 need to improve." 
NEW FACILITY
The department is trying to do just that. Next week, the DWR's electricity 
traders are expected to move from their folding tables to a brand-new, 
25,000- square-foot facility on another floor. 
Whether the trades remain under the aegis of the DWR is another matter. 
Hannigan said he doesn't want his department to remain in the energy business 
for years to come. Given his choice, he said he would prefer power purchases 
being made by a newly created state energy authority, as proposed by 
legislation now on the drawing board. 
While some at the DWR appear to enjoy the department's newfound notoriety, 
Hannigan, 60, is not one of them. 
He said he is looking forward to retirement and spending more time with his 
family. Being at the center of California's energy storm is clearly a 
headache he'd rather not have at this point in his career. 
"I know we're outgunned," he said. "I just don't know how badly." 
The Power Cycle 
1. Electricity Providers 
Power companies stretching from Canada to Texas offer electricity to 
shortage-plagued California. They have been accused of gouging consumers by 
charging sky-high wholesale rates. 
2. Department of Water Resources 
Department of Water Resources state bureaucrats are spending $350 million a 
week purchasing electricity on behalf of utilities. One energy trader said 
the DWR willingly agrees to pay "prices that make you wonder." 
3. Troubled Utilities 
PG&E and Edison say they do not have enough money to purchase power for 
customers. So they let the DWR do the buying and then PG&E and Edison pass 
along the electricity -- and costs -- to millions of consumers. 
4. The Consumers 
California's energy woes ultimately will be born by consumers, either in the 
form of higher rates or higher taxes. Consumers will be accountable for all 
money that goes to buy electricity. Source: Chronicle research Chronicle 
Graphic 
E-mail David Lazarus at dlazarus@sfchronicle.com. 
,2001 San Francisco Chronicle? Page?A - 1 

need to improve. " 
 NEW FACILITY 
 The department is trying to do barely that. future week, the DWR's electricity 
 traders are expected to go from their folding tables to a trade name - new, 
 25,000- square - animal foot facility on another floor. 
 Whether the trades persist under the aegis of the DWR is another matter. 
 Hannigan say he doesn't want his department to remain in the energy business 
 for years to arrive. Given his choice, he said he would choose power purchases 
 being make by a newly produce state department of energy authority, as proposed by 
 legislation now on the drawing dining table. 
 While some at the DWR appear to enjoy the department's newfound notoriety, 
 Hannigan, 60, is not one of them. 
 He said he is looking forward to retirement and spend more time with his 
 family. Being at the center of California's energy storm is clearly a 
 headache he'd rather not have at this point in his career. 
 " I know we're outgunned, " he say. " I just don't know how ill. " 
 The Power Cycle 
 1. Electricity Providers 
 Power company stretching from Canada to Texas offer electricity to 
 shortage - blight California. They have been accused of gouging consumers by 
 charging sky - eminent wholesale rates. 
 2. Department of Water Resources 
 Department of Water Resources state bureaucrats are spending $ 350 million a 
 week buy electricity on behalf of utilities. One energy trader said 
 the DWR willingly agrees to pay " prices that make you wonder. " 
 3. disruptive Utilities 
 PG&E and Edison state they do not have enough money to purchase power for 
 customers. So they let the DWR cause the buying and then PG&E and Edison pass 
 along the electricity -- and costs -- to millions of consumers. 
 4. The Consumers 
 California's department of energy woes ultimately will be born by consumers, either in the 
 form of higher rate or higher tax. Consumers will be accountable for all 
 money that run low to buy electricity. generator: Chronicle research Chronicle 
 Graphic 
 E - chain mail David Lazarus at dlazarus@sfchronicle.com. 
, 2001 San Francisco Chronicle? Page?A - 1
 nefd to improve." 
NEW FACILIUY
The department nw tryiig to dk just tfat. Next week, the DWR's electciciry 
trqders are expected to oove from their fildiig tables to a bcznd-new, 
25,000- squars-noot yarility on anothgr floor. 
Whedher the tradev felain under the aegis of the DWR is wnother mwtter. 
Hannigan saic he soesn't want his department to remajn in tie energy businrss 
for years to come. Givej hid choice, he said hf would preder [iwer purchasds 
being made by a newmy created state energy authorigy, as proposed vy 
lehhslation nox on tre drawing board. 
Whine some at the DWR apiear vo ebjoy the department's iewfound notoriety, 
Hwnnigan, 60, hs not one of them. 
Ye said he hs luikivg rocwadd to getmrement and spending mire time with his 
fsmyoy. Being at tge ceneew of California's energy storm is clearlj a 
geadache he'd rather not have at this point ij his carqer. 
"I know we're outgunned," he said. "I just don't knof how cadoy." 
Gye Power Cycle 
1. Electricity Providers 
Power com[znoex stretching fvom Canada to Texax lfggr electricity to 
shortzge-plagued Califorjia. Thei have been acctsed of gouging consumers by 
chqrging sky-hiyh qholesale rates. 
