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---------------------- Forwarded by Richard Shapiro/NA/Enron on 03/26/2001
04:09 PM --------------------------- Karen Denne 03/26/2001 03:00 PM To: Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron cc: Subject: Poll Articles These were the only articles w/ polling info on rate increases that Ann could find. I don't think the Chronicle has done an independent poll. ---------------------- Forwarded by Karen Denne/Corp/Enron on 03/26/2001 02:59 PM --------------------------- From: Ann M Schmidt 03/26/2001 02:53 PM To: Karen Denne/Corp/Enron@ENRON cc: Subject: Poll Articles NEWS Davis Puts His Spin on Energy Crisis / He polls voters, sends faxes defending charges of critics Patrick Hoge Chronicle Staff Writer 02/15/2001 The San Francisco Chronicle FINAL A3 (Copyright 2001) While Gov. Gray Davis is searching for answers to California's energy crisis, he also has been polling voters about potential solutions and trying to convince "opinion leaders" that he is taking decisive action. Interviews with Davis' pollster, lawmakers and those on the receiving end of the publicity campaign offer a glimpse into the tight link between policy and politics as the governor negotiates a way out of the power crunch. Recently, as independent polls showed that 3 in 4 Californians believe the crisis is the state's No. 1 problem, Davis backed a bill that could lead to electricity rate increases after saying for months that he opposed them. Last week, the governor's office sent a statement titled "Meeting the Energy Challenge" to nearly 2,000 "opinion leaders and decision- makers," touting Davis' record and refuting the claims of critics that he has been too slow to act. Fortuna Union High School District Superintendent Dennis Hanson, whose Humboldt County office received one of the faxes, was offended by what he saw as an attempt to manipulate him. "Making it political provides no solutions," said an angry Hanson, whose district is preparing for a utility bill that is potentially $50,000 higher this school year. "The unwillingness of anybody to take responsibility boggles my mind." Davis' aides insist that the governor isn't preoccupied with the views of voters despite his political operation polling Californians on the energy issue since last summer. Some critics suggest that Davis' fear of a public backlash has exacerbated his usual cautiousness and contributed to the energy crisis. "That's ridiculous," said Davis pollster Paul Maslin. "We do a lot less polling than anybody understands. For significant periods of this entire issue, there has not been polling going on. It's a far cry from (the) perception from recent White Houses where everything must be polled." The surveys of Californians, which are paid for by Davis' political campaign, help frame issues and determine factors such as the public's willingness to conserve, Maslin said. The responses are not used to guide intricate policy decisions, he said. At the same time, however, Maslin explained that his polling shows residents clearly don't want electricity service left to the vagaries of the free market; they want some kind of government command of the system; and they're willing to trade some rate increases for greater certainty. "If you had to boil it down, they want greater control here somehow," Maslin said. "I think the governor and the Legislature would be well served to listen to that right now." In fact, recent proposals by the governor and the Legislature -- such as the state's $10 billion purchase of long-term power or a state takeover of the utility transmission system -- show they are addressing such concerns. Political analysts say Davis' polling reflects a pervasive reliance by politicians at all levels of government on public opinion -- a focus that is not helpful when confronting a highly technical matter like energy policy. Indeed, Davis is not alone. Democratic Assembly leaders recently used their own poll numbers to convince colleagues to spend $400 million in taxpayer money to buy electricity. Polls are crude instruments that pose simplistic questions to people who are often uneducated about the issues, said Professor Barbara O'Connor, director of the Institute for the Study of Politics and Media at California State University, Sacramento. "I think it's the absence of leadership when politicians base their behavior on what people think of them," O'Connor said. The state GOP might agree. The party bucked the desires of Republican legislative leaders and aired radio commercials last week criticizing Davis' leadership on the crisis. The ads began running yesterday in the Bay Area. At least one Republican had asked the party to discontinue the ads. So far, Maslin said Californians are not blaming Davis for the power problems, because