Enron Mail

From:susan.mara@enron.com
To:karen.denne@enron.com, d..steffes@enron.com, jeff.dasovich@enron.com,paul.kaufman@enron.com
Subject:FW: Inland Daily Bulletin story about AReM
Cc:
Bcc:
Date:Fri, 31 Aug 2001 10:44:21 -0700 (PDT)

Hey we got press in the "Inland Daily Bulletin" -- from one of our new AReM members

-----Original Message-----
From: Manuel, Erica [mailto:Erica.Manuel@edelman.com]
Sent: Friday, August 31, 2001 10:29 AM
To: Allen, Stevan; AReM; Douglas Oglesby (E-mail) (E-mail); Fairchild,
Tracy; Frank; Joseph Alamo (E-mail) (E-mail); Manuel, Erica; Megan
Beiser; Norm Plotkin; Warner, Jami
Subject: Inland Daily Bulletin story about AReM


The following article was published in the Inland Daily Bulletin yesterday.
As you will see, both Frank and I are quoted (even though I explicitly
requested that I not be quoted since I am not a spokesperson for coalition).
Nevertheless, our messages are made pretty clear.

Also, I apologize for not sending this sooner - It was somehow overlooked in
our daily searches for AReM coverage.

Erica Manuel
Edelman Worldwide / Sacramento
916/442-2331 phone
916/447-8509 fax
erica.manuel@edelman.com
Esp provider
Published Thursday, August 30, 2001 12:00:00 AM

By Mike Rappaport
Staff Writer
Frank Annunziato of Upland has been providing electric power to
nearly 200 customers for about four years.
But if a draft decision by the California Public Utilities
Commission is voted into effect next Thursday, Annunziato and 20 to 25 other
members of the Alliance for Retail Energy Markets will take a hit.
The decision would prohibit electrical service providers like
Annunizato from entering into new contracts to provide direct-access power
to customers, and the revised version released Monday would take the
original effective date of Sept. 1, 2001, and make it retroactive to July 1.
Electrical service providers purchase power from various sources -
in Annunziato's case it's the excess from municipal power authorities - and
sell that power to customers who would rather not buy from Southern
California Edison.
"That was one of the purposes of deregulation," Annunziato said. "To
open up the market and give people choices of where to buy their power."
Annunziato's company, American Utility Network, services nearly 200
Southern California customers. He is able to provide low-cost power because
he signed long-term contracts for power before prices skyrocketed. In the
short term, a restriction on new contracts won't affect him.
"I'm not taking on any new customers right now anyway," he said.
"I'm limited in the amount of power I have, and I'm pretty close to
capacity."
But not being able to renew those contracts - or to sign up other
customers to replace those who would leave normally - will eventually put
him out of business.
The Alliance for Retail Energy Markets is the lobbying group that
represents Annunziato and other independent providers. AReM opposes the PUC
draft decision and calls it "an illegal act under the U.S. Constitution to
abrogate existing contracts."
"This decision just came out of left field," said AReM spokeswoman
Erica Manuel. "They claim they need to do this to protect the state's
ability to issue bonds, but it doesn't make sense. We certainly don't want
retroactive suspensions and we will try to prevent any lengthy suspensions."
As of July, independent providers had 60,000 residential customers,
6,800 commercial customers, 250 industrial customers and 350 agricultural
customers across California, according to Manuel.
"These are existing contracts," she said. "At this point, if they
try to negate existing contracts there will be a legal battle."
Kyle DeVine at the PUC said Monday's announcement was only a draft
decision and that nothing would happen before Sept. 6.
"It has not taken effect," she said. "All this is just part of the
comments we're looking for."
Mike Rappaport can be reached by e-mail at
m_rappaport@dailybulletin.com or by phone at (909) 483-8556.