it at the board level. Let's keep comparing notes. Regards, Mark	{ "pile_set_name": "Enron Emails" }
Here is a draft LOU and termsheet from the transaction in which we acquired an interest in oil and gas properties (this is somewhat related to the deal described in the documents that I just sent to you). It is probably more appropriate for a transaction in which we are acquiring a direct interest in oil and gas properties. Travis C. McCullough Enron North America Corp. 1400 Smith Street EB 824 Houston, Texas 77002 Phone: (713) 853-1575 Fax: (713) 646-8860	{ "pile_set_name": "Enron Emails" }
---------------------- Forwarded by Scott Neal/HOU/ECT on 08/16/2000 03:43 PM --------------------------- John Griffith@ENRON 08/15/2000 06:23 PM To: Jared Kaiser/HOU/ECT@ECT, Scott Neal/HOU/ECT@ECT cc: Subject: API and API Crude, Distillate & Unleaded Stocks Graphs ---------------------- Forwarded by John Griffith/Corp/Enron on 08/15/2000 07:09 PM --------------------------- [email protected] on 08/15/2000 06:03:48 PM To: [email protected] cc: Subject: API and API Crude, Distillate & Unleaded Stocks Graphs The information contained herein is based on sources that we believe to be reliable, but we do not represent that it is accurate or complete. Nothing contained herein should be considered as an offer to sell or a solicitation of an offer to buy any financial instruments discussed herein. Any opinions expressed herein are solely those of the author. As such, they may differ in material respects from those of, or expressed or published by on behalf of Carr Futures or its officers, directors, employees or affiliates. , 2000 Carr Futures The charts are now in the most recent version of Adobe Acrobat 4.0 and they should print clearly from Adobe Acrobat Reader 3.0 or higher. Adobe Acrobat Reader 4.0 may be downloaded for FREE from www.adobe.com. (See attached file: UnleadedStocks.pdf)(See attached file: CrudeStocks.pdf) (See attached file: HeatingOilStocks.pdf)(See attached file: PADDIIstocksCL.pdf)(See attached file: PADDIstocksHO.pdf)(See attached file: PADDIstocksHU.pdf)(See attached file: API.pdf) - UnleadedStocks.pdf - CrudeStocks.pdf - HeatingOilStocks.pdf - PADDIIstocksCL.pdf - PADDIstocksHO.pdf - PADDIstocksHU.pdf - API.pdf	{ "pile_set_name": "Enron Emails" }
Please see the following articles: Sac Bee, Thurs, 3/29: "State seeks more money for power buys" Updated, 4:41pm Sac Bee, Fri, 3/30: "Guess again: Rate hike impact underestimated" Sac Bee, Fri, 3/30: "Bush says energy is paramount concern" San Diego Union, Thurs, 3/29: "California pulls out the stops to attract power plants" San Diego Union, Thurs, 3/29: " California utility must say where blackouts will happen" LA Times, Fri, 3/30: "Raft of Bills Aimed at Energy Conservation" LA Times, Fri, 3/30: "2 Firms Start Repaying State for Power Buys" LA Times, Fri, 3/30: "Ads Support Davis Actions, Legislature in Power Crisis " LA Times, Fri, 3/30: "Take-Charge Governor Forfeits on Energy " (Commentary) SF Chron, Fri, 3/30: "Blackout Warnings For Police PG&E giving notice to ease traffic jams " SF Chron, Fri, 3/30: "Energy Crisis Dogs State Democrats Conventioneers likely to discuss Davis' troubles " SF Chron, Fri, 3/30: "Canada seeks to grab bigger role as U.S. energy supplier " Mercury News, Thurs, 3/29: "Police unsure how to enforce lights-out rule" Mercury News, Fri, 3/30: "PG&E ordered to share details about blackouts" Mercury News, Fri, 3/30: "We need power -- in our back yard " Orange County, Fri, 3/30: " 'Interruptible' penalites may be revived" Orange County, Fri, 3/30: "2 cities to be warned if blackout is imminent" Individual.com, Fri, 3/30: "Energy crisis could cost billions, says California's controller" Individual.com, Fri, 3/30: "[B] FULL/ Edison Intl unit pays $43.5 mln to water resources dept" Individual.com, Fri, 3/30: "EPRIsolutions Tackles California Power Problems" ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ -------------- State seeks more money for power buys Updated: March 29, 2001 - 4:41 p.m. Gov. Gray Davis on Thursday asked lawmakers to approve spending $500 million more to buy power for two struggling utilities as Republicans escalated their criticism of the Democrat's handling of the energy crisis. Davis' request, expected to win approval from the Legislature's majority Democrats, would bring the state's power purchases on behalf of credit-poor Southern California Edison and Pacific Gas and Electric to $4.7 billion since the buying started in early January. Both utilities said they are starting to pay the state back for the previous power purchases, complying with an order Tuesday by the state Public Utilities Commission. Edison paid the state $43 million and PG&E paid $65.2 million for power purchased by the state in January and February. Republicans stepped up their criticism of Davis and his fellow Democrats during an Assembly session Thursday morning. It was the first legislative session since Assembly Republicans chose a new minority leader this week, Assemblyman Dave Cox of Fair Oaks, who pledged to take a harder line on energy negotiations. Assemblyman Jay La Suer, R-La Mesa, ridiculed Davis' offer of 20 percent rate cuts for consumers who cut their electricity use 20 percent from last summer. "My people can't save 20 percent. They've already cut to the bone," La Suer said. He and others blamed Davis for record rate increases of up to 46 percent the PUC ordered this week for Edison and PG&E customers. Republicans noted that the PUC is dominated by Davis appointees. Davis has denied any influence and criticized the rate hike as premature. Eleven Assembly Republicans filed a lawsuit in San Diego Superior Court asking the court to order Davis to provide more details on the state's power purchases, saying they need the information for state budget decisions. "Governor Davis has an information gray-out," said Assemblyman Tony Strickland, R-Thousand Oaks, who led the lawsuit. The lawsuit, similar to one filed last week by The Associated Press and several newspapers, seeks details on long-term power contracts the state has signed and the short-term purchases it is making for Edison and PG&E customers. Davis spokesman Steve Maviglio accused Republicans of engaging in political "bomb-throwing and obstructionism," saying the information they want to make public would help power suppliers get higher prices from the state. He joined Assembly Democrats in accusing the Republican Bush administration and Federal Energy Regulatory Commission of not doing enough to rein in soaring wholesale electricity costs. "When are we going to realize that we've gotten FERCed?" quipped Assemblywoman Helen Thomson, D-Davis. She said Californians are hearing "a giant sucking sound" as their electric payments flow to out-of-state electricity generators. Maviglio said the crisis is the product of the 1996 deregulation law signed by then-Republican Gov. Pete Wilson. "To think Governor Davis can clean up this mess in a matter of months is just ludicrous," Maviglio said. Cox invited Davis to attend a GOP caucus to discuss energy. Davis spent two hours briefing Democrats on Wednesday. Also Thursday, the Assembly resumed hearings in its investigation into California's highest-in-the-nation natural gas prices. Southern California Gas Co. Vice President Rick Morrow vehemently denied allegations in a Los Angeles lawsuit that his company conspired with El Paso Gas Co. at a 1996 hotel meeting to drive up California natural gas prices. "That allegation is absolutely absurd," Morrow told two Assembly subcommittees investigating the gas price-spike. The companies are defendants in a lawsuit filed last week by the city of Los Angeles. Chris Garner, director of Long Beach Energy, said the spike has cost his customers between $25 million and $30 million. Long Beach gas prices are tied to the cost of gas at the California border, which peaked this winter with costs up to six times as high as in neighboring states. California has struggled with soaring natural gas prices, rising electricity costs and a tight power supply for months. The state was under a Stage 1 power alert Thursday, with reserves approaching 7 percent. -- Associated Press ------------------------------------------------------------------------------ ------ Guess again: Rate hike impact underestimated By Carrie Peyton Bee Staff Writer (Published March 30, 2001) Whoops. More Californians than anyone first guessed will probably see their electric bills go up within weeks. They will be feeling the brunt of price increases that utility regulators said Thursday will soon give California the highest electric rates in the continental United States. Pacific Gas and Electric Co. and the Sacramento Municipal Utility District have revised their projections about how many customers will probably be paying higher prices for electricity in May. For PG&E, hundreds of thousands more households could be affected, and for SMUD, a proposed surcharge could hit every one of its 525,000 ratepayers. PG&E, which in January told lawmakers that pending legislation would protect 42 percent of its residential customers from rate hikes, now says that 69 percent will face an increase. The shifting numbers are "amazing," said Paul Clanon, energy division director at the state Public Utilities Commission. "We're still trying to get to the bottom of it." The PUC said PG&E and Southern California Edison had told it that more than 40 percent of their residential customers would feel no impact from rate hikes if the PUC followed a state law passed in February. That law required rates to stay level for thrifty households -- those that use less than 130 percent of baseline amounts. "Those were estimates. Now we've had more time to refine the estimates," PG&E spokesman John Nelson said Thursday. While only 31 percent of PG&E's 4.6 million customers use less than 130 percent of the baseline amounts, another 13 percent use a little more. They would escape higher rates if they conserve by 5 percent, he said. Edison said Thursday it still believes about 45 percent of its residential customers will feel no rate hikes. "We don't have any reason to believe there is a problem with our numbers," company spokeswoman Clara Potes-Fellow said. Wall Street and power sellers have consistently hammered California for charging too little. But the rate hikes approved this week by the PUC will drive average power costs statewide to about 12 cents per kilowatt-hour, the California Energy Commission estimated Thursday. With that, California will surpass New York, at 11.2 cents and holding, and New Hampshire, which is at 11.6 cents but about to drop, according to utility regulators in those states. Except for Hawaii, at 13.9 cents, no other state comes close to California's new rate, according to October statistics complied by the federal Energy Information Administration. "If there was any doubt in any state's mind that the California deregulation experiment was an ugly one, this should remove that," said Michael Shames, head of the Utility Consumers Action Network. California rates had been among the 10 highest in America when big businesses began calling for deregulation, saying it would force prices down, he said. The high wholesale power costs that are driving PG&E and Edison rates up also continue to eat away at SMUD. The ratepayer-owned utility district has concluded that rainfall this year was so light that every SMUD customer should have to pay a special surcharge, which it estimates will add $2 a month to a