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Enron Mail |
Calif. Senate Panel To Cite Reliant, Enron For Contempt
Dow Jones Energy Service, 07/19/01 Davis administration tells consultants to sell energy stocks Associated Press Newswires, 07/19/01 INDIA: AES threatens to abandon Indian venture. Reuters English News Service, 07/19/01 N Amer Pwr Highlights: Natural Gas Futures Drop Below $3 Dow Jones Energy Service, 07/19/01 FERC Agenda Eyes Tightening Of Pipeline Affiliate Rules Dow Jones Energy Service, 07/19/ AES CEO Meeting Indian Power Minister on Dabhol, Paper Report Bloomberg, 07/19/01 AES Corp. May Exit Indian Power Venture Over Past-Due Payments Bloomberg, 07/19/01 Calif. Senate Panel To Cite Reliant, Enron For Contempt 07/19/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) (This article was originally published Wednesday.) LOS ANGELES -(Dow Jones)- A California Senate committee Wednesday voted to cite Reliant Energy (REI) with contempt because the company has refused to provide documents for an investigation into wholesale electricity prices in the state, said committee Chairman Joe Dunn, D-Santa Ana. The committee also voted to forward a contempt charge for Enron Corp (ENE) to the full Senate, where it will be voted on. If the charge is approved, the Senate will vote on punishment, which could include hefty fines or incarceration of executives. Talks between Enron and committee attorneys Monday seemed to indicate the company would agree to committee demands, but since then it has become clear the company doesn't plan to comply, Dunn said. "If you had asked two days ago I'd have said we are cautiously optimistic about Enron. Now I'm pessimistic about it. We felt they were indicating to us a willingness to do what the other generators were willing to do, but the bottom line is that they are not, despite their cooperative-sounding words. We are no closer to them coming into compliance than we were a week ago," Dunn said. The Senate Select Committee to Investigate Market Manipulation is requesting that Reliant and Enron provide 16 kinds of documents related to market behavior, rent a depository for the documents, and sign the committee's version of a confidentiality agreement. Both generators have refused to meet those demands, Dunn said. The committee will drop its contempt charges at any time before a full Senate vote if either generator agrees to its requests. A report detailing Enron's contempt charge will be sent to the full Senate on Thursday for introduction, but is expected to be referred to the Senate Rules Committee for review before a floor vote. Dunn said he didn't know how long the report would be considered in the Rules Committee, but he will "certainly push them to do it as soon as possible." Enron spokesman Mark Palmer said the company "will continue to negotiate" with the committee. Legislators are scheduled to begin a monthlong break Friday, but aren't certain that will happen because they still need to pass a budget bill and are trying to approve a bill to rescue Edison International (EIX) unit Southern California Edison before leaving. Dunn said it would take a few days to prepare a report on Reliant's contempt charge. "We may not be able to forward that report to the Senate floor until the day we get back from recess," Dunn said. No one at Reliant could be immediately reached for comment. The committee originally was poised to cite seven other electricity generators for contempt, but all eventually agreed to provide the requested information. A Reliant spokesman said later that the company's main difference with the committee centered on the signing of the confidentiality agreement. Reliant would rather the committee secure a protective order before the company turns over the requested documents, said spokesman Richard Wheatley. "We respectfully decline to waive our objections, because we have a lot of trade secrets and proprietary information at stake," he said. When asked if the company would take legal action against the committee, Wheatley said Reliant was "keeping all options open." "But, really, we hope to work this out on an informal basis," Wheatley said. "We don't think this is that big of a stumbling block." Enron filed suit against the committee last week over objections to its subpoena of certain financial documents, and said at hearings last week that it may sue over its contempt charge as well. -By Jessica Berthold, Dow Jones Newswires; 310-962-2843; jessica.berthold@dowjones.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Davis administration tells consultants to sell energy stocks 07/19/2001 Associated Press Newswires Copyright 2001. The Associated Press. All Rights Reserved. SACRAMENTO (AP) - The Davis administration on Wednesday told consultants buying energy for the state to sell their stock holdings in energy companies immediately or quit their jobs. Nine consultants divested by a noon deadline, but critics said the order by Gov. Gray Davis came months too late to protect the public's interest. The order, issued at Davis' direction, was contained in a memo to Tom Hannigan, director of the state Department of Water Resources. Legal Affairs Secretary Barry Goode wrote that it was "imperative that you give instruction immediately" to those concerned. "We expect, and have always expected, the state's consultants to uphold the highest ethical standards," the memo states. "That standard is not met by those who hold a financial interest in one or more energy companies while trading on behalf of the state on energy related matters. Under pressure from Secretary of State Bill Jones, a Republican who hopes to challenge Democrat Davis for re-election next year, the administration moved to obtain statements of economic interest from the energy consultants. The consultants were hired earlier this year to advise the Department of Water Resources on electricity purchases for California's financially strapped utilities. The economic statements showed that several consultants held stock in energy generators, including Calpine Corp. and Enron. One consultant reported he sold stock holdings in Edison International and Dynegy when he began work for the state. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. INDIA: AES threatens to abandon Indian venture. By Himangshu Watts 07/19/2001 Reuters English News Service (C) Reuters Limited 2001. NEW DELHI, July 19 (Reuters) - U.S. energy firm AES Corp may walk out of a troubled distribution venture in eastern India due to a difficult regulatory enivironment, the firm's CEO said on Thursday. Dennis Bakke told reporters AES will sell its 51-percent stake in CESCO, a distribution firm in the eastern province of Orissa, unless the firm was paid its dues, allowed to raise tariffs and given a better operating environment. "If satisfactory resolution of these matters is not expeditiously reached, AES will be forced to abandon its commitment to the distribution company," he said. AES holds a 49 percent stake in Orissa Power Generation Corporation (OPGC), which runs a 420-MW plant in the state and sells power to state-run Gridco, a state-run transmission firm. Bakke said Gridco owed OPGC about $45 million and the U.S. firm had filed for arbitration in Orissa to recover the dues accumulated over two and a half years. He said GRIDCO was not paying OPGC, the generating company, saying that CESCO, the distribution firm, owed it money. "These are standalone businesses, and there is no basis for any such linkage or offset," he said. Bakke said the state's regulatory commission had ordered CESCO to transfer all receivables collected into an escrow account, but the company could not abide by the instruction as it needed money to pay its employees. However, it complied after the local government initiated criminal proceedings against the managing director of CESCO, he said. AES will deposit all revenues into the escrow account. "Hence funds will not be available to pay the 8,500 CESCO employees salaries due July 31 and thereafter." He said the regulatory regime in Orissa fixed tariffs at levels which did not allow it to recover its costs. Orissa officials were not immediately available for comment. He said AES was considering selling its stake in CESCO but could enter into a management contract in the transition period. However, AES will look at other opportunities in India if it finds a better regulatory environment. Bakke said AES had not made any proposal to take over Enron Corp's troubled Dabhol project but it was a "potential business" in which it might be interested at some stage. Apart from Enron, which has threatened to walk out of its $2.9-billion Indian venture, U.S. firm, Cogentrix, and Electricite de France have also packed their bags. India, whose 100,000 MW generation capacity is 13 percent short of demand, began power reforms in the early 1990s to attract foreign investment to increase power availability to industry and almost 80,000 villages without electricity. N Amer Pwr Highlights: Natural Gas Futures Drop Below $3 07/19/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) General News *Nymex Natural Gas Futures Below $3/MMBTu For 1st Time In 15 Mo<r/nerc *FERC Set To Act Wed On Calif Power Sales Refunds<r/wscc *Calif. Senate Panel Cite Reliant, Enron For Contempt<R/WSCC *Midwest Power-Grid Operator Mulls Plan To Span Regions<R/MAIN *Ill. Officials: Midwest Generation's Emissions Are Normal<r/main *Amer Elec Power 2Q Ongoing Earnings To Exceed Plan<r/nerc *Calpine In 10-Yr Pact To Sell 100MW Power To Exelon<r/main *FERC Agenda Eyes Tightening Of Pipeline Affiliate Rules<r/nerc Nuclear News *NC 1,100-MW McGuire 2 Up To 60% Power; Rising<R/SERC *Wis. 512-MW Pt Beach 1 Ramping Up To Full Power<R/MAIN *Ill. 1,145-MW Byron 1;1,145-MW Byron 2 Up To 100%<R/MAIN *Texas 1,150-MW Comanche Pk 2 In Start Up From Reactor Trip<R/ERCT Fossil News *SD 110-MW Of New Pwr On Line; 240-MW Due Soon<R/MAPP *Texas 500-MW PSEG,Panda Pwr Plant Began Commercial Ops<R/ERCT Markets *Northeast Power: Prices Steady To Lower On Temps, Loads<R/maac *Texas Power: Prices Fall As Nuclear Plant Returns To Grid<R/ERCT *West Power: Daily Mkt Down On Sat Inclusion, Mild Fri Weather<R/WSCC *Midwest Power: Prices Slide On Weak Natural Gas Prices<R/ECAR FERC Agenda Eyes Tightening Of Pipeline Affiliate Rules By Bryan Lee 07/19/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) OF DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- Federal energy regulators are scheduled to act next week on new rules affecting natural gas pipeline affiliate dealings. Sources say the U.S. Federal Energy Regulatory Commission is debating action at next Wednesday's open meeting to tighten up rules prohibiting pipelines from providing market-sensitive information to marketing affiliates. FERC rules allow monopoly pipeline companies to market natural gas in competitive markets providing they adopt codes of conduct that prevent the passing of information that provides a competitive advantage to their gas-marketing affiliates. Similar rules are in place on the electric side for vertically integrated utilities with marketing units competing in wholesale power markets. The changes under consideration stem from the commission's investigation of El Paso Natural Gas Co.'s (EPG) controversial contract with a marketing affiliate for pipeline capacity into California, according to sources. The affiliate transaction has been blamed for