Rod Wright briefing

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Scott Govenar <sgovenar@govadv.com<
01/24/2001 05:52 PM

To: Hedy Govenar <hgovenar@govadv.com<, Mike Day <MDay@GMSSR.com<, Bev
Hansen <bhansen@lhom.com<, Jeff Dasovich <jdasovic@enron.com<, Susan J Mara
<smara@enron.com<, Joseph Alamo <JAlamo@enron.com<, Paul Kaufman
<paul.kaufman@enron.com<, David Parquet <David.Parquet@enron.com<, Rick
Johnson <rick.johnson@enron.com<, Marcie Milner <mmilner@enron.com<, Sandra
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Shapiro <rshapiro@enron.com<, Jim Steffes <james.d.steffes@enron.com<, Alan
Comnes <acomnes@enron.com<, Chris Calger <ccalger@enron.com<, Mary Hain
<mary.hain@enron.com<, Joe Hartsoe <Joe.Hartsoe@enron.com<, Donna Fulton
<Donna.Fulton@enron.com<, Steven Kean <Steven.J.Kean@enron.com<, Karen Denne
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cc:
Subject: Rod Wright briefing

Assemblyman Rod Wright held another one of his informal discussions with
generators, IOUs and marketers. This is what he said:

Assembly Speaker Robert Hertzberg is going to introduce a bill tomorrow
at 11:00 a.m. which will contain many of the same elements in ABX 1,
minus the 5.5. This will be a more comprehensive bill which will
address arrearage, securitization and include some type of a stop loss
mechanism among other things. It is unclear whether or not the bill
will be voted on tomorrow or held until Monday, but there will be a
hearing at 2:00 p.m.

SBX 1 will probably be heard tomorrow as well, although it is not clear
what action if any the Senate Energy Committee will take.

There are ongoing discussions about the state creating a transmission
corporation to operate but not own the transmission system.

There are ongoing discussions about allowing DWR to buy existing block
forward contracts, however the courts today issued a stay to prevent SCE
or the PX from taking any actions on the contracts until at least
February 2.

There are ongoing discussions about issuing ratepayer bonds in place of
the full faith and credit of the state which was absent from the DWR
RFB.

Sempra requested that the legislature repeal Utilities Code Section
355.2 which prevents IOUs from buying outside the PX.

Other items which arose today:

We spent the day meeting with legislators regarding expedited siting.
The response was positive, including from Senator Byron Sher who is the
key environmentalist in the legislature. Our initial focus has been on
the trouble with getting air credits.

Governor Davis held a press conference moments ago where he indicated
that the average bid price for the DWR RFB is 6.9. I will forward the
press release in the morning.

I have attached a press release from Governor Davis regarding the new
ISO board which includes information on the new members.

http://www.governor.ca.gov/state/govsite/gov_htmlprint.jsp?BV_SessionID=@@@@08
58855136.0980390190@@@@&BV_EngineID=faljlleidkhbemfcfkmchcgi.0&sFilePath=%2fgo
vsite%2fpress_release%2f2001_01%2f20010124_a01024_.html&sTitle=GOVERNOR+DAVIS+
ANNOUNCES+FIRST+MEETING+OF+NEW+ISO+BOARD&sCatTitle=Press+Release&iOID=13102