Message-ID: <10015237.1075851603220.JavaMail.evans@thyme> Date: Thu, 19 Jul 2001 13:34:00 -0700 (PDT) From: richard.sanders@enron.com To: christopher.calger@enron.com, christian.yoder@enron.com, steve.hall@enron.com, mike.swerzbin@enron.com, phillip.allen@enron.com, jeff.dasovich@enron.com, chris.gaskill@enron.com, mike.grigsby@enron.com, tim.heizenrader@enron.com, vince.kaminski@enron.com, steven.kean@enron.com, rob.milnthorp@enron.com, kevin.presto@enron.com, claudio.ribeiro@enron.com, richard.shapiro@enron.com, james.steffes@enron.com, mark.tawney@enron.com, scott.tholan@enron.com, britt.whitman@enron.com, lloyd.will@enron.com, alan.comnes@enron.com, rogers.herndon@enron.com, don.black@enron.com, kelly.holman@enron.com, mark.davis@enron.com, fletcher.sturm@enron.com, doug.gilbert-smith@enron.com, kelly.holman@enron.com, nancy.turner@enron.com, ray.alvarez@enron.com Subject: FW: California Update 7-18-2001 Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: Richard B Sanders X-To: Christopher F Calger , Christian Yoder , Steve C Hall , Mike Swerzbin , Phillip K Allen , Jeff Dasovich , Chris Gaskill , Mike Grigsby , Tim Heizenrader , Vince J Kaminski , Steven J Kean , Rob Milnthorp , Kevin M Presto , Claudio Ribeiro , Richard Shapiro , James D Steffes , Mark Tawney , Scott Tholan , Britt Whitman , Lloyd Will , Alan Comnes , Rogers Herndon , Don Black , Kelly Holman , Mark Dana Davis , Fletcher J Sturm , Doug Gilbert-Smith , Kelly Holman , Nancy Turner , Ray Alvarez X-cc: X-bcc: X-Folder: \Dasovich, Jeff (Non-Privileged)\Dasovich, Jeff\Deleted Items X-Origin: DASOVICH-J X-FileName: Dasovich, Jeff (Non-Privileged).pst -----Original Message----- From: =09Sanders, Richard B. =20 Sent:=09Thursday, July 19, 2001 9:59 AM To:=09Sweet, Twanda Subject:=09FW: California Update 7-18-2001 Importance:=09High -----Original Message----- From: =09Whitman, Britt =20 Sent:=09Wednesday, July 18, 2001 3:48 PM To:=09Sanders, Richard B.; Edison, Andrew Cc:=09Walsh, Kristin Subject:=09California Update 7-18-2001 Importance:=09High If you have any questions, please feel free to contact Kristin Walsh at (71= 3) 853-9510 or G. Britt Whitman at (713) 345-4014. EXECUTIVE SUMMARY ?=09Multiple MOU Plans Debated ?=09California State Budget Faces One Last Hurdle Budget=20 There is a small possibility that Sen. Burton will not recess the Senate on= Thursday unless the Senate passes the budget that the Assembly passed last= night (7-17). However a key Democrat, Sen. Sheila Kuehl, has been is in It= aly and is on a 16 hour return flight. No one knows if she has been told to= return and without her presence, two Republican votes are still needed to = pass any urgency measure for the budget. Kuehl's vote is crucial if they t= ake the bill up on Thursday.=20 MOU Mayhem There are currently three leading MOU plans being resuscitated by the Calif= ornia House and Senate deliberations. Senator Burton is hoping to keep the= published schedule and adjourn for a month's recess on Thursday evening. = Speaker Hertzberg is reportedly not thrilled with leaving until the Edison = issue is resolved. However, rumor is that whether or not they recess on Th= ursday, their adjournment will mark the end of the Second Extraordinary ses= sion and all XX bills passed and signed will go into effect in 90 days (al= l others will be dead). Although Davis has stressed the urgency of passing= a comprehensive "bail-out" plan and even threatened to call an emergency s= ession to prevent legislators from taking a 30-day recess on Friday, there = is no clear indication that legislators will comply with this request. = =20 ?=09Hertzberg's bill 82XX - Of the more obvious differences from Davis MOU,= 82XX proposes to offer SoCal $300 M less for its transmission lines in ad= dition to penalizing Edison if it fails to act in good faith in closing the= deal. It comes as no surprise that during bill deliberations, SoCal raise= d objections to the bill and warned of impending difficulties (bankruptcy) = for So Cal were the bill left unamended. ?=09The Wright-Richman bill 83XX - We reported last week that 83XX remains = the only measure fueled by bipartisan support. AB 83XX was heard in an "in= formational" hearing yesterday (7-17) and will be heard again today in the = Assembly Energy Committee. Assemblyman Rod Wright, the Chairman of the Com= mittee, presented AB 83xx with Dr. Keith Richman, a Republican Assemblyman = from Southern California. They offered 83XX as an Edison bail-out, pure and= simple. Wright was clear to distinguish his bill from 82XX, which he said = has conservation easements and land requisitions, a renewable portfolio whi= ch will add an additional fee on ratepayers, and reasonable review for long= term contracts. While the chances of the Richman bill being successful app= ear slim, reports that that Hertzberg will try to negotiate elements of his= own bill (82XX) as amendments to the Wright/Richman measure suggest that a= t least Hertzberg feels Richman's 83XX stands a chance.=20 ?=09The Byron Sher bill, SB 78XX (Polanco) - Previously presented by Sen. P= olanco on behalf of Governor Davis, SB 78XX has received special attention = from Senate President, John Burton. Although it has never been heard by a = committee, SB 78XX is currently on the Senate floor and ready for a vote. T= he Senate Energy Committee and Senate Appropriations Committee are both sch= eduled to have informational hearings on this bill today. Note, the meetin= gs are informational because neither committee has possession of the bill. = These hearings will provide information to committee members, avoid a form= al vote, and simultaneously shield Burton/Polanco from claims that the deta= ils of SB78XX were never released. The Senate is scheduled to be in sessio= n tomorrow, ostensibly to vote on the state budget and SB 78XX. Given Burto= n's penchant for wanting to keep on schedule to recess tomorrow, there is n= o guarantee that he will hold the Senate in session once they hear SB 78XX.= Thus, the Senate may never even see AB 82XX and AB 83XX unless either or b= oth bills are passed out of the Assembly today and get special treatment by= Burton to be heard tomorrow. Burton has previously adjourned the Senate to= keep on schedule once they finish their business, even if the Assembly is = behind them.