Message-ID: <28962742.1075844231535.JavaMail.evans@thyme> Date: Fri, 6 Apr 2001 10:26:00 -0700 (PDT) From: jeff.dasovich@enron.com To: alan.comnes@enron.com, angela.schwarz@enron.com, beverly.aden@enron.com, bill.votaw@enron.com, brenda.barreda@enron.com, carol.moffett@enron.com, cathy.corbin@enron.com, chris.foster@enron.com, christina.liscano@enron.com, craig.sutter@enron.com, dan.leff@enron.com, debora.whitehead@enron.com, dennis.benevides@enron.com, don.black@enron.com, dorothy.youngblood@enron.com, douglas.huth@enron.com, edward.sacks@enron.com, eric.melvin@enron.com, erika.dupre@enron.com, evan.hughes@enron.com, fran.deltoro@enron.com, gayle.muench@enron.com, ginger.dernehl@enron.com, gordon.savage@enron.com, harold.buchanan@enron.com, harry.kingerski@enron.com, iris.waser@enron.com, james.steffes@enron.com, james.lewis@enron.com, james.wright@enron.com, jeff.messina@enron.com, jeremy.blachman@enron.com, jess.hewitt@enron.com, joe.hartsoe@enron.com, karen.denne@enron.com, kathy.bass@enron.com, kathy.dodgen@enron.com, ken.gustafson@enron.com, kevin.hughes@enron.com, leasa.lopez@enron.com, leticia.botello@enron.com, mark.muller@enron.com, marsha.suggs@enron.com, marty.sunde@enron.com, meredith.eggleston@enron.com, michael.etringer@enron.com, michael.mann@enron.com, michelle.cisneros@enron.com, mpalmer@enron.com, neil.bresnan@enron.com, neil.hong@enron.com, paul.kaufman@enron.com, paula.warren@enron.com, richard.zdunkewicz@enron.com, richard.leibert@enron.com, richard.shapiro@enron.com, rita.hennessy@enron.com, roger.yang@enron.com, rosalinda.tijerina@enron.com, sandra.mccubbin@enron.com, sarah.novosel@enron.com, scott.gahn@enron.com, scott.stoness@enron.com, sharon.dick@enron.com, skean@enron.com, tanya.leslie@enron.com, tasha.lair@enron.com, ted.murphy@enron.com, terri.greenlee@enron.com, tim.belden@enron.com, tony.spruiell@enron.com, vicki.sharp@enron.com, vladimir.gorny@enron.com, wanda.curry@enron.com, william.bradford@enron.com, kathryn.corbally@enron.com, jubran.whalan@enron.com, triley@enron.com, richard.sanders@enron.com, robert.williams@enron.com, greg.wolfe@enron.com, james.wright@enron.com, dirk.vanulden@enron.com, steve.walker@enron.com, jennifer.rudolph@enron.com, martin.wenzel@enron.com, douglas.condon@enron.com, wgang@enron.com, sgovenar@govadv.com, hgovenar@govadv.com, jklauber@llgm.com, mike.smith@enron.com, john.neslage@enron.com, janel.guerrero@enron.com, eric.letke@enron.com, richard.sanders@enron.com, gfergus@brobeck.com, michael.tribolet@enron.com, robert.frank@enron.com, richard.sanders@enron.com, gfergus@brobeck.com, susan.mara@enron.com Subject: Others reactions to PG&E bankruptcy Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Jeff Dasovich X-To: Alan Comnes, Angela Schwarz, Beverly Aden, Bill Votaw, Brenda Barreda, Carol Moffett, Cathy Corbin, Chris H Foster, Christina Liscano, Craig H Sutter, Dan Leff, Debora Whitehead, Dennis Benevides, Don Black, Dorothy Youngblood, Douglas Huth, Edward Sacks, Eric Melvin, Erika Dupre, Evan Hughes, Fran Deltoro, Gayle W Muench, Ginger Dernehl, Gordon Savage, Harold G Buchanan, Harry Kingerski, Iris Waser, James D Steffes, James W Lewis, James Wright, Jeff Messina, Jeremy Blachman, Jess Hewitt, Joe Hartsoe, Karen Denne, Kathy Bass, Kathy Dodgen, Ken Gustafson, Kevin Hughes, Leasa Lopez, Leticia Botello, Mark S Muller, Marsha Suggs, Marty Sunde, Meredith M Eggleston, Michael Etringer, Michael Mann, Michelle D Cisneros, mpalmer@enron.com, Neil Bresnan, Neil Hong, Paul Kaufman, Paula Warren, Richard L Zdunkewicz, Richard Leibert, Richard Shapiro, Rita Hennessy, Roger Yang, Rosalinda Tijerina, Sandra McCubbin, Sarah Novosel, Scott Gahn, Scott Stoness, Sharon Dick, skean@enron.com, Tanya Leslie, Tasha Lair, Ted Murphy, Terri Greenlee, Tim Belden, Tony Spruiell, Vicki Sharp, Vladimir Gorny, Wanda Curry, William S Bradford, Kathryn Corbally, Jubran Whalan, triley@enron.com, Richard B Sanders, Robert C Williams, Greg Wolfe, James Wright, Dirk vanUlden, Steve Walker, Jennifer Rudolph, Martin Wenzel, Douglas Condon, wgang@enron.com, Scott Govenar , Hedy Govenar @ ENRON, jklauber@llgm.com, Mike D