Message-ID: <32547459.1075860389171.JavaMail.evans@thyme> Date: Thu, 15 Feb 2001 05:48:00 -0800 (PST) From: mary.hain@enron.com To: susan.mara@enron.com, jeff.dasovich@enron.com, sandra.mccubbin@enron.com Subject: Governor Davis' Press conference Highlights -- will announce on Friday his plan to "lease" utility transmission lines (??!!) Cc: elliot.mainzer@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: elliot.mainzer@enron.com X-From: Mary Hain X-To: Susan J Mara, Jeff Dasovich, Sandra McCubbin X-cc: Elliot Mainzer X-bcc: X-Folder: \Mary_Hain_Aug2000_Jul2001\Notes Folders\Discussion threads X-Origin: Hain-M X-FileName: mary-hain.nsf Please forward to Elliot information about conservation and renewal programs in California. ---------------------- Forwarded by Mary Hain/HOU/ECT on 02/15/2001 01:57 PM --------------------------- Susan J Mara@ENRON 02/14/2001 10:59 PM To: Alan Comnes/PDX/ECT@ECT, Angela Schwarz/HOU/EES@EES, Beverly Aden/HOU/EES@EES, Bill Votaw/HOU/EES@EES, Brenda Barreda/HOU/EES@EES, Carol Moffett/HOU/EES@EES, Cathy Corbin/HOU/EES@EES, Chris H Foster/HOU/ECT@ECT, Christina Liscano/HOU/EES@EES, Christopher F Calger/PDX/ECT@ECT, Craig H Sutter/HOU/EES@EES, Dan Leff/HOU/EES@EES, Debora Whitehead/HOU/EES@EES, Dennis Benevides/HOU/EES@EES, Don Black/HOU/EES@EES, Dorothy Youngblood/HOU/ECT@ECT, Douglas Huth/HOU/EES@EES, Edward Sacks/Corp/Enron@ENRON, Eric Melvin/HOU/EES@EES, Erika Dupre/HOU/EES@EES, Evan Hughes/HOU/EES@EES, Fran Deltoro/HOU/EES@EES, Frank W Vickers/HOU/ECT@ECT, Gayle W Muench/HOU/EES@EES, Ginger Dernehl/NA/Enron@ENRON, Gordon Savage/HOU/EES@EES, Harold G Buchanan/HOU/EES@EES, Harry Kingerski/NA/Enron@ENRON, Iris Waser/HOU/EES@EES, James D Steffes/NA/Enron@ENRON, James W Lewis/HOU/EES@EES, James Wright/Western Region/The Bentley Company@Exchange, Jeff Messina/HOU/EES@EES, Jeremy Blachman/HOU/EES@EES, Jess Hewitt/HOU/EES@EES, Joe Hartsoe/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Kathy Bass/HOU/EES@EES, Kathy Dodgen/HOU/EES@EES, Ken Gustafson/HOU/EES@EES, Kevin Hughes/HOU/EES@EES, Leasa Lopez/HOU/EES@EES, Leticia Botello/HOU/EES@EES, Mark S Muller/HOU/EES@EES, Marsha Suggs/HOU/EES@EES, Marty Sunde/HOU/EES@EES, Meredith M Eggleston/HOU/EES@EES, Michael Etringer/HOU/ECT@ECT, Michael Mann/HOU/EES@EES, Michelle D Cisneros/HOU/ECT@ECT, mpalmer@enron.com, Neil Bresnan/HOU/EES@EES, Neil Hong/HOU/EES@EES, Paul Kaufman/PDX/ECT@ECT, Paula Warren/HOU/EES@EES, Richard L Zdunkewicz/HOU/EES@EES, Richard Leibert/HOU/EES@EES, Richard Shapiro/NA/Enron@ENRON, Rita Hennessy/NA/Enron@ENRON, Robert Badeer/HOU/ECT@ECT, Rosalinda Tijerina/HOU/EES@EES, Sandra McCubbin/NA/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Scott Gahn/HOU/EES@EES, Scott Stoness/HOU/EES@EES, Sharon Dick/HOU/EES@EES, skean@enron.com, Susan J Mara/NA/Enron@ENRON, Tanya Leslie/HOU/EES@EES, Tasha Lair/HOU/EES@EES, Ted Murphy/HOU/ECT@ECT, Terri Greenlee/NA/Enron@ENRON, Tim Belden/HOU/ECT@ECT, Tony Spruiell/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, Vladimir Gorny/HOU/ECT@ECT, Wanda Curry/HOU/EES@EES, William S Bradford/HOU/ECT@ECT, Jubran Whalan/HOU/EES@EES, triley@enron.com, Richard B Sanders/HOU/ECT@ECT, Robert C Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, dwatkiss@bracepatt.com, rcarroll@bracepatt.com, Donna Fulton/Corp/Enron@ENRON, gfergus@brobeck.com, Kathryn Corbally/Corp/Enron@ENRON, Bruno Gaillard/EU/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Ren, Lazure/Western Region/The Bentley Company@Exchange, Michael Tribolet/Corp/Enron@Enron, Phillip K Allen/HOU/ECT@ECT, Christian Yoder/HOU/ECT@ECT, jklauber@llgm.com, Tamara Johnson/HOU/EES@EES, Mary Hain/HOU/ECT@ECT, Greg Wolfe/HOU/ECT@ECT, Jeff Dasovich/NA/Enron@Enron, Dirk vanUlden/Western Region/The Bentley Company@Exchange, Steve Walker/SFO/EES@EES, James Wright/Western Region/The Bentley Company@Exchange, Mike D Smith/HOU/EES@EES, Richard Shapiro/NA/Enron@Enron, Leslie Lawner/NA/Enron@Enron, Robert Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steve Walton/HOU/ECT@ECT cc: Subject: Governor Davis' Press conference Highlights -- will announce on Friday his plan to "lease" utility transmission lines (??!!) Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854 ----- Forwarded by Susan J Mara/NA/Enron on 02/14/2001 10:57 PM ----- "Beiser, Megan" 02/14/2001 04:06 PM To: "Aaron Thomas (E-mail) (E-mail)" , "Andrea Weller (E-mail) (E-mail)" , "andrew Chau (E-mail) (E-mail)" , "Bill Chen (E-mail) (E-mail)" , "Douglas Oglesby (E-mail) (E-mail)" , "Fairchild, Tracy" , "Jeffrey Hanson (E-mail) (E-mail)" , "jennifer Chamberlin (E-mail) (E-mail)" , "john Barthrop (E-mail) (E-mail)" , "John Leslie (E-mail) (E-mail)" , "Joseph Alamo (E-mail) (E-mail)" , "Manuel, Erica" , "'Michael Nelson' (E-mail)" , "Peter Bray (E-mail) (E-mail)" , "Rebecca Schlanert (E-mail) (E-mail)" , "Richard Counihan (E-mail) (E-mail)" , "'Robert Morgan' (E-mail)" , "Sue Mara (E-mail) (E-mail)" cc: Subject: Governor Davis Announces Bill Package to Increase Renewable Energ y, Distributed Generation and Co-generation > The Governor held his press conference today at the co-generation plant at > the University of California Medical Center in Sacramento. > > All local TV, print and radio news media outlets sent representatives. > > Although the focus of the news conference was supposed to be introduction > of a legislative package promoting renewable energy, distributed > generation and co-generation, it quickly turned to how the Governor will > deal with the possible bankruptcy of the utilities. The Governor said > that it has "become increasingly obvious" to him that the best solution to > the utilities' financial problems is the "acquisition of transmission > lines." He noted that the transmission lines are the utilities "most > significant asset" and would be something the public would be able to get > value from "in perpetuity." He said the arrangement will likely be a > "lease" of the utilities' lines, with the companies continuing to maintain > them, "to capture [the utilities'] expertise." Details of this plan will > be announced on Friday, the Governor said. The time and place for this > announcement have yet to be released. > > The Governor later said he felt the utilities' parent/holding companies > should "be part of the solution" so there would be "shared pain" in > reaching a solution. > > The Governor said he suspected that acquisition of the transmission lines > will involve the sale of revenue bonds, but he "didn't have enough wisdom" > when asked about it to give a firm answer. He said he believed he would > have that wisdom on Friday. > > The Governor also commented on his plan to police and/or fine business > establishments that keep their lights on after business hours. He said he > would announce a finalized plan on or around Mar. 15, a specific program > to reduce by 50-70% the amount of energy used by retailers after-hours. > > The Governor did outline the legislative package designed to promote > renewable energy, distributed generation and co-generation through > incentives, rebates and tax credits. > > The package contains: > 1.) "Rebate Increase Bill": "Emerging Renewable Resources Account of the > Renewable Resource Trust Fund" = $50 million to increase rebates for > renewable distributed generation systems smaller than 10 kilowatts (this > money will come from the General Fund) > > 2.) Tax Credit Bill: SB 17X (Brulte): A 50% tax credit for the purchase > and installation of renewable distributed generation systems larger than > 10 kilowatts and up to 200 kilowatts for large facilities such as > apartment complexes and businesses. > > 3.) Renewable Energy Loan Guarantee Program: AB 53X (Reyes): $50 million > for a commercial loan guarantee program for renewable power systems, > distributed generation and co-generation facilities. > > 4.)Retrofitting of Distributed Generation Facilities: This proposal will > provide $20 million to achieve 40 MW of reduced peak load through > retrofitting of natural gas distributed generation units at municipal > water districts to improve environmental performance. This involves > retrofitting diesel and dirty natural gas generators with clean natural > gas technology. > > 5.)Legislation to Exempt Microgeneration and Renewable Facilities Less > than 1 MW from Standby Charges: Elimination of the standby charges paid by > distributed generation end-use customers to the Investor Owned Utilities. > This includes small co-generation