typical household electric bill. That will come on top of a $5 monthly "customer charge" to be added to every standard household bill. Low-income households will see a $3 customer charge. SMUD directors won't vote on a proposed hike until next month, but when the plan was first unveiled, the utility estimated about 70 percent of households use so little power that they would face no increase. Later, it said only half the households would see no hike. And now, SMUD officials are proposing that every customer pay roughly an extra 3 percent for the next year -- one-quarter cent for every kilowatt-hour they use -- because power production will dwindle at its hydroelectric plants on the upper American River. That decision came "about when I was able to go out and play tennis for the third weekend in a row in March," said Jim Tracy, SMUD planning director, referring to the unusually dry month. The surcharge will raise about $24 million and should expire in 12 months, he said. Altogether, SMUD is now forecasting that an average household bill of $67 would increase to $78 beginning in May. If the current rate proposals are approved by directors at their April 19 meeting, even those with small SMUD bills who do everything they can to conserve would pay at least an extra $3 to $5 per month, and probably more. "I'm comfortable with that," said SMUD board President Larry Carr. "There is a cost associated with serving each customer, (even) if they never turn on their electricity." ------------------------------------------------------------------------------ ------ Bush says energy is paramount concern Bee Staff and News Services (Published March 30, 2001) WASHINGTON -- Declaring that "we are now in an energy crisis," President Bush on Thursday defended his decision to roll back environmental measures proposed by the Clinton administration and to reject a treaty designed to inhibit global warming. "I'm worried about the economy; I'm worried about the lack of an energy policy; I'm worried about rolling blackouts in California," he said. "It's in our national interests that we develop a strong energy policy with realistic, common-sense environmental policy." The administration's rebuff of the international agreement on climate change, a centerpiece of the Clinton administration's environmental agenda, brought sharp criticism from European countries, environmentalists and church groups. Negotiated in Kyoto, Japan, in 1997, the agreement has not been ratified by the Senate. International efforts last November to work out issues surrounding the treaty failed because of a rift between the United States and Europe. On another environmental matter, the president conceded for the first time that he may not be able to persuade Congress to open the Arctic National Wildlife Refuge to oil and gas development. "I think it's important for us to open up ANWR. Whether or not the Congress sees it that way is another matter," Bush said. "I think it would be a mistake not to," he added. "We've got a shortage of energy in America. It doesn't matter to me where the gas comes from in the long run, so long as we get gas moving into the country." He also said he expects to tighten the arsenic standard for drinking water, but won't do so until further scientific studies are completed. Bush recently withdrew new arsenic regulations issued by the Clinton administration. Bush said he remains open-minded and willing to consult with other nations on how to address climate change, but he made clear that the mandatory greenhouse-gas reductions stipulated in the Kyoto accord were off the table. "We will not do anything that harms our economy," declared Bush, again citing concerns about soaring natural gas prices and power shortages in the West. "We'll be working with our allies to reduce greenhouse gases. But I will not accept a plan that will harm our economy and hurt American workers," said Bush. Later, he expressed a similar view in a meeting with German Chancellor Gerhard Schroeder, who told reporters afterward that he continues to hope the United States would participate in climate negotiations scheduled this summer in Bonn, Germany. "We agreed on practically everything, except ... the Kyoto protocol," Schroeder told reporters during a joint press conference with Bush, acknowledging the issue had put some strain on U.S.-German relations. Response has been more heated in other foreign capitals. "This isn't some marginal environmental issue to be ignored or played down," said Margot Wallstroem, the European Union's environmental minister, at a news conference in Brussels, Belgium. She left open the possibility of retaliation against the United States. British Environmental Minister Michael Meacher called Bush's views "exceptionally serious," while Sweden's environmental minister, Kjell Larsson, said Bush's plan "sabotages many years of hard work" on one of the world's most pressing environmental concerns. Criticism also came Thursday from a broad coalition of U.S. religious groups. Alarmed by Bush's decision to abandon the Kyoto treaty, they urged the president to reconsider his approach or risk alienating a growing faith-based movement committed to protecting the environment. Leaders of the inter-denominational groups challenged Bush's decision on religious and moral grounds as well as on scientific evidence that Earth's temperature is rising and could trigger catastrophic climate and weather changes. "If credible evidence exists to indicate our present course could threaten the quality of life for God's creation and God's children, this becomes an issue of paramount moral concern," the leaders said in a letter to Bush. The letter from seven religious leaders is significant because of the influence faith-based groups are exercising on the Bush administration and on Republican congressional leaders. Last year, for example, GOP leaders dropped their opposition to a Clinton administration plan to write off loans to 30 of the world's poorest countries under pressure from Pope John Paul II and an international network of religious groups. The letter to Bush was signed by leaders of the National Council of Churches of Christ in the USA, the Christian Church (Disciples of Christ), the African Methodist Episcopal Church, the Metropolitan Orthodox Church in America and the Jewish Theological Seminary. The Jewish Council for Public Affairs wrote separately to voice its concerns. The Kyoto agreement calls on industrial countries to cut greenhouse emissions, mainly carbon dioxide from burning fossil fuels, to below 1990 levels by 2012. Critics have argued that would mean dramatic and costly changes in how the United States generates energy. EPA Administrator Christie Whitman, attending a meeting of environmental ministers in Montreal, said Thursday that while the Kyoto accord is "deeply flawed," the president remains "absolutely committed" to being fully engaged with the international community on the issue. Muriel Dobbin of The Bee Washington Bureau, the Associated Press and the Washington Post contributed to this report. ------------------------------------------------------------------------------ ------ California pulls out the stops to attract power plants By Don Thompson ASSOCIATED PRESS March 29, 2001 SACRAMENTO ) California has jettisoned its normal air and water pollution controls in a desperate dash to build enough power plants to keep the lights on this summer. With little notice, communities could soon find themselves home to small "peaking plants" ) typically natural gas-fired jet engines built on concrete pads that will roar into use when power supplies run low. Generators that promise to provide power by the end of summer can skip usual environmental restrictions and reviews, win permit approval in days instead of months, and qualify for low-interest state loans and $30 million in bonuses. So many developers are eager to take advantage of the temporary shortcuts that state regulators are inviting them to workshops around the state featuring refreshments and promises of quick approval. "Believe it or not, government's here to help you," Christine Kinne, the California Environmental Protection Agency's assistant secretary for permit assistance, told several hundred developers who attended a recent workshop in Sacramento. Gov. Gray Davis wants to attract enough peaking plants ) which typically produce 50 megawatts or less each ) to gain 1,000 megawatts this summer. That's enough power for roughly 750,000 homes. Some Californians question whether the benefits of swift plant approval are worth what they see as potential long-term costs. Carl Zichella of the Sierra Club said regulators should take time to consider the impact on water and air quality, the state's growing population, and danger from earthquakes. "These are certainly things we need to think about before we start plopping power plants across the landscape," said Zichella, the group's regional director. "People are going to suffer if we relax these standards." The American Lung Association of California and others want lawmakers to encourage the use of renewable energy and conservation rather than relax environmental standards to build new power plants. "We can't afford to relax our air quality regulations and our public health standards," said Paul Knepprath, the Lung Association's vice president for government relations. California is struggling with a tight power supply caused in part by scarce hydroelectricity in the Pacific Northwest, high natural gas prices, California plant shutdowns for maintenance, and construction of few plants in the state over the past decade. The state has had widespread blackouts four times this year, including twice last week. Power regulators fear rolling blackouts will become common this summer, when demand rises sharply as Californians crank their air conditioners. To try to get new power plants online, regulators are crunching what once were yearlong reviews into as little as 21 days for peaker plants and four months for larger facilities. The environmental portion of the reviews for peaker plants now takes just seven days, and the normal requirements of the California Environmental Quality Act have been lifted by Davis under an emergency order. Davis originally said only generators that have new plants online by July 31 could take advantage of the speedy review. He moved the deadline to Sept. 30 because few could meet the earlier one, said Roger Johnson, siting office manager for the California Energy Commission. Winston Hickox, secretary of the California Environmental Protection Agency, said state officials are "biting our fingernails about whether we can make it," but still hope to have enough electricity this summer. "We're truncating the process. We're being as user-friendly to producers of new energy as we can, but we are not abandoning our standards," said Hickox, whose role has shifted from environmental watchdog to "permitting czar" at Davis' direction. Under the previous process, the state Energy Commission took a full year and held 13 public hearings before granting a license to Riverside County's Blythe Energy power plant. Residents were given at least 10 days' notice of hearings through newspaper ads. Under the accelerated review, communities can get as little as three days' notice of public hearings on plant proposals. San Diego news media were told on a Monday that there would be a single public hearing, three days later, on the proposed Larkspur Energy peaking plant. The commission posted the