Speaker Hertzberg Names Committee To Handle Energy Crisis. Members

Craft Policy.
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FYI. It's been reported that the legislative committee intends to subpoena
generators and marketers to testify before the committe, though nothing in
this press release mentions any subpoenas.

Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 01/08/2001 10:26 PM -----

"Katie Kaplan" <kaplan@iepa.com<
01/08/2001 06:00 PM
Please respond to kaplan

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Subject: Speaker Hertzberg Names Committee To Handle Energy Crisis. Members
Will Organize Statewide Public Hearings, Examine Financial Practices and
Craft Policy.

For Immediate Release:January 8, 2001
Contact: Paul Hefner
Phone:(916) 319-2408

Speaker Hertzberg Names Committee To Handle Energy Crisis. Members Will
Organize Statewide Public Hearings, Examine Financial Practices and Craft
Policy.

SACRAMENTO - Working quickly to address the state's energy crisis, Assembly
Speaker Robert M. Hertzberg (D-Van Nuys) and
Assembly Minority Leader Bill Campbell (R-Villa Park) announced today the
formation of a new committee that will hold public hearings across
the state, shape legislation and probe financial practices among utilities
and generators.

"The public deserves to know what went wrong. They deserve to know where the
money went. They deserve answers, and we are going to get
them," Speaker Hertzberg said. "In addition, members of the committee will
hold hearings around the state to assess the impact of this crisis in
every region of California."

"I applaud the Speaker's decision to form a special committee to address the
energy crisis," said Minority Leader Campbell (R-Villa Park). "He
has indicated a desire to make the committee bi-partisan and Republicans
look forward to working cooperatively to resolve the significant
energy crisis that California faces."

Aside from shaping the state's energy policy during the special session, the
Assembly Committee on Energy Costs and Availability will hold
public hearings across the state, seeking comment from ratepayers,
small-business owners and consumers on how the energy crunch is affecting
them.

"This committee's first priority regarding the setting of rates for electric
power will be price stability," said Assemblymember Roderick D. Wright
(D-South Central Los Angeles), who Speaker Hertzberg named as Chairman of
the Assembly Committee on Energy Costs and Availability.
"This deregulation experiment has been risky and expensive, and has put the
economic well-being of this state in jeopardy."

The committee will work with the staff of the Speaker's Office of Oversight
to determine how utility companies have spent the money they
received for their stranded costs, and what generators have done with their
dramatic influx of cash.

"The public has a right to know where that money has gone," said
Assemblymember Darrell Steinburg. "We will conduct a thorough
investigation to determine just that."

The Speaker noted that David Wiggs, who helped restructure the Los Angeles
Department of Water and Power in 1997, has been retained as
an advisor to the committee. Wiggs will help the committee sort through
market reforms and oversight of past utility spending. Wiggs is a retired
chairman of El Paso Electric Co. and an experienced advisor for issues
related to the electric utility industry. He is largely credited for leading
El
Paso Electric through a multi-year bankruptcy proceeding.

"There is no doubt that the state's consumers are faced with the most
serious energy crisis in decades," said Assembly Speaker pro Tem Fred
Keeley (D- Boulder Creek). "We are focused on market reforms, demand
responsiveness measures and measures to stabilize the energy
supplies. Consumers will only genuinely be protected from increasing energy
prices when substantive reforms of the market place are adopted
and take hold. Specifically we must, through legislative and regulatory
actions, reform the way electricity is bought and sold and the way we
contract for power on a long-term basis."

Speaker Hertzberg named the following additional members to the new
committee:

Assemblymember Anthony Pescetti (R-Rancho Cordova) (Vice-chair)
Assembly Speaker pro Tem Fred Keeley (D-Boulder Creek)
Assemblymember Darrell Steinberg (D-Sacramento)
Assemblymember Juan Vargas (D-National City)
Assemblymember Jenny Oropeza (D-Long Beach)
Assemblymember Manny Diaz (D-San Jose)
Assemblymember Charlete Zettel (R-Poway)
Assemblymember Keith Richman (R-Los Angeles)
Assemblymember Richard Dickerson (R-Redding)
Assemblymember Joe Canciamilla (D-Pittsburg)
Assemblymember John Dutra (D-Fremont)
Assemblymember Hannah-Beth Jackson (D-Santa Barbara)
Assemblymember Carole Migden (D-San Francisco)
Assemblymember Sarah Reyes (D-Fresno)
Assemblymember Bill Leonard (R-Rancho Cucamonga)
Assemblymember John Campbell (R-Orange County)
Assemblymember Mike Briggs (R-Clovis)

####

ASSEMBLYMEMBER ROBERT HERTZBERG
40TH ASSEMBLY DISTRICT
Capitol Office: P.O. Box 942849 -- Sacramento,
CA 94249-0001 -- (916) 319-2040
District Office: 6150 Van Nuys Boulevard, Suite
305 -- Van Nuys, CA 91401 -- (818) 376-4040

Katie Kaplan
Manager of State Policy Affairs
Independent Energy Producers Association
(916) 448-9499