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Please see the following articles:
Sac Bee, Thurs, 4/12: "Laws aim at saving energy" Sac Bee, Thurs, 4/12: "Enron ordered to provide power to state's colleges" Sac Bee, Thurs, 4/12: "PG&E shorts counties $4.2 million: Poorer local=20 governments say it'll be tough to get by with half a tax ration" Sac Bee, Thurs, 4/12: "Daniel Weintraub" (Editorial) San Diego Union (AP), Wed, 4/11: "San Diego group proposes western states= =20 power buyers' cartel" San Diego Union (AP), Wed, 4/11: "Judge orders Enron to deliver electricit= y=20 to universities" San Diego Union, Wed, 4/11: "California utilities label proposed refunds= =20 from providers inadequate" LA Times, Thurs, 4/12: "Davis Approves $850 Million for Energy Conservatio= n=20 Plan" LA Times, Thurs, 4/12: "Failure to Buy Entire Network May Doom Davis' Powe= r=20 Deal" LA Times, Thurs, 4/12: "County to Sue Edison Over Nonpayment of $10 Millio= n" LA Times, Thurs, 4/12: "PG&E Creditors' Committee Is Appointed" (Mark=20 Palmer quoted) LA Times, Thurs, 4/12: "Price Caps Excluded in FERC Plan" SF Chron, Thurs, 4/12: "Davis Signs $850 Billion Energy Plan=20 Energy Package Signed by Davis=20 $850 billion designed to boost conservation " SF Chron (AP), Thurs, 4/12: "Federal regulators may soon begin monitoring= =20 electricity market"=20 SF Chron (AP), Thurs, 4/12: "LA County joins list of those suing SoCal=20 Edison " SF Chron (AP), Thurs, 4/12: "Developments in California's energy crisis" SF Chron, Thurs, 4/12: "Council Temporarily Reduces Utility Tax" SF Chron, Thurs, 4/12: "Start Digging, Energy Chief Tells State=20 He says new power plants, not price caps, are the answer " SF Chron, Thurs, 4/12: "Enron Told It Can't Cut Electricity To Schools" SF Chron, Thurs, 4/12: "PUC Official's Investments Questioned=20 Group already filed suit, charging conflict of interest" Mercury News, Thurs, 4/12: "Markets indicate even higher prices for summer= =20 power" Mercury News, Thurs, 4/12: "Davis signs plan offering incentives for energ= y=20 conservation" Mercury News, Thurs, 4/12: "Calif. urged to form electricity 'buyers carte= l'=20 " Mercury News, Thurs, 4/12: "PG&E bankruptcuy renews focus on billions=20 utility transferred" Mercury News, Thurs, 4/12: "Officials question utilities, generators" OC Register, Thurs, 4/12: "Charities join needy in power-bill struggle" OC Register, Thurs, 4/12: "Rate plan expands discount eligibility" OC Register, Thurs, 4/12: "Dimming chances for resolving power crisis" = =20 (Commentary) Individual.com (AP), Thurs, 4/12: "Utilities Allegedly Gouged Calif." Individual.com (AP), Thurs, 4/12: "PG&E's Money Transfers Focused On" Individual.com (AP), Thurs, 4/12: "States say federal government needs to= =20 act=20 to stem energy crisis" ---------------------------------------------------------------------------= --- ------------------------------------------------------------- Laws aim at saving energy By Emily Bazar BEE CAPITOL BUREAU (Published April 12, 2001)=20 Gov. Gray Davis insists that Californians who own aging appliances or shive= r=20 in drafty homes aren't the only ones who will benefit from two major=20 energy-conservation bills he signed into law Wednesday.=20 Instead, the Democratic governor -- who is wrestling with the state's energ= y=20 crisis as summertime blackouts loom -- has billed the measures as an=20 opportunity for all Californians to save precious megawatts in the critical= =20 coming months.=20 "Clearly, the cheapest megawatt this summer is the megawatt we don't have t= o=20 buy," said Davis, who vetoed more than $250 million from the bills, leaving= =20 about $860 million for energy-saving programs.=20 The governor has said many times that conservation is a key element of his= =20 overall plan to solve the energy crisis, and that these bills -- SB 5x by= =20 state Sen. Byron Sher, D-Palo Alto, and AB 29x by Assemblywoman Christine= =20 Kehoe, D-San Diego -- embody that commitment.=20 Crafted to complement each other, the measures include money for a wide ran= ge=20 of programs, most of which exist. For instance, the bills dedicate millions= =20 of dollars to low-income families who need help paying their electricity=20 bills and to families who hope to install solar panels on their roofs.=20 Taken together, the conservation programs are expected to save roughly 2,00= 0=20 megawatts this summer, enough energy to power about 2 million homes, Davis= =20 said.=20 In deciding what to veto, Davis said he shaved or eliminated provisions tha= t=20 would not yield energy savings by summertime.=20 "Everything we're doing in SB 5x and AB 29x is targeted toward reducing=20 electricity demand during hot summer afternoons to help avoid rolling=20 blackouts," said Claudia Chandler, a spokeswoman for the California Energy= =20 Commission.=20 Among their many provisions, the bills include $90 million in rebates or=20 other incentives to encourage Californians to replace inefficient washing= =20 machines, air conditioners and other appliances with newer energy-saving=20 models.=20 Currently, rebates for energy-efficient refrigerators average about $75, pl= us=20 the cost of removing the old refrigerator.=20 The incentives will be available to customers of investor-owned utilities,= =20 such as Pacific Gas and Electric Co., and municipal utilities, such as the= =20 Sacramento Municipal Utility District.=20 SMUD expects its share will be between $6 million and $9 million, said Mike= =20 Weedall, manager of energy services.=20 Some of the $90 million also will go toward helping low-income residents=20 weatherize their homes and pay their utility bills.=20 In all, the measures provide $240 million in low-income assistance,=20 encouraging people to install double-paned windows and insulation where the= y=20 live to save power and reduce their energy bills.=20 Senate leader John Burton, D-San Francisco, said the bills include assistan= ce=20 for California's families who can least afford the average 29 percent rate= =20 hike recently approved by the California Public Utilities Commission for PG= &E=20 and Southern California Edison customers.=20 "They're the ones that will end up freezing to death when they can't pay=20 their bills," Burton said. "We're doing all this (other) stuff; we ought to= =20 take care of them."=20 The bills also include $60 million in rebates and incentives to help=20 consumers and businesses reduce their lighting and $105 million to encourag= e=20 renewable and other Earth-friendly power generation projects, such as rooft= op=20 solar panels.=20 In order to entice Californians to participate in these programs, the=20 measures provide $10 million for a public-awareness campaign.=20 The measures' journeys through the Legislature, however, were fraught with= =20 roadblocks. The Assembly, for instance, last week added several proposals= =20 favorable to farmers.=20 One of their proposals would have limited the amount of time interruptible= =20 agricultural customers could lose energy to four hours a day or 20 hours a= =20 month. "Interruptible" customers volunteer to lose power in emergencies in= =20 exchange for lower rates.=20 But the changes riled Senate leaders. Eventually, the dispute was resolved = by=20 eliminating the Assembly amendments or rewriting them to spread the benefit= s=20 among all customers, not just agricultural ones.=20 Sandra Spelliscy, general counsel for the Planning and Conservation League,= =20 followed the bills' progress through the Legislature and was relieved when= =20 they were approved.=20 "It has been clear to us for a long time that we were never going to build= =20 our way out of this problem for the summer," she said.=20 The Bee's Emily Bazar can be reached at (916) 326-5540 or ebazar@sacbee.com= .