California's dramatic runup in natural gas prices over the past year, which contributed to the state's unprecedentedly high electricity costs last year. The proposed code-of-conduct changes also reflect the sweeping convergence between the natural gas and power sectors in the years since FERC deregulated the pipeline industry in the 1980s. FERC's rules prohibit pipelines from sharing market-sensitive information with their gas-marketing affiliates. But the rules don't address the pipeline's power marketing affiliates. The commission is looking to expand the code-of-conduct rules to address all marketing affiliates, sources said. These sources say the template for the pending change can be found in the conditions FERC imposed in a 1999 order authorizing the acquisition of Pittsburgh-based Consolidated Natural Gas by Dominion Resources (D). The commission approved the electricity-natural gas convergence merger, contingent on Dominion agreeing to adopt codes of conduct applying equally to its gas and power marketing affiliates. The planned rule changes would apply to electric utilities with pipeline investments, such as CMS Energy (CMS), Duke Energy (DUK) and American Electric Power Co. (AEP). It is unclear how the changes would affect joint operating agreements, such as the one between Entergy Corp. (ETR) and privately held Koch Industries. But the largest impact will be for large pipeline companies with extensive power marketing operations and investments in power plants. For example, El Paso, Williams Cos. (WMB) and Enron Corp. (ENE), represent about 70% of the interstate pipeline industry and are among the nation's top power marketers and merchant power plant developers. One FERC source described the order scheduled for commission vote next week as "a work in progress," while another said the matter is in such a state of flux that "it might not be safe to write anything yet." -By Bryan Lee, Dow Jones Newswires; 202-862-6647; Bryan.Lee@dowjones.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. AES CEO Meeting Indian Power Minister on Dabhol, Paper Reports 2001-07-19 02:00 (New York) New Delhi, July 19 (Bloomberg) -- AES Corp. Chief Executive Dennis Bakke will likely discuss taking over Enron Corp.'s Dabhol Power Co. when he meets India's power minister Suresh Prabhu today, Business Standard said, without citing officials. Dabhol, 65 percent owned by Enron, and Maharashtra State Electricity Board, its only customer, have been quarrelling for seven months over unpaid bills. The board has stopped buying power from Dabhol and construction work on the $3 billion plant was halted last month after lenders stopped funding it. Bakke will also likely discuss AES's own payment problems at its 49 percent owned Orissa Power Generation Co. in eastern Orissa state, the paper said. AES is struggling to recover 2.1 billion rupees ($44 million) owed it by the state-run transmission company, the Business Standard reported earlier. Bakke is also likely to meet India's Finance Minister Yashwant Sinha, the paper said. --Ravil Shirodkar in the New Delhi newsroom (91 11) 334 8812, or at rshirodkar@bloomberg.net /rb Story illustration: To graph the shares of Enron Corp, click ES Corp. May Exit Indian Power Venture Over Past-Due Payments 2001-07-19 15:35 (New York) AES Corp. May Exit Indian Power Venture Over Past-Due Payments New Delhi, July 19 (Bloomberg) -- AES Corp., the biggest U.S. power company, said it may withdraw from a power distribution venture in India's eastern Orissa state because of unpaid bills. AES, which runs a 420-megawatt power plant in Orissa, is owed $44 million by the state-run transmission company, of which the U.S. company owns 49 percent. AES Chief Executive Dennis Bakke met with India's power minister Suresh Prabhu in New Delhi today. ``We have to take such drastic steps when we don't get paid,'' said Sandra Ross, an official in AES's investor relations department in Arlington, Virginia. ``These issues have to get resolved.'' AES is the latest in a series of overseas power companies that have faced payment problems or withdrawn investment from the country citing delays, bureaucracy and the slow pace of reforms. India says it needs $200 billion to double the nation's generating capacity and avoid power failures that last year swept across much of northern India. Blackouts are common in many Indian cities. ``AES will be forced to abandon its commitment to the distribution company'' if the past-due bills aren't paid, AES's Bakke said on Star TV, broadcast in India today. He said AES is filing for arbitration of the dispute. Enron Enron Corp.'s Dabhol Power Co. and a state electricity board in India's western state of Maharashtra have been quarrelling for seven months over $64 million of unpaid bills. The board, Dahbol's sole customer, stopped buying power from the unit, saying it's too expensive. Construction of the $3 billion plant's second phase stopped last month after lenders cut funding. Four other foreign power companies, including Electricite de France, Europe's largest, have pulled out of Indian power projects worth $3 billion. ``We're not happy with the way things are,'' said AES's Ross. ``In the future, if payments resume, we could buy it back.'' Arlington, Virginia-based AES owns stakes in 173 power plants generating 59,000 megawatts worldwide, including utilities in the U.S. and Latin America. AES owns 49 percent of the Orissa Power Generation Co. that supplies 600,000 customers in eastern India. AES shares rose as much as $1.37, or 3.8 percent, to $37.80. --Ravil Shirodkar and Anindya Mukherjee in the New Delhi newsroom (91 11) 334 8812, or at rshirodkar@bloomberg.net /rb
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