Message-ID: <12699967.1075851037189.JavaMail.evans@thyme> Date: Thu, 10 Aug 2000 06:57:00 -0700 (PDT) From: richard.shapiro@enron.com To: steven.kean@enron.com Subject: Re: Governor's Press Conference -- Shot Across the Bow Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: Richard Shapiro X-To: Steven J Kean X-cc: X-bcc: X-Folder: \Steven_Kean_Oct2001_2\Notes Folders\Attachments X-Origin: KEAN-S X-FileName: skean.nsf ---------------------- Forwarded by Richard Shapiro/HOU/EES on 08/10/2000= =20 01:56 PM --------------------------- Jeff Dasovich on 08/10/2000 10:12:20 AM To: Susan J Mara/SFO/EES@EES, Mona L Petrochko/SFO/EES@EES, Sandra=20 McCubbin/SFO/EES@EES, James D Steffes/HOU/EES@EES, Richard=20 Shapiro/HOU/EES@EES, Paul Kaufman@EES, Robert Badeer@ECT, Tim Belden@ECT,= =20 Dave Parquet@ENRON_DEVELOPMENT, Mary Hain@ENRON_DEVELOPMENT, Joe=20 Hartsoe/Corp/Enron@Enron, Cynthia Sandherr/Corp/Enron@Enron, Dennis=20 Benevides/HOU/EES@EES, Roger Yang/SFO/EES@EES, Douglas Condon/SFO/EES@EES,= =20 Sarah Novosel/Corp/Enron@Enron, Bruno Gaillard/SFO/EES@EES cc: =20 Subject: Re: Governor's Press Conference -- Shot Across the Bow =20 There appears to be a pattern forming. The administration seems to make a= =20 scene just prior to large events (e.g., Davis' letters calling for wholesal= e=20 caps just prior to the ISO Board vote, and now this on the eve of the joint= =20 Assembly/Senate hearing scheduled for today). In other late-breaking news. On the heels of this press conference, I=20 received late last evening from Loretta Lynch's chief of staff a copy of a= =20 proposed decision Lynch will release today reversing last Thursday's decisi= on=20 rejecting (0-5) retail price caps in San Diego. The draft decision she=20 proposes would establish an "interim" retail rate cap only for SDG&E=20 residential and small commercial customers. She proposes to use a "balanci= ng=20 account" to finance the cap. Though it looks like the "interim" cap would= =20 extend through December 2003, there is one place in the decision that state= s=20 the cap should only extend through December 2000. "Karen Edson" on 08/09/2000 06:58:13 PM To: "Baker Carolyn (E-mail)" , "Bill Carlson=20 (E-mail)" , "Bill Woods (E-mail)"=20 , "Curt Hatton (E-mail)" ,=20 "Curtis Kebler (E-mail)" , "David Keane= =20 (E-mail)" , "David Parquet (E-mail)"=20 , "Duane Nelsen (E-mail)" , "Ed= =20 Tomeo (E-mail)" , "Edward Maddox (E-mail)"=20 , "Eileen Kock (E-mail)" ,=20 "Ellery Bob (E-mail)" , "Escalante Bob (E-mail)"=20 , "Frank DeRosa (E-mail)"=20 , "Greg Blue (E-mail)" ,= =20 "Hap Boyd (E-mail)" , "Jack Pigott (E-mail)"=20 , "Jan Smunty-Jones (E-mail)" , "Jim=20 Willey (E-mail)" , "Joe Greco (E-mail)"=20 , "Joe Ronan (E-mail)" , "John Sto= ut=20 (E-mail)" , "Jonathan Weisgall (E-mail)"=20 , "Katie Kaplan (E-mail)" , "Kent Ficke= tt=20 (E-mail)" , "Lynn Lednicky (E-mail)" ,= =20 "Marty McFadden (E-mail)" , "Paula Soos=20 (E-mail)" , "Robert Lamkin (E-mail)"=20 , "Roger Pelote (E-mail)"=20 , "Steve Ponder (E-mail)" ,= =20 "Steven Kelly (E-mail)" , "Sue Mara (E-mail)"=20 , "Tony Wetzel (E-mail)" , "Tron= d=20 Aschehoug (E-mail)" , "William Hall (E-mail)"= =20 , "Richard Hyde (E-mail)" = ,=20 "Sandi McCubbin (E-mail)" , "Stephanie Newell=20 (E-mail)" , "Glenn R. Etienne (E-mail)"= =20 , "Nick Wallace (E-mail)" cc: "Ann Kelly (E-mail)" , "Bev Hansen (E-mail)"=20 , "Bob Judd (E-mail)" , "Govenar Scott=20 (E-mail)" , "Hedy Govenar (E-mail)"=20 , "Levake Barbara (E-mail)" , "Monag= an=20 Mike (E-mail)" , "Rob Ross (E-mail)" ,= =20 "Ron Tom (E-mail)" , "Rudman Cary (E-mail)"=20 , "Susan McCabe (E-mail)" = =20 Subject: Governor's Press Conference -- Shot Across the Bow Governor Davis held a press conference today at which he accused "out-of-state generators" of price gouging and market manipulation. He called on FERC to expedite their investigation of the market and to provide for consumer rebates if FERC cannot conclude that California prices are "just and reasonable." Below are my notes from the press conference. Attached is the Governor's press release. Karen Edson Notes from Gov. Davis=01, Press Conference: Opening Statement Record hot temperatures; lack of supply; price manipulation have created th= e crisis. Electricity is the life blood of the State's economy. He (the Governor) has responded with several recent steps. Among them is his request that the AG & FERC examine price manipulation 1st Point He is calling on the CPUC to establish a price stability rate for consumers and business. His intent is to reduce rates to $55-$65/mo. for next year or two. (This point was unclear. Did he mean rates, bills, or what?) Customers need predictable, reliable, affordable rates 2nd Point The Governor called on President Clinton and Chairman Hoecker to expedite a= n investigation of the unconscionable rates being charged by out-of-state generators to California utilities The Governor wants FERC to make evidentiary findings that rates are just an= d reasonable. If FERC can=01,t make such findings, he wants them to require consumer rebates. (This portion of his comments is not reflected in the attached press release. It is taken right from the script of Senator Steve Peace.) 3rd Point Believes deregulation will work. Generators must be held responsible. When gouging and extorting; you must pay the price. Karen Edson kedson@ns.net 916/552-7070 - A. GOVERNOR Press Release 8-10.doc