=20 ---------------------------------------------------------------------------= --- ------------------------ Enron ordered to provide power to state's colleges By Claire Cooper BEE LEGAL AFFAIRS WRITER (Published April 12, 2001)=20 SAN FRANCISCO -- A federal judge Wednesday ordered a major energy supplier = to=20 resume service to California's universities, ruling that the Texas-based=20 company probably had no right to switch the schools to public utilities for= =20 their electricity.=20 U.S. District Judge Phyllis J. Hamilton issued a preliminary injunction=20 holding Texas-based Enron Energy Systems Inc. to the final year of a=20 four-year contract to sell energy directly to the University of California= =20 and California State University. Unless a higher court rules otherwise, her= =20 order will remain effective until the results of a full-scale trial.=20 The two university systems signed the contract to get relief from the risk = of=20 relying on shaky utilities, Hamilton said. She said the company took away= =20 that security when it switched 29 of the state's 33 campuses to Pacific Gas= &=20 Electric and Southern California Edison during the past two months.=20 She noted PG&E's precarious position since filing for bankruptcy last week.= =20 In applying for the injunction, lawyers representing the universities argue= d=20 that Enron was motivated by a desire to sell as much of its electricity as= =20 possible on the spot market, where huge profits have become available. The= =20 universities' contract with Enron, signed in 1998, sets their rate at 5=20 percent less than the rate being charged by the utilities.=20 Appearing before Hamilton in support of the schools, state Attorney General= =20 Bill Lockyer argued that Enron, in effect, was saying, "We don't want to se= ll=20 power at the price we promised."=20 But Enron's lawyer, A. William Urquhart, said the company had a duty to its= =20 shareholders to act in their economic interest.=20 He said he would take the ruling to the 9th U.S. Circuit Court of Appeals= =20 immediately. He asked Hamilton to stay it until the circuit court can act,= =20 but she refused.=20 In papers filed with the court, Urquhart said Enron switched many customers= =20 to the utilities as the "most logical way to mitigate the impact" of losses= =20 the company incurred after it stopped getting paid by the California=20 utilities almost a year ago.=20 Enron will pay the difference between the rate it promised the universities= =20 and the rates charged them by the utilities, he said.=20 But the universities said they were losing other contracted benefits,=20 including protection from the threat of blackouts and a sophisticated Enron= =20 metering and billing system that's an essential part of a conservation=20 program.=20 After the hearing, Lockyer called the ruling an important victory over a=20 company that he said has best exemplified the "gouging" and "piracy" of=20 California consumers during the energy crisis.=20 He said an investigation by his office that could lead to civil or criminal= =20 charges against energy suppliers should be completed by summer.=20 The Bee's Claire Cooper can be reached at (415) 551-7701 or=20 ccooper@sacbee.com.=20 ---------------------------------------------------------------------------= --- ------------------------------ PG&E shorts counties $4.2 million: Poorer local governments say it'll be=20 tough to get by with half a tax ration. By Jennifer K. Morita BEE STAFF WRITER=20 (Published April 12, 2001) After filing for bankruptcy protection last week, Pacific Gas and Electric= =20 Co. notified local county governments that it won't be able to pay $4.2=20 million it owes them in property taxes.=20 That left officials from El Dorado, Nevada, Placer, Plumas, Sacramento,=20 Sutter, Yolo and Yuba counties with mixed feelings. Some said reserve funds= =20 will cover the losses, at least for now. But officials of other, smaller=20 counties that rely on PG&E tax money to pay for public services, employees'= =20 salaries and various programs, are nervously crossing their fingers as they= =20 watch the utility's bankruptcy proceedings.=20 PG&E owes California counties $79 million for the Jan. 1-June 30 property t= ax=20 installment that was due Tuesday. It paid slightly less than half of what i= t=20 owes.=20 PG&E officials said the company was limited in what it could pay because of= =20 the bankruptcy filing, and paid only what was due for April 6-June 30.=20 "Under the bankruptcy law we can pay our obligation going forward as part o= f=20 normal business operation," PG&E spokesman Ron Low said Wednesday. "We woul= d=20 need the court's approval to pay any pre-petition, or pre-filing obligation= ."=20 Low added, however, that the utility intends to ask the court to let it pay= =20 the balance. "We fully intend to pay the entire amount owed in property=20 taxes," Low said.=20 Two of the hardest-hit counties are Yuba and Plumas.=20 Yuba County, one of the poorest in the state, depends heavily on PG&E tax= =20 dollars, said County Treasurer-Tax Collector Jim Kennedy.=20 "PG&E is the largest single taxpayer in the county, and the percentage it= =20 represents of our total tax revenues is the largest share for any county in= =20 the state," Kennedy said.=20 Although PG&E failed to pay its semiannual installment of $794,292, Kennedy= =20 remained optimistic that a check was in the mail. Still, the county will be= =20 receiving $417,003 less than it is owed.=20 In Plumas County, where PG&E is the largest private property owner, officia= ls=20 are reeling from the tax loss.=20 The utility company paid $762,519 on Tuesday, less than half the $1.6 milli= on=20 it owed.=20 Plumas County government's share of the shortfall is around $250,000, said= =20 treasurer Barbara J. Coates. The rest goes to schools, which won't be=20 affected immediately because the state will make up for the missing revenue= .=20 The county's loss could affect raises for all 350 employees, a countywide= =20 arts program, library hours and improvements to local campgrounds, said Boa= rd=20 of Supervisors vice chairman Robert Meacher.=20 But the long-term effects are even more disturbing, according to Meacher.= =20 The utility's $3.2 million annual tax payment makes up about 16 percent of= =20 the $20 million collected by the county.=20 "The uncertainty over future tax revenues is more of an issue now than the= =20 actual dollars," said Meacher, who also serves as chairman of the 28-member= =20 Regional Council of Rural Counties. "Every county that produces hydroelectr= ic=20 energy for the state of California will be impacted -- some dramatically."= =20 As of Wednesday morning, Placer County had not received PG&E's second=20 property tax installment of $1.9 million, Treasurer-Tax Collector Jenine=20 Windeshausen said.=20 PG&E officials told Windeshausen that the company will pay a little less th= an=20 half of the property taxes it owes Placer County.=20 "As far as the county is concerned, we do not anticipate any reduction of= =20 services due to this," Windeshausen said. "The county has set aside=20 contingencies for these types of situations."=20 He said PG&E's portion represents only slightly more than a half percent of= =20 the county's total tax collections.=20 "We are going to be proactive in the bankruptcy proceedings. We're definite= ly=20 pursuing the progress of the bankruptcy court and we're constantly being=20 appraised of our status," Windeshausen said.=20 PG&E pays significant property taxes to Yolo County, according to Don=20 Ishikawa, chief assistant county administrator. Like every county in the=20 state, Yolo keeps only a portion of that money, and the rest is distributed= =20 to schools, libraries and special districts.=20 Ishikawa said the lost revenue would be a "big hit" for a county with an=20 annual budget of only $210 million. But Yolo has enough money in reserve=20 funds earmarked for property tax losses that there will be no immediate=20 impact, he said.=20 Nevada County Treasurer-Tax Collector E. Christina Dabis said she also is= =20 waiting for PG&E's second property tax payment of roughly $615,000.