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Enron Mail |
---------------------- Forwarded by Jeff Dasovich/SFO/EES on 09/01/2000 01:34
PM --------------------------- "Karen Edson" <kedson@ns.net< on 09/01/2000 12:16:17 PM To: "Baker Carolyn (E-mail)" <cabaker@duke-energy.com<, "Bill Carlson (E-mail)" <william_carlson@wastemanagement.com<, "Bill Woods (E-mail)" <billw@calpine.com<, "Curt Hatton (E-mail)" <curt.hatton@gen.pge.com<, "Curtis Kebler (E-mail)" <curtis_l_kebler@reliantenergy.com<, "David Keane (E-mail)" <dnke@dynegy.com<, "David Parquet (E-mail)" <dparque@ect.enron.com<, "Duane Nelsen (E-mail)" <duanenelsen@msn.com<, "Ed Tomeo (E-mail)" <ed.tomeo@uaecorp.com<, "Edward Maddox (E-mail)" <emaddox@seawestwindpower.com<, "Eileen Kock (E-mail)" <eileenk@calpine.com<, "Ellery Bob (E-mail)" <bellery@spi-ind.com<, "Escalante Bob (E-mail)" <riobravogm@aol.com<, "Frank DeRosa (E-mail)" <fderosa@sanfrancisco.usgen.com<, "Greg Blue (E-mail)" <gtbl@dynegy.com<, "Hap Boyd (E-mail)" <rboyd@enron.com<, "Jack Pigott (E-mail)" <jackp@calpine.com<, "Jan Smunty-Jones (E-mail)" <smutny@iepa.com<, "Jim Willey (E-mail)" <elliottsa@earthlink.net<, "Joe Greco (E-mail)" <joe.greco@uaecorp.com<, "Joe Ronan (E-mail)" <joer@calpine.com<, "John Stout (E-mail)" <john_h_stout@reliantenergy.com<, "Jonathan Weisgall (E-mail)" <jweisgall@aol.com<, "Katie Kaplan (E-mail)" <kaplan@iepa.com<, "Kent Fickett (E-mail)" <kfickett@usgen.com<, "Lynn Lednicky (E-mail)" <lale@dynegy.com<, "Marty McFadden (E-mail)" <marty_mcfadden@ogden-energy.com<, "Paula Soos (E-mail)" <paula_soos@ogden-energy.com<, "Robert Lamkin (E-mail)" <rllamkin@seiworldwide.com<, "Roger Pelote (E-mail)" <rpelote@energy.twc.com<, "Steve Ponder (E-mail)" <steve_ponder@fpl.com<, "Steven Kelly (E-mail)" <steven@iepa.com<, "Sue Mara (E-mail)" <smara@enron.com<, "Tony Wetzel (E-mail)" <twetzel@thermoecotek.com<, "Trond Aschehoug (E-mail)" <taschehoug@thermoecotek.com<, "William Hall (E-mail)" <wfhall2@duke-energy.com<, "Richard Hyde (E-mail)" <rwhyde@duke-energy.com<, "Sandi McCubbin (E-mail)" <smccubbi@ees.enron.com<, "Stephanie Newell (E-mail)" <stephanie-newell@reliantenergy.com<, "Jeff Dasovich (E-mail)" <jdasovic@enron.com< cc: "Ann Kelly (E-mail)" <kelly@hnks.com<, "Bev Hansen (E-mail)" <bhansen@lhom.com<, "Bob Judd (E-mail)" <caltech@ns.net<, "Govenar Scott (E-mail)" <sgovenar@govadv.com<, "Hedy Govenar (E-mail)" <hgovenar@govadv.com<, "Levake Barbara (E-mail)" <blevake@syix.com<, "Monagan Mike (E-mail)" <mrmonagan@aol.com<, "Rob Ross (E-mail)" <robbiz@cwo.com<, "Ron Tom (E-mail)" <rtom@govadv.com<, "Rudman Cary (E-mail)" <cjrudman@softcom.net<, "Susan McCabe (E-mail)" <sfmccabe@mindspring.com<, "Julee Malinowski-Ball (E-mail)" <jmball@ns.net< Subject: Legislative Update I will send out a real legislative report next week. In the meantime, I thought you might appreciate a quick run-down of what actually happened in the final hours of this year's wild legislative session. The good news is that the public benefit charge bill passed easily with a 10-year term and no statutory harm was done. The bad news is that utilities captured the deregulation debate and successfully painted generators as villains and the wholesale market as "broken." Major legislative actions on energy matters follow. If you have any questions or would like a copy of final legislation, please call. AB 995 (Wright) and SB 1194 (Sher), which extend public benefit charges for energy conservation, renewable energy development, and RD&D, passed the State Legislature by large margins. Recent indications are that the Governor will sign the bills, although interested companies should join IEP in sending letters urging him to do so. Power plant siting was front and center the last week of the session. As recently as Wednesday of this week, the bill was so bad for new power plant development that IEP opposed the expedited siting provisions. They were rewritten by Republican staff and CEC attorneys to provide a 6-month process for a mitigated negative declaration of environmental impacts that might help those few entities that can start the process in full compliance with local rules. This provision is available for both combined cycle facilities and peaking facilities. The bill also includes a provision for four-month approval of amendments to pending applications providing for the installation of temporary peaking generation on sites that will be developed into combined cycle facilities within three years. The CEC expects this to apply so a single pending application. Finally, the bill includes language directing the CPUC and the EOB to be helpful on ISO issues that affect the willingness self-generators to remain interconnected with the grid. Utility efforts to craft legislation assuring them of collection of large negative balances in their Transition Revenue Accounts failed when they could not reach agreement with representatives of large customer groups. In its place, the Legislature passed a non-binding resolution directing the CPUC to investigate the issue and including highly offensive language on $100 price caps and retroactive recalculation of market clearing prices. Legislation establishing a retroactive cap on SDG&E rates and providing no assurance of cost recovery to Sempra passed the Legislature. Companion legislation that most observers expect the Governor to veto provides $150 million of General Fund money to SDG&E. A draft of so-called "sunshine" legislation surfaced late in the process. The draft empowered the Electricity Oversight Board to collect anything it might be interested in from the ISO, PX, utilities, generators, and marketers and to treat the information confidentially. The draft faced unified opposition and did not make its way into any legislation. AB 1002 (Wright) establishing public benefit charges on the natural gas system passed the Legislature. It continues to include language exempting electricity generation from the charges. Karen Edson kedson@ns.net 916/552-7070
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