Legislative Status Report Week Ending 2/16

----- Forwarded by Jeff Dasovich/NA/Enron on 02/16/2001 09:17 PM -----

=09"Julee Malinowski-Ball" <jmball@ns.net<
=0902/16/2001 05:34 PM
=09Please respond to "Julee Malinowski-Ball"
=09=09=20
=09=09 To: "Jan Smutny Jones" <smutny@iepa.com<, "Steven Kelley" <steven@ie=
pa.com<,=20
"Katie Kaplan" <kaplan@iepa.com<
=09=09 cc: "William Hall" <wfhall2@duke-energy.com<, "Tony Wetzel"=20
<twetzel@thermoecotek.com<, "Sue Mara" <smara@enron.com<, "Steven Kelley"=
=20
<steven@iepa.com<, "Steve Ponder" <steve_ponder@fpl.com<, "Steve Iliff"=20
<siliff@riobravo-gm.com<, "Stephanie Newell"=20
<stephanie-newell@reliantenergy.com<, "Ross Ain" <rain@caithnessenergy.com<=
,=20
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=09=09 Subject: Legislative Status Report Week Ending 2/16

Date: 2/16/01
To: Jan Smutny-Jones, Steven Kelly, Katie Kaplan
Cc: IEP Board of Directors
From: Julee Malinowski-Ball, Edson + Modisette
RE: Legislative Status Report Week Ending 2/16

RECENT EVENTS:

-- The Governor=01,s press conference today provided no surprises. Davis
annouced the framework of a recovery plan for the IOUs that include the
purchase of their transmission system and a dedicated rate component, not a
rate increase, on consumers=01, electric bills to allow the utilities to ma=
ke
payments to their creditors. A transcript of the press conference will be
available later on the Goveronr=01,s web site.

-- As reported earlier this week, the Senate Energy Committee amended and
passed out SB 6x (Burton), which would establish and state power and
financing authority, and SB 33x (Burton) which would require the Governor=
=01,s
plan to purchase the IOU=01,s transmission to be approved first by the
Legislature. Both measures were amended in the Senate Appropriations
committee and passed out the following day.

In response to Burton=01,s commitment to work with IEP on language limiting=
the
Authority=01,s eminent domain powers, IEP has drafted amendments which will=
be
presented to Burton staff next week. At this point, however, I have no
confidence we will come to any resolution. Sen. Morrow had a similar
commitment to fence-in the Authority=01,s =01&adequate reserve capacity=018=
role, but
has since given up due to any lack of progress and believes Burton does wan=
t
much more authority than merely ensuring reserve capacity. Given the
likelihood IEP will not gets its amendment, although we will continue to
push for it on the Assembly side, we will need to reassess our position on
this measure. Considering there doesn=01,t appear to be anything stopping
either of these bills from making it to the Governor=01,s desk, any opposit=
ion
efforts may be futile.

So much for the good news.

-- Siting: IEP counsel Chris Ellison and I were able to spend a
considerable amount of time this week with Senator Sher=01,s staff to talk
about siting issues. Generally, we believe the meetings went very well and
we were able to provide comment both on SB 28x and many other siting issues
not address in the bill. E+M is still working on putting together an
official IEP package of siting proposals which should be ready for final
comment on Tuesday. There is no indication when SB 28x will be heard. The
Senate Energy Committee may have a hearing on Thursday next week but has no=
t
decided for sure or what bills will be hears. We will be anticipating that
siting is one of them.

-- QFs: As reported by Steven Kelley this week, recent discussions with
Sen. Battin indicated that he is attempting to work with the Governor's
office on language that would, among other things, provide a linkage to the
"mega bill" and/or stronger language on payment for past due amounts. At
this point in time, the Governor's office has not responded to Battin's
request. While the QF bill could begin moving at any time, pending the
Governor's action, it is increasingly likely that the QF legislation may no=
t
go before the =01&mega=018 bill.

-- The Senate Energy committee also held an informational hearing this wee=
k
on the state=01,s audit of the CPUC=01,s audits of SCE and PG&E. This is t=
he link
to the State Auditor=01,s review:
http://www.senate.ca.gov/ftp/SEN/COMMITTEE/STANDING/ENERGY/_home/Audit.htm.
From my initial review it appears as if the State Auditor believes there
were several major issues not handled in the CPUC audits. Surprised?

-- This week=01,s ECA committee hearing on interruptible programs was cance=
led.

-- The proposed ECA committee hearing next Tuesday to address Asm. Wright=
=01,s
repower bill, AB 36x, may also be cancelled. E+M is currently researching
what permitted, current and proposed repower projects would be able to meet
the definition currently outlined in the bill. If you have knowledge of an=
y
of these projects and can assist with this research, please call me. Wrigh=
t
=01,s office is asking for specific examples to help justify the amendments=
we
are requesting..

-- McNally/Temple provided a report on this week=01,s energy briefing for t=
he
Assembly Republican caucus which went very well. According to M/T=01,s rep=
ort,
members were appreciative of IEP taking the time to do this and several
members acknowledged that
they had never heard the message communicated in such a clear, concise way

-- Attached is the most recent legislative tracking report which includes
all the special session bills introduced to date. The report is now 116
bill strong. Please let me know if you need copies of any of these bills.

UPCOMING EVENTS (?):

-- Monday, February 19th is a holiday so the Legislature will be off, as
will I.

-- The Assembly Energy Costs and Availability Committee may have a hearing
on Tuesday to possibly hear AB 36x (Wright).

-- Senate Energy Committee may meet on Thursday to hear bills to be
announced.

--end--

Julee Malinowski-Ball
Senior Associate
Edson + Modisette
916-552-7070
FAX-552-7075
jmball@ns.net

- 2001 Tracking Report.doc