Smith, John Neslage, Janel Guerrero, Eric Letke, Richard B Sanders, gfergus@brobeck.com, Michael Tribolet, Robert Frank, Richard B Sanders, gfergus@brobeck.com, Susan J Mara X-cc: X-bcc: X-Folder: \Richard_Shapiro_June2001\Notes Folders\Discussion threads X-Origin: SHAPIRO-R X-FileName: rshapiro.nsf ----- Forwarded by Jeff Dasovich/NA/Enron on 04/06/2001 05:25 PM ----- Jean Munoz 04/06/2001 06:05 PM 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)'" , "'John Stout (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)'" , , , , , , , , , Katie Kaplan , , , Beth Miller , , Jonathan Wilcox , Alfie Charles cc: Subject: Others reactions to PG&E bankruptcy Following are reactions from: IBEW Duke Reliant Sempra Fitch FYI, Jan reacted on behalf of IEP during a media teleconference earlier today, and also by a statewide satellite feed. Thanks - Jean -- Jean Munoz McNally Temple Associates, Inc. 916-447-8186 916-447-6326 (fx) IBEW Statement on PG&E Bankruptcy PR Newswire 04/06/01, 5:02p (Copyright , 2001, PR Newswire) WASHINGTON, April 6 /PRNewswire/ -- In response to the bankruptcy announcement made by Pacific Gas and Electric, Edwin D. Hill, International President of the International Brotherhood of Electrical Workers (IBEW), issued the following statement. "Pacific Gas and Electric's filing for bankruptcy could make a dire situation in California even worse. On behalf of the 13,500 IBEW Local Union 1245 members employed by PG&E and the public they serve, we believe it is imperative that constructive action be taken now. "Specifically, we call on the Federal Energy Regulatory Commission (FERC) to stop dragging its feet and impose price controls on the wholesale electricity market in California. It is obvious that price gouging by wholesale suppliers has bled dry the investor-owned utilities and precipitated this crisis. The state has purchased power in an effort to prop up the system, but it too has paid the same inflated prices. This only threatens California's budget surplus and places an unfair burden on taxpayers while doing nothing to address the root of the problem. "We also believe that it is time for government and industry to work together to jump start projects to improve the interconnected transmission grid in the Western states so that power can be quickly and efficiently moved to where it is needed. Prompt action on such projects could have helped alleviate the current problems, and they should commence with all due speed. "Another factor that has driven the crisis is the lack of adequate generation facilities to power the growth of California and other Western states. We urge the Western Governors Association to take the lead in helping to chart a course that will bring more facilities on line and provide short and long term solutions to these difficulties. "Even though we have been assured that PG&E employees will still be paid, and we know that their pensions are protected by law, we will fight to ensure that our collective bargaining rights are honored during this process. We will work with our Local Union 1245, utility management, Governor Davis and all other parties to restore sanity and reliability to California's gas and electricity systems." SOURCE International Brotherhood of Electrical Workers /CONTACT: Jim Spellane of the International Brotherhood of Electrical Workers, 202-728-6014/ Duke Energy Statement Regarding Pacific Gas & Electric Company Filing for Chapter 11 Reorganization PR Newswire 04/06/01, 4:34p (Copyright , 2001, PR Newswire) CHARLOTTE, N.C., April 6 /PRNewswire/ -- Duke Energy Corporation (NYSE: DUK) today issued the following statement: We regret that the collective actions to mitigate Pacific Gas & Electric's (PG&E) financial crisis were unsuccessful in keeping it from filing for Chapter 11 reorganization. However, the Chapter 11 filing provides a defined process to collect our past receivables and keep PG&E in business going forward. Duke Energy had taken a number of aggressive steps to limit its financial exposure to uncertainties in California's energy market, including the potential bankruptcy of the state's investor-owned utilities. The company has also sold a significant portion of its energy output from its California plants through fixed-price, forward contracts to creditworthy entities. Duke Energy continues to operate its power plants in California efficiently and effectively to supply the state's energy needs. The company is working with federal and state officials and members of the state legislature to help California solve its electricity problems. Duke Energy, a diversified multinational energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses -- generating revenues of more than $49 billion in 2000. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com. SOURCE Duke Energy Corporation /CONTACT: Bryant Kinney of Duke Energy Corporation, 704-382-2208, or 24-Hour, 704-382-8333/ /Company News On-Call: http://www.prnewswire.com/comp/257451.html or fax, 800-758-5804, ext. 257451/ /Web site: http://www.duke-energy.com / Reliant Energy Says Bankruptcy Action By Pacific Gas and Electric Co. Not Unexpected PR Newswire 04/06/01, 4:11p (Copyright , 2001, PR Newswire) HOUSTON, April 6 /PRNewswire/ -- Reliant Energy (NYSE: REI) said today that the bankruptcy filing announced by Pacific Gas and Electric Company was not an unexpected occurrence and does not increase Reliant Energy's financial exposure. Steve Letbetter, Reliant Energy chairman, president, and chief executive officer, said Reliant Energy planned for such a possibility during the fourth quarter 2000 and continues to do so. "Our exposure to financial risk as a result of Pacific Gas and Electric's action is not expected to increase," Letbetter said. "This development does not impact the level of first quarter results we have previously anticipated. We established a $39 million reserve in the fourth quarter of 2000, and we will continue to reserve appropriate funds." According to Letbetter, bankruptcy is one of the mechanisms that will get outstanding receivables paid and can be a part of an overall, constructive solution to California's energy crisis. "Despite this bankruptcy action, Reliant Energy will continue to work with the state to ensure our generating plants are available to serve California's electricity needs," Letbetter said. "We remain committed to helping find a long-term solution to California's energy crisis." Reliant Energy plans to release its earnings on Monday, April 16. Reliant Energy, based in Houston, Texas, is an international energy services and energy delivery company with approximately $29 billion in annual revenue and assets totaling more than $32 billion. The company has more than 23,000 megawatts of power generation in operation in the U.S. and is one of only three companies to rank among both the five largest power marketers and the five largest natural gas marketers in the nation. The company also has wholesale trading and marketing operations and more than 3,400 megawatts of power generation in Western Europe. Reliant Energy's retail marketing and distribution operations serve nearly four million electricity and natural gas customers in the U.S., and its Internet infrastructure and communications company serves business customers in Texas. For more information about Reliant Energy, visit the company's website at www.reliantenergy.com. SOURCE Reliant Energy /CONTACT: media, Richard Wheatley, 713-207-5881, or investors, Dennis Barber, 713-207-3042, both of Reliant Energy/ Sempra Energy And SDG&E Reaffirm Strong Financial Position in Response to PG&E Bankruptcy Business Wire 04/06/01, 4:00p (Copyright , 2001, Business Wire) SAN DIEGO--(BUSINESS WIRE)--April 6, 2001--Sempra Energy and San Diego Gas & Electric (SDG&E) officials took the opportunity of today's Chapter 11 bankruptcy announcement by Pacific Gas & Electric (PG&E) to reaffirm their companies' strong financial position and the significant regulatory and legislative differences between SDG&E and PG&E. "We want to reassure our customers and shareholders that Sempra Energy and SDG&E remain very strong and financially viable companies," said Stephen L. Baum, chairman, president and chief executive officer of Sempra Energy, the