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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Susan J Mara X-To: Alan Comnes, Angela Schwarz, Beverly Aden, Bill Votaw, Brenda Barreda, Carol Moffett, Cathy Corbin, Chris H Foster, Christina Liscano, Christopher F Calger, Craig H Sutter, Dan Leff, Debora Whitehead, Dennis Benevides, Don Black, Dorothy Youngblood, Douglas Huth, Edward Sacks, Eric Melvin, Erika Dupre, Evan Hughes, Fran Deltoro, Frank W Vickers, Gayle W Muench, Ginger Dernehl, Gordon Savage, Harold G Buchanan, Harry Kingerski, Iris Waser, James D Steffes, James W Lewis, James Wright, Jeff Messina, Jeremy Blachman, Jess Hewitt, Joe Hartsoe, Karen Denne, Kathy Bass, Kathy Dodgen, Ken Gustafson, Kevin Hughes, Leasa Lopez, Leticia Botello, Mark S Muller, Marsha Suggs, Marty Sunde, Meredith M Eggleston, Michael Etringer, Michael Mann, Michelle D Cisneros, mpalmer@enron.com, Neil Bresnan, Neil Hong, Paul Kaufman, Paula Warren, Richard L Zdunkewicz, Richard Leibert, Richard Shapiro, Rita Hennessy, Robert Badeer, Rosalinda Tijerina, Sandra McCubbin, Sarah Novosel, Scott Gahn, Scott Stoness, Sharon Dick, skean@enron.com, Susan J Mara, Tanya Leslie, Tasha Lair, Ted Murphy, Terri Greenlee, Tim Belden, Tony Spruiell, Vicki Sharp, Vladimir Gorny, Wanda Curry, William S Bradford, Jubran Whalan, triley@enron.com, Richard B Sanders, Robert C Williams, dwatkiss@bracepatt.com, rcarroll@bracepatt.com, Donna Fulton, gfergus@brobeck.com, Kathryn Corbally, Bruno Gaillard, Linda Robertson, Ren, Lazure, Michael Tribolet, Phillip K Allen, Christian Yoder, jklauber@llgm.com, Tamara Johnson, Mary Hain, Greg Wolfe, Jeff Dasovich, Dirk vanUlden, Steve Walker, James Wright, Mike D Smith, Richard Shapiro, Leslie Lawner, Robert Neustaedter, Steve Walton X-cc: X-bcc: X-Folder: \Steven_Kean_June2001_4\Notes Folders\Discussion threads X-Origin: KEAN-S X-FileName: skean.nsf Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854 ----- Forwarded by Susan J Mara/NA/Enron on 02/14/2001 10:57 PM ----- "Beiser, Megan" <Megan.Beiser@edelman.com< 02/14/2001 04:06 PM To: "Aaron Thomas (E-mail) (E-mail)" <athomas@newenergy.com<, "Andrea Weller (E-mail) (E-mail)" <aweller@sel.com<, "andrew Chau (E-mail) (E-mail)" <anchau@shellus.com<, "Bill Chen (E-mail) (E-mail)" <bchen@newenergy.com<, "Douglas Oglesby (E-mail) (E-mail)" <doao@chevron.com<, "Fairchild, Tracy" <tracy.fairchild@edelman.com<, "Jeffrey Hanson (E-mail) (E-mail)" <jeff.hanson@phaser.com<, "jennifer Chamberlin (E-mail) (E-mail)" <jnnc@chevron.com<, "john Barthrop (E-mail) (E-mail)" <jbarthrop@electric.com<, "John Leslie (E-mail) (E-mail)" <jleslie@luce.com<, "Joseph Alamo (E-mail) (E-mail)" <jalamo@enron.com<, "Manuel, Erica" <Erica.Manuel@edelman.com<, "'Michael Nelson' (E-mail)" <mnelson@electric.com<, "Peter Bray (E-mail) (E-mail)" <pbray@newpower.com<, "Rebecca Schlanert (E-mail) (E-mail)" <rschlanert@electric.com<, "Richard Counihan (E-mail) (E-mail)" <rick.counihan@greenmountain.com<, "'Robert Morgan' (E-mail)" <rmorgan@newenergy.com<, "Sue Mara (E-mail) (E-mail)" <smara@enron.com< cc: Subject: Governor Davis Announces Bill Package to Increase Renewable Energ y, Distributed Generation and Co-generation < The Governor held his press conference today at the co-generation plant at < the University of California Medical Center in Sacramento. < < All local TV, print and radio news media outlets sent representatives. < < Although the focus of the news conference was supposed to be introduction < of a legislative package promoting renewable energy, distributed < generation and co-generation, it quickly turned to how the Governor will < deal with the possible bankruptcy of the utilities. The Governor said < that it has "become increasingly obvious" to him that the best solution to < the utilities' financial problems is the "acquisition of transmission < lines." He noted that the transmission lines are the utilities "most < significant asset" and would be something the public would be able to get < value from "in perpetuity." He said the arrangement will likely be a < "lease" of the utilities' lines, with the companies continuing to maintain < them, "to capture [the utilities'] expertise." Details of this plan will < be announced on Friday, the Governor said. The time and place for this < announcement have yet to be released. < < The Governor later said he felt the utilities' parent/holding companies < should "be part of the solution" so there would be "shared pain" in < reaching a solution. < < The Governor said he suspected that acquisition of the transmission lines < will involve the sale of revenue bonds, but he "didn't have enough wisdom" < when asked about it to give a firm answer. He said he believed he would < have that wisdom on Friday. < < The Governor also commented on his plan to police and/or fine business < establishments that keep their lights on after business hours. He said he < would announce a finalized plan on or around Mar. 15, a specific program < to reduce by 50-70% the amount of energy used by retailers after-hours. < < The Governor did outline the legislative package designed to promote < renewable energy, distributed generation and co-generation through < incentives, rebates and tax credits. < < The package contains: < 1.) "Rebate Increase Bill": "Emerging Renewable Resources Account of the < Renewable Resource Trust Fund" = $50 million to increase rebates for < renewable distributed generation systems