Message-ID: <18281197.1075860400687.JavaMail.evans@thyme> Date: Wed, 21 Mar 2001 02:26:00 -0800 (PST) From: susan.mara@enron.com To: alan.comnes@enron.com, angela.schwarz@enron.com, beverly.aden@enron.com, bill.votaw@enron.com, brenda.barreda@enron.com, carol.moffett@enron.com, cathy.corbin@enron.com, chris.foster@enron.com, christina.liscano@enron.com, christopher.calger@enron.com, craig.sutter@enron.com, dan.leff@enron.com, debora.whitehead@enron.com, dennis.benevides@enron.com, don.black@enron.com, douglas.huth@enron.com, edward.sacks@enron.com, eric.melvin@enron.com, erika.dupre@enron.com, evan.hughes@enron.com, fran.deltoro@enron.com, gayle.muench@enron.com, ginger.dernehl@enron.com, gordon.savage@enron.com, harold.buchanan@enron.com, harry.kingerski@enron.com, iris.waser@enron.com, james.steffes@enron.com, james.lewis@enron.com, james.wright@enron.com, jeff.messina@enron.com, jeremy.blachman@enron.com, jess.hewitt@enron.com, joe.hartsoe@enron.com, karen.denne@enron.com, kathy.bass@enron.com, kathy.dodgen@enron.com, ken.gustafson@enron.com, kevin.hughes@enron.com, leasa.lopez@enron.com, leticia.botello@enron.com, mark.muller@enron.com, marsha.suggs@enron.com, marty.sunde@enron.com, meredith.eggleston@enron.com, michael.etringer@enron.com, michael.mann@enron.com, michelle.cisneros@enron.com, mpalmer@enron.com, neil.bresnan@enron.com, neil.hong@enron.com, paul.kaufman@enron.com, richard.zdunkewicz@enron.com, richard.leibert@enron.com, richard.shapiro@enron.com, rita.hennessy@enron.com, robert.badeer@enron.com, rosalinda.tijerina@enron.com, sandra.mccubbin@enron.com, sarah.novosel@enron.com, scott.gahn@enron.com, scott.stoness@enron.com, sharon.dick@enron.com, skean@enron.com, susan.mara@enron.com, tanya.leslie@enron.com, tasha.lair@enron.com, ted.murphy@enron.com, terri.greenlee@enron.com, tim.belden@enron.com, tony.spruiell@enron.com, vicki.sharp@enron.com, vladimir.gorny@enron.com, wanda.curry@enron.com, william.bradford@enron.com, jubran.whalan@enron.com, triley@enron.com, richard.sanders@enron.com, robert.williams@enron.com, dwatkiss@bracepatt.com, rcarroll@bracepatt.com, donna.fulton@enron.com, gfergus@brobeck.com, kathryn.corbally@enron.com, bruno.gaillard@enron.com, linda.robertson@enron.com, ren@enron.com, lazure@enron.com, michael.tribolet@enron.com, phillip.allen@enron.com, christian.yoder@enron.com, jklauber@llgm.com, tamara.johnson@enron.com, mary.hain@enron.com, greg.wolfe@enron.com, jeff.dasovich@enron.com, dirk.vanulden@enron.com, steve.walker@enron.com, james.wright@enron.com, mike.smith@enron.com, richard.shapiro@enron.com, leslie.lawner@enron.com, robert.neustaedter@enron.com, steve.walton@enron.com, psmith3@enron.com, mjackso7@enron.com, janel.guerrero@enron.com, mark.fillinger@enron.com, jennifer.rudolph@enron.com, martin.wenzel@enron.com, wgang@enron.com, joseph.alamo@enron.com, tracy.ngo@enron.com Subject: Great Sacramento Bee Editorial Today -- CA Gray-Outs Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: Susan J Mara X-To: Alan Comnes, Angela Schwarz, Beverly Aden, Bill Votaw, Brenda Barreda, Carol Moffett, Cathy Corbin, Chris H Foster, Christina Liscano, Christopher F Calger, Craig H Sutter, Dan Leff, Debora Whitehead, Dennis Benevides, Don