=20 "We anticipate getting around $300,000," Dabis said. "Our tax roll is about= =20 $100 million and they owe us about $600,000, which is less than 1 percent."= =20 Sacramento County received a $607,794 check from PG&E on Wednesday,=20 representing about 47.5 percent of what was due, said County Assistant Tax= =20 Collector Linda Pittman.=20 "We'll have to wait for the bankruptcy case to see what we can do," Pittman= =20 said. "I'm sure we'll be filing a claim with the court for whatever we can.= "=20 El Dorado County received $232,527 of the $489,530 that was due, according = to=20 Treasurer-Tax Collector C.L. Raffety.=20 "They have to pay it like everyone else or they incur penalties," Raffety= =20 said.=20 In Sutter County, PG&E failed to pay its April 10 installment of $448,484,= =20 Assistant County Administrator Curt Coad confirmed Tuesday.=20 The Bee's Jennifer Morita can be reached at (916) 773-7388 or=20 jmorita@sacbee.com.=20 Bee staff writers Art Campos, Robert D. Davila and Pamela Martineau, and=20 correspondents Jane Braxton Little and Tom Nadeau contributed to this repor= t.=20 ---------------------------------------------------------------------------= --- ------------------------------------------------------------- Daniel Weintraub (Published April 12, 2001)=20 You wouldn't normally take energy policy advice from a consumer advocate wh= o=20 admits that the plan he has in mind for California recalls the plot of "The= =20 Thief" -- a 1981 thriller about a former safecracker facing down the mob. B= ut=20 these are not normal times. And Michael Shames is no normal consumer=20 advocate.=20 Shames is the executive director of the Utility Consumer Action Network. He= =20 was also the author of a 1999 paper that accurately predicted today's energ= y=20 disaster back when most people didn't even know the state's electricity=20 industry had been deregulated. Now he has teamed with University of=20 California, Irvine, professor Peter Navarro to propose an audacious approac= h=20 to breaking the grip the energy cartel has on California and the West.=20 Shames and Navarro warn that if nothing is done -- and they suggest Gov. Gr= ay=20 Davis' recent moves might be worse than nothing -- California faces a summe= r=20 of rolling blackouts and a power bill that might reach $50 billion. That's = a=20 catastrophe that neither the state's budget nor its economy could withstand= .=20 Strong measures are needed to prevent it.=20 Their plan comes down to this: Fight fire with fire. Shames and Navarro wan= t=20 California, Oregon and Washington to form a cooperative to buy their energy= .=20 Each day, the states would set a price they consider fair and reasonable,= =20 given the costs of producing electricity and a generous profit margin, say = 30=20 percent.=20 "It's a buyers' cartel," Shames says. "We would give them a dose of their o= wn=20 medicine."=20 Any power plant operator that wanted to sell electricity in these three=20 states would have to meet the price set by the cooperative. Those who didn'= t=20 like the price could shut down their plants and sit out the market for the= =20 day.=20 That's where "The Thief" comes in. In the Michael Mann film starring James= =20 Caan, a Mafia safecracker longs to go straight and live the American dream = --=20 a house, a family, a business of his own. He gets all those things, but his= =20 mob ties insist he do one more job. When he resists, they threaten to take= =20 away all he holds dear. So he sends away his family, shuts down his busines= s=20 and burns down the house. You can't hurt me now, he says. I'm ready for you= .=20 Shames wants California to say to the power generators: We're ready. The=20 generators' greatest weapon is the blackout. The fear of darkness leads us = to=20 pay any price for the electrons we need to keep the lights on. It's even=20 written into state law, a requirement that the people who run our power gri= d=20 spend whatever is necessary to keep the juice flowing. They cannot simply s= ay=20 no, sorry, your price is too high, we'll do without it today.=20 Under this plan, instead of random rolling blackouts sweeping the state=20 without notice, Shames and Navarro suggest rotating outages that are planne= d=20 and telegraphed ahead of time. That would give predictability to business a= nd=20 residents, which is what most people want. It also would tip off the crooks= ,=20 of course, who might prey on homes suddenly left without alarms. But the=20 cops, forewarned as well, could mobilize ahead of them with extra patrols.= =20 "If the worst thing they can do to us is take away the lights, we might be= =20 able to cope with that," Shames said. "Then they're in trouble. Then they= =20 start losing big bucks. They have to answer to their stockholders."=20 So far, it's a plan that a free-market economist could love. Buyers pooling= =20 their clout to win a better price. People sacrificing to get what they want= .=20 Generators free to participate, or not. Even Gary Ackerman, the glib and=20 cocky spokesman for the Western Power Trading Forum, the generators' trade= =20 group, says it sounds fine to him.=20 "Nothing wrong with a group of buyers banding together to buy a commodity,"= =20 Ackerman says. "I've got no problem with that whatsoever. If the price they= =20 offer is less than the market price, we're not selling."=20 That's where things could get nasty. If the blackouts grew too disruptive,= =20 Shames and Navarro say, Davis and his counterparts in Oregon and Washington= =20 would have to be willing to use their emergency powers to seize the plants= =20 that won't play ball. The threat to the states is too great to sit by while= =20 the generators extract billions of dollars from our businesses and resident= s=20 and ride off into the sunset.=20 "We are very concerned that over the next six months, a combination of mark= et=20 manipulation and the natural forces of electricity shortages will allow the= se=20 generators to gorge on us as they never have before," Navarro said. "Is tha= t=20 tolerable? Do we just grin and bear it and give them the money, or do we do= =20 something?"=20 Today, with Davis making incremental progress and promising that all will b= e=20 well, this plan sounds radical. But Shames has been a prophet before. And w= ho=20 knows? By this summer, with the air conditioning off and the state budget i= n=20 tatters, a buyers' cartel backed up by a governor with some spine might loo= k=20 downright reasonable.=20 The Bee's Daniel Weintraub can be reached at (916) 321-1914 or at=20 dweintraub@sacbee.com.=20 ---------------------------------------------------------------------------= --- ----------------------------------------------------------- San Diego group proposes western states power buyers' cartel=20 ASSOCIATED PRESS=20 April 11, 2001=20 SAN DIEGO =01) California, Oregon and Washington should form a cartel to fo= rce=20 power suppliers into reducing electricity rates, consumer activists said=20 Wednesday.=20 Forming a three-state cartel could be the only way to avoid blackouts and= =20 steep increases in rates as power demand peaks this summer, according to th= e=20 Utility Consumers' Action Network and a University of California, Irvine=20 business professor.=20 The activists said their proposal is an alternative to a plan announced las= t=20 week by Gov. Gray Davis to survive summer demand with new power plants,=20 conservation, and higher rates.=20 Under the activists' plan, the states could use their combined buying power= =20 to force wholesale energy generators to charge an established price for=20 energy, said professor Peter Navarro.=20 The plan's backers say it's possible the generators could retaliate with=20 blackouts, but they believe the most likely outcome is that the six major= =20 private wholesalers will agree to the set price.