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<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: journalists in California sent by Ruhrgas
Body:: nan
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Legislative Status Report Week Ending 4/20
Body:: nan
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Ed Segners Staff meeting, in 50M Dining Room
Body:: Ross Malme -- 7587 Anthony D -- 6235
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Speech to the British Institute of Energy Economists
Body:: I agree with Mark's points. While we have advocated our merger with PGE (which did not concentrate market power) we have intervened in opposition to most others. Moreover there is some hope that the German government will take the opportunity to use the proposed utility merger to force greater open access. We will likely encourage that action and may oppose the merger otherwise. Most mergers in this industry are defensive not procompetitive and in my view deserve no credit for convergence innovation or liberlization. -----------------
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Customs issue
Body:: Got a voicemail from Rob Walls. They are (have been) looking into it.
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Dan Allegrettis CT restructuring school in Houston -
Body:: You are invited to join them for lunch. 1:00 - 2:00
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: RE: Confidential Communication to my Attorney
Body:: who knows. I can't imagine that a customer would somehow owe insurance to the provider's employees. Michelle
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Re: Polaroid agreement
Body:: sounds good but i couldn't open the file. could you send hard copy Kelly Kimberly@ENRON COMMUNICATIONS 10/10/2000 11:41 PM To: Michael Terraso/OTS/Enron@ENRON Lauren Goldblatt/NY/ECT@ECT Steven J Kean/NA/Enron@ENRON cc: Subject: Polaroid agreement Wow! We are making a little progress it looks like! (Steve when Mike and I met with Francis for the first time he told us we had to agree that we'd never use WWF's name related to this initiative if they participated with EES)
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Re: RESPONSE NEEDED
Body:: No charges. I think we should refer these to Carrie Robert and ask her to run down the people in the organization most likely to have an interest. In this case I would get in touch with Andy Fastow Ben Glissan or someone in the finance group in London. That way we can make a better determination about the value of the relationship make sure those who are interested in pitching them on doing bus. with Enron can be involved. Or we can make a determination to decline. I think we decide who we want to let in then do it for free rather than charging. MARY CLARK @ ENRON 04/17/2001 08:58 AM To: Elizabeth Tilney/HOU/EES@EES cc: Cindy Olson/Corp/Enron@ENRON@EES Steven J Kean/NA/Enron@Enron@EES Karen Denne/Corp/Enron@ENRON@EES Subject: Re: RESPONSE NEEDED I'm not in favor of charging a fee that takes the goodwill out of it. I'm open to discussion on how often we host these meetings however. Elizabeth Tilney@EES 04/17/2001 08:29 AM To: Cindy Olson/Corp/Enron@ENRON Steven J Kean/NA/Enron@Enron cc: Karen Denne/Corp/Enron@ENRON Mary Clark/Corp/Enron@ENRON Subject: RESPONSE NEEDED I believe that Cindy and I can keep doing these and there is certainly a goodwill element here...and maybe that is the way to handle it. OR we might want to think about formalizing this say once a quarter and sending out invitations and maybe charging for this????I think there are pros and cons on all sides of the charging issue.....maybe we should get together and discuss? Beth -----------------
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: <<Concur Expense Document>> - JS3/15/01
Body:: nan
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: nan
Body:: Attached is the information on talent moves within Enron. The numbers are for Enron's domestic workforce only. The bottom line is that the EBS and EES redeployment figures are not unusual for Enron: We moved over 3000 employees last year (about 25% of our domestic workforce). Most of these moves are attributable new business startups (eg EGM ENW and EIM) and normal course of business transfers within the company. The formal redeployment process makes up only a small fraction of the total moves in the company. -----------------
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Observations on the Hearings this Week
Body:: We're in the process of developing a strategy to take us through the next few months. But while the (otherwise perishable) thoughts are still fresh in my mind from the hearings on Monday and Tuesday I wanted to throw out some observations for discussion in the days/weeks ahead. OBSERVATION--The pressure to finger somebody for price gouging is increasing. The administration is hell bent on finding a fall guy. The price spikes pose real political risks for Davis and he and his folks need and want an easy way out. His press release following the hearing renewed the call for refunds. On my panel Loretta Lynch asked Reliant and Duke to supply her with the details of the contracts they cut to sell their power forward to marketers. And Carl Wood's remarks were extreme. At the Barton hearing a liberal democrat (Filner) and a conservative Republican (Hunter) locked arms in calling for refunds. Bilbray joined the gouging band wagon. The utilities repeatedly called on FERC to do a real investigation with hearings testimony data discovery---the works. On the positive side the FERC commissioners lauded Wolak his analysis and his remarks on the panel. Wolak said somewhat emphatically that the nature of California's market structure makes it impossible to single out a single participant as the culprit. He also stated that just everyone's just acting in their own self-interest responding to the screwed incentives embedded in the structure. IMPLICATION--It seems prudent for Enron to understand better its risks of getting fingered. In the best case the clamoring for a refund subsides. In which case the only cost to Enron is the internal cost incurred to understand better the risks of getting fingered. In the medium case investigations find that Enron (like others) played by the rules but the rules stunk and Enron profited at the expense of California consumers.
