FYI-Edison wants back in the generation business

Edison's willingness to offer power to the "state" by contracting only with
utilities is, in my view, just a[nother] thinly veiled attempt by Edison to
take advantage of a crisis situation.

From: Jeff Dasovich on 12/13/2000 12:48 PM
Sent by: Jeff Dasovich
To: skean@enron.com, mpalmer@enron.com, Karen Denne/Corp/Enron@ENRON, Susan J
Mara/NA/Enron@ENRON, Sandra McCubbin/NA/Enron@Enron, Mary Hain/HOU/ECT@ECT,
Tim Belden/HOU/ECT@ECT, Chris H Foster/HOU/ECT@ECT, Robert
Badeer/HOU/ECT@ECT, David Parquet/SF/ECT@ECT, Alan Comnes/PDX/ECT@ECT, Joe
Hartsoe/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Jeffery
Fawcett/ET&S/Enron@ENRON, Richard Shapiro/NA/Enron@Enron, James D
Steffes/NA/Enron@Enron
cc:

Subject: FYI-Edison wants back in the generation business

----- Forwarded by Jeff Dasovich/NA/Enron on 12/13/2000 12:47 PM -----

"Katie Kaplan" <kaplan@iepa.com<
12/13/2000 12:50 PM
Please respond to kaplan

To: "William Hall" <wfhall2@duke-energy.com<, "Trond Aschehoug"
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<steve_ponder@fpl.com<, "Steve Iliff" <siliff@riobravo-gm.com<, "Scott Noll"
<snoll@thermoecotek.com<, "Roger Pelote" <roger.pelote@williams.com<, "Rob
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"Marty Wilson" <mwilson@pstrategies.com<, "Kristin Vellandi"
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Subject: FYI-Edison wants back in the generation business

Edison Mission Energy Power Project Starts Construction After Expedited
Approval By California Energy Commission

Monday December 11 6:39pm
Source: Dow Jones

Operation Targeted for August

IRVINE, Calif., Dec. 11 /PRNewswire/ -- Edison Mission Energy (EME), an
Edison International company (NYSE: EIX), started construction of its new
Sunrise power plant on Thursday, December 7, having received expedited
approval from the California Energy Commission (CEC) to proceed. The
power generation facility will be located in Kern County, California, and
will bring both short- and long-term generation capacity to the state, which
is in
dire need of new power generation.

"From the onset of the California power crisis, we have sought to find
means to bring new power to the California market," said John E. Bryson,
chairman and CEO of Edison International. "This CEC approval will help
ensure that this critical new project will be able to provide a significant
amount
of new peaking power to the state as soon as next August. Our thanks and
appreciation go to the California Energy Commission, and the
environmental and regulatory agencies for their swift consideration of this
important project."

"This power has been offered by contract to the state so that the pricing
for it does not depend on California's broken deregulated power market,"
said
Alan J. Fohrer, president and CEO of EME. "Alternatively, EME will seek to
enter into a long-term, cost-based contract with either Pacific Gas &
Electric Company or San Diego Gas & Electric Company to further ensure that
California's consumers reap the benefit of this additional power
resource," Fohrer said.

The Sunrise Power Project will be completed in two phases. Phase 1 will
consist of a 320-megawatt (MW), simple-cycle peaking facility scheduled to
be in service during the summer 2001. Phase 2 will convert the peaking
facility to a 560-MW, combined-cycle operation with an in-service date of
summer 2003. The project will meet or exceed all pertinent environmental
and safety standards.

Final regulatory approvals have been received for Phase I of the project
only.

EME will be seeking expedited permitting approval for the Phase II
expansion in line with the fast-track approval process recently enacted by
the
California legislature.

EME has also negotiated an agreement with the labor unions for an adequate
supply of highly skilled labor in order to achieve an accelerated
construction schedule. The accelerated schedule is aimed at providing this
additional power to California by next summer.

Edison Mission Energy specializes in the development, acquisition,
construction management and operation of global power production facilities.
As
one of the world's leading global power producers, Edison Mission Energy
owns nearly 23,000 megawatts of generating capacity, including interests in
75 projects currently under construction or operating in Australia,
Indonesia, Italy, New Zealand, Puerto Rico, Spain, Thailand, Turkey, the
United
Kingdom and the United States.

Based in Rosemead, Calif., Edison International is a premier international
electric power generator, distributor and structured finance provider. With
a
portfolio of approximately 28,000 megawatts, Edison International is an
industry leader in privatized, deregulated and incentive-regulated markets
and
power generation. It is the parent company of Edison Mission Energy,
Southern California Edison, Edison Capita, Edison Enterprises and Edison
O&M Services.

/CONTACT: Kevin Kelley of Edison Mission Energy, 626-302-1033, Fax,
626-302-7827/ 21:35 EST

Katie Kaplan
Manager of State Policy Affairs
Independent Energy Producers Association
(916) 448-9499