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Enron Mail |
----- Forwarded by Jeff Dasovich/NA/Enron on 01/31/2001 07:59 AM -----
Scott Govenar <sgovenar@govadv.com< 01/30/2001 05:04 PM To: Hedy Govenar <hgovenar@govadv.com<, Mike Day <MDay@GMSSR.com<, Bev Hansen <bhansen@lhom.com<, Jeff Dasovich <jdasovic@enron.com<, Susan J Mara <smara@enron.com<, Joseph Alamo <JAlamo@enron.com<, Paul Kaufman <paul.kaufman@enron.com<, David Parquet <David.Parquet@enron.com<, Rick Johnson <rick.johnson@enron.com<, Marcie Milner <mmilner@enron.com<, Sandra McCubbin <Sandra.McCubbin@enron.com<, Tim Belden <Tim.Belden@enron.com<, Rick Shapiro <rshapiro@enron.com<, Jim Steffes <james.d.steffes@enron.com<, Alan Comnes <acomnes@enron.com<, Chris Calger <ccalger@enron.com<, Mary Hain <mary.hain@enron.com<, Joe Hartsoe <Joe.Hartsoe@enron.com<, Donna Fulton <Donna.Fulton@enron.com<, Steven Kean <Steven.J.Kean@enron.com<, Karen Denne <kdenne@enron.com<, Beverly Aden <beverly.aden@enron.com<, Bill Votaw <bill.votaw@enron.com<, Carol Moffett <carol.moffett@enron.com<, Debora Whitehead <debora.whitehead@enron.com<, Dennis Benevides <dennis.benevides@enron.com<, Don Black <don.black@enron.com<, Dorothy Youngblood <dorothy.youngblood@enron.com<, "dblack@enron.com" <dblack@enron.com<, "emelvin@enron.com" <emelvin@enron.com<, "ehughes2@enron.com" <ehughes2@enron.com<, "gweiss@enron.com" <gweiss@enron.com<, "gsavage@enron.com" <gsavage@enron.com<, "Harry.Kingerski@enron.com" <Harry.Kingerski@enron.com<, "kgustafs@enron.com" <kgustafs@enron.com<, "msmith1@enron.com" <msmith1@enron.com<, "ryang@enron.com" <ryang@enron.com<, "sgahn@enron.com" <sgahn@enron.com<, "vsharp@enron.com" <vsharp@enron.com<, "wcurry@enron.com" <wcurry@enron.com<, "William.S.Bradford@enron.com" <William.S.Bradford@enron.com<, Jim Steffes <james.d.steffes@enron.com<, Jeff@govadv.com, Dasovich@govadv.com, Mike Day <MDay@GMSSR.com<, Rick Shapiro <rshapiro@enron.com< cc: Subject: Update from California Legislature Tuesday 1-30 Note: Please forward this note to the appropriate people within Enron. I do not have access to all the email addresses after hours. Today the special Wright Assembly committee held an infomational hearing on bankruptcy procedures. No substantive action. However, at his evening briefing Assmblyman Wright said that ABX -18 was now stripped down to just the "arrearage" language and was only 4 pages. It should be out soon. There is no schedule for a hearing, but the next hearing will be to vote on a bill. Our proposed language on the end of the rate freeze is under consideration. Edison has agreed to support our concept and wants to see a redraft of the language making it explicit that they can recover past costs in the future. We will provide a draft to them tomorrow morning. The Senate appropriations committee met all day to work over the ABX-1 bill and considered amendments and testimony. The bill included amendments suspending all direct access once the DWR was buying power. We have a major problem in that Sen Burton, Bowen, and Assmblyman Keeley all believe that the DWR will get lower prices and avoid stranded contract costs in the later years of the contract if customers are locked into the DWR market. The witness from NYMEX described this approach as making sure the state goes broke as soon as possible. We offered our amended language to preserve existing and future direct access to staff. After the recess the bill had not been amended. I presented testimony supporting direct access, as did many consumer groups, UC/CSU, and industrial customers. The compromise from the chair was to promis that language would be added to grandfather in existing direct access contracts which could be retain, renegotiated or renewed. However, the CPUC could suspend the right to enter into new direct access deals. Sen. Bowen committed to introduce a "clean up" bill tomorrow which could deal comprehensively with the issue and perhaps detail the conditions under which customers could choose direct access in the future. However, as the bills are not "joined" in legislative parlance, we have no real assurance that the Bowen bill will be passed or signed. We have a major selling job to do in conjunction with the other ESPs, and customer groups in order to try to get this fixed. NEV tried to introduce amendments which would impose very specific conditions on new direct access, preferring to spell out the language in the bill rather than risk getting an adverse decision from the CPUC. We indicated our unwillingness to support significant restrictions on future industrial direct access, and they did not push the language too hard, but we now have to have Enron get more involved in determining ARM's position. Aaron Thomas and Counihan will be working on this tomorrow in Sacto. For tomorrow, my suggested action points are as follows: Jim Steffes should brief Sue Mara on his suggestions for managing direct access under the new structure, and she should try to contact Aaron and Rick, while Sandi and I will do the same from here. We will advise you of any other major developments. Mike Day
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