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Re: ECI Release
Body:: Typo in second paragraph .. should be companies not company Karen Denne@ENRON 01/05/2000 01:52 PM To: Steven J Kean/HOU/EES@EES Mark Palmer/Corp/Enron@ENRON Mark Koenig/Corp/Enron@ENRON Paula Rieker/Corp/Enron@ENRON Peter Berger/Corp/Enron@ENRON cc: Gil Melman/Enron Communications@Enron Communications Claudia Johnson/Enron Communications@Enron Communications Subject: ECI Release The attached release announcing Enron Communications' investment in Avici and our addition of their routers to our network is scheduled to be issued on Thursday. As background ECI has invested $5 million in Avici. If you have any comments or questions please let me know by 10 a.m. Thursday. Thank you. kd
What should this email be categorized as?
[/INST] Document editing/checking/collaboration <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: RE: Kissinger
Body:: I'm envious. See you when you get back From: Rebecca McDonald/ENRON@enronXgate on 05/15/2001 08:21 AM To: Steven J Kean/NA/Enron@Enron cc: Subject: RE: Kissinger We're going to be two ships passing here. I leave town on Friday and return to the office on Wednesday morning. How about I give you a call when I get back. I am only in a few days and then I am heading to DC for my son's college graduation exercises. ( I know exactly what you are thinking - Lordy she's old!!) Talk to you then okay? Rebecca
What should this email be categorized as?
[/INST] Personal but in professional context <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: CalPX Told To Release Confidential Trade Data To ..
Body:: CalPX Told To Release Confidential Trade Data To State 09/22/2000 Dow Jones Energy Service (Copyright (c) 2000 Dow Jones&Company Inc.) LOS ANGELES -(Dow Jones)- California's Electricity Oversight Board has ordered the state's Power Exchange to hand over confidential information to the board regarding the trading activities of utilities generation companies and other market participants who traded power at the exchange since June according to a copy of a subpoena obtained by Dow Jones Newswires. The subpoena marks the first time the state will gain access and learn how each company traded power in the day-of day-ahead and block forward markets. Moreover the EOB subpoena requests the CalPX release the names of the participants who traded power at the exchange since June to better understand how and why the participants conduct business in the various markets at the exchange. The CalPX has until Wednesday to hand over aggregate supply and demand curves individual firm bid dates final schedules for each firm by generating unit injection point and take out point from June 1 through September and continue supplying trading data through Nov. 1. In addition the subpoena requests block forward trade positions by firm for June July August and September and that this information continue to be supplied through October and November. The subpoena is part of the state's ongoing investigation into California's troubled deregulated electricity market which has resulted in high wholesale power prices in San Diego landmark legislative action and accusations of collusion price gouging and market power. Gov. Gray Davis ordered an investigation in June when power prices soared to near record levels and rolling blackouts wreaked havoc in the Bay Area. The CalPX said it will comply with the EOB request and that a subpoena to access the confidential information is required according to the rules of the exchange. But the EOB will be required to protect the confidentiality of each trade it gains insight into as well as the identities of the participants who traded. If the trading activities of a company or other participant is leaked or becomes public it could have a devastating affect on the company and the EOB would be held liable according to the CalPX. The CalPX said it must notify each and every participant who traded power in its various markets to alert them of the EOB subpoena. -By Jason Leopold Dow Jones Newswires 323-658-3874 [email protected] Folder Name: Utilities Electric: Retail Wheeling Relevance Score on Scale of 100: 53 To review or revise your folder visit Dow Jones CustomClips or contact Dow Jones Customer Service by e-mail at [email protected] or by phone at 800-369-7466. (Outside the U.S. and Canada call 609-452-1511 or contact your local sales representative.) Copyright (c) 2000 Dow Jones & Company Inc. All Rights Reserved
