Message-ID: <5494300.1075844240340.JavaMail.evans@thyme> Date: Tue, 15 May 2001 07:24:00 -0700 (PDT) From: susan.mara@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, christopher.calger@enron.com, craig.sutter@enron.com, dan.leff@enron.com, debora.whitehead@enron.com, dennis.benevides@enron.com, don.black@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, 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, richard.zdunkewicz@enron.com, richard.leibert@enron.com, richard.shapiro@enron.com, rita.hennessy@enron.com, robert.badeer@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, susan.mara@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, jubran.whalan@enron.com, triley@enron.com, richard.sanders@enron.com, robert.williams@enron.com, dwatkiss@bracepatt.com, rcarroll@bracepatt.com, donna.fulton@enron.com, gfergus@brobeck.com, bruno.gaillard@enron.com, linda.robertson@enron.com, ren@enron.com, lazure@enron.com, michael.tribolet@enron.com, phillip.allen@enron.com, christian.yoder@enron.com, jklauber@llgm.com, tamara.johnson@enron.com, greg.wolfe@enron.com, jeff.dasovich@enron.com, dirk.vanulden@enron.com, steve.walker@enron.com, james.wright@enron.com, mike.smith@enron.com, richard.shapiro@enron.com, leslie.lawner@enron.com, robert.neustaedter@enron.com, steve.walton@enron.com, psmith3@enron.com, mjackso7@enron.com, janel.guerrero@enron.com, mark.fillinger@enron.com, jennifer.rudolph@enron.com, martin.wenzel@enron.com, wgang@enron.com, joseph.alamo@enron.com, tracy.ngo@enron.com, ray.alvarez@enron.com, steve.hall@enron.com, jay.zoellner@enron.com, fatimata.liamidi@enron.com, sonia.perez@enron.com, chris.holmes@enron.com, venkatesh.mani@enron.com, richard.crevelt@enron.com, dave.perrino@enron.com Subject: Sacramento Bee--Dan Weintraub column: Expected Referendum on Ballot Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Susan J Mara X-To: Alan Comnes, Angela Schwarz, Beverly Aden, Bill Votaw, Brenda Barreda, Carol Moffett, Cathy Corbin, Chris H Foster, Christina Liscano, Christopher F Calger, Craig H Sutter, Dan Leff, Debora Whitehead, Dennis Benevides, Don Black, Douglas Huth, Edward Sacks, Eric Melvin, Erika Dupre, Evan Hughes, Fran Deltoro, Gayle W Muench, Ginger Dernehl, Gordon Savage, Harold G Buchanan, Harry Kingerski, 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, Richard L Zdunkewicz, Richard Leibert, Richard Shapiro, Rita Hennessy, Robert Badeer, Rosalinda Tijerina, Sandra McCubbin, Sarah Novosel, Scott Gahn, Scott Stoness, Sharon Dick, skean@enron.com, Susan J Mara, Tanya Leslie, Tasha Lair, Ted Murphy, Terri Greenlee, Tim Belden, Tony Spruiell, Vicki Sharp, Vladimir Gorny, Wanda Curry, William S Bradford, Jubran Whalan, triley@enron.com, Richard B Sanders, Robert C Williams, dwatkiss@bracepatt.com, rcarroll@bracepatt.com, Donna Fulton, gfergus@brobeck.com, Bruno Gaillard, Linda Robertson, Ren, Lazure, Michael Tribolet, Phillip K Allen, Christian Yoder, jklauber@llgm.com, Tamara Johnson, Greg Wolfe, Jeff Dasovich, Dirk vanUlden, Steve Walker, James Wright, Mike D Smith, Richard Shapiro, Leslie Lawner, Robert Neustaedter, Steve Walton, psmith3@enron.com, mjackso7@enron.com, Janel Guerrero, Mark Fillinger, Jennifer Rudolph, Martin Wenzel, wgang@enron.com, Joseph Alamo, Tracy Ngo, Ray Alvarez, Steve C Hall, David Leboe/Enron@EnronXGate, Jay Zoellner, Fatimata Liamidi, Sonia Perez, Chris Holmes, Venkatesh Mani, Richard Crevelt, Dave Perrino X-cc: X-bcc: X-Folder: \Richard_Shapiro_June2001\Notes Folders\Discussion threads X-Origin: SHAPIRO-R X-FileName: rshapiro.nsf Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854 ----- Forwarded by Susan J Mara/NA/Enron on 05/15/2001 02:21 PM ----- "Beiser, Megan" 05/15/2001 11:04 AM To: "'arem@electric.com'" , "Allen, Stevan" , arm@phaser.com, Bob_Anderson@apses.com, "brbarkovich@earthlink.net" , cra@calretailers.com, dennis.flatt@kp.org, dhunter@s-k-w.com, djsmith@s-k-w.com, Dominic.DiMare@calchamber.com, drothrock@cmta.net, "Fairchild, Tracy" , gdoar@newpower.com, gharrison@calstate.edu, hgovenar@govadv.com, jackson_gualco@gualcogroup.com, "jerryl@abag.ca.gov" , .gov@mailman.enron.com, johnlatimer@capitoladvocacy.com, ken_pietrelli@ocli.com, kgough@calpine.com, kmccrea@sablaw.com, kmills@cfbf.com, lhastings@cagrocers.com, "Manuel, Erica" , mday@gmssr.com, mmoretti@calhealth.org, nplotkin@tfglobby.com, randy_britt@robinsonsmay.com, richard.seguin@kp.org, RochmanM@spurr.org, rrichter@calhealth.org, sgovenar@govadv.com, smccubbi@enron.com, spahnn@hnks.com, sschleimer@calpine.com, theo@ppallc.com, vincent.stewart@ucop.edu, vjw@ceert.org, "Warner, Jami" , wbooth@booth-law.com, wbrown@lhom.com, wlarson@calstate.edu cc: Subject: Sacramento Bee--Dan Weintraub column: Consumer rep envisions ulti mate confrontation > Team, > This is the best synopsis we've seen of Harvey Rosenfield's motivations > for putting a referendum on the ballot. > ********************************** > Daniel Weintraub: Consumer rep envisions ultimate confrontation > Sacramento Bee > May 15, 2001 > > Now that Gov. Gray Davis has rallied his fellow Democrats, run over the > Republican opposition in the