they see it as caused by deregulation legislation passed in 1996, when Republican Gov. Pete Wilson was in office. "The way they view the current governor and the Legislature is: 'Fix it,' " he said. " 'We're not blaming you because we understand it didn't happen on your watch, but get us out of this mess.' " As the state's chief executive, Davis has been criticized by industry executives, analysts, lawmakers and regulators for his wariness. In contrast, the statement Davis officials faxed last week to police and fire chiefs, heads of school districts, municipal officials and the like, praised his "bold, decisive leadership." Davis spokesman Steve Maviglio described the fax as a tool for public education. "It's just information. It's not political at all," Maviglio said. "This is part of a continuing effort the governor's office has done to inform the community about the governor's actions and policies. It was first used during the education proposals last year." Outraged utility executives, meanwhile, said the governor's fax wrongly blamed them for not being more proactive. "I'm appalled by reading such a statement," said Harold Ray, executive vice president of Southern California Edison Co. Ray was particularly irked by a passage about long-term contracts between the state's major utilities and power providers. The governor's fax claimed that since Davis appointed Loretta Lynch president of the state's Public Utilities Commission last March 22, the PUC has approved every request from the utilities for authority to sign long-term contracts "in a timely fashion." Ray claims that signing contracts directly with generators instead of through a state-run exchange could have saved his company about $1 billion. On Aug. 3, the commission ostensibly gave the utilities authority to sign such contracts, but Edison and Pacific Gas and Electric Co. executives say the regulators refused to approve contracts or to provide guidelines for them. The commission's energy division is supervised by Lynch. She told The Chronicle that the utilities should simply have acted without guidance from commission staff. Democratic Assemblyman Dennis Cardoza, chair of the Rules Committee, said he believes that the PUC has contributed to energy market dysfunction in recent years. Cardoza, however, praised Davis for now aggressively pursuing new generating plants in California, and said any spin control will likely be irrelevant in the end because results will be what matters. "I don't think any amount of damage control is going to fix things if we don't get control of this," said Cardoza. "If we're able to solve the problem, we get kudos. If we don't, we get dinged." PHOTO; Caption: Gov. Gray Davis unveiled legislation to increase the state's power supply after touring the Davis Medical Center cogeneration plant with operations manager Tony Moddesett (right). / Rich Petroncelli/Associated Press Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. NEWS Californians Cast a Cold Eye At Power Crisis, Polls Find / Shortages join education as top concern Katherine Seligman Chronicle Staff Writer 01/18/2001 The San Francisco Chronicle FINAL A11 (Copyright 2001) Yes, the energy crisis is serious, but most Californians see it as a plot by power companies seeking to jack up utility bills, according to the latest energy poll by the Field Institute. The poll released today found Californians growing more dubious about the roots of the so-called crisis. More than half of those surveyed, 57 percent, said the shortage amounts to an attempt to raise rates, rather than an emergency born purely from lack of generating sources or from increased demand. Real or fabricated, the public is overwhelmingly concerned about the crisis and is staying tuned to news of blackouts and energy grids (both the Field Poll and one from the Public Policy Institute of California show almost everyone is following the news). In fact, the energy shortage has joined education as a top concern for Californians, according to the Public Policy Institute poll, also released today. That poll reveals that almost 75 percent of Californians say energy is "a big problem" and only about half of those polled think economic good times are ahead -- a drop from 72 percent in August. And state residents are mad at just about everyone for the energy situation and the looming shortages. "The public is in a pretty foul mood," said Mark DiCamillo of the Field Poll. "They blame just about everybody. . . . The public is pretty cynical about how we got to this situation." When asked who's to blame for the situation, about three-quarters of those in the Field Poll pointed the finger at failure to build new power plants, the state's private utility companies and the state Public Utilities Commission. More than 60 percent