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: ENA-Government Affairs Meeting
Body:: calendar -----------------
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Re: trip to Houston
Body:: I'd like to get about 30 minutes with Mark just to catch up. Mark Schroeder@ECT 07/27/2000 07:47 AM To: Elizabeth Linnell/HOU/EES@EES Richard Shapiro/HOU/EES@EES Steven J Kean/HOU/EES@EES cc: Maureen McVicker/HOU/EES@EES Beverley Ashcroft/LON/ECT@ECT Subject: trip to Houston I expect to be in Houston next Monday from 1300 until Tuesday around 1500. If any of you wish to meet please have Maureen work with Beverley toput something in the diary. Elizabeth - if you do not mind I think if we just sit down for a few hours this will be the best way to assure that Iget you timely and accurate budget info so can we book something? thanks mcs
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: GM - private and confidential - attorney/client privilege
Body:: As I mentioned at the Mgmt meeting yesterday 8-9 MTM plus 5 million likely 13-14 million worst case. I have accrued this amount below the line at present and will await further meetings before taking any other actions. Because of our presence in Spain and our role with GM Vitol Veba and KPC are meeting with Chris this week as they would like us to continue to supply to them in Spain. We would also like to do this as it continues to give us the outlet we wanted when we entered the GM deal but with better partners. It also allows us to make money while we sort through the GM situation. -----------------
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Board of Directors Meeting - August 14, 2001
Body:: calendar and meeting file -----------------
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: RE: Wade Cline
Body:: Sandeep Thanks. Any resolution to Krishna's problem yet? Vince
What should this email be categorized as?
[/INST] Personal but in professional context <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Your June 21 Trip
Body:: calendar -----------------
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Re: Cayote II PROJECT
Body:: Please respond and copy me. -----------------
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Thank you to exec recruiter
Body:: prepare for my siganture. cc Lisa -----------------
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: HERE ARE MY SLIDES, I ASKED TIM TO SEND A SET OF HIS BY E MAIL TOO
Body:: -----------------
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Follow Up On California Information
Body:: Just following up on the Monday conference call discussion yesterday with Rick and others about nailing down the numbers and documentation so we can feed the Hill information on the mistakes Governor Davis made last year and this year on power supply contracts. As I understand it there are two aspects of this: 1. The offer of Enron and others last year to sell power to California utilities for 5 cents per kw. Failure to accept these offers resulted in higher power costs in the range of $15 billion as I recall from yesterday's call. 2. The long term contracts that California signed this year after taking actions and making statements that drove up the forward price curves are now under water to the tune of $20 billion. On both counts we will be pressed for assumptions and documentation to pursue these arguments which parallel the comments made by senior management in Capitol Hill meeting last week. We will work on back up on this end but we would greatly appreciate your assistance in this regard as well. With Congress out of session starting COB on Thursday we will need information pulled together by tomorrow COB to get the final product in the hands of congressional types and others who can use it on a timely basis. Thanks.
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Re: Dinner Plans
Body:: I get in too late tonight but maybe dinner or drinks on Thurs? Linda Robertson 06/19/2001 06:39 PM To: Steven J Kean/NA/Enron@Enron cc: Subject: Dinner Plans You are here Wed and Thur nights. Do you have plans? Do you want to do something with some of the DC staff?
What should this email be categorized as?