=20 Should the companies refused to charge the set price, the states could=20 acquire the private power plants within its borders through eminent domain,= =20 the legal process that government uses to acquire land for roads and other= =20 public works projects, Navarro said.=20 So far, no legislator has stepped forward to endorse the plan but that coul= d=20 change as lawmakers continue to search for alternative solutions to the=20 state's power woes. A spokesman for the governor, Steve Maviglio, said the= =20 idea is unlikely to win approval.=20 "The million-dollar question is whether it will pass out of the Legislature= ,"=20 Maviglio said. "Given the fact that it's an untested scheme ... I don't thi= nk=20 it will see the light of day."=20 ---------------------------------------------------------------------------= --- ----------------------------------- Judge orders Enron to deliver electricity to universities=20 By David Kravets ASSOCIATED PRESS=20 April 11, 2001=20 SAN FRANCISCO =01) Saying that Enron Energy Systems Inc. may be in breach o= f=20 contract, a federal judge Wednesday ordered the Houston company to abide by= =20 its agreement to sell cheap power to the state's public universities.=20 Enron was attempting to get out of delivering power for the final year of a= =20 four-year deal with the California State University and University of=20 California systems. Enron, which buys power from producers and sells it on= =20 the market, said the contract would cost the energy concern $12 million a= =20 month because of skyrocketing wholesale power prices.=20 Enron said the state should free Enron from its obligation and taxpayers=20 should pick up the tab.=20 "It's our economic interest to provide a service with the least amount of= =20 dollars we can provide it for," Enron attorney A. William Urquhart said. He= =20 later described the case as being "all about money. It's all about money."= =20 Enron said it would file an emergency appeal to the 9th U.S. Circuit Court = of=20 Appeals in San Francisco to overturn U.S. District Judge Phyllis Hamilton's= =20 ruling in the suit brought by the state's two university systems.=20 Appearing in federal court, state Attorney General Bill Lockyer argued that= =20 Enron wants out of the contract so it can engage in a "marketing game" with= =20 the universities' promised power and sell it on the open market for 10 time= s=20 more than what the electricity cost Enron.=20 He said lawmakers may have "left the keys in the car" when they approved=20 California's failed energy deregulation scheme that has prompted the energy= =20 crisis, "But it is still theft to steal the car."=20 The judge issued a temporary injunction against Enron, forcing it to contin= ue=20 providing service as the suit brought by the universities proceeds. When th= e=20 judge issued the order, she also said there is a likelihood Enron will lose= =20 the suit.=20 "I am persuaded, in the end, there is a very strong likelihood of success o= n=20 the breach of contract claim," the judge said.=20 UC's annual electric bill is about $87 million and its natural gas bill is= =20 about $26 million. CSU annually pays about $40 million for electricity and= =20 $20 million for natural gas.=20 The case is UC Regents vs. Enron Energy Systems Inc., 01-1006.=20 ---------------------------------------------------------------------------= --- --------------------------------- California utilities label proposed refunds from providers inadequate=20 By Toby Eckert? COPLEY NEWS SERVICE=20 April 11, 2001=20 WASHINGTON -- California's two biggest utilities are demanding that power= =20 providers who allegedly overcharged for wholesale electricity be ordered to= =20 pay much larger refunds than federal regulators envision.=20 In a filing with regulators Monday, Southern California Edison Co. and=20 Pacific Gas and Electric Co. called the proposed refunds "indefensible as a= =20 matter of both law and logic," saying the Federal Energy Regulatory=20 Commission used a badly flawed method to calculate the overcharges.=20 The utilities asked the FERC to recalculate the refunds -- which cover a=20 limited amount of wholesale charges for January and February -- using the= =20 cost of producing the electricity as a basis. That would certainly result i= n=20 refunds much higher than the $124 million the commission has so far=20 threatened to order if the power providers can't justify their prices.=20 The utilities' request for a rehearing of the FERC's March refund order com= es=20 after weeks of criticism from California officials and others that the=20 proposed refunds fall far short of the mark. The manager of the state's pow= er=20 grid has estimated that price gouging in the wholesale electricity market h= as=20 cost California consumers $6.2 billion over the past 10 months, a contentio= n=20 the power providers deny.=20 Most of the criticism of the FERC's order has centered on the fact that the= =20 refunds would only apply to charges for power during the most dire shortage= s,=20 known as Stage 3 emergencies, when wholesale electricity costs are highest.= =20 The utilities and other critics argue that power prices have been far from= =20 "just and reasonable" during other periods as well.=20 FERC Chairman Curtis Hebert has defended the proposed refunds and cites the= m=20 as evidence that the commission has been aggressive in policing California'= s=20 power market.=20 Meanwhile, a group representing small power generators asked the FERC to=20 allow them to sell power to parties other than the cash-strapped utilities.= =20 The move would return thousands of megawatts to the state's power grid, the= =20 providers argue, since many of the plants shut down after the utilities=20 failed to pay them.=20 The California Cogeneration Council asked the FERC to allow small,=20 independent power generators to sell their electricity to third parties lik= e=20 power marketers, municipal utilities and the state Department of Water=20 Resources, which has been buying power on the utilities' behalf.=20 Utilities are required to buy power from the so-called qualifying facilitie= s,=20 but the companies haven't been getting paid in full by Edison or PG&E, whic= h=20 declared bankruptcy last week. ---------------------------------------------------------------------------= --- ------------------------------- Davis Approves $850 Million for Energy Conservation Plan=20 Legislation: Governor says the spending package is crucial to ease immediat= e=20 pressures on the state.=20 By ROBIN FIELDS and MIGUEL BUSTILLO, Times Staff Writers=20 ?????Gov. Gray Davis approved $850 million for stepped-up energy conservati= on=20 efforts Wednesday after making good on threats to reduce the plan's size,= =20 vetoing $250 million in items he said would not get results fast enough. ?????Calling the spending package "the most aggressive, most expensive=20 conservation effort in America," Davis depicted his signing of two=20 conservation bills Wednesday as crucial in easing the state's most immediat= e=20 power pressures. ?????" "These are programs that Californians can use right now," said=20 Assemblywoman Christine Kehoe (D-San Diego), whose AB 29 was one of the=20 measures. ?????The slimmed-down package provides $240 million to weatherize homes of= =20 low-income residents, plus millions for rebates on energy-efficient=20 appliances, incentives for businesses that cut consumption, and public=20 information campaigns. ?????The governor's cuts included $25.2 million for efficiency programs at= =20 community colleges, $50 million for California Energy Commission loans and= =20 grants to small businesses to streamline refrigeration facilities, and $24= =20 million to the Department of Corrections to retrofit generators. ?????Davis also axed a $15-million provision for a California Public=20 Utilities Commission study of "real-time" metering, but he left in $35=20 million for the purchase and installation of meters that allow utilities to= =20 calculate bills