facilities and only applies to units > that generate less than one megawatt. > > *********************************** > > Please find the text of the Governor's press release for this news > conference below: > > FOR IMMEDIATE RELEASE > 02/14/2001 2:00 pm > > GOVERNOR DAVIS ANNOUNCES BILL PACKAGE TO INCREASE RENEWABLE ENERGY, > DISTRIBUTED GENERATION AND CO-GENERATION > > SACRAMENTO > > Governor Gray Davis today announced a legislative package to provide > incentives to power up more renewable energy, distributed generation and > co-generation to help meet California's energy challenge. > > "By investing in renewable energy sources, clean distributed generation > and co-generation, we can increase our energy supply without taking power > away from the grid," Governor Davis said. "My generation plan contains the > most ambitious renewable energy program in the nation." > > Distributed generation and co-generation are powerful tools for meeting > California's power needs. These types of facilities reduce demand on the > state power grid. They also provide energy independence from the > Independent Systems Operator and the volatile spot market; advanced > technology that creates jobs as well as power; and reliable energy sources > that respect the environment. > > Governor Davis' legislative package for distributed generation, > co-generation and renewable energy includes: > > > 1. $50 million to increase rebates for renewable distributed generation > systems smaller than ten kilowatts. > 2. A 50% tax credit for the purchase and installation of renewable > distributed generation systems larger than 10 kilowatts and up to 200 > kilowatts for large facilities such as apartment complexes and businesses. > This will be carried in SB 17x by Senator Jim Brulte (R-Cucamonga). > 3. $50 million for a commercial loan guarantee program for renewable > power systems, distributed generation and co-generation facilities. This > will be carried in AB 53x by Assemblymember Sarah Reyes (D-Fresno). > 4. $20 million for retrofit of distributed generation owned by > municipal water districts to improve environmental performance. This > involves retrofitting diesel and dirty natural gas generators with clean > natural gas technology. > 5. Elimination of the standby charges paid by distributed generation > end-use customers to the Investor Owned Utilities. This includes small > co-generation facilities and only applies to units that generate less than > one megawatt. > > > The Davis Administration will work closely with legislators to pass > legislation to implement these proposals. > > Co-generation is the simultaneous generation of electricity and heat or > steam, usually on an industrial site. Typically, the electricity is sold > to the grid and the heat or steam is used onsite in the industrial process > > Distributed generation is a term used for a decentralized approach to > generating electricity. Generally, the electricity is generated on the > site where it is being used. It can include renewables (such as solar or > wind power), fuel cells, and micro-generators. > > Governor Davis made his announcement at the UC Davis Medical Center > Co-Generation Plant in Sacramento. The plant supplies not only all of the > electricity for the but all of the heating and cooling, for the UC Davis > Medical Center. It produces 26 MW of power. Since the Medical Center needs > less than half of that, the excess power is sold back to the ISO, which > pays the Center's utility bills. > > "The UC Davis Medical Center Co-Generation Plant is a self-sufficient > facility," Governor Davis added. "It is an efficient facility. It is a > clean facility. And it is the kind of facility that we need a lot more of > to meet our peak energy demands." > > Governor Davis' energy plan relies on three elements: stabilization, > conservation and generation. The Governor is working with legislative > leadership on a stabilization plan for the State's Investor Owned > Utilities. Over the last several weeks, Governor Davis unveiled an > aggressive plan for energy conservation that will help reduce demand and > keep costs down and a plan to dramatically increase the supply of produced > and sold in California. > > > ### > >