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Enron Mail |
See natural gas price article below. Our buddy Paul Carpenter has turned o=
n=20 us (not to mention that he seems to be talking nonsense). How about giving= =20 him a call? ---------------------- Forwarded by Steven J Kean/NA/Enron on 04/20/2001=20 02:58 PM --------------------------- Miyung Buster@ENRON_DEVELOPMENT 04/20/2001 10:22 AM To: Ann M Schmidt/Corp/Enron@ENRON, Bryan Seyfried/LON/ECT@ECT,=20 dg27@pacbell.net, Elizabeth Linnell/NA/Enron@Enron, filuntz@aol.com, James = D=20 Steffes/NA/Enron@Enron, Janet Butler/ET&S/Enron@ENRON, Jeannie=20 Mandelker/HOU/ECT@ECT, Jeff Dasovich/NA/Enron@Enron, Joe=20 Hartsoe/Corp/Enron@ENRON, John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,= =20 John Sherriff/LON/ECT@ECT, Joseph Alamo/NA/Enron@Enron, Karen=20 Denne/Corp/Enron@ENRON, Lysa Akin/PDX/ECT@ECT, Margaret=20 Carson/Corp/Enron@ENRON, Mark Palmer/Corp/Enron@ENRON, Mark=20 Schroeder/LON/ECT@ECT, Markus Fiala/LON/ECT@ECT, Michael R Brown/LON/ECT@EC= T,=20 Mike Dahlke/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mona L=20 Petrochko/NA/Enron@Enron, Nicholas O'Day/AP/Enron@Enron, Peggy=20 Mahoney/HOU/EES@EES, Peter Styles/LON/ECT@ECT, Richard=20 Shapiro/NA/Enron@Enron, Rob Bradley/Corp/Enron@ENRON, Sandra=20 McCubbin/NA/Enron@Enron, Shelley Corman/ET&S/Enron@ENRON, Stella=20 Chan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steven J Kean/NA/Enron@Enron, Sus= an=20 J Mara/NA/Enron@Enron, Mike Roan/ENRON@enronXgate, Alex=20 Parsons/EU/Enron@Enron, Andrew Morrison/LON/ECT@ECT, lipsen@cisco.com, Jane= l=20 Guerrero/Corp/Enron@Enron, Shirley A Hudler/HOU/ECT@ECT, Kathleen=20 Sullivan/NA/Enron@ENRON, Tom Briggs/NA/Enron@Enron, Linda=20 Robertson/NA/Enron@ENRON, Lora Sullivan/Corp/Enron@ENRON, Jennifer=20 Thome/NA/Enron@Enron, jkradin@marathon-com.com,=20 rlichtenstein@marathon-com.com, syamane@marathon-com.com,=20 ken@kdscommunications.com, hgovenar@govadv.com, sgovenar@govadv.com,=20 bhansen@lhom.com, Carin Nersesian/NA/Enron@Enron cc: =20 Subject: Energy Issues Please see the following articles: Sac Bee, Fri, 4/20: "State might balk on power: But refusing to=20 pay 'ridiculous' prices could add to crisis" Sac Bee, Fri, 4/20: "SMUD directors vote to hike rates: A tentative=20 increase of 19% to 27% is blamed on rising energy costs" Sac Bee, Fri, 4/20: "Lieberman to Bush: Help California solve power woes" SD Union, Fri, 4/20: "Escondido calls a halt to power plant ideas" SD Union, Fri, 4/20: "Inflated natural-gas prices add to energy costs,=20 expert says" SD Union (AP), Fri, 4/20: "Davis, Congress members call for energy price= =20 controls" SD Union (AP), Fri, 4/20: "Regulators open investigation into alternative= =20 power providers" SD Union (AP), Fri, 4/20: "Attorney general taking two energy companies to= =20 court" LA Times, Fri, 4/20: "Legislators Unite Over Energy Price Issue" SF Chron, Fri, 4/20: "Small fry among big fish in PG&E bankruptcy=20 Some unlikely businesses are listed as creditors against utility" SF Chron (AP), Fri, 4/20: "Developments in California" SF Chron (AP), Fri, 4/20: "California utility wants to boost Mohave power= =20 plant production"=20 SF Chron (AP), Fri, 4/20: "PG&E owes money to several small businesses,=20 unlikely creditors" SF Chron, Fri, 4/20: "Edison pushes lawmakers to accept deal" Mercury News, Fri, 4/20: "Who will pay the most for power?" Mercury News, Fri, 4/20: "Credit-raters put state on watch" Mercury News, Fri, 4/20: "Power company executives going without bonuses" Mercury News, Fri, 4/20: "Davis and US lawmakers call for price caps on=20 power" Mercury News, Fri, 4/20: "Generators cutting electric output; regulators= =20 want to find out why" OC Register, Fri, 4/20: "FERC remains an unlikely rescuer The federal agency hews to a hands-off policy on power rates" OC Register, Fri, 4/20: "Lawmakers seek bigger rollbacks, can't agree on= =20 caps" OC Register, Fri, 4/20: "Energy notebook Assembly urges federal regulation of natural gas" OC Register, Fri, 4/20: "Shed light on costs" (Commentary) Individual.com (AP), Fri, 4/20: "End To Deregulation of Nevada Power" Individual.com (Business wire), Fri, 4/20: "PG&E Co. Issues Statements On= =20 the=20 Increase in the State's Cost for Power" Indivdual.com (PR/newswire), Fri, 4/20: "J.D. Power and Associates Reports= /=20 Nationwide=20 Decline in Customer Satisfaction of Electric Utility Service Among=20 Midsize Businesses" Individual.com (PR/newswire), Fri, 4/20: "Calpine to Purchase 46 General= =20 Electric Gas Turbines Turbines in Place for 70,000-megawatt Program" ---------------------------------------------------------------------------= --- ------------------------------------------ State might balk on power: But refusing to pay 'ridiculous' prices could ad= d=20 to crisis. By Dale Kasler Bee Staff Writer (Published April 20, 2001)=20 Adding to the risk of summertime blackouts, the state water department said= =20 Thursday it might not pay "ridiculous" prices for electricity even if that= =20 leaves California short of power.=20 The Department of Water Resources, which has been buying electricity for th= e=20 state's two beleaguered utilities since mid-January, wouldn't spell out wha= t=20 it considers ridiculous. But if prices get too high, the state might be=20 better off ordering blackouts or implementing proposed new conservation=20 programs designed at cutting usage on short notice, said Raymond Hart, the= =20 department's deputy director in charge of power purchases.=20 Gov. Gray Davis took a different view, saying: "We will continue to keep th= e=20 lights on. When you're fighting a forest fire, you don't say, 'Let me see,= =20 how much is this going to cost me? Maybe I can't write the check, maybe I= =20 can't put the fire out.' You put the fire out and then worry about the cost= =20 later."=20 But Davis' spokesman, Steve Maviglio, said the Governor's Office indeed is= =20 contemplating whether to refuse to buy power at any cost. "At what point do= es=20 the state say, 'Enough is enough'? Those scenarios are certainly under=20 discussion," Maviglio said.=20 The water department until recently resisted buying all the power Southern= =20 California Edison and Pacific Gas and Electric Co. needed, refusing to=20 purchase electricity it deemed too costly. But lately it's had to relax tha= t=20 stance because of an order by the Federal Energy Regulatory Commission, Har= t=20 said.=20 That April 6 order said power generators can no longer be forced to sell=20 electricity to uncreditworthy entities such as the Independent System=20 Operator, which manages the state's power grid. Because the ISO -- which ge= ts=20 its money from the utilities -- can no longer buy the power, the water=20 department is now buying all the electricity required by the utilities, Har= t=20 said. But he said the department could back off if prices get out of hand.= =20 "If the prices just get ridiculous altogether, there's a policy call to be= =20 made, and we'll cross that bridge when we get there," Hart said.=20 The ISO has predicted that severe shortages could bring 34 days of rolling= =20 blackouts this summer. The potential refusal of the water department to buy= =20 ultra-expensive power could further strain the grid.=20 "On a daily basis we're dealt a set of cards," said ISO spokesman Patrick= =20 Dorinson. "It sounds like ... we're going to be handed another set of cards= ,=20 and we're going to have to try to maintain the reliability of the grid as= =20 best we can."=20 Hart's comments came amid an increasingly rancorous debate between Davis an= d=20 PG&E over the water department's power expenditures. State spending shot up= =20 following PG&E's April 6 filing for bankruptcy protection.=20 Davis said generators began demanding a "credit penalty" from the water=20 department because of the PG&E bankruptcy proceedings. As a result, the=20 state's daily costs shot up last week to $73.2 million from $57.4 million i= n=20 the week before PG&E went bankrupt, the governor's office said.