[/INST] Personal but in professional context <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Re:
Body:: help is on the way. We are going to establish some senior executive oversight as well as an executive director (probably someone who came through the program). Charlene is going to be moving into a commercial role (which was the original plan when she was brought into the organization). I'd be happy to talk to you in more detail when I get back to Houston. Jeffrey A Shankman@ECT 02/26/2001 10:21 AM To: Jeff Skilling/Corp/Enron@ENRON Steven J Kean/NA/Enron@Enron cc: Subject: Hi guys. I wanted to let you know that I am extremely concerned about the Associate/Analyst program so much so that I feel all the work I have done and all the time I have spent on the program has had little impact outside Wharton/Penn recruiting. In fact we won't get more than 1 associate from Wharton this year for a variety of internal and external reasons. This program has brought incredible talent into the organization but we have lost a lot of momentum over the last two years. In as much as I would like to continue to support the program I can't in its current form and don't have time to fix what I thought we had been addressing. The entire program is disfunctional and the commercial teams are not lending support to the program. I'd be very happy to spend a few minutes of your time (rather than blather on in an email) to give you both my overview of the program and suggest changes and improvements. You know you have my support but the current state of affairs down there has gotten me to my rope's end with the program.
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Subject:: California Update--0717.01
Body:: fyi -----------------
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Subject:: Re: Welcome Lunch for new hire analysts - Monday, July 17 from
12:00 p.m. to 12:30 p.m.
Body:: Do you have an alumni list of analysts/associates in key positions at Enron? Celeste Roberts@ECT 07/14/2000 03:05 PM To: Steven J Kean/HOU/EES@EES cc: Joseph W Sutton@Enron Subject: Welcome Lunch for new hire analysts - Monday July 17 from 12:00 p.m. to 12:30 p.m. Steve Thanks for stepping in and backing up for Joe Sutton on Wednesday. I wanted to provide you with talking points for your speaking engagement with our new hire analysts during their orientation. As a reminder you are scheduled to speak over lunch on Monday July 17 from 12:00 p.m. to 12:30 p.m. at the Doubletree Hotel in the LaSalle Ballroom. Purpose of the luncheon: Welcome the new hire analysts and impart to them our important this program is to Enron. The analyst program is the ultimate pipeline of top entry-level talent strategically deployed to meet anticipated business needs. We look to this program to provide the company with our future business leader. The program is a premier partner in providing exciting career challenges in areas of Finance Origination/Structuring Technology Risk Management Sales and Marketing Trading Valuation and Accounting. The analyst program is also an avenue for providing the solid foundation of knowledge and skill needed in a competitive and dynamic global corporation. We are very excited to have you on our team. This is a very exciting company that is always reinventing itself. The opportunities are endless. There will be 75 new hire analysts attending this orientation. Other than the recruiting process this is their first impression of Enron and Senior Management. The first week of their orientation will consist of presentations given by all business units/operating companies. Weeks two and three will consist of technical training (i.e. modeling valuation working styles communicating effectively and computer training). Additionally we have social events scheduled to allow them to network with peers and management. Additionally I have attached a calendar of the orientation for your review. Steve let me know if you require additional information. Thank you for your support in our new hire orientation efforts. Regards Celeste Roberts
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Subject:: Davis Energy Advisors Draw SEC Attention.htm
Body:: Scrutiny of Davis and crew is taking hold. The state controller Kathleen= Connell also has a well written op-ed critical of Davis in today's LA Ti= mes. =20 Kevin 213-926-2626 =20 [IMAGE]Los Angeles Times - latimes.com =09[IMAGE] [IMAGE]=09 [IMAGE] [IMAGE] =09Home | Subscribe | Register | Site Map | Ar= chives | Print Edition | Advertise | Feedback | Help [IMAGE]=09 Marketplace jobs * cars * homes * rentals [IMAGE] Arts and Enter= tainment Movies Music TV Dining print edition [IMAGE] Fro= nt Page Inside A California Business Sports So Cal Living Calendar = Editorials Op-Ed [IMAGE] [IMAGE] Weekly [IMAGE] Health Food Tech T= imes Highway 1 Workplace [IMAGE] [IMAGE] Sunday [IMAGE] Books Calen= dar Magazine Opinion Real Estate Travel TV Times [IMAGE] [IMAGE] [I= MAGE] [IMAGE] [IMAGE] The World [IMAGE] [IMAGE] [IMAGE] The Natio= n [IMAGE] [IMAGE] [IMAGE] California [IMAGE] [IMAGE] [IMAGE] Busi= ness [IMAGE] [IMAGE] [IMAGE] Politics [IMAGE] [IMAGE] [IMAGE] Spo= rts [IMAGE] [IMAGE] [IMAGE] Technology [IMAGE] [IMAGE] [IMAGE] Tr= avel [IMAGE] [IMAGE] [IMAGE] Editorials Op-Ed [IMAGE] Sections [I= MAGE] Books Columnists Education Food Health Highway 1 Obituaries = Real Estate Religion Science So. Cal. Living Sunday Opinion Tech Time= s Times Poll Workplace/Jobs [IMAGE] [IMAGE] Editions [IMAGE] Print E= dition National Wireless [IMAGE] Extras [IMAGE] Crossword Horoscop= e Lottery Traffic Weather Multimedia [IMAGE] [IMAGE] [IMAGE] Feat= ures [IMAGE] [IMAGE] [IMAGE] SITE MAP [IMAGE] [IMAGE] Subscripti= on Services Subscribe Change of Address Vacation Stops Suspend Delive= ry College Discount Gift Subscriptions Mail Subscriptions FAQ [IMAG= E] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Classifieds jobs homes cars re= ntals Print Ads Shopping Advertising Supplements [IMAGE] [IMAGE] LA= Times Initiatives [IMAGE] Times in Education Reading by 9 Times-Mirro= r Foundation Events [IMAGE] [IMAGE] =09[IMAGE]=09[IMAGE] July 31 2001= [IMAGE] Talk about it [IMAGE] E-mail story [IMAGE] Print THE STATE= Davis' Energy Advisors Draw SEC Attention *Probe: Under review is the pos= sible use of inside information to buy power company stocks. GOP rival of = governor requested the inquiry. [IMAGE] [IMAGE] Times Headline= s * Latinos Assured Water Is OK * Car Dealer Not Bound by Ad Error = Court Rules * Suspect in Simi Valley Serial Rapes Arrested * New LAPD= Radios Get Negative Reviews * 2 Shot to Death 1 at Home by Stray Bulle= t more > [IMAGE] [IMAGE] Subscribe By WALTER HAMILTON JEFFE= RY L. RABIN and DARYL KELLEY TIMES STAFF WRITERS The Securities and Exch= ange Commission has launched a preliminary inquiry into whether energy con= sultants advising Gov. Gray Davis used inside information to trade stocks = of power companies doing business with the state a source with knowledge = of the matter said Monday. The federal agency began its review late last = week the source said in response to a request from California Secretary = of State Bill Jones. A Republican rival of Davis Jones charged that stock= trading by consultants may have violated federal laws barring buying and = selling based on information not available to the public. On Friday top = aides to the governor disclosed that five consultants had been fired for = possible conflicts of interest between their official positions and their = personal finances. As news of the SEC inquiry spread through the capital M= onday Davis officials were confronted by a flurry of questions about who = in the administration owns energy stocks. Financial disclosure records fi= led by the governor's spokesman Steve Maviglio show that he owns between= $10000 and $100000 in a Texas company he and his boss have accused of m= aking obscene profits while California has been on its knees. Maviglio= said he bought the shares in Houston-based Enron Corp. in 1996. It's no= t a crime to own energy stock Maviglio said. He also owns 300 shares of= San Jose-based Calpine Corp. which has the largest share of the $43 bill= ion in long-term state power contracts. Maviglio placed the order for the= stock on May 31 one day after San Jose's mayor dropped his opposition to= a controversial Calpine plant favored by the governor and others. Under t= he terms of Maviglio's purchase the transaction was completed about three= weeks later when the stock reached $40 a share a value of $12000. It ha= s since fallen in value. I viewed it as a good long-term investment M= aviglio said adding that he purchased the shares for his retirement accou= nt based on publicly available information. The Davis administration has = spared Calpine the kind of fierce criticisms that it has leveled at other = electricity suppliers such as Enron. But California's grid operator has i= dentified the company as one of many energy merchants to overcharge the st= ate millions of dollars. The fired consultants also owned shares in Calpi= ne ranging in value from several thousand dollars to more than $100000 = records show. Another top Davis administration official legal affairs s= ecretary Barry Goode disclosed in his economic interest statement that he= recently held between $100000 and $1 million in another out-of-state com= pany accused of multimillion-dollar price gouging. In a statement Goode = said he sold his stock in Williams Co's. a month after he began working fo= r the governor in February. Goode said the shares were supposed to be sold= before he went on the state payroll but his broker failed to do so. In = light of the recent disclosures Secretary of State Jones said the governo= r must do more to ensure the public that its interest comes first. The g= overnor should direct all of his staff to immediately file updated conflic= t of interest statements that reflect current holdings and any activity si= nce their last statement of economic interest was filed said Jones who = is seeking the GOP nomination for governor. Word of the SEC's entry into = California's energy problems comes as the governor faces harsh criticism f= rom lawmakers and others for the quick and broad hiring of highly paid pri= vate consultants to guide him through the crisis. In his written