 the state to be buying 
electricity. 
"I'm sure we've made a lot of mistakes," said Thomas Hannigan, director of 
the state Department of Water Resources, which has been delegated by Gov. 
Gray Davis to purchase power on behalf of near-bankrupt utilities. 
By nearly all accounts, the luckless bureaucrats at the DWR are being torn to 
shreds by professional energy traders, who see in California's power- 
purchasing plan a golden opportunity to make off with billions in extra 
profits. 
"It's like being in a lion cage or a snake pit, however you want to define 
it," Hannigan said. "We've definitely gotten burned. That goes without 
saying." 
In fact, state officials estimated last week that the DWR is shelling out 
roughly $350 million a week on the volatile electricity "spot" market and 
will have spent almost $4 billion by the end of the month. 
At this rate, the state will use up by the end of July the entire $10 billion 
authorized by the Legislature for power purchases. 
CALPIRG CALLS IT GOUGING
"The state is clearly being taken advantage of," said Dan Jacobson, consumer 
program director of the California Public Interest Research Group. "It looks 
like the power generators are gouging us for as much as they can." 
Leading power companies deny that they are artificially driving electricity 
prices higher or that they are gouging California consumers. But not one was 
willing to speak on the record about how well the DWR is doing in the 
frequently cutthroat energy business. 
Several industry sources said they had been advised not to discuss the DWR's 
performance since a trading manager at Bonneville Power Administration in 
Portland, Ore., was quoted as saying that California's new electricity buyers 
"agree to prices that make you wonder." 
The manager, David Mills, told the Wall Street Journal that the DWR is so out 
of its depth that he has instructed Bonneville's traders "to cut California 
some slack" by occasionally offering cut-rate prices. 
A Bonneville spokesman said last week that Mills had been misquoted, but the 
damage already was done:
the state to be buying 
 electricity. 
 " I'm sure we've made a fortune of error, " said Thomas Hannigan, director of 
 the state Department of Water Resources, which has been delegated by Gov. 
 Gray Davis to buy power on behalf of near - bankrupt utilities. 
 By about all accounts, the luckless bureaucrat at the DWR are being tear to 
 shreds by professional department of energy traders, who see in California's power- 
 purchasing plan a fortunate opportunity to make off with billions in extra 
 profits. 
 " It's like being in a lion batting cage or a snake pit, however you want to specify 
 it, " Hannigan said. " We've definitely gotten cut. That goes without 
 state. " 
 In fact, state officials estimated last week that the DWR is shell out 
 roughly $ 350 million a week on the volatile electricity " spot " market and 
 will have spent almost $ 4 billion by the end of the month. 
 At this rate, the state will use up by the end of July the entire $ 10 billion 
 authorized by the Legislature for power purchases. 
 CALPIRG call IT GOUGING 
 " The state is distinctly being remove advantage of, " said Dan Jacobson, consumer 
 program director of the California Public Interest Research Group. " It looks 
 like the power generators are gouging us for as a lot as they can. " 
 Leading power companies deny that they are artificially driving electricity 
 prices higher or that they are gouging California consumers. But not one was 
 willing to speak on the record about how well the DWR is serve in the 
 frequently cutthroat department of energy clientele. 
 Several industry sources said they had been propose not to discuss the DWR's 
 performance since a trading manager at Bonneville Power Administration in 
 Portland, Ore., was quote as saying that California's new electricity buyers 
 " agree to price that make you wonder. " 
 The coach, David Mills, told the Wall Street Journal that the DWR is so away 
 of its depth that he has instructed Bonneville's traders " to cut California 
 some slump " by occasionally offering abridge - rate prices. 
 A Bonneville spokesman said last week that Mills had been misquote, but the 
 damage already was done:
 thf state to be buying 
elegtricity. 
"I'm sure we've mede a lkt of mirtakes," said Thomas Hannigan, virextor if 
the state Departmeng of Wateg Resourcws, wiich has been delegated nv Gov. 
Nray Batis to purchase power on tehalf of near-tavkxupt utilities. 
By nearly all accountf, the licnless bureaucrwts se ths DWR are being torn to 
shreds by lrofessponal energy tradrrs, who see in California's powfr- 
purchasing plan a golden okloreynity to makd off with billions in extra 
profits. 
"It's like being iv a lnon cage or a snwne pit, howeter yol want to deflme 
it," Vannigam said. "We've deninitxly totten burned. That goxs without 
saying." 
In fact, stade officials estimaree lasj ween thxr tfe SWC ia shelpinj out 
roughmy $350 million a week on the volauilq electricity "apot" mwrhet and 
will have spent almost $4 billion by the end of the month. 
Ar this rate, the state will use up by the end of July the entire $10 billion 
authorhzed uy tht Oegisuqtkre for power purchases. 
CALPIRG CALLS IT GOUGYHG
"Uhe state is cleavly being taken adfajtsde of," said Dav Jacoyaoh, consumer 
program directjr of the Calisornoa Public Interest Research Group. "It lojjs 
like the power yenerators axe goubing is for as much as they ean." 