=20 Hart agreed, saying several generators raised their prices. "Every time=20 there's a major hiccup in the market, such as PG&E bankruptcy or a staged= =20 alert by the ISO, there's a price run-up," Hart said.=20 But prices have settled down this week. After peaking at $345 a megawatt ho= ur=20 April 12, prices for north state power were at $243 on Thursday, just below= =20 what they were prior to the bankruptcy filing, according to the Enerfax new= s=20 service.=20 PG&E, however, said its bankruptcy filing had nothing to do with the state'= s=20 increased spending.=20 "This claim is simply not accurate," the utility said in a memo to reporter= s.=20 Rather, the increased spending is due solely to the fact that the water=20 department is buying more units of electricity in the wake of the FERC orde= r,=20 PG&E said.=20 Regardless of the cause, the increased spending by the water department cou= ld=20 further strain the state's budget -- and complicate Davis' plan to finance= =20 the power purchases through a bond offering.=20 The state has committed $5.2 billion from its general fund for power=20 purchases since January. Those mounting purchases, along with PG&E's=20 bankruptcy filing and other energy crisis uncertainties, prompted a third= =20 Wall Street credit rating agency, Fitch, to place the state on a "ratings= =20 watch" this week, meaning the rating might be downgraded.=20 A downgrade could raise California's borrowing costs. All three of the=20 leading Wall Street credit agencies now have California on a ratings watch.= =20 Meanwhile, the state Public Utilities Commission on Thursday ordered an=20 investigation of why hundreds of cogenerators and other alternative energy= =20 providers haven't resumed production even though they've begun receiving=20 payments again from Edison and PG&E.=20 These generators, under contract to the utilities, provide more than 20=20 percent of the state's energy supply. Hundreds shut down, worsening=20 California's power situation, because they'd received little or no money fr= om=20 the utilities since November.=20 The PUC ordered Edison and PG&E to resume payments, starting this week, for= =20 new power deliveries.=20 But the generators say the payments aren't enough to get them back online.= =20 So PUC President Loretta Lynch said the commission will investigate whether= =20 to order Edison and PG&E to begin repaying them the hundreds of millions ow= ed=20 for past deliveries.=20 The Bee's Dale Kasler can be reached at (916) 321-1066 or dkasler@sacbee.co= m.=20 Emily Bazar of The Bee's Capitol Bureau contributed to this report.=20 ---------------------------------------------------------------------------= --- -------------------------------------------------------- SMUD directors vote to hike rates: A tentative increase of 19% to 27% is=20 blamed on rising energy costs. By Carrie Peyton Bee Staff Writer (Published April 20, 2001)=20 Ten years of stable electricity bills vanished in a single unanimous vote= =20 Thursday night as directors of Sacramento Municipal Utility District gave= =20 tentative approval to rate hikes ranging from 19 percent to 27 percent.=20 The new rates will go into effect immediately after a final vote, scheduled= =20 for May 3.=20 "This is quite alarming to all of us," said director Peter Keat. But praisi= ng=20 the value of "a community-owned electric company" that provides everything= =20 from shade trees to public votes on rates, Keat said he saw no choice.=20 SMUD, which once hoped to lower electric bills this year or next as=20 deregulation took hold, was caught up in the spiraling wholesale costs that= =20 helped send Pacific Gas and Electric Co. into bankruptcy proceedings.=20 The price of natural gas, which fuels SMUD's cogeneration plants, has risen= =20 steeply.=20 Wholesale electricity, which SMUD buys to supplement power produced by its= =20 own plants, nearly tripled between October and January.=20 And the weather has been dismal. Rainfall and snowmelt that feed SMUD's=20 hydroelectric plants on the upper American River are about 53 percent of=20 normal to date.=20 But during a two-hour hearing, a small contingent of consumers asked the=20 board to reconsider.=20 "I realize that rates have to go up, but this seems like a big percentage a= ll=20 at once," said Marian Ender.=20 Several criticized a 6 percent surcharge that until only a few days before= =20 had been proposed at 3 percent. Among them was Duy Tu, an engineering manag= er=20 at Intel who served on SMUD's advisory rate committee.=20 The increase "cannot come at a worse time" for Intel, he said, although he= =20 understands the need for it. He urged the board to act now to make more=20 electricity available in the future.=20 "We are way too dependent on some external force to keep the lights on," Tu= =20 said.=20 Overall, a base rate increase averaging 16 percent will raise about $124=20 million annually for SMUD, and a special=20 6 percent surcharge will raise about $48 million in its first year. Most of= =20 the surcharge, scheduled to drop to 3 percent annually for two subsequent= =20 years, will go into an emergency fund.=20 "We have to build back our savings account. It's been gutted," said directo= r=20 Susan Patterson.=20 The rate increases will fall most heavily on small commercial and large=20 industrial power users, although households with very low electricity bills= =20 will feel a sharp bite from the addition of a $5 monthly service fee.=20 The flat fee adds less than 10 percent to what was a "typical" residential= =20 SMUD bill of $67, but it's a 25 percent rate hike for someone whose monthly= =20 bill hovers around $20.=20 "I just don't think that part is right," Ender said. "We should only pay fo= r=20 usage."=20 Tom Reavey took the board to task for "unfair and unequitable" rates that= =20 charge agriculture and small businesses less than what they cost SMUD to=20 serve, while charging homeowners and renters slightly more.=20 But board members defended going easier on rates for the pumps that run=20 farmers' wells and irrigation systems.=20 "We all gain great benefits from living in a community that has nearby=20 agriculture," Keat said.=20 The new rates will apply throughout SMUD's service territory, which include= s=20 a narrow slice of southern Placer County and all but the southwestern tip o= f=20 Sacramento County. They will not=20 affect people who receive electric service from PG&E, which last month was= =20 granted a 29 percent hike by state regulators.=20 "If you want to see a bunch of folks who are really facing some stark times= ,=20 it's PG&E customers," said board member Howard Posner.=20 While there is widespread speculation that PG&E's rate hikes are the first = of=20 many, Posner and other directors said they hoped Thursday's increases will = be=20 the last SMUD needs and that rates could decline in three to four years.=20 To boost conservation, both SMUD and PG&E are trying to craft rates that fa= ll=20 hardest on the heaviest household users.=20 SMUD's old residential rates were=20 divided into a baseline tier charged roughly 8 cents a kilowatt-hour in the= =20 summer and one higher tier billed at 12.7 cents a kilowatt-hour.=20 The new rates will start at 8.6 cents in the summer, rise to a middle tier = of=20 14.5 cents and top out at 16.2 cents for those who use more than 1,000=20 kilowatt-hours of electricity.=20 By comparison, PG&E has proposed to the state Public Utilities Commission= =20 that its residential rates be divided into four tiers, topping out at 27=20 cents per kilowatt-hour. A PUC decision is expected next month.=20 Under the new SMUD rate structure, including the surcharge, large industrie= s=20 will see their electric bills rise by an average of 27 percent, agricultura= l=20 rates will rise 22 percent, small commercial rates 27 percent and residenti= al=20 rates 19 percent.