Message-ID: <7804855.1075860378941.JavaMail.evans@thyme> Date: Thu, 14 Dec 2000 00:39:00 -0800 (PST) From: mary.hain@enron.com To: alan.comnes@enron.com, steve.kean@enron.com, richard.shapiro@enron.com, james.steffes@enron.com, sarah.novosel@enron.com, paul.kaufman@enron.com, tim.belden@enron.com, robert.badeer@enron.com, john.forney@enron.com Subject: DJ Article re selling into ISO Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Mary Hain X-To: Alan Comnes, Steve Kean, Richard Shapiro, James D Steffes, Joe Hartsoe@Enron, Sarah Novosel, Paul Kaufman, Tim Belden, Robert Badeer, John M Forney, Greg Wolfe@ECT X-cc: X-bcc: X-Folder: \Mary_Hain_Aug2000_Jul2001\Notes Folders\All documents X-Origin: Hain-M X-FileName: mary-hain.nsf ---------------------- Forwarded by Mary Hain/HOU/ECT on 12/14/2000 08:46 AM --------------------------- Tracy Ngo 12/14/2000 08:34 AM To: Mary Hain/HOU/ECT@ECT cc: Subject: Re: Article ---------------------- Forwarded by Tracy Ngo/PDX/ECT on 12/14/2000 08:40 AM --------------------------- From: William S Bradford on 12/14/2000 07:47 AM To: Wendy Conwell/NA/Enron@ENRON, Oliver Harrison/LON/ECT@ECT, Tracy Ngo/PDX/ECT@ECT cc: Subject: Re: Article ---------------------- Forwarded by William S Bradford/HOU/ECT on 12/14/2000 08:48 AM --------------------------- Enron North America Corp. From: Frank Hayden @ ENRON 12/14/2000 09:13 AM To: William S Bradford/HOU/ECT@ECT, Cassandra Schultz/NA/Enron@Enron cc: Subject: Re: Article ---------------------- Forwarded by Frank Hayden/Corp/Enron on 12/14/2000 09:11 AM --------------------------- From: Rebecca Phillips@ECT on 12/14/2000 09:10 AM To: Frank Hayden/Corp/Enron@ENRON cc: Subject: Re: Article Sorry - I don't have the password. Here's the article. r Enron: ISO Credit Problems Are Those Of Calif Utilities Of DOW JONES NEWSWIRES 12/13/2000 Dow Jones Energy Service (Copyright (c) 2000, Dow Jones & Company, Inc.) By Mark Golden NEW YORK -(Dow Jones)- The credit problems of the California Independent System Operator reflect the credit problems of the state's three investor-owned utilities, Enron Corp. (ENE) chief of staff Steven Kean said Wednesday. "We have expressed some concerns about the utilities' creditworthiness," Kean said. "They wouldn't have this credit issue if they had a government guarantee." Standard & Poor's credit analyst for California utilities, Richard Cortright, told Dow Jones Newswires that such a guarantee is highly unlikely. "There's no point in talking about it," Cortright said. The credit-rating agency put California utility holding companies PG&E Corp (PCG) and Edison International (EIX) on watch with negative implications Wednesday. The utilities have seen their debt rating downgraded already this fall, but their debts are piling up by the billions as they continue to pay about 10 times more for power supplies than they can charge customers. "The sheer magnitute of the undercollected balance is beyond belief," Cortright said. "Wholesale prices have gotten worse, and every hour the situation gets more dire." Cortright said the only step that would save the utilities' credit status is if California regulators raised the rates the utilities can charge customers. Late Wednesday, the California Public Utilties Commission indicated that it may do so, reversing a decision made just last week. "With new generation coming on, you would expect the rates to decline in a couple of years," Cortright said. The California Independent System Operator almost had to institute rolling blackouts Wednesday because 13 suppliers had stopped selling it power due to concerns about the ISO's credit. California Gov. Gray Davis said that Enron was one of the "dirty 13." Enron's Kean said that Enron was only offering very limited amounts of power to the ISO. "We are basically just a buyer and seller. We control only 70 megawatts of generation in the state, which we offered to the ISO today because of the emergency, but the ISO declined to purchase that power," Kean said. That small generating unit is located in the southern California, while the ISO's supply problems were most acute in northern California. "We aren't selling any other power to them right now. Everything else that we bought we've sold to other buyers," said Kean, who added that Enron had sold to the ISO as recently as Tuesday. The ISO manages California's electricity grid and purchases last-minute additional power on behalf of the state's three investor-owned utilities. The ISO then bills the utilities, which are PG&E Corp's Pacific Gas & Electric Co, Edison International's (EIX) Southern California Edison, and Sempra Energy's (SRE) San Diego Gas & Electric Co. The ISO has 70-day payment terms to suppliers. For the past two weeks, and often during the summer, the ISO has been purchasing about one-fourth of the state's entire needs at very high prices. It's current daily power purchases are running at $50 million to $100 million. -By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.com Enron North America Corp. From: Frank Hayden @ ENRON 12/14/2000 09:08 AM To: Rebecca Phillips/HOU/ECT@ECT cc: Subject: Re: Article I can't access the article without Enron's account number.. You wouldn't happen to have that? Frank To: Frank Hayden/Corp/Enron@Enron cc: Subject: Article http://nrstg2s.djnr.com/cgi-bin/DJInteractive?cgi=WEB_FLAT_PAGE&GJANum=3008059 88&page=wrapper/index&entry_point=1&user_bounced=1&entry_point=1 Here's an article about ENE and Cal. Looks like we control about 70 MW in Cal. r