Black, Douglas Huth, Edward Sacks, Eric Melvin, Erika Dupre, Evan Hughes, Fran Deltoro, Gayle W Muench, Ginger Dernehl, Gordon Savage, Harold G Buchanan, Harry Kingerski, Iris Waser, James D Steffes, James W Lewis, James Wright, Jeff Messina, Jeremy Blachman, Jess Hewitt, Joe Hartsoe, Karen Denne, Kathy Bass, Kathy Dodgen, Ken Gustafson, Kevin Hughes, Leasa Lopez, Leticia Botello, Mark S Muller, Marsha Suggs, Marty Sunde, Meredith M Eggleston, Michael Etringer, Michael Mann, Michelle D Cisneros, mpalmer@enron.com, Neil Bresnan, Neil Hong, Paul Kaufman, Richard L Zdunkewicz, Richard Leibert, Richard Shapiro, Rita Hennessy, Robert Badeer, Rosalinda Tijerina, Sandra McCubbin, Sarah Novosel, Scott Gahn, Scott Stoness, Sharon Dick, skean@enron.com, Susan J Mara, Tanya Leslie, Tasha Lair, Ted Murphy, Terri Greenlee, Tim Belden, Tony Spruiell, Vicki Sharp, Vladimir Gorny, Wanda Curry, William S Bradford, Jubran Whalan, triley@enron.com, Richard B Sanders, Robert C Williams, dwatkiss@bracepatt.com, rcarroll@bracepatt.com, Donna Fulton, gfergus@brobeck.com, Kathryn Corbally, Bruno Gaillard, Linda Robertson, Ren, Lazure, Michael Tribolet, Phillip K Allen, Christian Yoder, jklauber@llgm.com, Tamara Johnson, Mary Hain, Greg Wolfe, Jeff Dasovich, Dirk vanUlden, Steve Walker, James Wright, Mike D Smith, Richard Shapiro, Leslie Lawner, Robert Neustaedter, Steve Walton, psmith3@enron.com, mjackso7@enron.com, Janel Guerrero, Mark Fillinger, Jennifer Rudolph, Martin Wenzel, wgang@enron.com, Joseph Alamo, Tracy Ngo X-cc: X-bcc: X-Folder: \Mary_Hain_Aug2000_Jul2001\Notes Folders\Discussion threads X-Origin: Hain-M X-FileName: mary-hain.nsf Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854 ----- Forwarded by Susan J Mara/NA/Enron on 03/21/2001 10:25 AM ----- =09Jean Munoz =0903/21/2001 09:27 AM =09=09=20 =09=09 To: Katie Kaplan , "'Andy Brown (E-mail)'"=20 , "'B Brown Andy (E-mail)'" ,=20 "'Baker Carolyn (E-mail)'" , "'Bob Escalante=20 (E-mail)'" , "'Bob Weisenmiller (E-mail)'"=20 , "'Curtis Kebler (E-mail)'"=20 , "'Douglas Kerner (E-mail)'"=20 , "'Greg Blue (E-mail)'" , "'Jan=20 Smutny-Jones (E-mail)'" , "'Jeff Dasovich (E-mail)'"=20 , "'Joe Ronan (E-mail)'" , "'Joh= n=20 Larrea (E-mail)'" , "'John Stout (E-mail)'"=20 , "'Julee Malinowski-Ball (E-mail)'"=20 , "'Kassandra Gough (E-mail)'" , "'kent= =20 Palmerton (E-mail)'" , "'Kristin Vellandi=20 (E-mail)'" , "'Lynn Lednicky (E-mail)'"=20 , "'Marty Wilson (E-mail)'" ,=20 "'McNally Ray (E-mail)'" , "''Nam Nguyen'=20 (E-mail)'" , "'Norton Kelli (E-mail)'"=20 , "'Paula Hall-Collins (E-mail)'"=20 , "'Pigott Jack (E-mail)'"=20 , "'Richard Hyde (E-mail)'" ,=20 "'Rob Lamkin (E-mail)'" , "'Roger Pelote=20 (E-mail)'" , "'Stephanie-Newell (E-mail)'"=20 , "'Sue Mara (E-mail)'"=20 , "'Theo Pahos (E-mail)'" , "'Tom Ross= =20 (E-mail)'" , "Carol H Hudson (E-mail)"=20 , steven kelly , "'Anne Kelly (E-mail)'"= =20 , "'Chuck Cole (E-mail)'" ,=20 "'Delany Hunter (E-mail)'" , "'DJ Smith=20 (E-mail)'" , "'Hedy Govenar (E-mail)'"=20 , , "'Maureen OHaren=20 (E-mail)'" , "'Mike Monagan (E-mail)'" = ,=20 "'Phil Isenberg (E-mail)'" , "'Robert Ross (E-mail)'"=20 , "'Ron Tom (E-mail)'" , "'Scott Govenar= =20 (E-mail)'" , "'Susan Mccabe (E-mail)'"=20 , ,=20 , ,=20 , , ,=20 =09=09 cc:=20 =09=09 Subject: Great Sacramento Bee Editorial Today =01; =20 ------------------------------------------------------------------------ B=01; E=01; E=01; =01; E=01; D=01; I=01; T=01; O=01; R=01; I=01; A=01; L=01= ; S ------------------------------------------------------------------------ Our first Gray-outs: These power outages are purely a failure of leadership (Published March 21, 2001)=20 Add a new term to the electricity nomenclature -- the Gray-out. This is a= =20 power outage caused by politics in Sacramento under Gov. Gray Davis, rather= =20 than some unavoidable mismatch between supply and demand. This is March. Peak demand is thousands upon thousands of megawatts lower= =20 than it will be this summer. And yet the lights are going out. These rolling Gray-outs trace squarely back to state government's failure t= o=20 figure out a way to pay for all the power that California needs. The=20 generators who aren't getting paid are beginning to go temporarily out of= =20 business. Day by day, less and less power is available for the grid, to the= =20 point that a little bit of spring sun is enough to overtax supply and turn= =20 out the lights. Unbelievable. It's true that the governor is bleeding the state's coffers to the tune of= =20 about $50 million every day to pay the big for-profit generators for their= =20 supply. This is his short-term solution, until the longer-term solution --= =20 whatever that is -- kicks in. But no, even that huge payment isn't all the= =20 money needed to pay all the generators. Neglected by the government plan are about 600 little guys that produce 20= =20 percent of the electricity supply. These are generators dotted throughout t= he=20 state known as Qualifying Facilities. A creation of the alternative energy= =20 movement of the 1970s, these are plants powered by natural gas, the sun and= =20 the wind. Unlike the big for-profit generating companies, these QFs are=20 contractually tied to the giant utilities, Southern California Edison and= =20 PG&E. And the utilities haven't been paying them for weeks and weeks -- at= =20 this point the QFs are owed $1.48 billion. Not surprisingly, some of these generators can't afford to keep producing= =20 power for free. Grid operators say that these QFs could be producing about= =20 6,000 megawatts if they were being paid. Instead, they are producing about= =20 3,100, and the amount is decreasing. Outages were triggered on Monday becau= se=20 the grid was short about 1,000 megawatts of load. This math clearly reveals= =20 how avoidable this disruption was. Call it a rolling Gray-out. Bipartisan legislation has languished in Sacramento for weeks that would cu= t=20 in half what these QFs have been billing the utilities. The savings are=20 possible by moving these contracts into long-term deals and out of the=20 higher-priced spot market. This piece of the overall solution has been=20 stalled while the governor has been at work on the others, such as returnin= g=20 the big utilities to solvency and locking in power purchases long-term with= =20 the big for-profit generators. Disregarding the little guys, however, is a= =20 mistake that the governor and Legislature should correct immediately.