=20 Households that qualify for special low-income or life-support rates will p= ay=20 a smaller monthly customer charge of $3.50 and will not have to pay the=20 surcharge on their baseline electricity usage.=20 Information about qualifying for the reduced rates is available from SMUD a= t=20 (888) 742-7683.=20 The Bee's Carrie Peyton can be reached at (916) 321-1086 or=20 cpeyton@sacbee.com.=20 ---------------------------------------------------------------------------= --- ---------------------------------------------------------- Lieberman to Bush: Help California solve power woes By Emily Bazar Bee Capitol Bureau (Published April 20, 2001)=20 On a brief visit to the capital Thursday, former Democratic vice presidenti= al=20 candidate Joe Lieberman called on President Bush to help rescue California= =20 from its deepening energy troubles.=20 After attending an early-morning prayer breakfast with legislators and Gov.= =20 Gray Davis, the U.S. senator from Connecticut met with them to discuss the= =20 federal government's role in easing California's electricity woes.=20 Lieberman, a potential Democratic presidential candidate in 2004, warned th= at=20 if the Bush administration does not act quickly in California, the rest of= =20 the nation will succumb to economic ripple effects.=20 "No American leader can disengage from a problem that so profoundly affects= =20 our largest state," Lieberman told reporters after meeting with the=20 Democratic governor. "I call on the president to get involved. ... We can't= =20 sit back in Washington and let California suffer."=20 Sacramento was the last California stop for the senator, who has spent thre= e=20 days at fund-raisers and speaking engagements across the state.=20 In talks with lawmakers about the energy crisis, Lieberman told them he's= =20 strongly urging the Federal Energy Regulatory Commission to impose temporar= y=20 caps on the wholesale price of electricity.=20 But the commission's chairman, Curt Hebert, is a fierce free-market advocat= e=20 who has long opposed price caps and has not indicated he will change his=20 mind.=20 If FERC doesn't act soon, Lieberman said he will support legislation=20 sponsored by Sen.=20 Dianne Feinstein, D-Calif., to force FERC to impose temporary caps.=20 He expects Feinstein to introduce her legislation early next week.=20 Lieberman's first stop Thursday morning was the California Prayer Breakfast= ,=20 an annual springtime gathering of religious and political leaders.=20 At the breakfast, speakers told Davis they would pray for him as he navigat= es=20 the state's energy crisis. Before launching into a song from "The Scarlet= =20 Pimpernel," singer Steve Amerson called on the governor to tell Californian= s=20 the truth throughout the ordeal.=20 Davis was solemn in his remarks, and his calm demeanor belied his behavior= =20 Tuesday, when he reportedly erupted in an obscene=20 tirade during a closed-door meeting with Senate Republicans.=20 "I'm going to tell you the truth, Steve. We have a problem," Davis said to= =20 the singer. "But God has provided a path out of that problem if we all do o= ur=20 part."=20 The Bee's Emily Bazar can be reached at (916) 326-5540 or ebazar@sacbee.com= .=20 ---------------------------------------------------------------------------= --- -------------------------------------------------------- Escondido calls a halt to power plant ideas=20 Temporary step will give it time for overall planning By Jonathan Heller=20 UNION-TRIBUNE STAFF WRITER=20 April 19, 2001=20 ESCONDIDO -- After being inundated with proposals to build power plants in= =20 the past few months, the City Council yesterday called a timeout.=20 The council voted 3-2 to suspend consideration for 30 to 60 days of any=20 proposals to build energy generating facilities in the city. During that=20 period, city staff members will develop a comprehensive approval process th= at=20 will factor in the cumulative effects of such plants.=20 "We need to step back and look at the direction we're going in," City=20 Councilwoman June Rady said.=20 The city has been juggling four power-plant proposals since January:=20 ?Sempra Energy Resources wants to build a 500-megawatt plant in the southwe= st=20 part of Escondido. It has not yet filed formal plans with the city Planning= =20 Department.=20 ?Ramco Inc. of San Diego has received approval to build a 44-megawatt plant= =20 on Mission Avenue in west Escondido.=20 ?CalPeak LLC of San Diego has filed plans to build a 49.5-megawatt plant on= =20 Enterprise Street, not far from the Ramco plant.=20 ?Another firm has expressed interest in building a 49.5-megawatt plant on= =20 city property on West Washington Avenue, but has not submitted plans yet.= =20 Yesterday's decision means that all the projects -- except the=20 already-approved Ramco plant -- are now on hold, and no new proposals can b= e=20 filed with the city.=20 The decision halts a mad dash by developers to bring power plants on line b= y=20 the summer to take advantage of special incentives offered by Gov. Gray=20 Davis.=20 Mayor Lori Holt Pfeiler and Councilwoman Marie Waldron opposed the move. Th= ey=20 said it would only delay much-needed solutions to the region's energy crisi= s,=20 which is expected to come to a head this summer.=20 "If (plant developers) have a chance of getting power on line by the summer= ,=20 we should not be the ones to stand in the way," Pfeiler said.=20 Waldron argued that cities have to be more proactive at this time, not less= .=20 "The governor is not solving the problem," Waldron said. "It's up to local= =20 governments to try to do what they can."=20 Joe Rowley, Sempra's project development director, said he doubted the=20 council's decision would upset his plans.=20 "Our timetable is still not fully defined," Rowley said. "Obviously there's= a=20 lot of work we have to do to get to the point where an application can be= =20 processed."=20 Meanwhile, council members listened to two people who made impassioned plea= s=20 for the city to consider alternative power sources.=20 David Drake, a service architect for SAIC in La Jolla, urged the council to= =20 think about solar power. There is more than enough available land -- and=20 rooftop space -- to install enough solar panels to power the whole city, he= =20 said.=20 "Escondido has 65 square miles," he said. "But 2,500 acres could be employe= d=20 to power us forever without any reliance on imported energy."=20 Local inventor Arnold Lund urged the council to consider energy generated= =20 from windmills.=20 The council also voted to work with San Marcos in exploring ways to seek=20 inexpensive, stable energy rates.=20 The hope is that the two cities can forge a deal with Sempra for cheaper=20 rates. Sempra officials have said they are willing to discuss possible rate= =20 deals with the city.=20 To buy power directly, a city has to adopt a special legal arrangement, suc= h=20 as forming a municipal utility district. San Diego Gas & Electric is the on= ly=20 energy service provider in the county that buys and sells power from the=20 regional energy grid.=20 San Marcos has formed a municipal utility district but has not signed any= =20 deals to buy power. It would be a more lengthy process for Escondido to for= m=20 such a district. San Marcos is a charter city and has more flexibility unde= r=20 the state Constitution. Escondido is a general-law city.=20 ---------------------------------------------------------------------------= --- ----------------------------------------------- Inflated natural-gas prices add to energy costs, expert says=20 Windfall-profits tax gets Davis' backing By Bill Ainsworth=20 UNION-TRIBUNE STAFF WRITER=20 April 19, 2001=20 SACRAMENTO -- Federal regulators' failure to stop what they described as=20 anti-competitive practices in the natural-gas industry added $750 million t= o=20 Southern California Edison's cost of electricity, a consultant estimated=20 yesterday.