parent company of SDG&E. "SDG&E is continuing its record of providing safe and reliable gas and electric service for our 1.2 million customers today, tomorrow and for years to come. There are several significant financial, legislative and regulatory differences that distinguish Sempra Energy and SDG&E from PG&E." SDG&E is covered under Assembly Bill 265, a law signed by the Governor last September which guaranteed that SDG&E will be able to collect the difference between the capped price of electricity and the wholesale cost of power, providing the power was prudently purchased. PG&E is not covered by AB 265 and that guarantee. At the end of February, the under-collection in the balancing account was $681 million. Since the state's power procurement agency, the California Department of Water Resources (DWR), has been purchasing power for SDG&E, the growth of the company's balancing account has slowed significantly. Unlike PG&E, SDG&E has been able to pay its wholesale electric bills to the DWR, the California Independent System Operator, the California Power Exchange and Qualifying Facilities that cogenerate power for the utility. Additionally, the Sempra Energy companies have no significant credit exposure to PG&E. "Sempra Energy and SDG&E have long advocated that the Federal Energy Regulatory Commission institute temporary regional wholesale price caps to help stem the financial problems such as those experienced by PG&E," Baum added. "We are also committed to promoting and instituting comprehensive energy conservation programs for all customers to help control bills and decrease the chances of rotating outages this summer." Sempra Energy (NYSE: SRE), based in San Diego, is a Fortune 500 energy services holding company with 12,000 employees and annual revenues of $5.4 billion. Through its eight principal subsidiaries -- SoCalGas, SDG&E, Sempra Energy Solutions, Sempra Energy Trading, Sempra Energy International, Sempra Energy Resources, Sempra Communications and Sempra Energy Financial -- Sempra Energy serves more than 9 million customers in the United States, Europe, Canada, Mexico and South America. CONTACT: Sempra Energy Laura Farmer/Art Larson, 877/866-2066 (Media) www.sempra.com or Karen Sedgwick, 877/736-7727 (Investors) Fitch Cuts Pacific Gas and Electric, So Cal Edison Ratings Business Wire 04/06/01, 4:57p (Copyright , 2001, Business Wire) NEW YORK--(BUSINESS WIRE)--April 6, 2001--Fitch has lowered its ratings for Pacific Gas and Electric Company (Pac Gas) senior secured and preferred securities into the default category based on the utility's voluntary filing today of a petition under Chapter 11 of the U.S. Bankruptcy Code. Fitch also believes that Pac Gas' bankruptcy filing could complicate Southern California Edison's (So Cal Ed) likelihood of accomplishing a sale of its transmission assets to the State of California. Consequently, Fitch has lowered So Cal Ed's senior secured debt rating and changed the Ratings Watch to Negative from Evolving. The Ratings Watch status of Edison International, the parent of So Cal Ed, is also changed to Negative from Evolving. The new ratings are: Pacific Gas and Electric Company First Mortgage Bonds to `DDD' from `B-`; Preferred Securities to `D' from `C'; Commercial Paper `D' Unchanged; Rating Watch Not applicable Negative. Fitch does not rate the securities of PG&E Corp. Southern California Edison Company Senior Secured Debt to `CCC' from `B-`; Senior Unsecured Debt `CC' unchanged; Preferred Stock `C' unchanged; Commercial Paper `D' unchanged; Changed to Rating Watch Negative from Rating Watch Evolving. Edison International Senior Unsecured Notes `CC' unchanged; Trust Preferred Securities `C' unchanged; Commercial Paper `D' unchanged; To Rating Watch Negative from Rating Watch Evolving. Pacific Gas and Electric Company is a wholly owned subsidiary of PG&E Corp., and is based in San Francisco, CA. Southern California Edison is a wholly owned subsidiary of Edison International, and is based in Rosemead, California. CONTACT: Fitch Lori R. Woodland, 1-312/606-2309, Chicago Steven Fetter, 1-212/908-0555, New York