Message-ID: <33127913.1075851019058.JavaMail.evans@thyme>
Date: Wed, 23 Aug 2000 08:23:00 -0700 (PDT)
From: gavin.dillingham@enron.com
To: steven.kean@enron.com
Subject: Enron Power Bid II
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It looks like there are about 12 articles in the San Diego Union concerning 
bidders in the San Diego market. Following are other articles and letter to 
the editor.



SDG&E is entertaining offers from major power companies for a fixed-price
contract to stabilize electricity prices. The utility has received at least
one proposal from Enron Corp. for a multiple-year contract at prices less
than half current levels -- but 50 percent above prices in the spring.



"It's like apples and oranges," said Thomas Williams, the Duke spokesman. 
He noted that Roseville had recently secured power at 4.9 cents from Enron
-- a Duke competitor -- but had signed a five-year contract.



Letters to the Editor

The real reason our electric rates are so high is because San Diego Gas &
Electric made a major goof by selling off all its power plants to other
utilities. That's why only San Diego County is suffering from deregulation.

The rest of the state is being served by other utilities that have plants. 
They can produce electricity for about 11 cents per kilowatt hour. They do
not need much of the California power pool electricity.

However, SDG&E's parent company, Sempra, has no local power generators and
is forced to take all of its electricity from the pool, which is being
exploited by large out-of-state utilities, such as Enron, which is charging
25 cents per kilowatt hour. The California power pool sells all power at
the same rates, but only Sempra is forced to buy large quantities.
WILLIAM P. BROTHERTON
San Diego
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>.
16-Jul-2000 Sunday 
I find it difficult to believe your readers are surprised by the recent
rise in electricity rates. Opponents to deregulation predicted the outcome
some years ago before AB 1847 was passed. Anyone with a simple education in
economics would foresee that with deregulation the utilities would direct
their marketing at the largest users who would lock in low rates by
contract. In the end, the individual homeowner would pay for any rate
increases.

Advising people to lock in a rate with Enron or a similar company will not
resolve the problem. Someone somewhere at the lower end of the food chain
will have to pay the deregulated power rate.

If one had even read AB 1847, one would have discovered that the initial 10
percent rate reduction was paid for by issuance of state bonds and guess
who will pay those off. As you may now realize, the power generation
industries in California and New York were not interested in any studies
based on reality, which were discarded.

The public's lack of diligence with pending legislation will be paid for by
the same public. The studies were available, but I guess that initial rate
reduction was more appealing.
ROBERT EMERY
El Centro
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
State Sen. Steve Peace is realizing that deregulating the power industry
from one monopoly (SDG&E) to another (Enron) isn't working. Well, duh! And
to compensate for his stupidity, we the consumers should make ourselves
heard through "economic disobedience."

The real statement and fresh resolve from Peace are his apology to all of
his constituents that relied on and voted for him, to reverse and fix this
ridiculous mistake.

I hope he had our best interests at heart when he bought into this idea. 
Who specifically lobbied him for this? Has anyone else noticed the
deafening silence by all our other elected state officials from San Diego? 
We have the highest gas prices, highest milk prices and now highest power
prices!

Does anybody in state government care about the people? Or is this the
Republican doctrine of less government in action?
MIKE BURNETT
La Costa