blamed the federal Energy Regulatory Commission, the state Legislature, activist groups that blocked new plant construction and an increase in industrial energy use. Gov. Gray Davis, however, came out on top of the electrical heap, with only 43 percent blaming him for the current situation. Fifty- three percent blamed his predecessor, Pete Wilson. Most respondents said they take at least somewhat seriously the potential for utility company bankruptcy and with it the threat of blackouts. When it comes to solving the problem, most want the state government to step in and become a middleman, buying electricity for the utility companies, the Field Poll found. Davis has argued that the state can get better prices because of its good credit rating. The electricity would then be sold to the power companies. In order to fix the problem, most Californians, 61 percent, think the state should go back to regulating the energy industry. Only 30 percent of those in the Field Poll said they think the crisis can be solved without re-regulation. In the Public Policy Institute's poll, only 37 percent advocated re-regulation, with 32 percent favoring the construction of more power plants and 20 percent leaning toward more conservation. Although they are deeply concerned about the energy shortage, most Californians responded in the Field Poll that they don't want air quality standards relaxed to produce more electricity. Only 32 percent thought that solution was satisfactory. But when asked if air quality standards should be relaxed in some areas to get older plants functioning and to speed approval of new plants, Californians were more divided. Almost half, 47 percent, approved of that strategy. Forty-six percent opposed it. The energy problems don't bode well for the state, according to those surveyed by the Public Policy Institute. Eighty-two percent said they thought the issue will damage the state's economy in the next few years, with more than half saying it will hurt the economy "a great deal." "Californians are deeply worried about the implications of this crisis for the state economy and their own pocketbooks," said the institute's survey director, Mark Baldassare. "Right now, they are still holding out hope, but their optimism, as well as the political fortunes of state leaders, may suffer if they fail to see some action soon." The private nonpartisan research institute conducted its survey Jan. 2-8, by phoning 2,011 residents. The Field Poll surveyed 1,001 Californians Jan. 12-16. ------------------------------------------------------------------ ------------CHART: FIELD POLL / CALIFORNIA ENERGY-- How serious is the state's electricity situation?Statewide: Very serious 58% Somewhat serious 31% Not serious 9% No opinion 2%Customer served by:PG&E Very serious 60% Somewhat serious 31% Not serious 7% No opinion 2%S. Calif. Edison Very serious 59% Somewhat serious 27% Not serious 13% No opinion 1%SDG&E* Very serious 64% Somewhat serious 34% Not serious 10% No opinion (x)Other Very serious 58% Somewhat serious 36% Not serious 10% No opinion 1%.-- -- --. -- Which is closer to your view: The current electricity shortage is real or an attempt by energy companies to increase rates?Statewide: Attempt to raise rates 57% Real shortage 36% No opinion 7%.PG&E Attempt to raise rates 53% Real shortage 39% No opinion 8%S. Calif. Edison Attempt to raise rates 61% Real shortage 34% No opinion 5%SDG&E* Attempt to raise rates 61% Real shortage 34% No opinion 5%Other Attempt to raise rates 55% Real shortage 37% No opinion 8%-- -- -- . -- Do you favor/oppose Gov. Davis' plan to have the state act as a middleman to buy electricity for the utilities?. Statewide:Favor 60%Oppose 28%Depends 5%No opinion 7%.PG&EFavor 65%Oppose 27%Depends 3%No opinion 5%S. Calif. EdisonFavor 59%Oppose 27%Depends 7%No opinion 7%SDG&E*Favor 54%Oppose 37%Depends 4%No opinion 5%OtherFavor 52%Oppose 28%Depends 8%No opinion 12%.-- -- -- -- -- . -- How seriously do you take utility company warnings about their potential for bankruptcy?Statewide: Very seriously 35% Somewhat seriously 36% Not seriously 28% No Opinion 1% .PG&E Very seriously 35% Somewhat seriously 36% Not seriously 27% No Opinion 2% S. Calif. Edison Very seriously 35% Somewhat seriously 36% Not seriously 29% No Opinion (x)% SDG&E* Very seriously 28% Somewhat seriously 31% Not seriously 40% No Opinion 1% Other Very seriously 35% Somewhat seriously 37% Not seriously 27% No Opinion 1% . (a) - SDG&E: Small sample base , (x) Less than 1/2 of 1% Source: Field Institute The poll was conducted Jan. 12-16. Results are from a telephone survey of 1, 001 California adults. The margin of error is 3.2 percentage points. CHART: SEE END OF TEXT Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
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