hearing on its Web site, but otherwise counted on the media to let residents know. The California Air Resources Board says it will overrule local air quality boards that take too long to grant permits and air pollution waivers. Davis used an executive order to remove restrictions on when peaker plants can run so the state can call on them as needed, day or night. The plants also will be allowed to exceed pollution standards by buying "emissions credits" ) $6,000 per ton of pollutants, which buys them a waiver for three years. The ARB says the plants could emit a combined 3 to 10 tons of smog-producing nitrogen oxide each day, triggering complaints from the Lung Association that children and the elderly will suffer. Davis also ordered the state Water Resources Control Board to remove limits on heated power plant discharge water that would prevent the plants from operating. The state will buy the natural gas to fire up peaking plants, and guarantee owners a "reasonable profit" on their plants' operation, said Viju Patel, executive manager of the Department of Water Resources. The state will save money with long-term gas contracts, he said, while saving operators the risk of fluctuating gas prices. The peaking plants likely to be approved most swiftly are ones without apparent social or environmental problems, the Energy Commission's Johnson said. "It can't go in next to a school or hospital," Johnson said. The best sites are polluted commercial land with a gasline and a transmission station next door, he said. The Sierra Club's Zichella predicts many of the plants will be built in poor industrial communities. "These peaking plants aren't going to be built on Nob Hill," he said. "These communities need to have a say in what's going to affect their air pollution." Seyed Sadredin, permit director for the San Joaquin Valley Air Pollution Control District, said the gas turbines are 200 to 300 percent cleaner than similar-sized diesel generators. Engineers have found ways to cut the noise and vibration below that of a jet engine mounted on an airplane, though "it's not something you can put in your backyard and sleep at night," he said. ------------------------------------------------------------------------------ ----- Raft of Bills Aimed at Energy Conservation Power: Lawmakers propose everything from loans for schools to free insulation in bid to reduce consumption this summer. By JENIFER WARREN and CARL INGRAM, Times Staff Writers ?????SACRAMENTO--In their quest to cut energy use so Californians can keep their ovens and air-conditioners humming this summer, state officials have turned to a time-tested strategy: the good ol' carrot and stick. ?????The Public Utilities Commission took care of the stick earlier this week, approving a record increase in electricity rates. Now the Legislature is working feverishly on the carrot. ?????More than 190 bills springing from the power crisis are buzzing around the Capitol, and a good number aim to coax or bribe us onto a low-watt diet. If we resist, state forecasters warn, summer blackouts are inevitable. ?????To ease the pain, lawmakers are proposing loans, tax credits, refrigerator rebates, free insulation for low-income homeowners--even $40 million for a "mobile efficiency brigade" to deliver power-saving lightbulbs to poor people and businesses. ?????Some measures had been stalled as legislators focused on the financial crisis afflicting the state's debt-ridden private utilities, which say they are on the verge of bankruptcy. But the rate increase stabilized the financial outlook a bit, and now the focus is back on Sacramento. ?????Displaying newfound pep, lawmakers are shaping and blending bills in hopes that the governor can sign them by the end of next week--which also marks the start of the Legislature's spring break. ?????Energy specialists say there is not a moment to spare. Last week--a time when temperatures were mild and energy demand was half that of summer--the state suffered back-to-back blackouts. Hot weather is fast approaching, and some conservation measures take time to put in place and sell to consumers. ?????One estimate by the California Energy Commission says that for every day the Legislature delays passage of the biggest conservation bill--the sweeping SB 5X--the state misses the chance to save 20 megawatts of energy, enough to power about 15,000 homes. ?????"It's extremely urgent," said the bill's author, state Sen. Byron Sher (D-Stanford). "All the experts agree that reducing demand through conservation is the least expensive, most effective way we can get control quickly over the energy market." ?????While the conservation measures are the priority, dozens of other bills addressing some dimension of the energy mess are piling up. ?????One assemblyman wants to make looting during blackouts a crime, and require that law enforcement officials get a warning before blackouts are ordered. Another bill would expedite the approval process for new power plants. ?????Assembly Speaker Bob Hertzberg (D-Sherman Oaks) wants to ensure that operators of new California power plants are forced to offer their electricity for sale within the state before marketing it elsewhere. ?????"This is about giving California the right of first refusal," Hertzberg said before his Assembly colleagues approved the bill, AB 60X, and sent it to the Senate. Without such a requirement, Hertzberg said, California would suffer air pollution and other costs of hosting plants but reap no benefit. ?????That theme--giving California more control over the power supply--also runs through a measure sponsored by Senate leader John Burton (D-San Francisco). His bill, SB 6X, would put the state in the business of building, financing, acquiring and owning its own power plants. ?????Burton says the bill would enable California to control its own "energy destiny," as other states do, including New York. But Republicans warn that it would create a vast new bureaucracy and say that making and selling power is best done by private industry. ?????Burton's bill has passed the Senate and awaits action in the Assembly. But next week's priority, legislators say, will be passing two gargantuan conservation bills considered vital to helping California survive summer without widespread power outages. ?????Analysts say the bills--Sher's and a measure by Assemblywoman Christine Kehoe (D-San Diego)--would allocate about $1 billion to programs that could reduce summer demand by as much as 4,000 megawatts--the equivalent of what eight average-size power plants produce. ?????Forecasts of a summer power shortfall range from 2,500 to 5,000 megawatts, said Ralph Cavanagh, an energy expert for the Natural Resources Defense Council: "So these bills could really be decisive." ?????And although $1 billion may seem like a sizable investment for appliance rebates, home weatherization, free lightbulbs and other conservation measures, it's peanuts compared to the exorbitant price--close to $4 billion in the last three months--the state is paying to buy energy on the spot market, Cavanagh said. ?????Experts say the conservation proposals--many of which Gov. Gray Davis made in February--have a good chance of success because they build on existing programs with track records. While there are "probably lots of great, innovative new ideas out there, we stuck with proven programs because we need certainty for this summer," said Claudia Chandler, assistant executive director of the California Energy Commission, headquarters for many of the conservation efforts. ?????Cavanagh said the two bills, if signed by Davis, would roughly double what California has been spending on conservation. A spokesman for Davis said the governor would support the $500-million worth of programs he proposed in February, but could not predict the fate of the other $500-million worth of proposals likely to arrive on his desk. ?????"As the governor has said, conservation is our ace in the hole and a powerful tool to help us avoid blackouts," said the spokesman, Roger Salazar. "We think the half-billion dollars in proposals the governor has put forth are prudent and will help us get through summer." ?????Among the proposals in pending legislation are: ?????* $280 million to help low-income families with everything from paying their energy bills to installing insulation, double-paned windows and efficient air-conditioners. ?????* $170 million to help businesses install power-saving lighting and air-conditioning systems. ?????* $15 million for energy-efficient traffic signals. ?????* $7 million for a school-based campaign, tentatively called "Kids Count," to teach children about energy conservation. ?????* $25 million in loans to schools to help them cut energy consumption. ?????* $10 million to the state Department of Consumer Affairs for a public outreach campaign about the need for conservation. ?????* $132 million in loans and rebates for residents and business owners who buy new appliances and air-conditioners or upgrade old systems. --- ?????Times staff writer Miguel Bustillo contributed to this story. ------------------------------------------------------------------------------ ------ 2 Firms Start Repaying State for Power Buys Electricity: Edison and PG&E give $105 million for energy supplied between Jan. 19 and Feb. 11. Also, a state agency predicts a 7% shortfall this summer. By MIGUEL BUSTILLO and JULIE TAMAKI, Times Staff Writers ?????SACRAMENTO--For the first time since California began buying electricity in mid-January on behalf of the state's two biggest utilities, money is coming back to the state. ?????Under order by state regulators, Southern California Edison and Pacific Gas & Electric began making payments this week to reimburse the state for the billions it has spent on power. Edison paid $43.5 million and PG&E paid $61.8 million for electricity supplied between Jan. 19 and Feb. 11, with more money on the way, officials said Thursday. ?????California taxpayers became the biggest buyers of power in the West after electricity suppliers began refusing to sell to the utilities, which had depleted their cash reserves and tarnished their credit ratings when the cost of electricity soared above their selling price last year. ?????Since then, the state has spent or appropriated $3.8 billion on behalf of the utilities, which together serve 24 million people. The repayments began Wednesday, the day after the state Public Utilities Commission approved consumer rate hikes of as much as 46%. ?????While the PUC action was intended to put the brakes on a runaway energy crisis, there were new signs of disarray Thursday. ?????A group of Republican lawmakers sued Gov. Gray Davis for keeping secret the details of long-term power contracts signed by the state. ?????One of the largest alternative power producers in the West went to court to suspend its contract with Edison. ?????And operators of the state's electricity grid predicted that in June, California could fall 7% short of the power it needs to avoid blackouts. ?????"California is facing an electricity shortage of unprecedented proportions," wrote the staff of the California Independent System Operator in an assessment of summer power supplies. ?????The court action against Edison came from Carson-based Watson Cogeneration Co., one of nearly 700 firms contracted to supply electricity to the state's private utilities. Watson filed a complaint in Los Angeles County Superior Court seeking to suspend its contract. ?????Watson has not been paid by Edison