=20 The consultant, Paul Carpenter of the Brattle Group, spoke to an Assembly= =20 subcommittee investigating why California pays the highest natural-gas pric= es=20 in the nation. Natural gas is a critical part of the electricity crisis=20 because most of the state's generating plants run on natural gas.=20 Natural-gas prices have soared throughout the nation, but the bench mark=20 price paid at California's border has been double that paid at other bench= =20 mark locations throughout the nation for months, according to figures=20 released by the Assembly Subcommittee on Energy Oversight.=20 Next week, Carpenter plans to testify at hearings in Washington, D.C., on= =20 behalf of Southern California Edison and the California Public Utilities=20 Commission, which are asking federal regulators to intervene.=20 The giant utility and the state regulatory body contend that a sweetheart= =20 deal between El Paso Natural Gas and El Paso Merchant Energy gave the siste= r=20 companies enough market power to artificially raise the price of natural ga= s=20 that flows into Southern California from Texas.=20 El Paso owns the major pipeline bringing natural gas from fields in New=20 Mexico and Texas to Southern California. El Paso Merchant Energy is an=20 unregulated sister company.=20 Carpenter called the prices paid in Southern California "simply=20 unprecedented" in the United States. He estimated that the sister companies= =20 manipulated the market enough to add $2.60 to the price of a million Britis= h=20 thermal units of gas.=20 In addition, he said, El Paso Merchant Energy owns part of 20 smaller power= =20 plants, "qualifying facilities" that get paid based on the price of natural= =20 gas in California. The higher natural-gas prices increase the company's=20 revenues, Carpenter said.=20 El Paso company officials are expected to testify in front of the Assembly= =20 subcommittee today, but in proceedings before the federal regulators they= =20 have denied any sweetheart deal.=20 In a report they commissioned, the company blamed the higher natural-gas=20 prices in Southern California on increased demand and constraints on pipeli= ne=20 capacity.=20 Gov. Gray Davis, meanwhile, gave his strongest endorsement yet to a=20 windfall-profits tax on generators as a Senate committee chaired by Joseph= =20 Dunn, D-Laguna Niguel, began a series of hearings to probe possible price= =20 gouging by generators.=20 "I believe the Legislature would be well within its prerogative to insist= =20 that generators receive an appropriate reduction, whether it's 20 percent o= r=20 any other number the Legislature hit upon," Davis said.=20 Senate Democrats, Davis said, will form a special committee to help work on= =20 his plan for the state purchase of the transmission system of Southern=20 California Edison for $2.76 billion, in exchange for state aid in paying of= f=20 the utilities' debt.=20 The governor said he told Senate Democrats, a number of whom are skeptical = of=20 the plan, that Edison's parent firm has agreed to back a $3 billion upgrade= =20 of the neighborhood distribution system retained by Edison and to return a= =20 $400 million tax refund to the utility.=20 At the natural-gas hearing yesterday, state officials said that after El Pa= so=20 Merchant Energy bought a significant part of the pipeline capacity from its= =20 sister company, it withheld natural gas to drive prices up.=20 "Marketers have gamed the system and figured out how to hoard capacity and= =20 undermine competition," said Harvey Morris, an attorney for the California= =20 Public Utilities Commission.=20 State regulators want the Federal Energy Regulatory Commission, which=20 regulates natural gas, to open the market to more competitors.=20 But the commission has repeatedly rejected similar complaints in the past. = On=20 March 28, FERC ruled that the affiliates did not arrange a sweetheart deal.= =20 "The fact that El Paso Merchant controls a large volume of capacity does no= t,=20 in and of itself, render the El Paso contracts unjust, unreasonable or undu= ly=20 discriminatory," FERC ruled.=20 In other cases involving natural gas, federal regulators acknowledged that= =20 certain contract provisions allowed anti-competitive behavior, but they=20 approved those contracts anyway.=20 Lawmakers said they were puzzled by the federal regulators' lack of action.= =20 "It baffles me that we've found the problem -- anti-competitive behavior an= d=20 market gaming, but there's no cure because federal regulators won't take=20 action," said Assemblyman Juan Vargas, D-San Diego. Staff writer Ed Mendel contributed to this report.=20 ---------------------------------------------------------------------------= --- ------------------------------------------------------------------------- Davis, Congress members call for energy price controls=20 By Gary Gentile ASSOCIATED PRESS=20 April 19, 2001=20 LOS ANGELES =01) Gov. Gray Davis and a bipartisan group of the state's=20 congressional delegates agreed Thursday that the federal government must ac= t=20 to control the wholesale price of energy.=20 "For us the big issue is how we address the unjust rates," said Rep. Mary= =20 Bono, R-Palm Springs. "I believe we are up to it and will handle it as soon= =20 as we can."=20 Davis met behind closed doors with 27 congressional representatives,=20 including Sen. Dianne Feinstein, D-Calif., at the Sheraton Gateway Hotel ne= ar=20 Los Angeles International Airport. He said after the 90-minute meeting that= =20 the group discussed a threefold approach to the state's power crisis.=20 The strategy includes requiring federal agencies in the state, including=20 military facilities, to conserve energy this summer and asking the Federal= =20 Energy Regulatory Commission to find a way to control the wholesale price o= f=20 electricity and increase the flow of natural gas into California.=20 Davis repeated his criticism of federal regulators for not acting sooner to= =20 control the wholesale price of electricity and said he was hopeful the=20 state's congressional delegation could work together to find a bipartisan= =20 solution.=20 "We agreed there has to be a mechanism to reduce the wholesale price of=20 electricity," Davis said. "We have agreed to work cooperatively across part= y=20 lines to find ways we can reduce those costs. We're in this together. Party= =20 doesn't matter. Finding a solution does matters."=20 "To have the price of moving natural gas go up by a factor of 10 or more is= =20 absurd," said Rep. Brad Sherman, D-Los Angeles. "So many of our colleagues= =20 are telling us it's California's fault, but California does not have the=20 authority to regulate these two items."=20 The group also talked about easing environmental regulations during power= =20 emergencies to allow small companies and even military bases to run small= =20 generators.=20 "If you have generators in the state, regardless of what they run on, becau= se=20 we're entering this emergency period in the summertime and will be short of= =20 power, you should be allowed to turn them on," said Rep. Duncan Hunter, R-E= l=20 Cajon.=20 Hunter said small generators could produce about 500 to 600 megawatts durin= g=20 a power emergency if exemptions to various clear air requirements could be= =20 made.=20 Officials discussed ways to allow FERC to control wholesale prices without= =20 violating ideological positions staked out by high-ranking Republican=20 officials, including Vice President Dick Cheney, who oppose price controls= =20 and favor free markets.=20 Rep Jane Harman, D-Torrance, said she would support a finding by FERC that= =20 power wholesalers should not be allowed to charge market rates, but rather= =20 rates more tightly pegged to the cost of generating power.=20 "We're not talking about artificial caps," Harman said. "We should insist= =20 that the FERC not renew their market-based rate authority. And if we go tha= t=20 route, it takes us to the same place and avoids the ideological fight."