based on when power is used. ?????Severin Borenstein, director of the UC Energy Institute in Berkeley,= =20 estimated that the funds would cover enough meters for businesses that=20 consume more than 250 kilowatt-hours a day. Such devices, coupled with a ra= te=20 plan, could encourage conservation by commercial customers during peak=20 periods when demand--and prices--are highest, he said. ?????"It is reasonable to estimate that we could take 2,000 to 3,000=20 megawatts off peak usage this summer, which could save $1 billion,"=20 Borenstein said. ?????Davis' goal is to shave off at least 2,000 megawatts a day, enough to= =20 power 2 million homes. Experts estimate that the state faces an electricity= =20 shortfall this summer of 3,000 to 7,000 megawatts daily, depending on summe= r=20 temperatures and hydroelectric supplies. ?????Conservation is only one prong of the state's efforts to resolve its= =20 power crisis. ?????Davis and executives at San Diego Gas & Electric confirmed Wednesday= =20 that negotiations have intensified this week over state purchase of the=20 utility's transmission lines. ?????Completed deals with Edison and San Diego Gas & Electric could persuad= e=20 the judge in PG&E's Chapter 11 bankruptcy case to order the Northern=20 California behemoth to accept similar terms for its system, Davis said.=20 Edison concluded a deal with the state Monday. ?????The governor performed a delicate balancing act at Wednesday's=20 bill-signing in response to a report, disclosed by The Times on Wednesday,= =20 that several public utilities, including the Los Angeles Department of Wate= r=20 and Power, joined private suppliers in helping to drive up wholesale energy= =20 prices in California last summer. ?????He defended the California Independent System Operator, which is using= =20 the report as evidence in its effort to persuade federal regulators to comp= el=20 suppliers--public and private--to refund $6.3 billion to the state. ?????But he also defended the DWP, although it ranked eighth on Cal-ISO's= =20 list of offenders for the period between May and November last year, reapin= g=20 $17.8 million in allegedly excessive profits. ?????"The DWP sold us power, which is more than I can say for the [private]= =20 generators," Davis said. He even thanked DWP General Manager S. David=20 Freeman, who has acted as his chief negotiator in crafting long-term power= =20 purchase agreements with private suppliers. ?????"Yes, they took their markup, but they came through," Davis said. ?????The chairman of a state Senate committee investigating alleged=20 manipulation in the state's power market said his panel will probe the=20 activities of the public agencies as well as private marketers. ?????Though the initial focus of the investigation has been on five large= =20 out-of-state sellers, Sen. Joe Dunn (D-Santa Ana) said, "We always intended= =20 to look at some of the publicly owned [suppliers], such as DWP." Dunn said= =20 Wednesday's report "just reinforces" the need for the review. ?????Hearings will begin next week with an examination of recent studies,= =20 including the Cal-ISO report, of alleged efforts to inflate prices in the= =20 electricity market. ?????In other developments Wednesday, a U.S. District Court judge ruled tha= t=20 Enron Energy Services Inc., a unit of Houston-based energy giant Enron Corp= .,=20 must continue to sell electricity to California universities under the term= s=20 of its existing contract. ?????The UC and Cal State systems signed a four-year contract with Enron in= =20 1998, locking in discounted fixed rates. In February, Enron notified its=20 commercial and industrial customers in California, including the=20 universities, that their power would be supplied by Pacific Gas & Electric= =20 and Southern California Edison. ?????Enron said it will appeal the ruling to the U.S. 9th Circuit Court of= =20 Appeals in San Francisco. ---=20 ?????Times staff writers Julie Tamaki in Sacramento and Rich Connell in Los= =20 Angeles contributed to this report. ---------------------------------------------------------------------------= --- ----------------------------- Failure to Buy Entire Network May Doom Davis' Power Deal=20 By MIGUEL BUSTILLO and NANCY VOGEL, Times Staff Writers=20 ?????SACRAMENTO--Does it make sense for California to own only part of the= =20 state's power grid? ?????That question is dividing state legislators and energy experts after= =20 Gov. Gray Davis' announcement of a $2.76-billion deal to buy Southern=20 California Edison's transmission lines. The deal was reached Monday, three= =20 days after Pacific Gas & Electric Co. balked at selling its power lines to= =20 the state and filed for bankruptcy. ?????Davis and Democratic legislators have pushed to purchase the whole=20 transmission system owned by the state's debt-saddled private utilities. Th= ey=20 reason that by owning the highway that electricity must travel to reach hom= es=20 and businesses--a 32,000-mile web of wire that is the world's fifth-largest= =20 coordinated power grid--the state would gain a negotiating advantage with t= he=20 companies that produce the power. ?????If California's transmission grid were entirely owned by the public,= =20 political leaders believe, the state could gain jurisdiction over key=20 electricity issues now decided by the Federal Energy Regulatory Commission,= =20 which has been reluctant to intervene in the energy crisis. The state, not= =20 the commission, could then set its own transmission fees and control the fl= ow=20 of electricity across the grid. ?????Transmission charges bring in roughly $1.4 billion a year for the thre= e=20 utilities. With that money, the state could not only repay itself for the= =20 purchase of the power lines but also fund system upgrades to unclog=20 electricity bottlenecks that contribute to blackouts. ?????"Owning the wires is a business, and this business operates at a=20 profit," said Assemblyman Roderick Wright (D-Los Angeles), who will head a= =20 series of committee hearings on the plan to buy the Edison lines. "We're no= t=20 going into their yards and buying old trucks or something; we are buying a= =20 vital piece of their electrical system." ?????However, now that Pacific Gas & Electric has opted to try to find a=20 solution to its debt problem in Bankruptcy Court rather than continue=20 negotiations with the state, the prospects of California acquiring the enti= re=20 system appear uncertain at best. ?????That is generating concern about what California is getting for its=20 money--and whether the state stands a chance of gaining any independence fr= om=20 federal regulators--if it buys only the lines of Edison and San Diego Gas &= =20 Electric.=20 ?????The Edison deal, which needs legislative approval, is unlikely to garn= er=20 a single vote from Republicans--Assembly Republican leader Dave Cox (R-Fair= =20 Oaks) calls the grid purchase a socialistic idea. The plan may also encount= er=20 some Democratic opposition. ?????"It was a tough sell to begin with, and I think if you are going to on= ly=20 buy part, it becomes a tougher sell," said Assemblyman Dean Florez=20 (D-Shafter). ?????And some utility experts say California gains little, if anything,=20 unless it acquires the whole system. ?????"The motivating factor for buying the grid, as opposed to hydroelectri= c=20 power plants, is because it addressed the central problem facing California= :=20 The federal government is unwilling to crack down on the generators that ar= e=20 ripping us off, and we need to take back control," said UC Irvine professor= =20 Peter Navarro. "If you only buy 40% of the system, you might as well have= =20 nothing." ?????California would not be able to make some of the most critical upgrade= s=20 needed to improve the flow of electricity if it did not acquire PG&E's=20 portion of the system. The worst energy bottleneck in California is the=20 notorious Path 15, a series of