Subject: CDWR
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Thu, 11 Jan 2001 09:07:00 -0800 (PST)

Steve:

The CDWR idea has already been implemented. Today the ISO couldn't get supply 
from the market and informed market participants that CDWR would sleeve deals 
to the ISO. This occurred at a time when CA was in Stage 3 emergency (only 
the second one ever) and anticipating rolling blackouts this evening. Enron 
and other suppliers began to aggregate supply to sell to CDWR presumably to 
go to the ISO.  Belden was concerned that Gray Davis may just withhold 
payment through CDWR when settlements are due. This concern prompted us to 
require paper confirms for hourly deals and a discussion between Christian 
Yoder and Steve Hall (Stoel Rives) with the assistant director at CDWR to 
make sure CDWR management was on board - which they confirmed verbally. 
Regardless of all of this we still have some paranoia about getting paid. Is 
Gray Davis willing to confirm that no payment issue through CDWR will occur? 
We are currently continuing to aggregate supply through the day but are 
hesitant to increase quantities without such assurance. Other suppliers 
appeared hesitant as well as they wouldn't sleeve the deals to CDWR.