=20 The meeting did not result in any specific proposals but participants prais= ed=20 the bipartisan nature of the talks and said it would result in a unified=20 approach in Washington.=20 "We have a responsibility to make sure the federal government takes it's ro= le=20 seriously," said Rep Gary Condit, D-Modesto. "We clearly understand what ou= r=20 assignment is today and I think we're going to work together in a bipartisa= n=20 way to get that done."=20 ---------------------------------------------------------------------------= --- ----------------------------------------------------------- Regulators open investigation into alternative power providers=20 By Michael Liedtke ASSOCIATED PRESS=20 April 19, 2001=20 SAN FRANCISCO =01) Hoping to prevent California's bleak power outlook from= =20 becoming even darker, state regulators Thursday launched an investigation= =20 into why alternative energy providers aren't producing more electricity.=20 With the action, the California Public Utilities Commission hopes to=20 determine if legitimate business reasons or ulterior motives underlie the= =20 reduced output by an independent group of small generators that provides mu= ch=20 of the state's energy.=20 These alternative generators =01) known in the industry as "qualifying=20 facilities," or QFs =01) have been scaling back or shutting down as debts o= wed=20 by California's two largest utilities pile up. The QFs are owed an estimate= d=20 $700 million by bankrupt Pacific Gas and Electric and financially crippled= =20 Southern California Edison.=20 Some QFs say the unpaid bills have forced them to defer much-needed=20 maintenance, leading to more equipment breakdowns that reduce electricity= =20 output. Other QFs say they simply can't afford to keep operating.=20 The PUC is worried some QFs are trying to take advantage of the California= =20 crisis to get out of long-term contracts that require them to sell=20 electricity at prices far below the current market rate. Several QFs are=20 suing to get out of those contracts so they can cash in on the open market,= =20 said PUC Commissioner Carl Wood.=20 All the QFs want is to be paid for bills that date back as far as November,= =20 said Jack Raudy, a spokesman for the Renewable Energy Creditors Committee,= =20 which consists of 10 alternative power producers owed a combined $410=20 million. Those 10 generators produce about 3,000 megawatts =01) which Raudy= said=20 was enough electricity for 3 million homes.=20 "We are outraged (by the PUC's investigation)," Raudy said. "We have heard = so=20 much rhetoric over the past five months and still haven't been paid a dime.= =20 That is what we are worried about."=20 Raudy estimated his group is operating at about 95 percent of capacity.=20 After the temporary closure of several QFs contributed to rolling blackouts= =20 around the state last month, the PUC ordered PG&E and SoCal Edison to begin= =20 paying the generators for the energy purchased since March 27.=20 But the order has done nothing to help the QFs recover the past debts. The= =20 QFs are now in line in bankruptcy court with 30,000 creditors owed money by= =20 PG&E, which expects its unpaid bills to rise to $5.5 billion by the end of= =20 this month.=20 If the QFs get desperate enough, they may decide to push SoCal Edison into = an=20 involuntary bankruptcy case, Raudy said.=20 PUC Commissioner Geoffrey Brown defended the alternative energy providers= =20 during Thursday's hearing.=20 "Any QFs that are not operating right now are doing so for financial reason= s,=20 not to game the system," he said.=20 California will need all the power that it can get from the QFs this summer= =20 when rolling blackouts threaten to become a daily occurrence.=20 Combined, the QFs account for about one-fourth of California's total power= =20 capacity, according to the PUC.=20 The QF output will become even more essential this summer because Californi= a=20 won't be able to import as much electricity from the Pacific Northwest as i= t=20 has in the past. A lack of rain has left the Pacific Northwest's=20 hydroelectric supply at its second-lowest level ever, and it could diminish= =20 to a record low if the recent drought continues.=20 "We are not going to be able to look to the Pacific Northwest to meet our= =20 needs," Wood said after reviewing a new report on the hydroelectricity=20 supply.=20 The looming blackouts and electricity price increases caused by California'= s=20 energy crisis is exasperating businesses and households across the state.= =20 Fearing the frustration could boil over into terrorism, the PUC Thursday=20 installed metal detectors to screen everyone attending the agency's public= =20 meetings.=20 In other moves Thursday, the PUC tabled a scheduled vote on whether the=20 regulators should become more involved in PG&E's bankruptcy case. The San= =20 Francisco-based utility is challenging the PUC's authority in the case. The= =20 PUC now expects to take up the matter at a May 3 meeting.=20 ---------------------------------------------------------------------------= --- --------------------------------------------------------------------------- Attorney general taking two energy companies to court=20 ASSOCIATED PRESS=20 April 19, 2001=20 SACRAMENTO =01) Attorney General Bill Lockyer wants a judge to order two po= wer=20 generators to hand over documents he subpoenaed last month as part of his= =20 investigation into the state's electricity market.=20 Reliant Energy and Mirant Corp. failed to produce certain documents by Marc= h=20 19, despite assurances that the sensitive documents would be kept=20 confidential, Lockyer said Thursday.=20 Lockyer filed the request for a hearing in San Francisco Superior Court.=20 Lockyer says the companies are concerned the documents wouldn't be kept=20 confidential, even though he says they've been assured the sensitive=20 documents would not be released.=20 The attorney general is investigating allegations of price manipulation in= =20 the state's electricity market that may have led to soaring power costs.=20 Mirant spokesman Bill O'Neel said the company is cooperating with the=20 attorney general's office.=20 "At this moment, we have our legal team working to pull together the=20 documentation the attorney general has requested," O'Neel said.=20 Mirant Thursday joined a complaint filed by Reliant last week in Los Angele= s=20 Superior Court. That petition seeks assurance that the attorney general wil= l=20 keep proprietary information confidential to prevent any competitive damage= ,=20 said Reliant spokesman Richard Wheatley.=20 "We're committed to cooperating with the investigation that Attorney Genera= l=20 Lockyer is conducting," Wheatley said. "It's the understanding of our=20 management that we do not have the proper assurance that the information wi= ll=20 be kept confidential."=20 ---------------------------------------------------------------------------= --- ---------------------------------------------------------------- Legislators Unite Over Energy Price Issue=20 Power: Bipartisan congressional delegation called together by Davis says U.= S.=20 must step in to protect state from manipulation by suppliers.=20 By MITCHELL LANDSBERG and MIGUEL BUSTILLO, Times Staff Writers=20 ?????This may be the surest sign yet of the depth of California's energy=20 crisis: A bipartisan cross-section of the state's congressional delegation,= =20 brought together Thursday by Gov. Gray Davis, not only agreed about the=20 severity of the problem but also about the need for swift federal=20 intervention.