Judge Orders Supplier To Continue Selling Power To Calif

----- Forwarded by Jeff Dasovich/NA/Enron on 02/06/2001 11:32 PM -----

Alan Comnes@ECT
02/06/2001 09:30 PM

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Subject: Judge Orders Supplier To Continue Selling Power To Calif

Good morning !

Judge Orders Supplier To Continue Selling Power To Calif

02/06/2001
Dow Jones Energy Service
(Copyright © 2001, Dow Jones & Company, Inc.)

SACRAMENTO, Calif. (AP)--A U.S. judge Tuesday temporarily ordered an
electricity supplier to continue selling power to the state, effectively
extending an emergency federal directive. Two other suppliers agreed they
would continue sales as well.

U.S. District Judge Frank Damrell, citing the possibility of "obvious
irreparable harm to the public," said Tuesday his temporary order requires
Reliant Energy Services Inc. to continue sales at least until a further
hearing on Wednesday.

Wholesalers AES Pacific Inc. and Dynegy Power Corp., not covered under the
temporary injunction, said they would continue sales until that hearing as
well.

The suppliers provide enough electricity to serve 4 million homes.
Electricity grid officials said losing that source could have produced
rolling blackouts like the ones that hit the state twice last month.

The Independent System Operator, which maintains the state's power grid,
sought the restraining order on an emergency basis as the federal directive
neared its midnight PST Tuesday expiration.

President Bush had said his administration would not renew the orders, which
were first issued by the Clinton administration and were extended by Spencer
Abraham, Bush's energy secretary.

Reliant filed a lawsuit against the system operator last week after receiving
a letter it sent to 140 power generators asking them to agree to continue
selling power after the expiration. The Houston-based company said it should
not have to bear the cost of California's energy crisis.

Reliant representatives did not immediately return calls for comment Tuesday.

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