Legislature and set the state on a course to > borrow $13 billion to pay for a few months of electricity purchases, > there's probably only one person who can stop him: Harvey Rosenfield. > Rosenfield is the Santa Monica-based consumer advocate who tried to halt > California's experiment in electricity deregulation before it got started. > His 1998 ballot measure failed, and that campaign is blamed in some > circles for delaying construction of new power plants just long enough to > cause the electricity shortage that's helped send prices heavenward. > But if Rosenfield's last ballot initiative got the state's energy > establishment in a snit, the one he's contemplating now would positively > push them over the edge. He is seriously considering launching a signature > drive to force a referendum on the legislation Davis just signed to > authorize his $13 billion energy bond measure. > That bond, to be repaid by ratepayers, is supposed to reimburse the > state's general fund for the cost of electricity the state has been buying > for consumers since January, when Pacific Gas & Electric and Southern > California Edison ran out of money. The bond measure also will be used to > delay the pain of the extremely high prices expected this summer. Without > it, consumers would immediately face another staggering rate increase, > probably well into triple digits. > The alternative would be a state budget in shambles. All the tax money > Davis has spent on electricity this year already was earmarked for > traditional services such as education, roads and health care. A > referendum that killed the bond measure would leave a gaping hole in the > budget that could only be filled by a huge tax increase or unprecedented > spending cuts. > Rosenfield is something of a publicity hound, and his talk of a referendum > may be just that. Collecting 750,000 signatures in less than 90 days, > which is what's required to qualify the referendum, would be a massive > undertaking. Even Rosenfield concedes that the chances are no better than > 50-50 that he will proceed. But this is a man who has qualified two > measures for the ballot already, including one in 1988 that brought on > regulation of the California insurance industry. You have to take him > seriously. > The question is why he would even consider it. Why would a man who fancies > himself a friend of the ratepayer ponder a move that would force consumers > to swallow a massive rate hike, or else bankrupt the state? Because > Rosenfield's goal is to see the destruction of the entire private power > system that's now serving California -- and raking in enormous profits for > its owners. > And if it were up to him, he'd be willing to risk economic catastrophe to > make it happen. His theory is that the power generators will simply keep > raising their prices as long as the governor keeps putting more money on > the table. It is, he says, like giving crack to an addict. Take that money > away, and the generators will kick the habit, fast. > "If bleeding dry the general fund is foreclosed, and politically or as a > matter of economics you can't raise rates that high in the state, the only > thing the governor can do is turn to the generators and say, 'I'm taking > your plants.' At which point they will say, 'OK, all right, we're lowering > our prices,' or some face-saving thing will happen. The ultimate showdown > between naked capitalism and populist outrage occurs." And he's convinced > that capitalism will blink. > "If the lights go off in California, and the economy goes down the tubes, > then 20 years of Republican ideology, of less government, free markets, > competition -- all of that goes down the tubes. > "All you have to do is look at history to see that when there have been > economic cataclysms that have decimated the economy, people want action > and they'll do anything, whether its seizing private property, or > whatever. There will be a revolution, and I don't think the political > institutions in this country are prepared to push things to that point." > The Legislature already has set a Nov. 15 deadline after which the state > budget is supposed to be off-limits to Davis' power-buying ways. But > that's not good enough for Rosenfield. By then, he thinks, Davis will have > burned through the entire proceeds of the first bond measure and the total > tab will be approaching $20 billion. Rates will have to rise again to pay > that bill. > Rosenfield is prescribing an economic amputation -- without anesthesia -- > to stop a painful and dangerous infection. But he is not the only one > thinking about the doomsday scenario. > The power generators themselves have lately been lining up to try to cut > deals with the state. They have offered to take caps on their profits, > forgive some of the debt that's owed them, anything to keep the system > running without further provoking the public's ire. They know that > Rosenfield's kind of anger can be contagious. They want to contain it > before it spreads. > > > The Bee's Daniel Weintraub can be reached at (916) 321-1914 or at > dweintraub@sacbee.com . > > >