=20 ?????"This meeting did not have the word 'Democrat' or 'Republican' used=20 once," Rep. Darrell E. Issa (R-Vista), said of the unusual spirit of=20 cooperation at the meeting near Los Angeles International airport. ?????Members of both parties said the Federal Energy Regulatory Commission= =20 must slash wholesale electricity prices so California utilities can once=20 again afford to buy power. Since January, the state government has been=20 buying electricity on their behalf, as skyrocketing wholesale prices put=20 Pacific Gas & Electric Co. and Southern California Edison billions of dolla= rs=20 into debt and many power suppliers refused to sell to them; PG&E has since= =20 filed for Chapter 11 bankruptcy protection. ?????Although the Bush administration has said repeatedly that it is strong= ly=20 opposed to price caps, and FERC has refused to grant them, California=20 Republicans at the energy meeting said they are optimistic that the=20 administration will agree to some other form of price regulation. They=20 brushed aside the notion that such regulations might conflict with their=20 ideological belief in a free market. ?????"This is not a free-enterprise situation," Rep. Duncan Hunter (R-Alpin= e)=20 said after the meeting. "In fact, it's just the opposite." ?????Specifically citing the huge disparity between natural gas prices=20 charged to California and those charged in other Western states, he said=20 California clearly has been the victim of unreasonably high energy costs.= =20 Under federal law, the FERC must regulate the prices of companies if it fin= ds=20 they are exerting "market power" to drive prices to unreasonable levels. ?????Executives from two Texas energy companies, meeting with legislators i= n=20 Sacramento, denied Thursday that they had caused natural gas prices in=20 California to artificially skyrocket by hoarding access to a critical=20 pipeline into the state. ?????After the extraordinary meeting in Los Los Angeles, Rep. Brad Sherman= =20 (D-Sherman Oaks) said the biggest disagreement between California Democrats= =20 and Republicans appeared to be their relative faith--or lack thereof--in th= e=20 ability of President Bush and his administration to help California. There= =20 has been much speculation that Bush, who lost California in November, has n= o=20 political motive to help the state. ?????"We Democrats," said Sherman, "hope very much that our skepticism is= =20 proven wrong." ?????Davis--who sat flanked by Democratic U.S. Sen. Dianne Feinstein and th= e=20 governor's newly appointed chief energy advisor, S. David Freeman--said he= =20 used the meeting mainly to discuss the importance of conservation by=20 Californians this summer and to ask the congressional delegation to pitch i= n.=20 Five Republicans and more than a dozen Democrats attended the gathering. ?????Feinstein said Thursday that she has asked for a third time to meet wi= th=20 Bush to discuss the energy situation. Meeting with Times reporters and=20 editors Wednesday, she described a recent meeting with Vice President Dick= =20 Cheney in which, she said, he "ignored" her appeal for federal assistance.= =20 ?????Feinstein has been among those critical of natural gas companies, sayi= ng=20 they appear to have constricted access to a California-bound pipeline to ru= n=20 up prices. ?????The Brattle Group, a respected consulting firm, alleged Wednesday befo= re=20 an Assembly committee that Dynegy Inc. and El Paso Natural Gas Co. had=20 manipulated the market by charging so much for the rights to their pipeline= =20 capacity that they had, in effect, withheld access to it. ?????That action, the experts said, directly forced companies trying to=20 deliver gas to California to look for alternatives, clogging other pipeline= s=20 and causing a surge in prices. ?????The explanation, El Paso executives said, was simple: Demand for gas= =20 soared in California because generators that use gas to make electricity=20 increased production last year in response to the energy crisis. ?????"We're not withholding capacity--no one is," said El Paso Merchant=20 Energy President Ralph Eads. "With these prices, you want to sell every=20 molecule." ?????In other developments Thursday: ?????* The agreement between Davis and Edison International to return its= =20 ailing utility arm to financial health is in "deep trouble and could be=20 rejected by legislators," the Standard & Poor's credit rating agency said i= n=20 a note to clients, citing legislative and other sources. A rejection of the= =20 deal "would be a humiliating setback for the governor," S&P said. ?????The agreement calls for, among other things, the sale of Edison's=20 transmission grid to the state for $2.76 billion and the sale of $2 billion= =20 in bonds--both designed to pay off the utility's huge electricity debt.=20 Edison agreed to several constraints, including the sale of electricity to= =20 the state at prices tied to the cost of producing power. ?????Since they returned Monday from a two-week recess, state legislators= =20 have been sharply critical of the Edison agreement and have indicated a=20 desire to tinker with aspects of the deal. Some lawmakers have said publicl= y=20 that a bankruptcy protection filing by Edison, like that of PG&E, might not= =20 be such a dire outcome. ?????But a senior Edison executive said it is "way too early" to give up on= =20 passage of the proposal, which legislators have not yet seen in official fo= rm. ?????"There is an education process to do here," the executive said of the= =20 highly detailed 38-page document. "The legislators should be asking=20 questions. That is appropriate." ?????* The Public Utilities Commission voted to investigate whether=20 alternative energy providers violated contractual agreements by withholding= =20 supplies from PG&E and Edison, which owe them hundreds of millions of dolla= rs. ?????The action, Commissioner Carl W. Wood said, was prompted in part by=20 lawsuits some providers have filed seeking release from their contracts wit= h=20 the cash-starved utilities. The producers of solar, wind and geothermal=20 energy account for more than 25% of California's electricity supply. ?????"The question is whether we will be able to rely on them in the long,= =20 hot days of summer," Wood said. ?????Jack Raudy of the Renewable Energy Creditors Committee said the PUC=20 needs to address the $700 million the producers are owed. "All we have gott= en=20 is rhetoric from the governor, the PUC and the utilities," he said. ?????* An $850-million plan to entice Californians to conserve precious=20 megawatts appears to be running into roadblocks, compounding predictions by= =20 state officials of tighter than expected energy supplies in May and June. ?????Davis signed the conservation spending package last week, earmarking= =20 $242 million of the new funds for the Public Utilities Commission to=20 distribute to the state's investor-owned utilities to support existing=20 conservation programs. ?????But Barbara Hale, director of the PUC's Division of Strategic Planning= ,=20 said Thursday that since Pacific Gas & Electric Co. filed for bankruptcy=20 protection April 6, the utility has stopped releasing conservation funds. ?????Hale, testifying before a state Senate committee, said PG&E's=20 decision--coupled with the threat that Southern California Edison could=20 follow a similar route to U.S. Bankruptcy Court--has complicated her agency= 's=20 efforts. ?????PG&E spokeswoman Staci Homrig said her company plans to petition the= =20 Bankruptcy Court to have the conservation funds designated as a trust and= =20 separated from assets tied up in the bankruptcy proceedings. She said if th= e=20 court denies the request, PG&E would ask to be permitted to pay the expense= s=20 anyway. The process, she added, could take about a month--too long in the= =20 view of some legislators, given increasingly gloomy energy forecasts for la= te=20 spring and early summer. ?????Deputy Director Bob Therkelsen of the California Energy Commission sai= d=20 his agency had been counting on a number of small power producers to bolste= r=20 their output during that period. But he said some producers did not purchas= e=20 the necessary equipment because PG&E and Edison have failed to pay them in= =20 full for earlier electricity deliveries. ?????"It's not a huge amount," he said of the anticipated production=20 shortfall, "but every little bit helps." ---=20 ?????Landsberg reported from Los Angeles, Bustillo from Sacramento. Times= =20 staff writers Nancy Rivera Brooks in Los Angeles, Carl Ingram and Julie=20 Tamaki in Sacramento and Tim Reiterman in San Francisco contributed to this= =20 story. Copyright 2001 Los Angeles Times=20 ---------------------------------------------------------------------------= --- ------------------------------------------------------------- Small fry among big fish in PG&E bankruptcy=20 Some unlikely businesses are listed as creditors against utility=20 Steve Rubenstein, Chuck Squatriglia, Chronicle Staff Writers Friday, April 20, 2001=20 ,2001 San Francisco Chronicle=20 URL:=20 http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2001/04= /20/M N185589.DTL=20 A San Francisco ice cream parlor, a karate studio and a costume shop are al= l=20 in the same boat, and that goes for a Divisadero Street psychiatrist, too.