since November and is at least the third company seeking court release from its utility contract. One such firm, geothermal producer CalEnergy, was granted the right to sell its power on the open market. ?????Watson's complaint comes on the heels of an order by the PUC earlier this week that Edison and PG&E begin fully paying small alternative energy producers, which together supply more than a quarter of the electricity used by California consumers. Shutdowns by some of these small producers contributed to the state's blackouts last week. ?????Tom Lu, Watson's executive director, said the PUC order failed to provide the assurances his company needs that it will get paid. Many small producers have complained that the order slashes the rates that utilities must pay the producers to a level that makes it impossible for them to turn a profit. ?????"What we're looking for is the capability to be able to sell to a third party so that we can get paid for our power deliveries," Lu said. ?????Edison sent a letter to the small producers Thursday, promising to begin paying them by April 16 for power supplied in April. The utility added that it expects all the alternative generators that shut down their operations to resume deliveries by Sunday. ?????The lawsuit filed by the GOP legislators demanding that Davis open the books on the state's long-term energy contracts came on the heels of a similar suit filed last week by a coalition of news organizations, including The Times. ?????Led by Assemblyman Tony Strickland (R-Moorpark), the suit argues that under the California Public Records Act, the details of the power buys should be made public. ?????Republican lawmakers, who plan to raise money to finance their suit, said Davis' withholding of the information prevented them from voting responsibly on the state budget and other important financial matters. California is spending between $45 million and $55 million a day on electricity on the expensive wholesale spot market. ?????"The governor is asking the people in this building to drive down a dark tunnel with the lights off," Assemblyman John Campbell (R-Irvine) said in a news conference outside the Capitol. ?????Davis administration officials contend that release of the information now would jeopardize their efforts to enter into inexpensive, long-term contracts to purchase electricity because bidders would know what their counterparts were offering, and would not offer a lower price. They say they will release the information at a future date. ?????The administration position received a boost this week when Atty. Gen. Bill Lockyer issued a legal opinion saying that maintaining the integrity of power-buying negotiations outweighed public disclosure. ?????In other developments Thursday: ?????* U.S. Energy Secretary Spencer Abraham met in Washington, D.C., with power suppliers to discuss ways to help California avert blackouts this summer. ?????Abraham asked the energy companies to prepare a list of potential problems, including maintenance schedules for generating units, that could reduce electricity supplies this summer, an administration official said. ?????* A state energy panel recommended the speedy restart of two gas-fired generators owned by AES Corp. in Huntington Beach, on several conditions. Power would have to be sold in California, and the company would have to pay $1 million for an independent study into whether its plant is causing ocean and beach pollution. ?????The generators could be online by July, according to California Energy Commission staff, but area residents would have to endure construction noise 20 hours a day. The Energy Commission must still vote on the recommendations. ?????* An executive with Southern California Gas Co. adamantly denied explosive allegations, contained in a series of lawsuits, that it conspired with a Texas energy firm to limit natural gas deliveries to California. ?????Testifying before an Assembly oversight committee in Sacramento, Rick Morrow, a vice president with the gas company, said "there was absolutely no mystery" to a meeting at which several of Morrow's employees and representatives of El Paso Natural Gas Co. are alleged to have struck an anti-competitive deal. ?????The two companies are alleged to have violated the state's anti-trust law, and caused prices to spike, by agreeing not to compete with one another on pipeline projects that would have brought additional natural gas supplies into California. ?????Most power plants in California consume natural gas, and the cost of the fuel accounts for as much as 60% of the cost of electricity. ?????* In an analysis of summer power supplies, state grid operators forecast that imports to California from the Pacific Northwest will be halved because severe drought has stressed the region's ability to supply even its own needs from hydroelectric reservoirs. ?????The report, to be reviewed by the Cal-ISO board of governors today, warns that the state's most severe shortfall of power could occur in June, before several new power plants are expected to begin operation in July and August. --- ?????Times staff writers Richard Simon, Nancy Vogel and Christine Hanley contributed to this story. ------------------------------------------------------------------------------ ------ Ads Support Davis Actions, Legislature in Power Crisis By DAN MORAIN, Times Staff Writer ?????SACRAMENTO--Backers of Gov. Gray Davis are airing radio ads saying the governor and Legislature are working hard to solve California's energy crisis, in what could be the beginnings of a campaign against an initiative that doesn't yet exist. ?????The ads, airing in Los Angeles and elsewhere, also offer a boost to Davis, at a time when private polls suggest voter skepticism that he is solving the energy crisis. ?????Backers of the ad campaign, funded with a relatively modest $100,000, say the spots were not intended to help the governor. ?????"The story here is that this group would like to see partisan politics stay out of it," said campaign consultant Rick Claussen of Goddard-Claussen, who specializes in initiative campaigns and produced the spots. "We need to keep people focused on the solutions." ?????Claussen said the group, called Energy for California, could become a political organization that would counter initiatives aimed at undoing whatever solution Davis and lawmakers come up with. ?????At least one and possibly more initiatives related to the energy crisis will probably be on statewide ballots in 2002. Consumer activist Harvey Rosenfield of Santa Monica, who has promoted several initiatives, says he is considering entering the fray. ?????"I'm flattered," Rosenfield said. "This has to be a first: an ad campaign against an initiative that hasn't been drafted." ?????The sponsoring group includes Silicon Valley venture capitalist John Doerr and entrepreneur Reed Hastings, both of whom have donated $25,000 to Davis' 2002 reelection effort and were major backers of an initiative that the governor promoted last year to ease approval of local school construction bonds. ?????Chris Townsend, who hosted a fund-raiser for Davis in Orange County earlier this year, also is involved, as is Silicon Valley Manufacturing Group director Carl Guardino, a Davis appointee to the California Independent System Operator, which oversees the state's power system. ?????The group also includes William Hauck of the California Business Roundtable and Daniel Case of the San Francisco investment bank Hambrecht and Quist. ?????The ads open with voices saying there is no crisis, then switch to an announcer who says the crisis is real and that "California faces even more energy shortages and blackouts this summer if we don't all do our part." ?????"Working together, we can have adequate supplies and a secure energy future. That's what Gov. Gray Davis, the Legislature, business and community leaders are working to do." ?????The ad refers to steps being taken in Sacramento, including "historic statewide conservation programs like the governor's 20/20 program." Although it is not final, that proposal promises to give people 20% rebates on the remainder of their electricity bills if they cut use by 20% between June and September. ?????"They're not political ads," said Garry South, Davis' chief political advisor, who was involved in the planning. "They don't say, 'Vote for Gray Davis.' They're about the energy crisis." ?????The ads are designed to "reassure people and calm people down," said Darry Sragow, a political consultant who works for the state Assembly's majority Democrats. ?????"It is a critical and dicey time for [Davis] politically," Sragow said. "It's not something from which he cannot recover. But he shouldn't be feeling comfortable." ------------------------------------------------------------------------------ ----------------------------------------------------------------- Friday, March 30, 2001 Take-Charge Governor Forfeits on Energy By DAN SCHNUR ?????Where was Gray Davis when the lights went out? ?????Where was the governor when the rates went up, when the bonds to pay for electricity came up short, when the latest round of blackouts swept across California? ?????He was doing what he does best. He was raising money for his reelection campaign. ?????While Davis' hand-picked chairperson of the Public Utilities Commission, former campaign aide Loretta Lynch, was preparing to announce rate increases of up to 40% for some of California's energy consumers, the governor himself was busy hitting up lobbyists for campaign contributions at a Palm Springs golf tournament. In Gray's world, when the going gets tough, the tough go country-clubbing. ?????When it became known that Lynch was considering approving a rate increase, Davis immediately tried to distance himself from her. Only a year ago, Davis had appointed Lynch, a San Francisco trial lawyer and longtime Democratic campaign staffer, as the state's top energy official. Throughout the crisis, his aides had been meeting with her on a regular basis, while portraying Davis himself as being the key player to all energy related deliberations. But when Lynch stepped up to take the heat, the governor was strangely passive and distant. ?????"I can't order or direct an independent body," he told reporters. "I've not given any advice to them on the subject of a rate increase." ?????For the last several months, Davis had made it clear that a rate boost was unacceptable. When the utilities requested an increase last fall, he publicly argued against it. In recent weeks, when state legislators and even his own advisors began to come to terms with the need for a rate hike, Davis said no. But as the crisis worsened, and the options narrowed, he grew silent. Suddenly Lynch, who is destined to go down in California political history as the Rose Bird of electricity, was in command. And Davis was a mere spectator. ?????Where was the governor who announced in the first days of his administration that his appointees would not speak publicly or announce policy without his permission? Where was the governor who stated that it was the job of the independently elected state Legislature to implement his vision? The governor who claimed it was the responsibility of California's judges to reflect the views he expressed in his own election? The governor who has done everything but rip the tongues out of the mouths of advisors who have strayed even slightly from the company line? ?????It's difficult for longtime Davis watchers to reconcile such autocratic