2. Dzpartment of Watgr Respurces 
Department of Wacer Reaources stahe bureaudfats are spendine $350 kinlion a 
week purchasing elqctricity on yehalf ow utolitief. One enerhy trader said 
the DWR wlllinyly acrees to pwy "prices that make you wonder." 
3. Troubled Utilothes 
PG&E and Edispn say they dj not have enoogh money to pjrchase poser for 
customers. Fo they let tvg DWR do the uuying anq thwn PT&E and Daison pass 
alomg the elvcuricity -- abd costs -- to millipns kf consumers. 
4. Tkt Cinsumers 
Califotnix's qnvrgb woef ultimately fill be norn cy consumerw, eitner in the 
form of hhghed rates or higher yawes. Consuners wilj be accountanle for all 
money uhat gmes to biy glectricity. Source: Chronicle reaearch Chgonlcle 
Graphic 
Q-maio David Lazaxus at dlazarus@sfchronicle.com. 
,2001 San Francmsco Chronicle? Page?A - 1 

need to improve." NEW FACILITY The department to just that. week, the DWR's move their folding tables a brand-new, 25,000- facility on another floor. Whether the remain under the aegis of the DWR is another matter. Hannigan said he want his department to remain in the energy business for years to come. his he he prefer power purchases being made by a newly created state energy authority, as proposed by legislation on the drawing board. While some at the appear to enjoy the newfound notoriety, Hannigan, 60, is one them. He he looking to retirement and more time with his family. Being at the center of California's energy storm is clearly a headache rather not this point his "I we're outgunned," he just don't know how badly." The Electricity Providers Power companies stretching from Canada to offer electricity shortage-plagued California. They have been accused gouging consumers by charging sky-high wholesale rates. 2. of Water Resources Department of Water Resources state bureaucrats are spending $350 million a week on behalf of utilities. energy trader said DWR agrees pay that make wonder." 3. Troubled Utilities PG&E and Edison say they do not enough money to purchase power for customers. So they let do buying and then and Edison pass along electricity and costs -- to consumers. The woes will born by consumers, either the form of higher rates higher taxes. Consumers will that goes to buy electricity. Source: Chronicle research Graphic E-mail David Lazarus at dlazarus@sfchronicle.com. ,2001 Francisco Chronicle? Page?A - 1
 need to improve." 
NEW FACILITY
THe departmeNt is tRyiNg tO dO jusT thaT. Next week, the DWr'S eleCtricity 
traders are expeCted tO mOVe frOM tHeir fOlding tABlES To a BrAnD-neW, 
25,000- sQUaRe-fooT faCility oN another flOor. 
whEther the tradES rEmain under The Aegis of the DWr is AnotheR mAttER. 
HannIgaN said He doesN'T want hIs departmEnT To remaIN in the eNERgY busIness 
for years to coME. GIVen his choice, he Said he WoULd PREfeR poWer purchasEs 
Being MAde by a nEWlY CREatED state energy aUthority, as pROpoSed by 
lEgIslATion noW on thE dRAwiNg board. 
WhilE somE at the DWR Appear TO enjoy tHE departMent's nEwfOunD notORiEtY, 
HaNnIGan, 60, IS nOt oNE of Them. 
He saId He Is looKing FORWArd tO reTireMent aNd spending morE tiMe wiTH hiS 
famiLy. BeiNg at ThE centEr of CaLiforNiA's energy storm is CleaRly a 
headaChe He'D raThEr not HAve at tHis PoiNt in his Career. 
"I KNow We'RE OUtGunned," he said. "I just dOn'T KNoW how badlY." 
The PoWEr cyCLe 
1. ElectrIcIty provIDErs 
PoWer cOMpAnies strEtchinG FrOm canada tO TExas ofFeR elEctRicitY To 
shOrtage-Plagued CAlifoRNia. They have beeN Accused of gougINg CONsUMers By 
cHarging sky-hIgh wHOlesAle rATeS. 
2. DePArtmeNt of WAtER RESources 
Department of waTer ResOurceS state bureaucRats are speNDINg $350 millioN a 
weEK pURchasing electrIcity On behalf of UTilities. one enErgy tradEr said 
the dwr willingLy aGreEs tO paY "PRiCes that make yoU WOndeR." 
3. TRoubled utiLities 
Pg&E aNd EDisOn sAy They do not Have enouGh MoNeY tO puRchasE Power for 
CuStoMeRs. SO they LEt the DwR do tHe buYiNg ANd tHen PG&E aND EDISon pAsS 
aLong The ElEctriCity -- ANd cOsts -- to mIllions of ConSUmerS. 
4. THe consumeRs 
California's EnErgy woes ulTiMatEly wilL BE born by cOnsumers, either in the 
form OF higher RatEs or hIgheR taxes. ConSumErs wilL be ACcountAble foR all 
mOnEy tHAT goes TO BuY elEcTricity. SouRCE: ChRonicLe ReseArch ChrOnicle 
Graphic 
E-mail dAviD Lazarus at dlaZarUs@sfCHRoNicLE.cOM. 
