FW: EIX, PCG: Federal Debate on Western Power Crisis Continues

-----Original Message-----
From: Schneider, Chip =20
Sent: Tuesday, May 29, 2001 7:49 AM
To: Shapiro, Richard; Tribolet, Michael; Steffes, James
Subject: FW: EIX, PCG: Federal Debate on Western Power Crisis Continues

FYI.
-----Original Message-----
From: Paul Patterson <Paul_Patterson@xmr3.com<@ENRON=20
[mailto:IMCEANOTES-Paul+20Patterson+20+3CPaul+5FPatterson+40xmr3+2Ecom+3E+4=
0EN
RON@ENRON.com]=20
Sent: Tuesday, May 29, 2001 7:47 AM
To: Schneider, Chip
Subject: EIX, PCG: Federal Debate on Western Power Crisis Continues

Credit Suisse First Boston
Paul Patterson
Good morning,
to debate amendments to HR 1647, a California emergency relief bill. At the=
=20
core of the debate is a proposal to require western generators to commit 80=
%=20
of their output to long-term bilateral contracts.
? Apparently, talks stalled because of conflicting information related to t=
he=20
amount of power already under contract. In addition there appears to be=20
questions over the 80% benchmark and the length of the contracts.
? The current willingness of House Republicans to consider a compromise=20
amendment is apparently linked to the impending power shift in the Senate t=
o=20
the Democratic caucus. The House Committee Chair, Rep. Tauzin, hopes to bri=
ng=20
the bill to a vote soon after June 11.
? Separately, some key California Assembly Democrats are proposing another=
=20
plan to rescue Edison and PG&E. Under the plan, the state=01,s largest=20
commercial ratepayers would assume responsibility for most of the state=01,=
s net=20
short power position as well as repayment of the utilities=01, undercollect=
ion.=20
The level of support for the proposal is still unclear.
? We believe that the next few weeks will be critical in determining whethe=
r=20
California can reach a political solution to avert another utility=20
bankruptcy. At present, a single viable solution has not yet appeared. =20
Consequently, we recommend that only investors with high risk tolerance=20
should consider investing in the California utilities.

Please call us with any questions.
Regards,
Paul Patterson, 212-325-5876
Neil Stein, 212-325-4217
Wen-Wen Chen, 212-538-0223

If you would prefer not to receive further messages from this sender, pleas=
e=20
click on the following link and confirm your request:
Mailto:K-0-62573-1598574-2-172-US2-8395B9CF@xmr3.com
You will receive one additional e-mail message confirming your removal.

- ppp052901.pdf