= =20 They're all in the fortunate position of having money coming to them.=20 And they're all in the tough spot of having that money owed by the sort-of= =20 bankrupt Pacific Gas and Electric Co.=20 Many of the 47,894 creditors that PG&E owes money to, according to a list= =20 filed with the bankruptcy judge, are banks, power companies, lawyers and th= e=20 like.=20 But a surprising number are businesses that, at first blush, might seem=20 unlikely to be power company creditors. Many businesses -- like the ACT=20 costume rental shop -- didn't know or had forgotten that PG&E had run up a= =20 tab.=20 And since the list didn't say how much they're owed, businesses had to gues= s.=20 "How about that?" said costume shop manager Callie Floor, when told she had= =20 PG&E money coming to her.=20 Floor, checking her books, said it looks like PG&E forgot to pay its $100= =20 bill to cover a costume rental for a corporate dress-up party in 1992.=20 "We rent a lot of costumes for corporate events," she said. "That's probabl= y=20 what it was."=20 Psychiatrist Richard Lieberman says he does not know why or how much PG&E= =20 owes him.=20 "But I'll take it," he said. "PG&E has taken advantage of the consumer for = so=20 long. As far as I'm concerned, PG&E can go under and stay under."=20 Of course, PG&E may wind up paying pennies on the dollar, if anything,=20 because that's how bankruptcies work. The notion is depressing, which=20 psychiatrists are used to.=20 KARATE STUDIO GETS HIT Karate master Scott Morton, whose Karate One studio on Van Ness Avenue is= =20 also a creditor, said karate is all about fairness and integrity, which PG&= E=20 seems to be even shorter on than cash.=20 "I think the bankruptcy stinks," Morton said. "All the money is going aroun= d=20 and around, it's all the same company."=20 The karate studio conducted a self-defense class for about a dozen workers = at=20 PG&E headquarters. Morton, a black belt who does not take treachery lightly= ,=20 said he was "pretty sure" the check cleared, but maybe not.=20 NO BIG DEAL FOR SOME At Beauchamp's Welding and Repair in Petaluma, owner Dean Beauchamp wasn't= =20 concerned.=20 "They don't owe us enough to worry about," he said. "Less than $100, I'd=20 guess."=20 Beauchamp's shop does small jobs for the big utility. "They've been really= =20 good about sending us a check. Once in a great while, something will get=20 misplaced, and I guess that's how our name got on the list."=20 Yolanda Fletcher, the owner of Red Shoes Slide Service, says the utility=20 probably owes her about $100 for preparing some photographs for a corporate= =20 slide show.=20 Larry Mitchell, proprietor of the award-winning Mitchell's Ice Cream shop o= n=20 San Jose Avenue, believes that PG&E may owe him $500 for a corporate ice=20 cream social.=20 "That would cover the ice cream, the toppings, the dishes and the spoons," = he=20 said.=20 The utility's rocky road may be metaphorical, but an ice cream store's rock= y=20 road is the real thing, he said, and being owed $500 by a bankrupt company = is=20 not peaches and cream.=20 UNEXPECTED NAMES The list of creditors also includes such strange bedfellows as the San=20 Francisco Fire Department, the Yosemite Fund, The Chronicle and PG&E's own= =20 library petty cash fund. Perhaps the strangest bedfellow of all is the=20 perpetual PG&E foe known as TURN, or The Utility Reform Network, which stan= ds=20 to lose thousands of dollars in state-mandated legal fees from PG&E for its= =20 work as an "intervener," or utility watchdog.=20 Among the utility's more sensible business partners is the Beale Street=20 sandwich shop a few steps from the main entrance to PG&E's headquarters=20 building in San Francisco.=20 Unlike the big banks and power companies that are on the hook for millions,= =20 proprietor Kenneth Chen does business with PG&E on a strictly pay-as-you-go= =20 business.=20 Chen, the owner of Cafe Leah at 25 Beale St., is often hired to send up a $= 40=20 tray of sandwiches to PG&E corporate officers. When he does so, he insists = on=20 cash up front because PG&E, who is the restaurant's landlord, insists on ca= sh=20 every month from Chen.=20 "That's the way we've always done it, payment right away," he said. "That w= ay=20 there's no hassle later on."=20 E-mail Steve Rubenstein at srubenstein@sfchronicle.com and Chuck Squatrigli= a=20 at csquatriglia@sfchronicle.com.=20 ,2001 San Francisco Chronicle ? Page?A - 1=20 ---------------------------------------------------------------------------= --- --------------------------------------------------------------- Developments in California's energy crisis=20 The Associated Press Friday, April 20, 2001=20 ,2001 Associated Press=20 URL:=20 http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2001/04/20/s= tate1 004EDT0161.DTL&type=3Dnews=20 , , -- (04-20) 07:04 PDT Developments in California's energy crisis:=20 FRIDAY:< ?-- The state remains free of power alerts as reserves stay above = 7 percent. ?-- Southern California Edison plans a 1:30 p.m. conference call= with its ?creditors. ?-- Edison executives discuss the state's move to buy= thier transmission lines ?at a 9:30 a.m. briefing in Sacramento. ?< ?THURS= DAY:<=20 -- The Public Utility Commission launches an investigation into whether a k= ey=20 block of independent generators are purposely keeping their plants off line= .=20 -- The commission tables until May 3 a vote on whether the PUC should becom= e=20 more involved in Pacific Gas & Electric's bankruptcy case. The San=20 Francisco-based utility is challenging the PUC's authority in the case.=20 -- Texas-based natural gas companies defend themselves before an Assembly= =20 subcommittee against accusations they created a virtual monopoly on gas=20 flowing into California and used it to jack up prices sharply.=20 -- Attorney General Bill Lockyer says he will go to court to force two=20 electricity generators to hand over documents he subpoenaed as part of his= =20 probe of the state's electricity market.=20 -- Gov. Gray Davis and a bipartisan group of the state's congressional=20 delegates agree that the federal government must act to control the wholesa= le=20 price of energy, but offer no specific proposals.=20 -- The Assembly passes a resolution asking the federal government to regula= te=20 the price of natural gas, which has been deregulated since 1992. The Assemb= ly=20 also approves a bill to encourage natural gas exploration in the tidelands= =20 off Long Beach. Both measures go to the Senate.=20 -- The Senate approves a resolution asking Congress and the president to le= t=20 California use daylight-saving time year-round to help lower energy use. Th= e=20 measure now moves to the Assembly. A bill pending in Congress would give=20 Western states the authority to expand daylight-saving time.