Bush Admin to Stay the Course on Price Caps: Latest Update,

Hey, Neville. FYI.

Best,
Mike Kahn's best buddy
----- Forwarded by Jeff Dasovich/NA/Enron on 03/22/2001 02:52 PM -----

Alan Comnes@ECT
03/22/2001 02:13 PM

To: Tim Belden/HOU/ECT@ECT, Mike Swerzbin/HOU/ECT@ECT, Michael M
Driscoll/PDX/ECT@ECT, Matt Motley/PDX/ECT@ECT, Robert Badeer/HOU/ECT@ECT,
Diana Scholtes/HOU/ECT@ECT, Sean Crandall/PDX/ECT@ECT, Chris
Mallory/PDX/ECT@ECT, Jeff Richter/HOU/ECT@ECT, Tom Alonso/PDX/ECT@ECT, Mark
Fischer/PDX/ECT@ECT, Phillip Platter/HOU/ECT@ECT, Carla Hoffman/PDX/ECT@ECT,
Christopher F Calger/PDX/ECT@ECT, Michael Etringer/HOU/ECT@ECT, Steve C
Hall/PDX/ECT@ECT, Christian Yoder/HOU/ECT@ECT, Tim Heizenrader/PDX/ECT@ECT,
Stephen Swain/PDX/ECT@ECT
cc: Jeff Dasovich/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Joe
Hartsoe/Corp/Enron@ENRON, Ray Alvarez/NA/Enron@ENRON
Subject: Bush Admin to Stay the Course on Price Caps: Latest Update,

This paraphrased from Tom Briggs, Enron Govt Affairs, DC:

The Bush Administration has indicated that it will not support any sort of
legislation containing price caps. Although something could get out of the
Senate, it won't go anywhere without Administration support.

Thus, by default, the just and reasonable standard becomes the FERC's
evolving rate-screen process, which, for imports into California, is "daily
spot market gas prices and an average 12,000 Btu/kWh heat rate." The
standard for in-state resoruces is higher, more like 18,000 Btu/KwH.

Instead, expect to see legislation that will take short-term actions to
increase supply and decrease demand. This could include demand buy down
programs, and laws the force utility financial solvency.

Every day is a new day but I am told this will likely be the status quo until
the congressional recess is over (recess is from 6-30 April).

Alan Comnes