request = to the SEC Jones said that recently filed disclosure documents showed tha= t at least one consultant bought and sold shares of two energy companies w= ithin the same month raising a red flag about the possibility of inside= r trading. State law prohibits officials from participating in decisions= involving their personal financial interests. The five consultants fired= last week were among 11 named in Jones' letter delivered to the San Fran= cisco office of the SEC last Wednesday. It was not clear which individuals= are the focus of the SEC's inquiry or whether the agency's review would = result in any charges. Two of the former traders said Monday that they ha= d not been contacted by federal investigators and knew nothing of an inqui= ry into possible insider trading. But William Mead fired Thursday said = it is no mystery why so many of his colleagues owned Calpine stock. Mead = said he bought it 2 1/2 years ago and made so much money he recommended it= to his colleagues last year while they all still worked for the now-defu= nct California Power Exchange in Alhambra. Calpine power was not traded on= that exchange so there was no conflict of interest he said. Mead and = three other energy traders--hired by the state in February and March--were= terminated by the Davis administration for allegedly buying power for the= state from Calpine while owning the company's stock. Fired traders Herman= Leung Peggy Cheng and Constantine Louie did not list the date of their C= alpine purchases on financial statements that the state required to be fil= ed only two weeks ago. But I'm sure they bought it while they were still= at the power exchange because that's when we discussed it Mead said. = It was kind of like a hobby. I'm sure it wasn't done with the intent to ma= nipulate. Former trader Elaine Griffin who also owned Calpine stock and= resigned two weeks ago to take another job said she didn't know she owne= d energy securities until she checked with her financial advisor July 13 = just before leaving her state job. Griffin said she and her husband own a= bout $10000 worth of Calpine stock in individual retirement accounts mana= ged by their advisor who bought the stock Feb. 1 without their knowledge= she said after research found it to be a good investment. I kind of fe= el like we've been used for political reasons Griffin said. We would ha= ve disclosed anything right at first but they never asked. As a trader= Griffin said she occasionally bought Calpine power for the state but on= ly at market prices. Meanwhile two Democratic political consultants who= helped Davis polish his image after the ongoing energy crisis caused his = poll numbers to plummet have agreed to accept no payment for their work a= s part of an out-of-court settlement of a taxpayer lawsuit. Tom Hiltachk= a lawyer for conservative anti-tax activist Lewis Uhler said the settlem= ent was reached last Friday after negotiations with lawyers for communicat= ions consultants Mark Fabiani and Chris Lehane. Now they will not receiv= e one red cent said Hiltachk. Very simply Mr. Fabiani and Mr. Lehane ha= ve agreed to cease all activities for the governor to accept no payments = for their services and to basically get out of the consulting business wit= h the governor. As his part of the agreement Hiltachk said Uhler with= drew his lawsuit Monday morning. Uhler had filed a lawsuit against the tw= o consultants and Controller Kathleen Connell in June contending that they= should not receive any payments because of a conflict of interest. The tw= o men also did consulting work for financially troubled Southern Californi= a Edison which was seeking help from Davis and the Legislature. Connell= a former Los Angeles mayoral candidate who has been at odds with Davis si= nce he endorsed an opponent had held up the payments pending the outcome = of the lawsuit. Under an agreement with Davis the men were to have been = paid $30000 a month for six months. Fabiani and Lehane could not be reac= hed for comment. * Times staff writers Nancy Vogel and Virginia Ellis i= n Sacramento and Robert J. Lopez in Los Angeles contributed to this story.= For information about reprinting this article go to http://www.lats.co= m/rights/register.htm =09[IMAGE]=09 a d v e r t i s i n g Subscribe NO= W and SAVE on your home delivery subscription! [IMAGE]Cool down rooms w= ithout touching the thermostat A floor lamp that spreads sunshine all = over a room Bring the power of the digital revolution to your fingert= ips Private DVD theater puts a floating 6-foot screen right before you= r eyes! It?s time to put all of your photos onto your computer NASA = research creates smart bed sleep surface [IMAGE] =09 =09[IMAGE] Copyright 2001 Los Angeles Times By visiting this site y= ou are agreeing to our Terms of Service . Powered by Genuity =09
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[/INST] Company Business/Strategy <s> |
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Subject:: VDEW German Delegation visiting, per Fiona Grant. She is lining
up other appointments, needs one of you (SK, RS, or KM) to speak and join
them for dinner.