high-voltage lines that move power between= =20 Southern and Northern California. Path 15 lies largely in PG&E's territory. ?????Davis and some state legislators say California still has a chance to= =20 buy the entire grid. Some, in fact, believe that the utility's bankruptcy= =20 increases the likelihood of a deal: Talks between Davis and PG&E had falter= ed=20 in recent weeks, and a judge may have better luck bridging their difference= s. ?????Negotiations between the state and San Diego Gas & Electric continue,= =20 leaving the possibility of a deal with that utility. ?????But acquiring PG&E's portion, the largest and most important by far, n= ow=20 requires the approval of a federal Bankruptcy Court judge. And in that aren= a,=20 the state may have to compete with private companies for the lines. ?????Trans-Elect, a Washington company that wants to create a national=20 network of independently owned transmission lines, has offered to buy and= =20 operate the grids of Edison and PG&E for a total of $5.25 billion. The=20 company has also been in contact with the Davis administration on the=20 possibility of leasing the lines from California if they are bought by the= =20 state. ?????For the state to buy any of the systems, it needs approval from=20 FERC--far from a sure thing. The commission in recent years has encouraged= =20 states to put management of large sections of the nation's transmission gri= d=20 into private hands to achieve more efficient electricity flow. Even if the= =20 commission approved the purchase, the state may not receive any increased= =20 powers. ?????"FERC would like to see one large regional transmission system in the= =20 West," said David Clement, a transmission expert with Cambridge Energy=20 Research Associates. "If FERC were to unconditionally approve the sale, the= n=20 the transmission system owned by Edison would leave FERC authority. However= ,=20 FERC could easily condition the sale such that the transmission grid remain= s=20 under their authority." ---------------------------------------------------------------------------= --- ----------------------------- County to Sue Edison Over Nonpayment of $10 Million=20 Power: It would be the latest of many small generators to seek payment for= =20 the enforced sale of electricity to the utility.=20 By JULIE TAMAKI and NICHOLAS RICCARDI, Times Staff Writers=20 ?????Los Angeles County is joining the growing number of small energy=20 producers suing to get paid for electricity they are forced to sell to the= =20 state's two biggest, nearly bankrupt utilities. ?????In recent weeks, small generators have sued to suspend contracts with= =20 Southern California Edison and Pacific Gas & Electric, which owe the=20 producers about $1.5 billion for past electricity deliveries. The Los Angel= es=20 County Board of Supervisors authorized the latest lawsuit Tuesday afternoon= ,=20 telling its lawyers to go to court to free up its 22-megawatt cogeneration= =20 station at the Pitchess Honor Rancho to sell power to other parties. ?????Assistant County Counsel John Krattli said the county is owed about $1= 0=20 million for electricity that it has provided Edison since November. "What i= t=20 means is less income is coming in to the county," he said. ?????In a related matter, a creditors committee of renewable energy produce= rs=20 that has been weighing for weeks whether to force Edison into Bankruptcy=20 Court voiced skepticism Wednesday that the deal Gov. Gray Davis struck with= =20 Edison to purchase the utility's transmission lines will be approved by the= =20 Legislature. ?????The producers said they are concerned that there is not enough money i= n=20 rates charged to utility customers to pay committee members that are among= =20 the nearly 700 producers of alternative and renewable power in California. ?????Edison is scheduled to resume paying producers on April 16. ?????"It is critical that Edison make its first scheduled payment . . . and= =20 that back payment is made soon," said Jack Raudy, a committee spokesman.=20 "Otherwise, an involuntary bankruptcy filing remains very possible." ?????The payment deadline coincides with a hearing in a crucial court case= =20 between Edison and CalEnergy that is being aired in Imperial County. A judg= e=20 previously freed the geothermal producer from its contract with Edison=20 because of the utility's failure to pay the company. The court is expected = to=20 rule on CalEnergy's request for $99 million in back payments and could act = on=20 Edison's request that CalEnergy be required to resume selling power to the= =20 utility. ?????A Sacramento County Superior Court judge has allowed Redding-based=20 Sierra Pacific Industries to cease selling the electricity it generates to= =20 PG&E, freeing the company to sell about 60 megawatts of power to marketing= =20 companies that resell the supplies on the spot market. CalEnergy has been= =20 doing the same with the 270 megawatts it previously sold to Edison. One=20 megawatt is enough to power 750 homes during the summer. ---------------------------------------------------------------------------= --- ----------------------------- PG&E Creditors' Committee Is Appointed=20 Bankruptcy: Federal trustee picks panel to represent thousands with unsecur= ed=20 claims against the utility.=20 By TIM REITERMAN and VIRGINIA ELLIS, Times Staff Writers=20 ?????SAN FRANCISCO--A committee of Pacific Gas & Electric Co.=20 creditors--ranging from major banks and energy suppliers to the state of=20 Tennessee and a tree-trimming company--has been selected to represent=20 thousands of creditors in the utility's bankruptcy case. ?????Taking a key step in administering the bankruptcy case, U.S. Trustee= =20 Linda Ekstrom Stanley on Tuesday selected 11 creditors who collectively wil= l=20 serve as the eyes, ears and decision makers for those who have unsecured=20 claims against the utility. ?????In choosing companies that would represent various constituencies of= =20 creditors, Stanley selected four financial concerns and four energy supplie= rs=20 with total claims of almost $5 billion. ?????She also named Davey Tree Expert Co., which trims trees for PG&E and h= as=20 a $9.6-million claim; the city of Palo Alto, which claims a $200-million=20 debt; and Tennessee, which says PG&E owes $76 million. ?????All are among the 100 largest unsecured creditors of PG&E, which filed= =20 for Chapter 11 protection from creditors on Friday, declaring that the ener= gy=20 crisis had thrown the company $9 billion in debt. ?????Working over the weekend, the trustee's staff sent faxes to the larges= t=20 100 creditors, asking if they wanted to serve on the creditors committee.= =20 Seventy-five responded affirmatively. ?????Not only was the acceptance rate extremely high, Stanley said, she was= =20 lobbied before the selection. "Today I am getting responses from the=20 disappointed," she said. "Usually people do not want to serve." ?????The number of committee members is discretionary, although it has to b= e=20 an odd number so there are no tie votes. Eleven is an unusually large numbe= r,=20 Stanley said, adding that "there is nothing typical about this case." ?????The company's creditors touch many sectors of the nation's economy, fr= om=20 Wall Street to vendors providing goods and services to the utility. ?????The committee members include companies that provided power but were n= ot=20 paid as PG&E's financial condition worsened--Enron Corp. ($580 million),=20 Dynegy Power Marketing ($255 million), KES Kingsburg L.P. ($182 million) an= d=20 GWF Power Systems ($62 million). ?????Also named to the committee were the Bank of New York ($2.2 billion), = a=20 group of banks headed by Bank of America ($1.175 billion), U.S. Bank ($310= =20 million) and Merrill Lynch ($106 million). ?????The only trade creditor represented on the committee is employee-owned= =20 Davey Tree Expert Co. of Kent, Ohio. Chief Financial Officer David