Enron Mail

From:richard.sanders@enron.com
To:christopher.calger@enron.com, christian.yoder@enron.com,steve.hall@enron.com, mike.swerzbin@enron.com, phillip.allen@enron.com, jeff.dasovich@enron.com, chris.gaskill@enron.com, mike.grigsby@enron.com, tim.heizenrader@enron.com, vince.kaminski@enron
Subject:FW: California Update 7-18-2001
Cc:
Bcc:
Date:Thu, 19 Jul 2001 13:34:00 -0700 (PDT)



-----Original Message-----
From: =09Sanders, Richard B. =20
Sent:=09Thursday, July 19, 2001 9:59 AM
To:=09Sweet, Twanda
Subject:=09FW: California Update 7-18-2001
Importance:=09High


-----Original Message-----
From: =09Whitman, Britt =20
Sent:=09Wednesday, July 18, 2001 3:48 PM
To:=09Sanders, Richard B.; Edison, Andrew
Cc:=09Walsh, Kristin
Subject:=09California Update 7-18-2001
Importance:=09High

If you have any questions, please feel free to contact Kristin Walsh at (71=
3) 853-9510 or G. Britt Whitman at (713) 345-4014.

EXECUTIVE SUMMARY
?=09Multiple MOU Plans Debated
?=09California State Budget Faces One Last Hurdle

Budget=20
There is a small possibility that Sen. Burton will not recess the Senate on=
Thursday unless the Senate passes the budget that the Assembly passed last=
night (7-17). However a key Democrat, Sen. Sheila Kuehl, has been is in It=
aly and is on a 16 hour return flight. No one knows if she has been told to=
return and without her presence, two Republican votes are still needed to =
pass any urgency measure for the budget. Kuehl's vote is crucial if they t=
ake the bill up on Thursday.=20
MOU Mayhem
There are currently three leading MOU plans being resuscitated by the Calif=
ornia House and Senate deliberations. Senator Burton is hoping to keep the=
published schedule and adjourn for a month's recess on Thursday evening. =
Speaker Hertzberg is reportedly not thrilled with leaving until the Edison =
issue is resolved. However, rumor is that whether or not they recess on Th=
ursday, their adjournment will mark the end of the Second Extraordinary ses=
sion and all XX bills passed and signed will go into effect in 90 days (al=
l others will be dead). Although Davis has stressed the urgency of passing=
a comprehensive "bail-out" plan and even threatened to call an emergency s=
ession to prevent legislators from taking a 30-day recess on Friday, there =
is no clear indication that legislators will comply with this request. =
=20
?=09Hertzberg's bill 82XX - Of the more obvious differences from Davis MOU,=
82XX proposes to offer SoCal $300 M less for its transmission lines in ad=
dition to penalizing Edison if it fails to act in good faith in closing the=
deal. It comes as no surprise that during bill deliberations, SoCal raise=
d objections to the bill and warned of impending difficulties (bankruptcy) =
for So Cal were the bill left unamended.
?=09The Wright-Richman bill 83XX - We reported last week that 83XX remains =
the only measure fueled by bipartisan support. AB 83XX was heard in an "in=
formational" hearing yesterday (7-17) and will be heard again today in the =
Assembly Energy Committee. Assemblyman Rod Wright, the Chairman of the Com=
mittee, presented AB 83xx with Dr. Keith Richman, a Republican Assemblyman =
from Southern California. They offered 83XX as an Edison bail-out, pure and=
simple. Wright was clear to distinguish his bill from 82XX, which he said =
has conservation easements and land requisitions, a renewable portfolio whi=
ch will add an additional fee on ratepayers, and reasonable review for long=
term contracts. While the chances of the Richman bill being successful app=
ear slim, reports that that Hertzberg will try to negotiate elements of his=
own bill (82XX) as amendments to the Wright/Richman measure suggest that a=
t least Hertzberg feels Richman's 83XX stands a chance.=20

?=09The Byron Sher bill, SB 78XX (Polanco) - Previously presented by Sen. P=
olanco on behalf of Governor Davis, SB 78XX has received special attention =
from Senate President, John Burton. Although it has never been heard by a =
committee, SB 78XX is currently on the Senate floor and ready for a vote. T=
he Senate Energy Committee and Senate Appropriations Committee are both sch=
eduled to have informational hearings on this bill today. Note, the meetin=
gs are informational because neither committee has possession of the bill. =
These hearings will provide information to committee members, avoid a form=
al vote, and simultaneously shield Burton/Polanco from claims that the deta=
ils of SB78XX were never released. The Senate is scheduled to be in sessio=
n tomorrow, ostensibly to vote on the state budget and SB 78XX. Given Burto=
n's penchant for wanting to keep on schedule to recess tomorrow, there is n=
o guarantee that he will hold the Senate in session once they hear SB 78XX.=
Thus, the Senate may never even see AB 82XX and AB 83XX unless either or b=
oth bills are passed out of the Assembly today and get special treatment by=
Burton to be heard tomorrow. Burton has previously adjourned the Senate to=
keep on schedule once they finish their business, even if the Assembly is =
behind them.