Message-ID: <31293090.1075846353739.JavaMail.evans@thyme> Date: Fri, 28 Jul 2000 00:31:00 -0700 (PDT) From: james.steffes@enron.com To: steven.kean@enron.com, david.delainey@enron.com Subject: California Governor Comes Out Hard for Price Caps Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: James D Steffes X-To: Steven J Kean, David W Delainey X-cc: X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\Heat wave X-Origin: KEAN-S X-FileName: skean.nsf FYI. It appears that the California Governor is working pretty hard to stop this market. We are looking into the politics behind this letter, especially who in the administration drove this dramatic response. Jim ---------------------- Forwarded by James D Steffes/HOU/EES on 07/28/2000 07:29 AM --------------------------- Jeff Dasovich on 07/27/2000 08:05:28 PM To: James D Steffes/HOU/EES@EES, Sandra McCubbin/SFO/EES@EES, Susan J Mara/SFO/EES@EES, Mona L Petrochko/SFO/EES@EES, Richard Shapiro/HOU/EES@EES, Mary Hain@ENRON_DEVELOPMENT, Joe Hartsoe/Corp/Enron@Enron, Cynthia Sandherr/Corp/Enron@Enron, Paul Kaufman@EES, Dave Parquet@ENRON_DEVELOPMENT, Tim Belden@ECT, Robert Badeer@ECT, Mark Palmer, Karen Denne/Corp/Enron@Enron, Peggy Mahoney/HOU/EES@EES, Dennis Benevides/HOU/EES@EES, Roger Yang/SFO/EES@EES, Kathleen E Magruder/HOU/EES@EES cc: Subject: California Governor Comes Out Hard for Price Caps Just received by fax a press release and letters sent by Davis to Jim Hoecker, the Chair and the CEO of the ISO, the Chair and the CEO of the PX, the Pres. of the PUC, the Chair of the Energy Oversight Board. The language is highly charged and negative. Tim/Bob: Note call for caps on PX equivalent to caps in ISO real time market. In sum: Letter to Chair and CEO of the ISO Apply to FERC for extension of rate cap authority Apply to FERC for finding that market is not competitive. Reduce wholesale price cap to lowest reasonable level. Letter to Chair and CEO of PX Apply to FERC for bid caps in day-ahead and day-of spot markets equal to ISO caps in real time markets. Letter to Pres of PUC Wholesale electricity market lacks competition. Support filings that he's asked the ISO and the PX to make at FERC. File a petition with FERC requesting a finding that "no competitive market currently exists in California, and requesting an extenstion of the price cap authority..." Refund immediately to SDG&E consumers the $100 million dollars SDG&E "found" in an account Letter to Chair of Energy Oversight Board Urge ISO to petition FERC for extension of price cap authority Urge ISO to lower caps to lowest reasonable level Urge ISO to file petition with FERC for finding that "no competitive market for energy exists in California" Letter to Hoecker (cc'd are Clinton, Boxer, Feinstein, Farr, Lewis, Burton, Brulte, Hertzberg and Baugh) "...there is virtually no price elasticity in this market, and little prospect of change in the short run." If FERC's investigation finds abuse, FERC should order refunds to consumers.