Message-ID: <24175691.1075846336242.JavaMail.evans@thyme> Date: Wed, 22 Nov 2000 08:00:00 -0800 (PST) From: jeff.dasovich@enron.com To: skean@enron.com, richard.shapiro@enron.com, paul.kaufman@enron.com, sandra.mccubbin@enron.com, mona.petrochko@enron.com, susan.mara@enron.com, joe.hartsoe@enron.com, mary.hain@enron.com, sarah.novosel@enron.com, mpalmer@enron.com, karen.denne@enron.com, alan.comnes@enron.com Subject: Options the Governor's Considering Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: Jeff Dasovich X-To: skean@enron.com, Richard Shapiro, Paul Kaufman, Sandra McCubbin, Mona L Petrochko, Susan J Mara, Joe Hartsoe, Mary Hain, Sarah Novosel, mpalmer@enron.com, Karen Denne, Alan Comnes X-cc: X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\California X-Origin: KEAN-S X-FileName: skean.nsf Steve: FYI. Don't worry about the conference call, but thought it might b= e=20 useful to review the proposals prior to Monday's meeting. See you Monday. Happy Thanksgiving to all. Best, Jeff ***************************************************************************= *** ************************************** Several IEP companies have been invited to a meeting with the Governor=01,s= =20 staff next Monday, November 27th. The following are some options, which the Governor=01,s office is consideri= ng. =20 IEP is doing some preliminary research on some of these topics. IEP would= =20 like to arrange a teleconference call around noon on Monday, November 27th = to=20 discuss the Governor=01,s meeting. Please advise us as to whether your hav= e=20 been invited, and who you are sending. California=01,s electricity supply situation has two inter-related problems= =01)=20 (1) high wholesale electricity costs, and (2) marginally adequate supply of= =20 generation =01) both have combined to create a dysfunctional wholesale=20 electricity market. The goals should be: To assure reliable electricity to California consumers for the lowest=20 reasonable cost. o Consider requiring that all in-state generation be sold in state. o Consider re-asserting state authority over the operation, maintenance and= =20 safety practices of all in-state generating facilities=01, for public healt= h and=20 safety purposes. o Consider developing a state power authority to build generation and=20 own/operate transmission. o Consider requiring utilities both to retain existing and to build new=20 generation. o Consider providing utilities with authority to stabilize retail prices to= =20 be paid by consumers through development of an energy portfolio that reduce= s=20 exposure to spot markets, including contracting forward for much more of=20 their unmet power needs. o Consider extending consumer rate freeze. o Consider centralizing power plant dispatch like the other ISOs in the res= t=20 of the country. o Consider eliminating the ISO and assigning its functions to either a stat= e=20 or private entity that can acquire the transmission facilities, and control= =20 the electricity transmission grid (MUNIs have proposed this). o Consider sponsoring/supporting legislation to change the ISO and PX board= s=20 to increase accountability. o Expand energy conservation programs focused both on immediate peak demand= =20 reduction and on longer term, broader-based programs. o Aggressively work to site new generation and transmission facilities, to= =20 streamline permitting, and to develop renewable resources. o Call for/sponsor federal FERC reform legislation that would: o Impose a regional price cap that varies by time of day and year; o Set requirements for FERC to use its retroactive refund authority; o Improve FERC enforcement over price gouging practices; o Affirm the role of states to protect their customers from unjust prices. o Pressure the FERC to do its job to (1) bring about responsible seller=20 behavior in wholesale electric markets through price controls and other=20 market interventions as necessary, and (2) provide refunds to affected=20 consumers. ----- Forwarded by Jeff Dasovich/NA/Enron on 11/22/2000 03:44 PM ----- =09Susan J Mara =0911/22/2000 03:05 PM =09=09 =09=09 To: "CHUDSON" =09=09 cc: "Andy Brown \(E-mail\)" , chudson@iepa.com, "= Curtis=20 Kebler \(E-mail\)" , "Delaney Hunter=20 \(E-mail\)" , "Greg Blue \(E-mail\)"=20 , "Jack Pigott \(E-mail\)" , "Jeff=20 Dasovich \(E-mail\)" , "Joe Ronan \(E-mail\)"=20 , "John Stout \(E-mail\)" ,=20 jparker@HMOT.com, "Katie Kaplan \(E-mail\)" ,=20 kelly@hnks.com, "Kelly Norton \(E-mail\)" , "Lyn= n=20 Lednicky \(E-mail\)" , marie_moretti@msn.com,=20 mrmonagan@aol.com, "Bob Weisenmiller \(E-mail\)" , "Bob= =20 Escalante \(E-mail\)" , "Rob Lamkin \(E-mail\)"= =20 , "Jan Smutny-Jones \(E-mail\)" ,=20 "Steven Kelly \(E-mail\)" , "Susan J Mara \(E-mail\)"=20 , "McNally Temple Assn. Inc. \(Business=20 Fax\)"@mail.cwo.com =09=09 Subject: Re:=20 Jeff Dasovich and Steve Kean are attending. Someone can be on a call -- me= =20 if no one else -- if Jeff and Steve are travelling at the time. Hey, does t= he=20 Governor have to fly coach? =09"CHUDSON" =0911/22/2000 12:47 PM =09=09=20 =09=09 To: "Katie Kaplan \(E-mail\)" , "Jeff Dasovich \(E-= mail\)"=20 , "Kelly Norton \(E-mail\)" = ,=20 "John Stout \(E-mail\)" , "Curtis Kebler=20 \(E-mail\)" , "Rob Lamkin \(E-mail\)"=20 , "Bob Weisenmiller \(E-mail\)"=20 , "Susan J Mara \(E-mail\)" , "An= dy=20 Brown \(E-mail\)" , "Bob Escalante \(E-mail\)"=20 , "Greg Blue \(E-mail\)" , "Ja= ck=20 Pigott \(E-mail\)" , "Jan Smutny-Jones \(E-mail\)"=20 , "Joe Ronan \(E-mail\)" , "Lynn Lednick= y=20 \(E-mail\)" , "McNally Temple Assn. Inc. \(Business=20 Fax\)"@mail.cwo.com, "Steven Kelly \(E-mail\)" , "Susan J= =20 Mara \(E-mail\)" , ,=20 , "Delaney Hunter \(E-mail\)"=20 , , ,=20 =09=09 cc:=20 =09=09 Subject:=20 Jan Smutny-Jones, Exec Dir Independent Energy Producers Assn. 1112 I Street, Suite 380 Sacramento, CA 95814 PH: 916-448-9499 FX: 916-448-0182 iepa@iepa.com - Govs meeting Conf Call.doc