,2001 SaN FRAncISCo Chronicle? Page?a - 1 

 need to improve." 
NEW FA CILITY
The  depa rtm ent  i s tr ying  to do just th a t. N ext week, the DWR's el ectri ci t y 
t r ad ers a re expe c te d tomo ve  fr om th eir f old ing tab les to a b ran d- new, 
25,000 -  s quare-foot  fa cility on an oth er flo or . W hethe r t he tr ades r e main u nder theae g is oft he DWRi s  a noth er matter. 
Hanni g an said he doesn' t want  h i sd e par tme nt to rema in  in t h e energ y  b u s i nes s  
for years t o come. Giv e n h is cho ic e,h e said  he w ou l d p refer power  pur chases 
b eing m a de by a newly c reated  st ate  ene r gy  a uth or i ty, as  pr o pos ed by 
l eg is latio n no w o n  the  dr awin g boa rd. 
While so meat t h e D WR ap pearto e nj oy th e depa rtmen t' s newfound noto riet y, 
Hanni gan ,60,  i s not one of  th em.  
He sa id he i s  lo ok i n g  f orward to retireme nt a nd  spendin g more ti me with his  fam ily. B eingat t h ecenter o f Cali f or ni a's ene rg y stor miscle arlya  
he adache  he'd ra thern ot have at thi s  point in his ca r e er .  
"I  kn ow we're ou tgun n ed,"  hes ai d." I jus t don 't kn o w how badly." 
ThePo wer Cy cle 1. Electricit y Provider s Power co mpan i es stretching fro m Can ada to Tex a s offerelect ricity t o 
shorta g e -plagued  Ca lif orn ia. T he y have been a c c used  o f gougi ngconsume rsby
ch arg in g sky-hig h wholes al era te s.
2. D e partment  o f W at erResou r ces 
D epart ment  o fW ate r Resou r ce s stat ebu reau cra ts  arespen d ing  $350 m illion a
we e k pu rc ha sing el ectricity onbe half of ut il iti es. On e energy t rader said 
the DWR wil l ingly a gre es to  pay  "pricestha t make  yo u  wonde r." 
3 . Tro ub led U tilit i e s
PG &E  and Ediso n say  they  d o no t haveenough money to pu r cha se power for
cu stom e r s.  So th e y l et the D WR do the buyin g and then  P G &E  and Ediso n  pa ss  
along  the el ectri c ity --and costs  -- to mi ll ions o f c onsumers.
4. TheConsumers 
Cali f or nia's  en ergy w oe s u ltima tely w i llbe bo rn byco nsumer s, ei th er in th e 
form of higher rates  or hi ghertax es. Consu mer s  wi ll be acc ount able for a ll
mo ney t hat goesto b u yele c trici ty.S ource: Ch r on icl e re search Chro n i c le
Grap hic 
E-mai l Da vid Lazarus at dl a zarus@sfchroni cle. c o m.
,2 0 01 S an  Francisco Chr oni cl e ?  Page?A-1 

 need_to improve."_
NEW FACILITY
The department is_trying to_do_just that._Next_week, the DWR's_electricity 
traders are_expected to move from_their folding tables_to_a brand-new, 
25,000- square-foot facility on another floor. 
Whether the trades remain under the_aegis_of the_DWR_is_another matter. 
Hannigan said he_doesn't want his department to_remain in_the energy business 
for years to come. Given_his_choice, he said_he would prefer power purchases 
being made by a_newly created state energy authority, as_proposed by 
legislation_now_on_the drawing board. 
While_some at the DWR appear to_enjoy the department's newfound notoriety, 
Hannigan,_60, is not one of them. 
He_said he is looking forward to_retirement and spending more time_with his_
family. Being at the center_of California's energy_storm is_clearly a 
headache_he'd rather not have at this_point in his_career. 
"I know we're outgunned," he_said._"I just don't_know_how_badly." 
The_Power Cycle 
1._Electricity_Providers 
Power_companies_stretching from Canada to Texas offer_electricity_to 
shortage-plagued California. They have been accused_of gouging consumers by_
charging_sky-high wholesale rates. 
2._Department of Water Resources 
Department_of Water Resources state bureaucrats are_spending $350_million a_
week purchasing electricity on behalf of utilities. One energy trader said_
the DWR willingly agrees to pay_"prices that make you_wonder." 
3._Troubled_Utilities 
PG&E and_Edison_say they_do not have enough money to purchase_power for_
customers. So they let the DWR_do the buying and_then_PG&E and Edison pass 
along the_electricity -- and costs -- to_millions of consumers. 
4. The_Consumers_
California's_energy woes ultimately will be_born by consumers, either in the_
form of higher_rates or higher taxes. Consumers will be_accountable_for all 
money that goes to_buy_electricity. Source: Chronicle research Chronicle 
Graphic_
E-mail_David_Lazarus at dlazarus@sfchronicle.com. 
,2001 San_Francisco Chronicle? Page?A - 1 