Adante= =20 said the company has trimmed brush and trees from around PG&E power lines f= or=20 more than 30 years and has 600 employees on the account. ?????"PG&E has always been a good client for us, and we believe firmly that= =20 at the end of the day they are going to survive and continue to be a good= =20 client," Adante said. ?????Tom Milne, who represents the state of Tennessee on the committee, sai= d,=20 "This has become a political issue here." ?????The Tennessee Consolidated Retirement Fund, Milne said, holds $25=20 million in commercial paper from PG&E. But the more politically volatile=20 holding is the state general fund, which PG&E owes $50 million. ?????"The taxpayers of the state of Tennessee are asking why we should=20 subsidize the ratepayers of California," Milne said. "Our rates have double= d=20 or tripled here. Why should California be spared? We are hoping for a 100%= =20 return on our investment." ?????Enron Corp. spokesman Mark Palmer said, "I think in being a part of th= e=20 solution for restructuring we offer a unique perspective, and I think that'= s=20 why we were chosen as one of the members of the committee." ?????He declined to discuss the company's claim. "We don't talk about=20 specific credit exposures, but we have told our investors, Wall Street=20 analysts and journalists that we have established adequate reserves," he=20 said, "and regardless of the situation in California, we will meet our=20 earnings per share estimates of $1.70 to $1.75 for 2001." ?????Stanley said the committee members must put aside their individual=20 interests while they act as a fiduciary for unsecured creditors. To represe= nt=20 it in court, the panel will hire an attorney, to be paid for by PG&E. ?????The committee is expected to be an important player as bankruptcy Judg= e=20 Dennis Montali figures out who should be paid and how much as the utility= =20 reorganizes its financial affairs. "The judge will pay lots of attention to= =20 them," Stanley said. "There are many creditors and many large creditors." ---=20 ?????Times staff writer Rone Tempest in Sacramento contributed to this stor= y. ---------------------------------------------------------------------------= --- ----------------------------- Price Caps Excluded in FERC Plan=20 Regulation: The panel's chief opposes a ceiling on charges in strategy to= =20 block blackouts in the West.=20 By NANCY VOGEL, Times Staff Writer=20 ?????SAN JOSE--The wholesale power price cap California politicians sought= =20 will not be included in an upcoming federal plan to stabilize the state's= =20 electricity market, the chairman of the Federal Energy Regulatory Commissio= n=20 said Wednesday. ?????Speaking in San Jose before a congressional panel, Curtis L. Hebert Jr= .=20 said his agency is moving swiftly to help California--but not with price ca= ps=20 because they would only lead to more blackouts. ?????"The energy is going to go to where the caps are not," said Hebert,=20 whose commission has regulatory authority over roughly half the power=20 consumed in the state. "The energy is going to go where the money is." ?????He appeared steadfast in his opposition to a ceiling on power prices= =20 across the West even as another member of his commission, Linda Key=20 Breathitt, said she is willing to consider price caps. ?????Breathitt told reporters after a hearing on Western electricity troubl= es=20 in Boise on Tuesday that the prospect of market power prices soaring even= =20 higher this summer makes her willing to consider short-term limits on how= =20 much private generators can earn. She has previously rejected price caps. ?????The third member on the federal commission--there are two=20 vacancies--said Wednesday that he was heartened by Breathitt's apparent shi= ft=20 in thinking. ?????"I look forward to working with her to assure just and reasonable=20 prices," said William Massey, the lone Democrat on the commission and a=20 proponent of price caps. ?????The commission cannot cap prices without first launching an=20 investigation of the wholesale electricity market across the West, Massey= =20 said. ?????"Until there are enough votes to open that formal investigation," he= =20 said, "it's just talk." ?????But even if Massey and Breathitt agreed to support price caps, it is n= ot=20 clear that Hebert would let a proposal come to a vote. ?????"The chairman of this agency has almost exclusive authority to control= =20 the agenda," Massey said. ?????President Bush has nominated two state utility regulators to the=20 commission, Pat Wood of Texas and Nora Mead Brownell of Pennsylvania, but= =20 they have yet to be confirmed by the Senate. ?????Gov. Gray Davis spoke to Wood, a Bush loyalist, on Wednesday to lobby= =20 him on the need for price controls in the West. Hebert testified before a= =20 bipartisan panel of six members of Congress at San Jose State. Headed by Re= p.=20 Dan Burton (R-Ind.), the House Committee on Government Reform scheduled thr= ee=20 days of hearings on California's electricity crisis this week in Sacramento= ,=20 San Jose and San Diego. ?????Political leaders in California, Washington and Oregon have beseeched= =20 the federal commission to push down soaring prices that have forced utiliti= es=20 to raise their customers' rates and triggered a bankruptcy filing by=20 California's biggest private utility. State leaders argue that only the=20 federal government can control wholesale electricity prices, because power = is=20 bought and sold across state lines. ?????But the commission has so far resisted those pleas, and the governors = of=20 other Western states are not pushing for caps. ?????By May 1, Hebert said, his federal agency will release a plan to=20 stabilize prices in California.=20 ?????A draft released last month would limit the prices power sellers can= =20 earn only when power reserves are so low in California that grid operators= =20 have declared a Stage 3 emergency. Then prices would be capped at roughly= =20 what it costs to run a small, inefficient, rarely used power plant. ?????Gary Stern, director of market monitoring for Southern California=20 Edison, criticized the draft plan for considering only those times of Stage= 3=20 emergencies, while power sellers earn excessive profits at plenty of other= =20 times. There were no Stage 3 alerts last summer, for example, he said, when= =20 the profits of power companies soared. ?????Stern also rebutted Hebert's argument that price caps will lead to=20 blackouts. Last summer, when price caps were in place, he said, the state d= id=20 not suffer blackouts. Only after December--when the federal Energy Regulato= ry=20 Commission lifted the cap--did supplies shrink to dangerous levels, with fo= ur=20 days of rotating blackouts. ?????Stern said he believes that's because generators and marketers have no= =20 reason to withhold their power from the market once the price reaches the= =20 cap, the maximum price they will earn. Without a cap, he said, sellers can= =20 push prices up by not offering electricity for sale and creating a shortage= . ?????"'As long as you can drive the price higher and higher," said Stern,= =20 "there's a strong incentive to withhold." ---------------------------------------------------------------------------= --- ----------------------------- Davis Signs $850 Billion Energy Plan=20 Energy Package Signed by Davis=20 $850 billion designed to boost conservation=20 Greg Lucas, Sacramento Bureau Chief Thursday, April 12, 2001=20 ,2001 San Francisco Chronicle=20 URL:=20 http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2001/04= /12/M N192668.DTL=20 Sacramento -- Gov. Gray Davis signed an $850 billion conservation package= =20 yesterday that will pour millions into loans and grants for Californians to= =20 make their homes and businesses more energy efficient.=20 Much of the money will beef up existing conservation programs, which means= =20 consumers and business owners can use the aid before California's peak use= =20 months this summer.