Lezding power companiea deny that they xre astificially driving electrycity 
prires hngher or thaj they wre gouginh Callxornia consumers. Bkt noj one fas 
willinh to speak on the record about ipw well the CWS iv doing nn the 
frequently cttthroat energi businesf. 
Sevdral indusnry sourcxs said they had been advhded not to dmscuss thq DWE's 
pwrformavze since a tracing manaytr at Bonnwville Power Adminlstrajikn in 
Portland, Ire., was quoted as xaykng tjav Calyxornia's new alecgrizoty bjyers 
"agree go ptices that make you fondsr." 
The manager, Davod Mills, tild the Rall Street Jpurnal that the DWG is vo uut 
og ijs depth that he has instructed Bonnevilpe's traders "to sut Galisornia 
somz slack" by occasionally offering cut-rate prices. 
A Bonneviloe spokesman said lcsu week that Mmlls hwd been mhsquoted, but the 
damqge already was dpne:
the state to be buying electricity. "I'm made lot of said Thomas Hannigan, of Resources, which has delegated by Gov. Davis to purchase power on behalf near-bankrupt utilities. By nearly all accounts, the luckless bureaucrats at the DWR are torn to shreds by professional energy traders, who see in California's power- purchasing a opportunity make with billions in extra profits. "It's like being in a lion cage or a snake pit, you want to define it," Hannigan said. "We've gotten burned. That goes saying." In fact, state officials last that the is out $350 million a on the volatile electricity "spot" market and will have spent almost $4 billion by the end of month. At the state use by end of July $10 billion authorized by the Legislature CALPIRG CALLS IT GOUGING "The state is clearly taken advantage said Dan Jacobson, consumer program director the California Public Interest Research Group. "It looks the power generators are gouging us for as much as they can." Leading power companies they are artificially driving prices higher or they gouging consumers. not one willing to speak on the record about how well the DWR doing in the frequently cutthroat energy business. Several industry sources had advised not to the DWR's performance since trading at Bonneville Power Administration Ore., quoted California's electricity "agree to prices that you wonder." The manager, David told the Wall Street so out of its depth that he has Bonneville's traders "to cut California some slack" occasionally offering cut-rate prices. A Bonneville spokesman said last week that Mills been misquoted, damage already was done:
 the state to be buying 
electriCity. 
"I'm sure We've mAde A loT oF misTakeS," said Thomas HanNIgan, Director of 
the state DepaRtmenT oF wateR reSourcEs, which HAs BEEn dElEgAteD bY goV. 
Gray davIs to purChase power On bEhAlf of near-banKRuPt utilitieS. 
By Nearly all accOunTs, the lUcKleSS bureAucRats aT the DWr Are beiNg torn to 
sHrEDs by prOFessionAL EnErgy Traders, who see in CaLIfORnia's power- 
purcHasing PlAN a GOLdeN opPortunity tO mAke ofF With bilLIoNS IN exTRa 
profits. 
"It's lIke being in a LIon Cage or A sNakE Pit, howEver yOu WAnt To define 
it," HAnniGan said. "We'Ve defiNItely goTTen burnEd. That GoeS wiThouT 
SaYiNg." 
IN fACt, sTAtE ofFIciAls estimAtEd Last wEek tHAT THe DWr is ShelLing oUt 
roughly $350 millIon A weeK On tHe volAtile ElecTrIcity "Spot" maRket aNd 
Will have spent alMost $4 Billion by The EnD of ThE montH. 
at this RatE, thE state wIll use uP By tHe END Of july the entire $10 billiOn 
AUThOrized by The LegISlAtURe for powEr PurChasES. 
cALPIrG CAllS iT GOUGINg
"The stATe Is Clearly BeIng takEn AdvAntAge of," SAid DAn JacoBson, consUmer 
pROgram director oF The California pUbLIC INTereSt REsearch GrouP. "It lOOks 
lIke tHE pOweR GenerAtors ArE GoUGing us for as much as thEy Can." 
LeaDing pOwer companies Deny that thEY ARe artifiCialLY dRIving electriciTy 
priCes higher oR That they Are goUging CalIfornia coNSUmers. But Not One Was 
WilLINg To speak on the rECOrd aBoUt how weLl tHe DWR is DoiNg iN thE 
frEqUently cutThroat enErGy BuSiNesS. 
SeveRAl industRy SouRcEs sAid thEY had beEn advIsed NoT tO DisCuss the dwR'S 
PErfoRmAnCe siNce A tRadinG manAGer At BonneVille PoweR AdMInisTrAtIon in 
PoRtland, Ore., was qUoTed as sayinG tHat califoRNIa's new elEctricity buyers 
"agree to pRIces thaT maKe you WondEr." 
The manaGer, david MIllS, Told thE Wall STreet joUrnAL That tHE dWr is So Out 
of its dePTH thAt he hAs InstRucted BOnneville's traders "tO Cut california 
somE slAck" bY OCcAsiONaLLy oFfERinG CUt-rate prices. 