tendencies with this new image of the governor tied to the political railroad tracks while the evil commissioners ignore his pleas for mercy. Yet when the full PUC prepared to vote on Lynch's proposal, Davis did not even attend the meeting. He did not, at least publicly, urge the commissioners to reject the rate hike. He certainly did not take to the airwaves calling for Californians to join him in opposition. He has therefore forfeited his right to rail against the fates when his own appointees go ahead and pass a rate increase. ?????As Davis prepares to seek reelection, he already has about $28 million in the bank, and he has strong Democratic majorities in the state Legislature. But he also has a state full of voters who have just been told that their power bills are going to increase by thousands of dollars each year. ?????What's a poor governor to do? ?????When faced with angry voters, a political leader has two choices. He can talk to them honestly and directly, explain that difficult choices must be made and take responsibility for the course of action he has charted. Or he can blame their problems on someone else and go to the golf course with his contributors. ?????Voters will forgive honest policy differences, especially if their leaders have the courage to confront them with difficult truths. They are much less likely to forgive politicians who can't, or won't, lead. ?????If Davis continues to play the part of victim, Californians will look elsewhere for a genuine leader in 2002. - - - Dan Schnur, Director of Communications During Gov. Pete Wilson's First Term, Is a Visiting Instructor at the Institute of Government Studies at Uc Berkeley ------------------------------------------------------------------------------ ---------------------------------------------------------------------------- Blackout Warnings For Police PG&E giving notice to ease traffic jams Bernadette Tansey, Chronicle Staff Writer Friday, March 30, 2001 ,2001 San Francisco Chronicle URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/30/M N188438.DTL San Francisco authorities who have been caught flat-footed by rolling blackouts will get detailed information in advance from PG&E on which blocks will lose their lights during any future outages. Responding to San Francisco's plea for better notice to avoid dangerous traffic jams, Public Utilities Commissioner Carl Wood has ordered Pacific Gas and Electric Co. to share a map of its circuitry with the mayor's Office of Emergency Services. The information will help police officers find out more quickly which intersections will go dark. Traffic signal outages create backups and potential dangers to pedestrians and motorists, said Lucien Canton, director of emergency services. Police now get only sketchy information from PG&E about the blocks where power might go out, Canton said. "It's vague almost to the point of being useless," Canton said. "When the lights go out, we have to go looking for the intersections ourselves." In an order made public yesterday, Wood told PG&E to give as much advance warning as possible when outages are imminent. Wood also directed Southern California Edison to meet with Huntington Beach officials to work out a plan to address that city's request for such information. But Wood said he was not inclined to issue a global order for the utilities to provide detailed information on their circuits with all cities in their coverage areas. A broader notification plan may still be in the works, however. The Independent System Operator, which runs the state's grid, will consider a proposal today for an "e-notification" system to help customers and businesses prepare before the lights go out. Under the plan by Carl Guardino, a member of the ISO's governing board and president of the Silicon Valley Manufacturing Group, utility customers and public agencies that wanted the warnings could submit their e-mail addresses to the ISO. The ISO would advise them whenever a blackout was possible that day and identify the outage blocks that would be affected. PG&E has been reluctant to publicize the exact borders of rolling outage blocks, saying it was concerned that criminals would head to an area where they knew the power was going to go out. To limit the number of people who learn about the outages, Wood told PG&E to submit the block information to the PUC. The commission will then transmit it to the San Francisco emergency services division, with strict limits on its distribution. The utility must also tell city officials which essential customers, such as hospitals, are exempt from rolling blackouts and which are not. Canton said that list will help the city handle emergencies at nonexempt sites and to push exemptions for services that now could lose power. PG&E spokesman John Nelson said the utility will comply with any order the commission issues. But he said PG&E does not have circuit maps down to the level of specific intersections. "Those maps could be developed," Nelson said. "It would certainly be very labor intensive." The outage blocks are also constantly changing, he said, and are modified to take into account different usage patterns between summer and winter. Providing detailed circuit maps to all California cities would be "a most involved undertaking," Nelson said. PG&E serves 49 of California's 58 counties, including hundreds of cities. Nelson said PG&E alerts cities to the possibility of outages as soon as possible, but often gets little advance warning itself from the ISO. The utility has also taken flak from cities that were warned of a possible outage, only to have it averted by last-minute power purchases. Some cities have threatened to sue PG&E for the extra cost of sending out public safety officers who proved not to be needed, Nelson said. ,2001 San Francisco Chronicle ? Page?A - 21 ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ------------------------------------- Energy Crisis Dogs State Democrats Conventioneers likely to discuss Davis' troubles Carla Marinucci, John Wildermuth, Chronicle Political Writers Friday, March 30, 2001 ,2001 San Francisco Chronicle URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/30/M N74478.DTL It has been this kind of month for Gov. Gray Davis: Seeking to welcome Democratic delegates to the annual state convention this weekend, he announced a "Hollywood pictures"-style shindig at the new Disney California Adventure theme park. Then, Disney announced 4,000 layoffs. In California, where residents are enduring rolling blackouts and whopping energy bill increases, Davis and Democrats are hoping for a break -- and better luck -- as they gather in Anaheim, Orange County, to plan for two brutal years of electioneering ahead. The Democrats' goal is to develop strategies that help them contain the energy crisis, showcase national party leaders like House Minority Leader Dick Gephardt of Missouri and Democratic National Committee Chair Terry McAuliffe and pump up the party faithful for coming campaigns. But the three-day convention that begins today will spotlight Davis, whose political problems have prompted reporters to reach for such "Jaws"-like descriptions as "sharks circling" and "blood in the water." THE POLITICS OF POWER OUTAGES The convention will give the governor the chance to beat back the growing perception that he is increasingly vulnerable to power outages and political turmoil: He is scheduled to deliver tomorrow his first major address since Californians learned their energy bills will be hiked as much as 46 percent. But Davis, while still high on the list of Democratic 2004 presidential prospects, faces challenges on a variety of fronts. Consumer groups are howling, TV pundits are criticizing, and some of his party faithful have begun backbiting -- albeit still mostly off the record -- about his cautious handling of the energy situation. "This is going to be a difficult several months for Gray Davis," said author Mark Baldassare, a pollster for the San Francisco-based Public Policy Institute of California. Besides energy woes, a worsening economy and dot-com collapses have "dramatically" changed the political landscape, "and this has given a lot of people second thoughts about whether there's an opportunity to make a run against Davis," Baldassare said. Davis' problems, however, are coming at a high point for California Democrats. Unlike state Republicans, who have been battered by internal squabbling and a string of election losses, Democrats hold all but one of California's statewide offices, control the Legislature and took four congressional seats from Republicans in November. OPTIMISTIC IN ORANGE COUNTY Their confidence is reflected in their choice of convention location. Orange County, for decades a Republican Party stronghold, is now home to a growing, Democratic-leaning Latino population. "We've made amazing gains in Orange County in recent years," said Bob Mulholland, a party strategist. "Holding the convention in Orange County shows the party's commitment to reaching everyone in the state." Still, there's an uneasiness among Democrats regarding Davis' handling of the power crunch. If the 2002 election becomes a referendum on the way politicians have dealt with energy deregulation, plenty of other Democrats could get burned, and those who voted for the 1996 deregulation plan are especially nervous. Republicans -- emboldened -- have intensified their criticism of the governor and, in the case of Secretary of State Bill Jones, declared themselves ready for a 2002 run against Davis. Democratic faithful note that Davis may have suffered some rocky times in recent weeks, but they also admire his status as the ultimate political survivor. "I don't think the governor is going to have any primary challenge. A lot of people are talking, but I don't think anyone has the courage to face him down," said Democratic political consultant Robert Barnes of San Francisco. "Gray is smart and calculating and knows politics. . . . He won the last election when everybody said he was roadkill. He is never to be underestimated. " And, he's got what insiders say it takes to beat any comers: an astonishing $26 million already collected for his next race. UPBEAT REPUBLICANS But Republicans are feeling better than they have in years. "I'm loving every second of (Davis' troubles)," said a high-level GOP operative, who didn't want to be quoted by name. "It gives us a light at the end of the tunnel." Suddenly Davis' $26 million campaign fund isn't looking insurmountable, he said, because "$25.5 million will have to go to explaining the energy crisis." GOP state party Secretary Shannon Reeves, who was invited to the White House this week to talk with President Bush, said, "The biggest problem for the Democrats right now is . . . we're the most unified we've been in probably a decade. And we have a president who has California on the (front burner)." What Republicans don't have is a slam-dunk candidate for governor. Jones starts with less than $120,000 for his campaign, and actor Arnold Schwarzenegger and wealthy businessman Bill Simon are longshots. "Despite all their carping and gloating, you'll notice that not a single one of (the Republicans) has put a viable plan on the table to solve the (energy) problem," said Garry South, Davis' senior political strategist. "They can try to make hay, but they have exactly one statewide elected official. . . . If they're breaking out the champagne, more power to them." Still, pollsters say the energy crisis has affected Davis' standing