=20 "This year, conservation must be as big a part of our summer as barbecues a= nd=20 baseball," the Democratic governor said after signing two conservation bill= s=20 in Los Angeles.=20 Using his line-item veto power, Davis cut $242 million in spending from the= =20 bills, including $10 million to replace bulbs in traffic lights with light-= =20 emitting diodes or LEDs, which use four times less energy than normal bulbs= .=20 Davis also took out $50 million in loans to help mini-marts and other=20 convenience stores buy more energy-efficient refrigerators and $50 million = in=20 low-interest loans and grants to low-income residents, small businesses and= =20 homeowners for energy-efficiency construction or retrofit projects.=20 Davis said the programs wouldn't help save energy during the summer. He=20 previously said he wanted to spend $1 billion on new conservation programs.= =20 Among the existing programs receiving more money are ones offering loans,= =20 grants and cash to business, agricultural, residential and low-income=20 ratepayers.=20 They include rebates on purchases of new refrigerators and air conditioners= ,=20 grants to place reflective surfaces on roofs and incentives to create "dema= nd=20 responsive" buildings that are connected to the Internet. When power alerts= =20 occur, thermostats or lights are automatically adjusted in the buildings to= =20 save energy.=20 One-fifth of the money is devoted to programs helping the state's poorest= =20 ratepayers.=20 Of the $240 million in low-income aid, $100 million will go toward=20 subsidizing up to 25 percent of poor households' gas or electric bills.=20 Another $120 million goes to subsidies and grants for home energy savers li= ke=20 insulation, weather-stripping and low-flow shower heads.=20 For the programs it already operates, the state energy commission expects t= o=20 begin handing out money at its April 25 meeting.=20 The new programs won't be ready quite so rapidly. A spokeswoman for the=20 commission expected them to be running in June.=20 Among those new programs are $35 million for a voluntary program for big=20 businesses to use special electricity meters to identify the time of day wh= en=20 their energy consumption is highest. Businesses could adjust their operatio= ns=20 accordingly to save energy and money.=20 The state's utilities, through the Public Utilities Commission, already off= er=20 rebate programs for customers who buy more energy-efficient refrigerators a= nd=20 air conditioners.=20 The new law spends another $50 million on that program.=20 For more information on these and other conservation programs visit www.=20 flexyourpower.ca.gov.=20 Chronicle readers' suggestions for how to cope with California's energy=20 crisis:=20 "I'm one of those crazy people to has to turn on a light before I walk into= =20 any room. I broke that habit by putting a Band-Aid over all the switches. I= t=20 makes me think twice before I pull it off."=20 John McDonald .=20 "I believe Gov. Davis' proposed rebates for a 20 percent reduction of energ= y=20 usage could be made more realistic and fair by making any reduction of ener= gy=20 usage qualify for a rate rebate of a proportional amount. For example, a 10= =20 percent reduction would give a 10 percent rate rebate, and even a 5 percent= =20 reduction would result in a 5 percent rate rebate. I predict there will be = a=20 lot of people who try to reduce, and succeed to a modest and laudable exten= t=20 (15 percent, for example), but will be frustrated and disappointed that the= =20 goal was unrealistic -- especially for those of us who have already been=20 energy conscious."=20 Ralph Leighton .=20 "My apartment is well shaded by large trees and the windows face northwest.= I=20 discovered that sheets of plastic bubble wrap makes a terrific window=20 insulator. Although my windows are double pane, they are really not all tha= t=20 efficient. By simply taping sheets of bubble wrap to the inside of my=20 windows, I was able to block a great deal of the heat/cold transmission=20 through the windows. I would heartily recommend this idea to anyone who fac= es=20 a similar problem. The bubble wrap is transparent and does not block the=20 light."=20 Michael Heinichen .=20 "If you do not use your electrical fireplaces on a regular basis, switch of= f=20 the pilot light. They might be using minimal energy but if everyone saves a= =20 small bit of energy, together a lot will be saved. Start using disposable= =20 stuff even at home so that you use the dishwasher infrequently."=20 Rajvinder Kaur=20 "Out of curiosity, I decided to check at what temperatures my=20 refrigerator/freezer should be set and the proper setting for the hot water= =20 heater. . . . Both the manuals for the refrigerator and the freezer were ve= ry=20 vague about settings -- they basically just told you how to set them, not a= t=20 what levels. So, I started "tinkering" with them and determined that all=20 could be set at a much lower level than where I had them set. Likewise with= =20 the hot water heater that I checked with a kitchen thermometer. This along= =20 with fewer larger wash loads has permitted me to cut my electricity use for= =20 March to 10.9 Kwh per day from 16.1 last year -- a savings of about 32=20 percent and 18 Kwh below my baseline."=20 Art Leino .=20 "I take Navy-style showers (wet down, turn off the water, lather up, rinse)= .=20 My father (a Coastie) drilled that firmly into us during the power crisis o= f=20 the early '70s, and it paid off. You can save quite a bit of water and powe= r=20 that way."=20 Suzanne Grant=20 E-mail Greg Lucas at glucas@sfchronicle.com.=20 ,2001 San Francisco Chronicle ? Page?A - 3=20 ---------------------------------------------------------------------------= --- ----------------------------------- Federal regulators may soon begin monitoring electricity market=20 KAREN GAUDETTE, Associated Press Writer Thursday, April 12, 2001=20 ,2001 Associated Press=20 URL:=20 http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2001/04/12/s= tate0 415EDT0119.DTL&type=3Dnews=20 (04-12) 07:32 PDT SAN JOSE, Calif. (AP) -- Federal energy regulators would= =20 not promise caps on soaring energy prices, but said they hope to begin=20 ``monitoring and mitigating'' the wholesale electricity market by May 1.=20 The Federal Energy Regulatory Commission will look at future prices to=20 determine if they are just and reasonable, commission chairman Curt Hebert= =20 told members of the House Subcommittee on Energy Policy and Regulatory=20 Affairs on Wednesday.=20 The commission already has sought California power sale refunds of $124=20 million, and the new system of tracking market abuses could help keep marke= ts=20 fair, Hebert said.=20 Hebert left didn't say whether FERC would begin looking at daily trading=20 activity in search of unfair pricing. Currently, FERC only reviews quarterl= y=20 reports from energy traders, and periodically does spot audits of the=20 markets.=20 Meanwhile, on the other end of the power spectrum, a federal trustee select= ed=20 a committee of Pacific Gas and Electric Co. creditors to represent more tha= n=20 30,000 creditors in the utility's bankruptcy case, the Los Angeles Times=20 reported.=20 U.S. Trustee Linda Ekstrom Stanley selected 11 creditors Tuesday who=20 represent various groups of creditors and will play an important role as=20 federal Bankruptcy Judge Dennis Montali determines who should be paid and h= ow=20 much during the company's financial reorganization.=20 ``The judge will pay lots of attention to them,'' Stanley said. ``There are= =20 many creditors and many large creditors.''=20 Stanly selected four financial concerns and four energy suppliers with tota= l=20 claims of nearly $5 billion. She also picked a tree-trimming company that h= as=20 a $9.6 million claim; the cit
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