Enron Mail

From:m..landwehr@enron.com
To:richard.shapiro@enron.com, d..steffes@enron.com, linda.robertson@enron.com,john.shelk@enron.com, karen.denne@enron.com, janel.guerrero@enron.com, jeff.dasovich@enron.com, pr <.palmer@enron.com<
Subject:WGA update
Cc:paul.kaufman@enron.com, ginger.dernehl@enron.com
Bcc:paul.kaufman@enron.com, ginger.dernehl@enron.com
Date:Tue, 14 Aug 2001 07:36:19 -0700 (PDT)



reporting from the WGA summer conference in Couer D'Alene.........

It was evident from the minute we got here that the governors continue to b=
e "ticked off" at FERC for not supporting their efforts on price caps and t=
hat they are feeling neglected by the Administration. Although we had been=
told by staff that the resolution that would be voted on today would be su=
bstantially "watered down" and not terribly controversial (in fact, we had =
seen a copy of the proposed resolution about a week ago and I would agree w=
ith that descripition), the tide turned in a meeting with the Governors the=
mselves on Sat and then again on Sunday. By yesterday a new section and ot=
her additional language had been added to the resolution. The most troubli=
ng to us is a section that talks about creating regional mechanisms to deci=
de regional power issues and that....."FERC should be required to defer to =
such decisions". There is also language stating that FERC intervention on e=
minent domain is "unwarrented and inappropriate".Even though we expressed o=
ur concerns to several of our staff contacts, they insisted that the langua=
ge was greatly watered down from what it could have been and that the Gover=
nors felt that they needed to assert their "states rights". They also insi=
sted that the wording was meant to encourage cooperation and to ensure that=
whatever work was being completed by western stakeholders was given due co=
nsideration by FERC. I argued that defer was not the word that conveyed th=
at message correctly! I lost. The resolution will be voted on today at noo=
n.


Yesterday FERC COmmissioner Brownell, DOE undersecretary Bob Card, JIm Conn=
aughton from the Council of Enviromental Quality (I think that's what it is=
called) and Steve Griels, Deputy Secretary of Interior all participated in=
the energy panel. Governor Kempthorne announced the signing of an MOU wit=
h DOE and the WGA to cooperate on some studies and workplans, primarily on =
energy efficiences and conservation in the west (this, by the way, was nego=
tiated and drafted on Sunday late night...it appeared that Reuben Barrales =
from the White House was the broker and it was accepted on Monday morning b=
y the govs) The bottom line on this MOU is that DOE will give some modest =
funding to WGA to do a study or two.

It is painfully clear from the discussions yesterday that this administrati=
on is going to be mired in process--the discussion on the energy panel was =
full of discussion about task forces and studies and interagency cooperatio=
n....blah blah blah


ps as we expected Davis and Locke were not here