smaller than 10 kilowatts (this < money will come from the General Fund) < < 2.) Tax Credit Bill: SB 17X (Brulte): A 50% tax credit for the purchase < and installation of renewable distributed generation systems larger than < 10 kilowatts and up to 200 kilowatts for large facilities such as < apartment complexes and businesses. < < 3.) Renewable Energy Loan Guarantee Program: AB 53X (Reyes): $50 million < for a commercial loan guarantee program for renewable power systems, < distributed generation and co-generation facilities. < < 4.)Retrofitting of Distributed Generation Facilities: This proposal will < provide $20 million to achieve 40 MW of reduced peak load through < retrofitting of natural gas distributed generation units at municipal < water districts to improve environmental performance. This involves < retrofitting diesel and dirty natural gas generators with clean natural < gas technology. < < 5.)Legislation to Exempt Microgeneration and Renewable Facilities Less < than 1 MW from Standby Charges: Elimination of the standby charges paid by < distributed generation end-use customers to the Investor Owned Utilities. < This includes small co-generation facilities and only applies to units < that generate less than one megawatt. < < *********************************** < < Please find the text of the Governor's press release for this news < conference below: < < FOR IMMEDIATE RELEASE < 02/14/2001 2:00 pm < < GOVERNOR DAVIS ANNOUNCES BILL PACKAGE TO INCREASE RENEWABLE ENERGY, < DISTRIBUTED GENERATION AND CO-GENERATION < < SACRAMENTO < < Governor Gray Davis today announced a legislative package to provide < incentives to power up more renewable energy, distributed generation and < co-generation to help meet California's energy challenge. < < "By investing in renewable energy sources, clean distributed generation < and co-generation, we can increase our energy supply without taking power < away from the grid," Governor Davis said. "My generation plan contains the < most ambitious renewable energy program in the nation." < < Distributed generation and co-generation are powerful tools for meeting < California's power needs. These types of facilities reduce demand on the < state power grid. They also provide energy independence from the < Independent Systems Operator and the volatile spot market; advanced < technology that creates jobs as well as power; and reliable energy sources < that respect the environment. < < Governor Davis' legislative package for distributed generation, < co-generation and renewable energy includes: < < < 1. $50 million to increase rebates for renewable distributed generation < systems smaller than ten kilowatts. < 2. A 50% tax credit for the purchase and installation of renewable < distributed generation systems larger than 10 kilowatts and up to 200 < kilowatts for large facilities such as apartment complexes and businesses. < This will be carried in SB 17x by Senator Jim Brulte (R-Cucamonga). < 3. $50 million for a commercial loan guarantee program for renewable < power systems, distributed generation and co-generation facilities. This < will be carried in AB 53x by Assemblymember Sarah Reyes (D-Fresno). < 4. $20 million for retrofit of distributed generation owned by < municipal water districts to improve environmental performance. This < involves retrofitting diesel and dirty natural gas generators with clean < natural gas technology. < 5. Elimination of the standby charges paid by distributed generation < end-use customers to the Investor Owned Utilities. This includes small < co-generation facilities and only applies to units that generate less than < one megawatt. < < < The Davis Administration will work closely with legislators to pass < legislation to implement these proposals. < < Co-generation is the simultaneous generation of electricity and heat or < steam, usually on an industrial site. Typically, the electricity is sold < to the grid and the heat or steam is used onsite in the industrial process < < Distributed generation is a term used for a decentralized approach to < generating electricity. Generally, the electricity is generated on the < site where it is being used. It can include renewables (such as solar or < wind power), fuel cells, and micro-generators. < < Governor Davis made his announcement at the UC Davis Medical Center < Co-Generation Plant in Sacramento. The plant supplies not only all of the < electricity for the but all of the heating and cooling, for the UC Davis < Medical Center. It produces 26 MW of power. Since the Medical Center needs < less than half of that, the excess power is sold back to the ISO, which < pays the Center's utility bills. < < "The UC Davis Medical Center Co-Generation Plant is a self-sufficient < facility," Governor Davis added. "It is an efficient facility. It is a < clean facility. And it is the kind of facility that we need a lot more of < to meet our peak energy demands." < < Governor Davis' energy plan relies on three elements: stabilization, < conservation and generation. The Governor is working with legislative < leadership on a stabilization plan for the State's Investor Owned < Utilities. Over the last several weeks, Governor Davis unveiled an < aggressive plan for energy conservation that will help reduce demand and < keep costs down and a plan to dramatically increase the supply of produced < and sold in California. < < < ### < <
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