=20 -- The Electric Power Supply Association tells the Federal Energy Regulator= y=20 Commission that the California Independent System Operator, which runs the= =20 state's power grid, is not independent enough. The association alleges in a= =20 FERC filing that the ISO favors the state over electricity generators in it= s=20 actions and rule-making.=20 -- The California Energy Commission allows Pacific Gas & Electric Corp. to= =20 build a $350 million power plant in San Diego County capable of supplying= =20 electricity to 500,000 homes.=20 -- The Escondido City Council votes to suspend for 30 to 60 days its=20 consideration of proposals by developers trying to build plants before peak= =20 summer demand. The council wants to develop a comprehensive approval proces= s=20 that looks at the cumulative effect of such plants.=20 -- Edison International's stock closes at $10.98, down 42 cents, while stoc= k=20 in PG&E's parent closes down 31 cents at $8.73.=20 -- The state remains free of power alerts as reserves stay above 7 percent.= =20 <=20 WHAT'S NEXT:< ?-- Davis' representatives continue negotiating with Sempra, = the parent ?company of San Diego Gas and Electric Co., to buy the utility's= transmission ?lines. Davis says he expects to have an agreement within two= weeks. ?-- An Assembly subcommittee meets Monday to discuss bills aimed at= improving ?California's natural gas market. ?-- Senate Select Committee to= Investigate Price Manipulation of the Wholesale ?Energy Market continues i= ts investigation next week. ?< ?THE PROBLEM:<=20 High demand, high wholesale energy costs, transmission glitches and a tight= =20 supply worsened by scarce hydroelectric power in the Northwest and=20 maintenance at aging California power plants are all factors in California'= s=20 electricity crisis.=20 Edison and PG&E say they've lost nearly $14 billion since June to high=20 wholesale prices that the state's electricity deregulation law bars them fr= om=20 passing on to consumers. PG&E, saying it hasn't received the help it needs= =20 from regulators or state lawmakers, filed for federal bankruptcy protection= =20 April 6.=20 Electricity and natural gas suppliers, scared off by the two companies' poo= r=20 credit ratings, are refusing to sell to them, leading the state in January = to=20 start buying power for the utilities' nearly 9 million residential and=20 business customers. The state is also buying power for a third investor-own= ed=20 utility, San Diego Gas & Electric, which is in better financial shape than= =20 much larger Edison and PG&E but also struggling with high wholesale power= =20 costs.=20 The Public Utilities Commission has raised rates up to 46 percent to help= =20 finance the state's multibillion-dollar power-buying.=20 ,2001 Associated Press ?=20 ---------------------------------------------------------------------------= --- --------------------------------------------------------------- California utility wants to boost Mohave power plant production=20 Friday, April 20, 2001=20 ,2001 Associated Press=20 URL:=20 http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2001/04/20/s= tate0 926EDT0156.DTL&type=3Dnews=20 (04-20) 06:26 PDT BULLHEAD CITY, Ariz. (AP) -- With many opposed to allowin= g=20 Southern California Edison to increase power production at the Mohave=20 Generating Station, the City Council wants Nevada regulators to meet here.= =20 The plant Edison operates is located across the Colorado River in Laughlin,= =20 Nev. Edison is seeking a variance that would allow it to exceed the current= =20 cap of 70 percent of the plant's capacity and to do so for more than 20=20 hours.=20 ``We just want to do this in dire circumstances to avoid the rolling=20 blackouts (California has experienced recently),'' Edison spokesman Steve= =20 Hansen said.=20 Any is too much for former City Councilman Victor Urso.=20 ``That plant is one of the worst air pollution violators in the United Stat= es=20 already, and now they want variances to do even more damage,'' Urso said.= =20 Mohave County Supervisor Tom Sockwell, who presents the Bullhead City area,= =20 doesn't see it that way.=20 ``They'll only run it up to full power for very short periods, and we need= =20 that for the power shortages,'' Sockwell said this week. ``We've already go= t=20 pollution anyway, so what's another hour of a darker plume every now and=20 then?''=20 Rick Moore of the Flagstaff-based Grand Canyon Trust, which monitors the=20 plant's operation, said the plant exceeded its permissible emissions level= =20 1,200 times during the last calendar year. The trust sued, and the company= =20 was fined $180,000.=20 The City Council wants the Nevada Environmental Commission to meet in=20 Laughlin next month rather than in Carson City so members can hear local=20 opponents of Edison's request.=20 Hansen said the commission approved a variance last year but that the plant= =20 exceeded the emissions limit for only six minutes.=20 At peak capacity, the plant can produce 1,580 megawatts of electricity but = is=20 required to stay below that level because of air quality concerns=20 Edison owns 56 percent of the plant. The rest is owned by the Los Angeles= =20 Department of Water and Power (20 percent), Nevada Power (14 percent) and t= he=20 Salt River Project in Phoenix (10 percent).=20 Nevada Power has been trying to sell its share in the generating station to= =20 AES Corp. of Arlington, Va., has been trying to purchase both Edison's and= =20 Nevada Power's shares but has run into snags. The Nevada Public Utilities= =20 Commission approve the Nevada Power sale in October but suspended that=20 approval on Marcy 29 for at least 60 days. In January, the California Publi= c=20 Utilities Commission suspended sale of the Edison share and placed a=20 five-year moratorium on such sales about the same time.=20 ,2001 Associated Press ?=20 ---------------------------------------------------------------------------= --- --------------------------------------------------------------- PG&E owes money to several small businesses, unlikely creditors=20 Friday, April 20, 2001=20 ,2001 Associated Press=20 URL:=20 http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2001/04/20/s= tate0 503EDT0125.DTL&type=3Dnews=20 (04-20) 02:03 PDT SAN FRANCISCO (AP) -- Several small fry are among the big= =20 fish in a pond full of creditors to which ailing Pacific Gas and Electric= =20 owes money.=20 A San Francisco ice cream parlor, a costume store, a psychiatrist's office= =20 and a karate studio are among a number of small businesses that should be= =20 receiving payments from the near bankrupt utility.=20 After checking her books, ACT Costume Shop manager Callie Floor was surpris= ed=20 to find that the utility owes her $100 for a costume rental for a corporate= =20 dress-up party in 1992.=20 Karate One Studio on Van Ness Avenue may be owed for a self-defense class i= t=20 conducted for about a dozen workers at PG&E headquarters.=20 Of course, PG&E may only have to pay pennies on the dollar to the small fry= ,=20 since that's how bankruptcies work.=20 ,2001 Associated Press ?=20 ---------------------------------------------------------------------------= --- --------------------------------------------------------------- Edison pushes lawmakers to accept deal=20 David Lazarus, Chronicle Staff Writer Friday, April 20, 2001=20 ,2001 San Francisco Chronicle=20 URL:=20 http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2001/04= /20/M N190213.DTL&type=3Dnews=20 Although lawmakers are skeptical of the state's multibillion-dollar deal to= =20 acquire the power lines of Southern California Edison, the head of the=20 utility's parent company warned yesterday that failure to approve the accor= d=20 could lead to a "long and costly" bankruptcy.=20 But John Bryson, chief executive of Edison International, told The Chronicl= e=20 that he thought legislators would "want to do the right thing" by approving= =20 the multibillion-dollar agreement
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