Message-ID: <4024087.1075851604368.JavaMail.evans@thyme> Date: Mon, 16 Jul 2001 19:10:00 -0700 (PDT) From: lgoldseth@svmg.org To: lgoldseth@svmg.org Subject: Energy Fortnight in review July 2-15 (any comments before I send out?) Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Laura Goldseth X-To: lgoldseth@svmg.org X-cc: X-bcc: X-Folder: \Dasovich, Jeff (Non-Privileged)\Dasovich, Jeff\Deleted Items X-Origin: DASOVICH-J X-FileName: Dasovich, Jeff (Non-Privileged).pst SILICON VALLEY "ENERGY (fortnight) IN REVIEW" JULY 2-15 Justin Bradley, SVMG ENERGY POLICY ACTIVITIES Met with strategic partners CMTA/CLECA in Sacramento regarding Direct Access and the Hertzberg/Edison negotiation which led to joint policy white paper (draft) of desired policy objectives. See attached. Submittal of Real Time Pricing (RTP) support letter to Loretta Lynch and the Public Utilities Commission - Participated in PUC RTP workshop on July 8 at 10 am. SVMG was well represented with Energy Committee members from HP, Infotility, Cargill Salt, Oracle and myself. Our partnership with the CEC has been very fruitful on this issue with John Wilson and the Commission responding positively to each of our major concerns. We are seeking PUC approval of this CEC proposed tariff. See attached letter. Projections 2001 Conference - On September 28, SVMG and ABAG host a conference and present a document that provides the forward analysis foundation for our policy vectors. With the help of a subcommittee of the Energy Committee and Energy coordinator Alex Leupp we submitted an outline and information package to Kathleen Cha of ABAG for the energy section. Some excellent analysis from Peter Evans is attached. Annual Bar-be-que - Last Thursday evening SVMG CEOs and over 50 members of the State Legislature were in attendance the annual SVMG Board BBQ including Governor Davis, Speaker pro tem Sen. John Burton, Assembly Minority leader Dave Cox, Majority Speaker of the Assembly Robert Hertzberg, and Secretary of State Bill Jones. We were fortunate to be able to have a 90-minute pre-meeting with Speaker Hertzberg and Speaker Pro Tem Keeley with a select group of leaders focusing on several topics including energy. Dr. Woody ably represented SVMG on the topic. Had discussion with many of our representatives on the energy topic including Sen. John Vasconcellos (who related that Sen. Bowen wants to meet again with our leadership on SB27XX Direct Access on Friday the 20th), Sen. Bruce McPherson, Speaker Hertzberg, and Assy. Elaine Alquist to name a few. Deregulation Restructuring - Legislation is being written that attempts to integrate all of the energy issues (direct access, distributed generation, securitize 13.4 billion in energy bonds, proportional distribution of financial burden, purchase of Edison transmission lines in order to prevent Southern California Edison bankruptcy). I am working with our team (Derek Naten of Roche, John Redding of GE, Joe Desmond of Infotility, and the addition of our lobbying firm Noteware and Shannon) to make sure Silicon valley employers and employees are strongly represented. Telephone conversations with Sen. Bowen on Direct Access- Thanks to Joe Desmond of Infotility and with John Redding of GE, we had the opportunity to have speak with Senate Energy and Utilities Committee chair Sen. Debra Bowen to focus on Direct Access so that energy customers have a choice in the future and vital market with services that meet the diversity of our needs from lowest cost to highest reliability and quality of power. We have a follow up meeting with Senator Bowen on the 20th, time to be determined. CONSERVATION/DEMAND MANAGEMENT SVMG/NRDC partnership - Planned demand management conference in Cupertino on August 24 (with Ralph Cavanagh of NRDC, Leslie Hummel Silicon Energy and Mayor Sandy James of Cupertino) to help us "Lock In" our energy conservation gains. Commissioner Art Rosenfeld and Sen. Byron Sher are featured. See attached SAVE THE DATE. We are very honored to have Adrian Ionel, former President and CEO of eOnline now on personal sabbatical, who has agreed to coordinate this effort on SVMG's team. In partnership with Deloitte & Touche and Infotility, submitted to CEC a propsal entitled "Customer Decision and Risk Models for Demand Response Strategies - Phase I Economic Risk Model for Real Time Pricing. The partnership is attempting to create an interactive decision tool to help as many companies decide based on objective financial gain. ENERGY INFRASTRUCTURE REVIEW Working Council approved a streamlined approach for Energy Infrastructure project review. Thanks to Leslie O'Rourke Garrett of Incite Genomics for a persuasive presentation and for strategic planning to come up with a more efficient way to reach conclusions on potential project. We are working on two more potential projects, one in San Jose, one in Milpitas brough to us by Jason Danapoli and Spartan Energy. ENERGY COMMITTEE On July 9 at EPRI - Welcomed a Japanese delegation of energy experts seeking our input to help them avoid the pitfalls California has experienced. Special thanks to Don Hall of PG&E and Peter Evans for their willingness to share our wisdom. Continued thanks to Paul Radcliff and EPRI for their generosity in hosting SVMG meetings. Our Energy Expert Barbara Barkovich - had served us with great skill and distinction over the past 6 months. With the first phase of our contract up, it is crucial for us to have her on our side to finish well on our major issues, particularly the restructuring legislation. Please review the attached Return on Investment and call or email your companies renewed financial support. LEGISLATIVE SUBCOMMITTEE Took oppose position on SB85XX which would sunset the 10% rate discount for small customers granted under AB 1890. The 10% discount represents nearly $400 million in revenue for each of Pacific Gas and Electric (PG&E) and Southern California Edison (SCE). Given the current financial distress of both utilities, removal of this sunset would greatly exacerbate the current undercollection of the IOUs and would have to be backfilled by other customer groups. SPEECHES Spoke to about 30 members of the Livermore Rotary Club from a Silicon Valley perspective (filling in for Carl due to illness). MEDIA RELATIONS Direct Access - Was interviewed by Channel 2 about black-out notification that must occur prior to any rolling black-out in the future. Kudos, once again, to our Energy Committee for their leadership in developing this policy. - SB85xx.doc - Energy Infrastructure SWAT Team slides WC.doc - Save the Date Energy Conference in Cupertino 1.doc - Industrial White Paper 7-5-011(dot commentsCLEAN).doc - RTP support letter to PUC Lynch.doc - Projections 2001- Evans.doc - Activities Return on Investment of Dr Barkovich 1st half of 2001.doc