with voters. The governor's vulnerability stems from his "very public stance" against utility rate increases, said Mark DiCamillo, director of the statewide Field Poll. "It was one of the reasons he was viewed positively, while everyone else was negatively perceived," he said. "Now that his position doesn't seem to be holding, (the approval ratings) are bound to wear off." Alfred Balitzer, political science professor at the Claremont McKenna Colleges, said the Democrats may have to worry about themselves, as much as Davis. "A power crisis involves the average Californian . . . and that will hit home in a special way," he said. "The governor tried to blame it on (former Gov.) Pete Wilson -- but the fact is, it's his watch." If the Democratics who control the Legislature perceive Davis as increasingly unpopular, "they will run for cover . . . (because) he hasn't involved them like he should have," Balitzer said. "The strains of one-party rule are beginning to show, and the question is: Can the Republicans take advantage of it?" E-mail Carla Marinucci at [email protected] and John Wildermuth at [email protected] ,2001 San Francisco Chronicle ? Page?A - 2 ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ----------- Canada seeks to grab bigger role as U.S. energy supplier TOM COHEN, Associated Press Writer Friday, March 30, 2001 ,2001 Associated Press URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2001/03/30/intern ational0216EST0449.DTL (03-30) 02:16 EST TORONTO (AP) -- As President Bush struggles with the U.S. energy crisis, Canada said it is ready to increase the amount of oil and natural gas it provides to the United States. In the past, it has been too costly to tap abundant oil reserves in northern Alberta and natural gas in the Northwest Territories. But accessing those supplies is now economically feasible because of new technology and rising energy prices south of the border. ``Canada has an abundance of energy and we remain the best option as a supplier for the United States,'' said Prime Minister Jean Chretien's spokesman, Duncan Fulton. That offer looks tempting to President Bush, who said Thursday the United States would look to Canada if Congress prevents drilling for oil and natural gas in Alaska's Arctic National Wildlife Refuge. Canada opposes U.S. drilling in Alaska, saying it would endanger a significant porcupine caribou herd that migrates through the reserve. But a bigger reason could be the desire to export fuel to the ``lower 48.'' ``It's important for us to explore and encourage exploration, and work with the Canadians to get pipelines coming out of the Northwest Territories to the United States,'' Bush told reporters Thursday in Washington when asked about expected opposition in Congress to drilling in the Alaska reserve. ``There's gas in our hemisphere,'' he said later. ``And the fundamental question is, where is it going to come from? I'd like it to be American gas. But if the Congress decides not to have exploration in (Alaska), we'll work with the Canadians.'' Chretien discussed energy issues with Bush during their meeting in Washington on Feb. 5, Fulton said. A National Energy Board report last year that assessed supplies and demand to 2025 put known natural gas reserves in Canada's ``northern frontier'' at 24 trillion cubic feet with estimated reserves at almost 170 trillion cubic feet. The United States now consumes about 21.5 trillion cubic feet of gas per year, with demand expected to grow by about 2 percent annually for the next 20 years. Bush administration officials announced Wednesday that they would not implement the 1997 Kyoto Protocol, under which countries agreed to legally binding targets for curbing heat-trapping ``greenhouse'' gases, which contribute to global warming. On Thursday, Bush called natural gas a clean energy source that could help reduce greenhouse gas emissions. The problem, he said, was too little supply and a lack of pipelines to transport it. He said that was why he favored looking in Alaska, despite opposition from environmentalists to drilling in the wilderness refuge. Two major pipeline projects that would transport natural gas from northern Alaska and Arctic Canada to Alberta have been discussed for years. The Alaska Highway project would build a pipeline from the North Slope near Prudhoe Bay to Alberta, following the Alaska Highway part of the way. The Mackenzie Delta project -- which is shorter and would cost less -- would involve a pipeline from the river valley in the Northwest Territories producing a projected 1.2 billion cubic feet a day. Because it would require extensive negotiations to obtain all the necessary approval, the project would take at least seven years to get started, two more than the Alaska Highway project, said Glenn Herchak of TransCanada PipeLines of Calgary, a major backer of the Alaska Highway project. The National Energy Board report also spoke of ``accelerated growth'' in the Alberta oil industry from sand-based deposits now accessible due to new technology. Major industry players including Shell, Exxon Mobil, Gulf Oil and Chevron are investing in exploiting reserves believed by the energy board to exceed the proven reserves of Saudi Arabia. ,2001 Associated Press ? ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ----------- Police unsure how to enforce lights-out rule Posted at 10:18 p.m. PST Thursday, March 29, 2001 BY DANA HULL Mercury News Two weeks after Gov. Gray Davis ordered businesses to sharply reduce their outdoor lighting or face a fine of up to $1,000, police and sheriff's departments across the state say they haven't written a single ticket. The reason: Almost no one has complained about energy hogs, and law enforcement authorities say the governor's outdoor-lighting order is too vague to enforce. They aren't being pushed particularly hard by state officials, either. The governor's executive order required shopping malls, auto dealers and big retailers to reduce their outdoor lighting by at least 50 percent, starting March 15. ``How many tickets have been issued? None. And that doesn't surprise me,'' said Redding Police Chief Bob Blakenship, president of the California Police Chiefs Association. ``There is a lot of confusion as to how to enforce the order. How do you measure what is too much light?'' Though the state is desperately scrambling to stabilize power supplies and rolling blackouts will likely hit with more frequency this summer, most police departments have chosen to take a ``walk and talk'' approach. They remind businesses of the need to reduce energy use when out on patrol, but don't seek out or write up offenders. ``We're not using any type of heavy-handed approach, that's for sure,'' said Lt. Rod Romano of the Union City Police Department. ``We're trying to get compliance.'' Many local businesses say they are conserving, and are as worried about skyrocketing bills as homeowners. But they readily admit that they leave lights on if they feel they need to, and have not received any complaints or words of warning about it. ``We're turning them down, but we don't turn all of them off,'' said Art Wicker, general manager of Piercey Toyota in San Jose. ``We close at 9 p.m., and at 10 some of them go off. We've been under the impression that this was voluntary.'' State officials agree that the executive order has created a great deal of confusion, and say they regularly field calls from law enforcement officers unclear about what they are supposed to do. But they stress that the intention of Davis' executive order was never to hit businesses across California with hundreds of misdemeanor citations. ``The intent of this was never to generate prosecutions,'' said Mike Guerin, chief of law enforcement at the state's Office of Emergency Services. ``The intent was to encourage conservation.'' Thursday, state officials and law enforcement officers gathered at a Wal-Mart store in Bakersfield to remind businesses about the order and encourage compliance. Business support is considered crucial if the state is to have enough power for the summer. And state officials say they never expected full-blown energy patrols. ``Nobody wants San Jose P.D. officers to take time away from solving violent crimes to tell people about lighting conservation,'' said Guerin. ``But we do need to get the message out. Fines are in the toolbox any time an executive order is issued.'' Though consumers grumble about shopping centers that leave their lights on, few take the time to call either the store or police with complaints. But that could change in the coming months, as the energy crisis becomes more severe. Pressure may build for law enforcement to play a more active role. ``The proof of the pudding will be this summer, when the need for conservation goes up,'' said officer Don Cox, a press officer for the Los Angeles Police Department. ``But we haven't even really developed a policy yet about how we will do it. The governor mandated this thing, but wasn't specific on how it should be done.'' Stanislaus County Sheriff Les Weidman, president of the California State Sheriffs' Association, met with the governor's staff when the outdoor lighting order was first being drafted, and supports the massive conservation effort. But he made it clear that his membership is already stretched thin. If rolling blackouts become more frequent, sheriffs will need to respond to any safety problems or accidents that arise. ``I don't have the resources to divert my sheriffs to running around trading in pistols for an electric meter,'' said Weidman. ``But by the same token, I think the public is real concerned about someone who is wasteful. Ultimately, if there are a lot of complaints, they may get a ticket.'' Weidman also worries about the potential for an increase in crime in darkened alleys or parking lots. The order allows businesses to keep lights on for safety reasons, but police say it's difficult to determine when outdoor lights are excessive or crucial: It's subjective. ``For years we've told people to turn the lights on to protect themselves, and now we're asking them to turn them down,'' said Weidman. ``So we have to be careful. We don't want people to jeopardize their safety.'' Though many businesses in the region appear to be complying with the lighting edict, some say that it's not enough. ``Turning down the lights late at night is not going to be the solution to rolling blackouts,'' said Assistant Sheriff Bob Maginnis of Alameda County. ``People are going to have to do other things. If I were in the driver's seat, I'd do scheduled blackouts.'' Contact Dana Hull at [email protected] or (510) 790-7311. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ------------------------------------- PG&E ordered to share details about blackouts Published Friday, March 30, 2001, in the San Jose Mercury News BY KIM VO Mercury News Say you're in charge during rolling blackouts and you have 10 minutes' warning that an outage will hit the Mission district. Should you send a traffic cop to 16th and Valencia? Or Folsom and Cesar Chavez? Which light might go out? Such decisions can make the difference between inconvenience and chaos, said Lucien Canton, director of San Francisco's Office of Emergency Services. And that is why his office had been pressing Pacific Gas & Electric Co. to share detailed information about which streets and buildings would be affected during rolling blackouts. State Public Utilities Commissioner Carl Wood this week ordered PG&E to give the information to San Francisco so it can better prepare for the blackouts, which are expected to continue through summer. ``It is difficult to provide adequate emergency response protection for citizens without knowing, with great specificity, which customers will be affected,'' Wood wrote in his opinion. He also instructed Southern California Edison to provide the city of Huntington Beach with similar information. San Francisco first requested the information last summer, Canton said. PG&E was reluctant to provide street-by-street details, citing confidentiality. ``If someone said Block 12 is out and it includes this street, this street and that street, you'll be letting criminals know where the power's out, where the burglar alarms are off,'' said Ron Low, a PG&E spokesman. Wood has ordered San Francisco to share the information on a ``need-to-know'' basis. PG&E must submit the information to the PUC within five days. The state regulatory agency will review it before passing it along to San Francisco. Canton dismissed Low's concerns about lawlessness, saying there has been no looting during the power outages. Indeed, the biggest problem is traffic backups as drivers negotiate intersections with signals out. If Canton knows exactly which signals are on the circuits affected, he can send traffic officers to those intersections -- perhaps even before the power goes out. He wants to avoid a repeat of a citywide blackout in the winter of 1998 during which a pedestrian was killed on Van Ness Avenue. While he can't say the power outage caused the death, orderly traffic might have prevented it, Canton said. A team will review the information and craft new emergency response plans, such as how to warn schools and nursing homes in advance of a blackout. Contact Kim Vo at [email protected] or (415) 477-2518. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ---------------------------------- We need power -- in our back yard Published Friday, March 30, 2001, in the San Jose Mercury News THE San Jose City Council, which unanimously opposed a major power plant in Coyote Valley, is poised to approve an Internet server farm that will eventually consume as much electricity as 180,000 homes. This does not compute. San Jose cannot aspire to be at the center of e-commerce, home to the computers that are its heart, without supplying more of the electrons that are its lifeblood. Only a tenth of the energy consumed in Silicon Valley is generated here. The 600-megawatt Metcalf generating plant, fought by Mayor Ron Gonzales and the council, would provide enough power for 600,000 homes, using some of the cleanest technology available. Located within the Bay Area distribution grid, it would enhance the reliability of the power supply. Instead, Gonzales is hoping to find numerous sites throughout Silicon Valley for smaller power plants. Some proposals have surfaced. Santa Clara is looking to build four new new plants. The mayor of Gilroy hopes a large power plant can be built there. Still, Gonzales's plan has not progressed much beyond the idea stage. Tuesday, the council will consider the application of U.S. DataPort to build a server farm along Highway 237 in Alviso. It demonstrates that compensating for the lack of an assured power supply in the region could be worse for air quality than a major power plant, unless the city and Bay Area air regulators are vigilant. U.S. DataPort plans to grow in stages over five years, ultimately needing 180 megawatts of power. It will generate 50 megawatts with a natural gas power plant on site. No problem there. When the facility outgrows that plant, however, and relies on the regional grid as well, it plans diesel generators as a backup. Diesel is much dirtier than natural gas. There's reason to hope diesels will not be needed. Better technology could reach the market soon. In addition, the siting process for larger power plants has been streamlined since U.S. DataPort first designed its facility. Far better than diesels would be a gas-fired plant sufficient for all U.S. DataPort's needs. The city and the Bay Area Air Quality Management District should cut the company absolutely no slack on exceeding strict pollution limits on operating diesels, in the event of blackouts. The company knows perfectly well the uncertainty of the power supply. Electricity is not the sole issue. The council should also insist on a layout of the buildings that preserves a third of the land for open space and habitat for burrowing owls. The electricity drought should pass in a couple years. San Jose need not shut down in the meantime. But it can't act as if the juice to power Silicon Valley will always come from someplace else. The Metcalf plant is needed, as well as on-site power for U.S. DataPort. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ----------------------------------- 'Interruptible' penalties may be revived PUC to weigh reinstating fines under the conservation pact. March 30, 2001 By ANNE C. MULKERN The Orange County Register To help prevent rolling blackouts this summer, state regulators want to give businesses a powerful financial incentive to turn off their electricity in an energy emergency. The Public Utilities Commission on Tuesday will consider reinstating Southern California Edison's right to levy huge fines against companies that don't unplug when asked. Those financial penalties - which totaled $200 million from November through late January -- were suspended Jan. 26 after businesses were asked to disconnect 37 times in 10 months. If the penalties are reinstated, it likely will mean millions in new costs for Orange County companies in the program. Businesses not only face fines when they don't unplug, they also lose productivity when they do. And fines for not interrupting in the future will come on top of the higher electricity rates businesses will be paying. Some of those costs could be passed on to consumers. "In this fragile economy and stock market, a company's operational losses cannot simply be absorbed," Julie Puentes, spokeswoman for the Orange County Business Council, said in a protest letter to the PUC. "If this crisis is not managed properly, there will be job layoffs, employee work furloughs, salary cuts, spending cutbacks and companies curtailing investment in California," Puente said. Prior to last fall, companies in the interruptibles program were allowed to exit during a 30-day window each November. But after the energy crisis escalated last summer, the PUC in October barred companies from leaving the program. Interruptibles contracts expire Sunday, and the PUC wants to have new contracts quickly in place. The exact penalties and how the program will be structured have not been determined. The PUC released a draft laying out some proposed changes. But revisions to that were being made Thursday and today to address some of the comments made by businesses. The draft decision proposes letting customers out of the program under certain conditions, but those conditions are too oppressive for most businesses, Puentes said. Businesses would have to either pay back the discounts they received in 2000 and 2001 with interest; install energy-efficient equipment equal in price to the total discount they received during that same period; or join a voluntary interruption program in which they cut power just as much, but with more-flexible timing. Under that plan, they'd interrupt but get no rate discounts. "Getting out is extremely punitive to the companies," Puentes said. "If you opt out, you're really paying twice. You pay back the discounts, and you still pay the penalties (you've already paid)." Under the plan, public schools, universities, hospitals and prisons could opt out without any repayment obligation. Businesses say they need more options. "You need reliability, and you need flexibility because, frankly, people's livelihoods depend on this," said Andrew De Cicco, vice president of ITT Industries, a Santa Ana electronics maker. The interruptibles program, which began in the mid-1980s, gives some 1,500 large businesses discounts of 15 percent to 20 percent off their power bills for agreeing to cut off power when asked. In the program's first 13 years, companies unplugged just once. But in 2000, they were asked to unplug some 24 times. In January alone, they faced 13 interruptions including two in the same day. Many complained that the interruptions and fines were significantly hurting their businesses. Astech Manufacturing Inc. of Santa Ana said it lost $480,000 in productivity during the late fall and winter interruptions. ITT Industries shut down four days in January rather than face penalties of $700,000 per day. The company said it lost an additional $2 million in revenue in one week. A state lawmaker has proposed forcing Edison to repay or forgive those fines. That bill passed the Assembly but has not yet been scheduled for Senate committee hearings. With those onerous financial penalties intact, the interruptibles program was a key tool for preventing blackouts last summer and through the fall. If all the businesses in the program shut off power, they save enough electricity to power 1.5 million homes. Without the fines, businesses have lacked any strong incentive to cut power. Though they were asked to unplug voluntarily when the state reached a new crisis level last week, most did not. That made rolling blackouts necessary. "The participation without the penalties was certainly much less," Edison spokesman Steve Conroy said. "It was only about 5 percent (of the customers in the program)." That unfairly shifts the burden of blackouts to all other customers who have not benefited from reduced rates, Commissioner Carl Wood said. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ --------------------------- 2 cities to be warned if blackout is imminent Huntington Beach and San Francisco sought details. March 30, 2001 By KATE BERRY The Orange County Register In a ruling that could open the door for advance notification of where blackouts could strike, the Public Utilities Commission ordered two utilities to give detailed information to Huntington Beach and the city and county of San Francisco, so police, fire and medical workers can prepare for power-related emergencies. The utilities affected, Southern California Edison and Pacific Gas & Electric, already have systems in place to automatically notify cities when blackouts occur. But San Francisco and Huntington Beach requested more-detailed information, such as specific city blocks that would be affected and names and addresses of customers who depend on life- support systems in their homes. Edison was ordered to meet with Huntington Beach officials and PG&E to meet with city and county officials in San Francisco in the next 15 days to resolve the information requests. The cities and county would be required to sign confidentiality agreements to keep the information from being publicly disclosed. The commission said disclosure "can be accomplished with necessary protection of confidential data." The PUC confined its order, issued Wednesday, to the two cities and county that requested the information. It said releasing the information to all the cities in California would be "unreasonably burdensome" to the utilities. In the past six weeks, both Edison and PG&E have briefed emergency service officials at cities in their territories on steps they can take to improve safety in case of an outage. But cities don't get much advance notice. Because electricity is produced and delivered instantaneously (it cannot be stored), the utilities have only 10 minutes' warning from the state's grid operator before imposing rotating blackouts. As a result, it is difficult for cities to prepare ahead of time, said Steve Conroy, an Edison spokesman. "Ideally, we would like to give the cities as much notification as possible," he said. "We also don't want the information to fall into the wrong hands." Edison also is considering notifying customers of the group number for their areas. The utility, based in Rosemead, has divided its territory into more than 110 groups. Under the proposal, it would broadcast prior to an outage the group numbers that would be affected, so that consumers could prepare for a blackout. ------------------------------------------------------------------------------ -------------------------------------------------------------------- Energy crisis could cost billions, says California's controller By STEVE LAWRENCE Associated Press Writer SACRAMENTO, California (AP) via NewsEdge Corporation - Even with customers paying up to 46 percent more for electricity, California's financial controller says the state faces a dlrs 7.4 billion shortfall over the next 18 months if it keeps buying power. But a state Department of Finance spokesman dismissed Kathleen Connell's dire financial projection, saying it doesn't take into account the governor's efforts to reduce electricity costs by signing long-term purchasing contracts with power wholesalers. Connell estimated California will spend dlrs 26.8 billion buying electricity the next 18 months for the state's two largest utilities, which are on the brink of bankruptcy. Despite the rate increase approved this week and the dlrs 12.4 billion the state is authorized to sell in bonds, she said Wednesday that California would find itself billions of dollars in debt by October 2002. Connell said the problem is that Gov. Gray Davis and lawmakers failed to examine the state's ledgers before buying power for Southern California Edison and Pacific Gas and Electric Co. ``We must all work together so the left hand knows what the right hand is doing. You have to look at the books before attempting to solve the energy crisis,'' she said. Department of Finance spokesman Sandy Harrison said California normally has cash flow problems in October because most of the state's revenue comes in April. Just how much California's energy crisis will cost the state has been hotly debated by state officials, financial experts and business people. Some predict the power crisis and rolling blackouts will have a ripple effect through all segments of the state's economy and even into neighboring states. ``Remember that trends start in California,'' said Jack Kyser, chief economist for the Los Angeles Economic Development Corporation. ``I think this is definitely going to create inflationary pressures, and that is something the Federal Reserve Bank can't do anything about.'' California's dlrs 1.3 trillion economy accounts for 13 percent of the nation's gross domestic product and 16 percent of U.S. consumer demand. The energy crisis has been blamed mainly on California's 1996 deregulation law, which forced the state's investor-owned utilities to shed their power plants and buy electricity from wholesalers while capping the rates they could charge consumers. SoCal Edison and PG&E say that forced them to the brink of bankruptcy when energy prices spiraled upward over the past year. The two utilities say they owe nearly dlrs 13 billion to power wholesalers who have shut off their credit, forcing the state to step in and buy electricity. ------------------------------------------------------------------------------ ------------------------------------------------------------------------- [B] FULL/ Edison Intl unit pays $43.5 mln to water resources dept New York, March 29 (BridgeNews) - Edison International's Southern California Edison unit paid $43.5 million to the California Department of Water Resources, pursuant to a California Public Utilities Commission order. This payment is for power purchased by the agency for Southern California customers from Jan. 19, 2001 through Feb. 11, 2001. --Sanjib Dutta, BridgeNews * * * The following is the text of today's announcement, with emphasis added by BridgeNews. BridgeStation links to company data have been inserted at the end: Southern California Edison Makes Payment to California DWR ROSEMEAD, CALIF., MARCH 29 /PRNEWSWIRE/ -- SOUTHERN CALIFORNIA EDISON (SCE) ANNOUNCED THAT, PURSUANT TO A CALIFORNIA PUBLIC UTILITIES COMMISSION (CPUC) ORDER ADOPTED YESTERDAY, A PAYMENT OF $43.5 MILLION WAS MADE TO THE CALIFORNIA DEPARTMENT OF WATER RESOURCES (CDWR). THIS PAYMENT IS FOR POWER PURCHASED BY THE AGENCY FOR SCE CUSTOMERS FOR THE PERIOD JAN. 19, 2001 THROUGH FEB. 11, 2001. BASED ON THE CPUC'S ORDER, THE RATE APPLIED TO PURCHASES BETWEEN JAN. 19 AND JAN. 31 IS 6.277 CENTS PER KILOWATT-HOUR. FOR THE PERIOD OF FEB. 1 THROUGH FEB. 11, THE RATE APPLIED IS 7.277 CENTS PER KWH. THE CPUC ORDER ALSO REQUIRES SCE TO MAKE DAILY PAYMENTS TO THE CDWR GOING FORWARD FOR POWER PURCHASED FOR SCE CUSTOMERS. PAYMENTS WILL BE FOR POWER PURCHASED 45 DAYS PRIOR TO PAYMENT AND WILL BE BASED ON THE 7.277 CENTS PER KWH RATE AND ACTUAL DELIVERIES. An Edison International (NYSE: EIX) company, Southern California Edison is one of the nation's largest electric utilities, serving more than 11 million people in a 50,000-square-mile area within central, coastal and Southern California. SOURCE: Southern California Edison CONTACT: Corporate Communications of Southern California Edison, 626-302-2255 Web site: http://www.edisonnews.com End ------------------------------------------------------------------------------ -------- EPRIsolutions Tackles California Power Problems PALO ALTO, Calif.--(BUSINESS WIRE)--March 29, 2001 via NewsEdge Corporation - Power companies and their business customers need reliable electricity right now, and Palo Alto-based EPRIsolutions is helping them assess their options. A subsidiary of the renowned Electric Power Research Institute, EPRIsolutions is in a unique position to offer its services to stakeholders in the California power crisis. The year-old company takes advantage of the strides made by its parent company in developing technologies to solve domestic and global energy problems for electric and gas utility clients. "We help clients understand the pros and cons of advanced large central station power systems; we analyze transmission and distribution bottlenecks; and we offer an assessment of new options like distributed generation, co-generation, energy efficiency, and micro-grids," explains EPRIsolutions' CEO, Philip Curtis. EPRIsolutions' work takes them to all parts of the country, but California's energy supply and delivery issues provide fertile ground for their expertise. The state's energy consumers are looking for answers to their immediate concerns about reliability and premium power. Distributed generation (DG) -- the siting of small power systems within cities or near industrial and commercial sites or at critical load centers -- is a popular suggestion. "We can provide an objective assessment of all distributed generation options, including small gas turbines, microturbines, diesel generators, and fuel cell systems," says Dan Rastler, area manager for distributed resources. "With our supporting analysis, we can also help local power providers target the best sites and evaluate interconnection requirements and power flow impacts." Rastler believes that DG solutions are here today and can complement California's plans to invest in large central power stations. Cities, municipal power systems, and industrial and commercial companies interested in learning more about EPRIsolutions services are encouraged to contact Dan Rastler, 650/855-2521 or e-mail [email protected]. EPRIsolutions, a subsidiary of EPRI, the collaborative science and technology organization for the power industry, provides application and consulting services in the areas of generation, transmission, distribution, energy efficiency and distributed resources. CONTACT: EPRI \| Christine Hopf-Lovette, 650/855-2733 \| [email protected]	{ "pile_set_name": "Enron Emails" }
Twanda, would you please print this and attachment? THX----- Forwarded by Michelle Cash/HOU/ECT on 05/18/2000 09:07 AM ----- Pam Butler@ENRON 04/06/2000 07:39 PM To: Felecia Acevedo/Corp/Enron@ENRON cc: Michelle Cash/HOU/ECT@ECT, Johnna Young/Corp/Enron@ENRON, Drew C Lynch/HOU/ECT@ECT, Kathryn Schultea/HR/Corp/Enron@ENRON, Mary Joyce/HR/Corp/Enron@ENRON Subject: Re: Company Structure File Felecia, thanks so much for the listing of companies whose employees are paid directly by Enron which includes legal name, % ownership, employee count, etc. Great work and excellent due diligence. As we discussed, you are in the process of researching and documenting the same information for the non-payroll companies which of course is critical for completing our due diligence with respect to the new AESOP. In order to get this information for determining AESOP participation, and as we dscussed today, we are asking the HR leadership team to work with their business units to provide us with all non-payroll company names (to provide legal name, if different), % ownership, whether or not the company is part of Enron's consolidated reporting group (if not, why) and number of employees. They will also give us a "yes" or "no" at this time as to whether their Business Unit Head wishes for the company to participate in AESOP. We are asking them to forward this file to you, as we discussed, to assist you with data collection. We would ask that you coordinate the necessary Legal review of ownership levels with Michelle Cash. We will facilitate with Johnna Young a review of whether we will have any accounting issues with granting options to employees of each respective company. We have a tight turnaround, of course, as outlined in today's meeting, but hopefully we have good game plan to get us to where we need to be. Note to Johnna: Johnna, attached please see Felicia's file on domestic for your initial review. Thanks again, Felecia, for your help. Pam Felecia Acevedo 04/05/2000 10:59 AM To: Pam Butler/HR/Corp/Enron@ENRON cc: Subject: Company Structure File Pam, Here is the file	{ "pile_set_name": "Enron Emails" }
For your information-- Eric Thode, the Director of Public Relations for Enron, sent the email below to let us know that after a lot of discussion with the legal department, the decision was made to retain our company name of Enron North America, while the offices of Dave Delainey and John Lavorato will use Enron Americas. Eric suggested that if we have ordered any business cards or stationery with Enron Americas that we re-order and use Enron North America. Let me know if you have any questions. ---------------------- Forwarded by Debra Davidson/PDX/ECT on 12/18/2000 07:35 AM --------------------------- Eric Thode@ENRON 12/18/2000 06:48 AM To: Debra Davidson/PDX/ECT@ECT cc: Subject: Letterhead and Business Cards Debra -- Stop the presses....I just received new information regarding the name change. We have decided to keep everyone as Enron NOrth America or Enron South America. The only people who will use Enron Americas are Dave Delainey and John Lavorato. Hope this does not cause a problem. If it does, please call me to discuss. I'm sorry for the incorrect information a week or so ago. Eric	{ "pile_set_name": "Enron Emails" }

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