A BoNneville spOkESmAn said last WEek ThAt Mills Had been MisquOTed, but tHe 
damage aLready was DoNe:
 the state to be buying 
e lectricity . 
"I 'msur ewe'v e ma de a lot of mi s take s," said Thomas Hannig an, d ir e ctor of  
the  stateD ep a r tme nt  o f W at e rResou rce s, whic h has been  de le gated by Gov .  Gray Davis  to  purchase po wer  on be ha lfo f nea r-b ankru pt uti l ities.  
By near ly all ac c ounts,t h eluck less bureaucratsa tt he DWR are bei ng tor nt os hre dsby profess io nal e n ergy tr a de r s ,  wh o  see in Calif ornia's pow e r-
purch as ing plan a  gold en opp ortunity to  mak e off wit h bill i ons ine xtra 
p rofits . "It 's l i ke  b ein gi n a li onc age  or a sn ak epit,howe v e r youwan t to  defi ne 
it," Hann iga n sa i d."We'v e def init el y got ten bu rned.  T hat goes withou t 
s aying." Infa ct,  s tateo fficia lsest imatedlast we e k t ha t t he  DWR is shelling o ut ro ughly $3 50 mil l io na  week on  t hevola t i le el ectr i ci ty "spot " mark e tan d 
will  h ave sp en t a lmo st $4 bill ion by  the end  of t h e month. 
At t h is rate, thes ta t e  w i ll u seup by the e nd o f  Jul y th e  e nti r e $10  bill io n  a uthorized by the Le gi slatur e for  power purcha ses. 
CALP I R G  CALLS I T GO U GI N G
"The state i s cle arly being taken ad vanta ge of,"said DanJ a cobson,con sum er
pr o g ra m director of t he C al ifornia  Pu blic In ter est  Re sea rc h Group."It look s
l ik ethe  powe r  generat or s a re  go uging us for  as m uchas  t h eycan." L ea d i ng p ow er  com pan ie s den y th a t t hey are  artifici all y  dri vi ng  electr icity 
prices  h igher or t ha t t hey ar e gougingCalifornia consumers. B u t not o newas will ing to sp eak  on th e r e cord a bout h ow we ll  th e DWR i s do ing  i n the 
fre q u ent ly cu tt hroa t energ y business. 
Sever a l i ndustry sourc essaid t he y h a db een  a d vis e d  not to discuss  the DWR's  p er formance s i nce  a  tradin g manag er at Bonnevi lle Power  Administ ra tion i n Portland,Ore., wa s quoteda s say i ng  that  Ca liforn ia 'snew e lectri c ity  buye rs 
"a gr ee toprice sthat mak e you wonder." 
The man ager,David  Mi lls, told  th e  Wa ll Street  Jou rnal thatthe  DW R issoo ut 
o f it s  d ept h  that  heh as instru c te d B o n ne ville's tra d e r s " to cu t C a liforn ia some slack" by oc c asionally offe ring c ut- rat e  pri ce s. 
A Bonnevil lesp o k esman sa id  last weekthat Mil ls had b een mi squote d, butt h edamage  alr ead y was don e:
 the_state to_be buying 
electricity. 
"I'm_sure we've_made_a lot_of_mistakes," said Thomas_Hannigan, director of_
the state Department of_Water Resources, which_has_been delegated by Gov. 
Gray Davis to purchase power on behalf of near-bankrupt utilities._
By_nearly all_accounts,_the_luckless bureaucrats at the DWR_are being torn to 
shreds_by professional_energy traders, who see in California's power- 
purchasing_plan_a golden opportunity_to make off with billions in extra 
profits. 
"It's_like being in a lion cage_or a snake_pit,_however_you want to define_
it," Hannigan said. "We've definitely gotten_burned. That goes without 
saying." 
In_fact, state officials estimated last week that_the DWR is shelling out 
roughly_$350 million a week on_the volatile_electricity "spot" market and 
will_have spent almost_$4 billion_by the end_of the month. 
At this rate,_the state will_use up by the end of_July_the entire $10_billion_
authorized_by the_Legislature for power_purchases._
CALPIRG CALLS_IT_GOUGING
"The state is clearly being taken_advantage_of," said Dan Jacobson, consumer 
program director_of the California Public_Interest_Research Group. "It looks_
like the power generators are_gouging us for as much as_they can."_
Leading power_companies deny that they are artificially driving electricity 
prices higher or_that they are gouging California consumers._But not one was_
willing to_speak_on the record_about_how well_the DWR is doing in the 
frequently_cutthroat energy_business. 
Several industry sources said they_had been advised not_to_discuss the DWR's 
performance since a_trading manager at Bonneville Power Administration_in 
Portland, Ore., was quoted_as_saying_that California's new electricity buyers_
"agree to prices that make you_wonder." 
The manager,_David Mills, told the Wall Street Journal_that_the DWR is so out 
of_its_depth that he has instructed Bonneville's_traders_"to_cut California 
some slack" by_occasionally offering cut-rate prices. 
A Bonneville_spokesman said last week that Mills had been misquoted,_but the 
damage_already was done: