Message-ID: <18019226.1075850403662.JavaMail.evans@thyme> Date: Wed, 20 Jun 2001 05:03:00 -0700 (PDT) From: susan.mara@enron.com To: jeff.dasovich@enron.com, james.steffes@enron.com, richard.shapiro@enron.com, karen.denne@enron.com, mark.palmer@enron.com, janel.guerrero@enron.com, paul.kaufman@enron.com, robert.frank@enron.com, leslie.lawner@enron.com, susan.landwehr@enron.com, steven.kean@enron.com, linda.robertson@enron.com Subject: ALERT: As discussed yesterday, Davis publicly demands nearly $9 billion for electricity overcharges... Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Susan J Mara X-To: Jeff Dasovich, James D Steffes, Richard Shapiro, Karen Denne, Mark Palmer, Janel Guerrero, Paul Kaufman, Robert Frank, Leslie Lawner, Susan M Landwehr, Steven J Kean, Linda Robertson X-cc: X-bcc: X-Folder: \Steven_Kean_Nov2001_3\Notes Folders\Caliornia - investigations X-Origin: KEAN-S X-FileName: skean.nsf At the IEP meeting yesterday, we heard that the Governor did some polling and focus groups a few weeks ago that found very good response if he goes after the refund issue. So, here we go. Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854 ----- Forwarded by Susan J Mara/NA/Enron on 06/20/2001 12:02 PM ----- "McMorrow, Thomas" 06/20/2001 11:34 AM To: "'Andy Brown (E-mail)'" , "'B Brown Andy (E-mail)'" , "'Baker Carolyn (E-mail)'" , "'Bob Escalante (E-mail)'" , "'Bob Weisenmiller (E-mail)'" , "'Curtis Kebler (E-mail)'" , "'Dean. Nistetter (E-mail)'" , "'Douglas Kerner (E-mail)'" , "'Greg Blue (E-mail)'" , "'Jan Smutny-Jones (E-mail)'" , "'Jeff Dasovich (E-mail)'" , "'Joe Ronan (E-mail)'" , "'John Larrea (E-mail)'" , "'Julee Malinowski-Ball (E-mail)'" , "'Kassandra Gough (E-mail)'" , "'kent Palmerton (E-mail)'" , "'Lynn Lednicky (E-mail)'" , "'Marie Moretti (E-mail 2)'" , "'Marty Wilson (E-mail)'" , "'McNally Ray (E-mail)'" , "''Nam Nguyen' (E-mail)'" , "'Norton Kelli (E-mail)'" , "'Paula Hall-Collins (E-mail)'" , "'Pigott Jack (E-mail)'" , "'Richard Hyde (E-mail)'" , "'Roger Pelote (E-mail)'" , "'Stephanie-Newell (E-mail)'" , "'Sue Mara (E-mail)'" , "'Tom Ross (E-mail)'" , "'Tom Williams (E-mail)'" , "'Alex Sugaoka (E-mail)'" , "'Bill Carlson (E-mail)'" , "'Bill Woods (E-mail)'" , "'Bob Ellery (E-mail)'" , "'Bob Gates (E-mail)'" , "'Cody Carter (E-mail)'" , "'Curt Hatton (E-mail)'" , "'David Parquet'" , "'Dean Gosselin (E-mail)'" , "'Doug Fernley (E-mail)'" , "'Duane Nelsen (E-mail)'" , "'Ed Tomeo (E-mail)'" , "'Eileen Koch (E-mail)'" , "'Eric Eisenman (E-mail)'" , "'Frank DeRosa (E-mail)'" , "'Frazier Blaylock (E-mail)'" , "'Hap Boyd (E-mail)'" , "'Hawks Jack (E-mail)'" , "'Jim Willey (E-mail)'" , "'Joe Greco (E-mail)'" , "'Jonathan Weisgall (E-mail)'" , "'Kate Castillo (E-mail)'" , "'Kelly Lloyd (E-mail)'" , "'Ken Hoffman (E-mail)'" , "'Kent Fickett (E-mail)'" , "'Lynn Lednicky (E-mail)'" , "'Marty McFadden (E-mail)'" , "'Paula Soos'" , "'Randy Hickok (E-mail)'" , "'Rick S. Koebbe (E-mail)'" , "'Rob Lamkin (E-mail)'" , "'Ross Ain (E-mail)'" , "'Steve Iliff'" , "'Steve Ponder (E-mail)'" , "'Tony Wetzel (E-mail)'" , "'William Hall (E-mail)'" , "'trusso@mcnallytemple.com'" , "'sadlersa@earthlink.net'" , "'mstultz@epsa.org'" , "'rtemple@mcnallytemple.com'" , "'tracy.fairchild@edelman.com'" , "'megan.beiser@edelman.com'" , "'deborah.fiorito@dynegy.com'" , "'lchurch@epsa.org'" , "'Katie Kaplan'" , "'tcwillia@duke-energy.com'" , "'rwhyde@duke-energy.com'" , "'Suzy.L.Rodriguez@dynegy.com'" , "'ppitts@wiredworld1.com'" , "'mnobili@cal-lobby.com'" , "'sscsus@aol.com'" , "'kvellandi@pstrategies.com'" , "'Jean Munoz'" cc: Energy Practice Group Subject: ALERT: As discussed yesterday, Davis publicly demands nearly $9 billion for electricity overcharges... WASHINGTON (AP) California Gov. Gray Davis demanded that power generators refund nearly $9 billion in electricity overcharges and complained that federal regulators have ``looked the other way while energy companies bilked our state.'' Davis told a Senate hearing Wednesday that the decision by the Federal Energy Regulatory Commission to curtail price spikes in California and 10 other Western states was a step forward. ``But its actions do nothing about the overcharges'' over the past year, he said. The governor, a Democrat, has been criticized by Republicans, who charge he has allowed the California power crisis to get out of hand. Davis defended his actions, saying the state has stepped up approval for new power plants and strengthened conservation programs. He also said the state has little control over price gouging by out-of-state power generators. ``The governor once said he could solve California's problems in 15 minutes. ... But it appears that California has continued to try and hide the true cost of power by having the state pay for it instead of the utilities,'' putting California taxpayers in jeopardy, said Sen. Frank Murkowski, R-Alaska. Murkowski said many of the alleged overcharges are by public power entities not under FERC jurisdiction Sen. Joe Lieberman, D-Conn., chairman of the Governmental Affairs Committee, said the FERC, which regulates wholesale electricity sales, has been slow to respond and ``surprisingly reluctant'' to assure that electricity prices are just and reasonable, as required by the 1934 Federal Power Act. The agency's response to the Western power problem ``raises serious questions about whether (FERC) has or will oversee the newly deregulated energy markets'' not only in the West but across the rest of the country. The federal agency, whose commissioners were to testify later in the day, imposed limited, market-based price caps on Monday in California and 10 other Western states from Washington to Arizona. The agency also ordered the parties to attend a conference next week to try to work out agreements on overcharges and other issues. Months ago, the FERC singled out $124 million in alleged overcharges by power generators. The power companies have since challenged the agency's findings and the matter remains in dispute. ``To date not a single penny in refunds has been returned to California,'' complained Davis. He said that between May 2000 and the beginning of this month power generators are believed to have overcharged California $8.9 billion. ``They must be required to give us back our money,'' said Davis. ``It is unconscionable that FERC looked the other way while energy companies bilked our state for up to $9 billion.'' The state spent $7 billion for electricity in 1999 and $27 billion in 2000 and is projected to pay nearly $50 billion this year, said Davis. ``Power generators have been able to exert extreme power over our energy market,'' he said. Davis rejected Republican criticism that the state is not addressing the problem. He said newly approved power plants will provide 20,000 additional megawatts of electricity by 2003, including 4,000 megawatts by the end of this summer. ``Everything that can be done to bring reliable, affordable energy to California is being done ... except wholesale price relief,'' he said. ``This administration has minimized this crisis (for) more months,'' said Sen. Patty Murray, D-Wash., alluding to President Bush's repeated refusal to urge the FERC to mitigate electricity prices. Bush has strongly opposed price controls, although he indicated support for FERC's limited price mitigation effort this week. Murray said the government should issue a disaster declaration so that businesses can get low-income loans, and require that FERC press its investigation into price gouging and demand refunds not only in California but in the Pacific Northwest, where electricity prices have also skyrocketed. Republicans continued their opposition to more stringent price caps based on the cost of generation at individual power plants. ``Having a federal agency try to determine what is a just and reasonable price is laughable,'' said Sen. Fred Thompson of Tennessee, the committee's ranking Republican. Hard price caps ``don't work when supply is the problem. ... They make a bad situation worse,'' he said. After FERC issued its limited price control order this week, Senate Democrats on Tuesday said they would drop legislation to require more stringent cost-based price caps on Western electricity sales. Democrats in the House, however, said they would continue to pursue a bill requiring the FERC to take more aggressive action.