RE: Several Press Briefings in Sacramento today

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 02/15/2001 03:15 PM -----

"Allen, Stevan" <stevan.allen@edelman.com<
02/15/2001 03:10 PM

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Subject: RE: Several Press Briefings in Sacramento today

AReM Team:

There were two news conferences held in Sacramento today -- one announcing a
"pro-consumer" package consisting of three bills and one held by the
Republicans. A snapshot follows:

NEWS CONFERENCE #1
Assemblywoman Carole Migden, Sen. Martha Escutia and others announce
"pro-consumer" bill package designed to reduce energy costs and increase
conservation. 10 a.m., Rm. 1190. Contact: Susannah Churchill 448 4516. Also
participating: Susannah Churchill, CALPIRG, and Paul Fenn, Local Power.

The three pro-consumer bills spotlighted:

AB 48X (Migden): Assemblymember Migden from SF introduced her bill, which she
said uses the idea, "If you buy in bulk, you pay less." AB 48X would
"authorize customers to aggregate their electric loads as individual
consumers with private aggregators..or as members of their local community
with community choice aggregators." Assem. Migden said this would give
communities "independent choices about the kind of energy they wish to buy."
She also said this aggregation of electrical purchasing would allow
communities to "pay less than the blended rate" and would ensure a "stable
and cheaper supply" of electricity for these consumers.

SB 18X: Sen. Escutia said that SB 18X would essentially "re-regulate
electricity for small and core consumers that use less than 500 kW." She
also referred to these consumers as "those who did not ask for deregulation
in 1996," but have had to suffer through the energy crisis caused by it. SB
18X calls for "re-establishing cost-based rates...to stop the bleeding of the
utilities." Consumers (businesses, homeowners, etc.) who use less than 500
kW would be bundled into a core customer group "like the gas companies do,"
and would have their electricity provided through a "core portfolio" of
generating assets owned by the utilities (to be purchased by the utilities
under permissions of the PUC). Any power generated from these core assets
could not be directed to consumers who use more than 500 kW/day.

SB 17X (Brulte): This bill "encourages homeowners, developers and small to
mid-sized businesses to purchase and install solar energy systems" by
providing a tax credit toward the purchase and installation of these
systems. Senator Brulte did not attend the press conference, but did issue a
statement saying," Building a system of conservation and generation is a step
that will play a significant role in ending California's energy shortage."

Paul Fenn of Local Power spoke in support of AB 48X. Fenn said that
aggregation would cause "wholesalers to bid competitively" to provide power
to these large customer blocks. He cited the examples of Massachusetts and
Ohio, where "community choice" is law. He also spoke of 400,000 customers in
Ohio who recently aggregated their power and now are served by Green Mountain.

There was a good number of local TV outlets represented, but few print or
radio reporters.

NEWS CONFERENCE #2
11:30 a.m., SACRAMENTO _ Assembly Minority Leader Bill Campbell holds press
conference regarding governor's support of buying transmission line bill,
state Capitol room 3016. Contact: Jamie Fisfis 319-2071.

The Bill Campbell/Republican press conference was very straight-forward and
presented one main theme: "a buyout of utility transmission assets is really
just another form of bailout." It was a press conference meant to keep the
pressure on the Governor. No materials handed out.

STEVAN ALLEN
Vice President
Edelman Public Relations Worldwide
1215 K Street - Suite 970
Sacramento, CA 95814

916/442-2331 - phone
916/447-8509 - fax
stevan.allen@edelman.com