Body:: Maybe Kathleen for Gas and Steve or Rick for Electricity. Fiona Grant is primary contact Kim Chandler is backup contact.
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Subject:: RE: ticket
Body:: Wincenty J Kaminski 10 Snowbird Place The Woodlands TX 77381 WT 472179 Wincenty Kaminski
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Subject:: RE: 1. London, June 28 - 29; 2. Houston, July 16 - 17
Body:: Ehud Sorry for the delay in replying to your message. I was on the road a lot. I am in London right now and plan to attend the conference. I am leaving on Saturday morning for Houston. I have asked Shirley to get tickets for one of the evening you mentioned. I should know by Thursday if the tickets are available. Vince
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Subject:: RE: London, New York, Houston, Financial Mathematics June/July 2001
Body:: Thanks The same to you. Vince
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Subject:: RE: Sara Woody and Elena Chilkina
Body:: Anne For the time being it's fine. She will soon become an associate. Vince
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Subject:: Enron Mentions
Body:: See last story attached. Congratulations it looks like you are shaking th= ings up in typical Enron fashion. -----------------
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Subject:: Re: FW: fact sheet- latest draft
Body:: I think it's a good document and carves out some solid policy ground for Bush. I think the electricity section needs some additions though. There is not a lot that the current administration can do about siting new plants and power lines -- its largely a state and local decision. Further the problem has been less about government failing to provide adequate incentives to utilities than it has been about a failure of the current commission to opening the grid on a nondiscriminatory basis. Once utilities are in the open access transmission business they will look for ways to invest in the grid and stop getting in the way of independent power producers who want to connect to the grid. The answer is open access so power can get from where it is to where it is needed. This has been clear for a long time yet the current administration (and its appointees on FERC) have yet to use their authority to make this happen. The result: spiking prices and reliability problems. Hunt Hunter L <[email protected]> 09/27/2000 11:25 AM To: '[email protected]' <[email protected]> cc: Subject: FW: fact sheet- latest draft -
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Subject:: Call to Bob Glynn
Body:: Per our discussion this morning below is a summary of items to discuss with Glynn: Adding Enron's negative CTC claim to the list of claims: PGE's filing included a list of top twenty creditors. Our negative CTC claim was apparently not taken into account in compiling that list. The list is nonbinding however. PG&E will be required to file schedules of creditors on April 20. Our negative CTC claim should be on Schedule F (for unsecured claims). You may want to remind Glynn of your previous conversations and state our expectation that the negative CTC claim will appear (preferably as uncontested) in the April 20 filing. (Note: if PG&E does not include the claim we have an opportunity to file a proof of claim and ultimately the court determines the validity of the claim). Including Enron on the Creditors' Committee: PG&E may have the opportunity to influence representation on the creditors' committees. There are several reasons to suggest to Glynn that we be included: 1) we are a big creditor 2) we could be helpful in crafting a broader solution and 3) we are one of the real parties in interest behind the PX and ISO (who were listed as significant creditors but are really just passthroughs for the suppliers ... and PG&E likely would not want to have those political bodies serving on the creditors committee anyway).
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Subject:: Lay, Palmer and isakoff
Body:: Palmer
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Subject:: PRIVILEGED AND CONFIDENTIAL - Scott Jones Draft
Body:: Attached is the draft testimony of Scott Jones. Comments should be received no later than 3:00 PM EST on Sunday August 26. All comments and suggestions need to be in writing and can be faxed (not E-mailed) to Dan Watkiss at 202-857-2131. Also if your suggestion is a proposed addition please write out the exact language you would propose we incorporate into the testimony and where you would place the addition. Donald A. Kaplan Esq. Preston Gates Ellis & Rouvelas Meeds LLP Suite 500 1735 New York Avenue N.W. Washington D.C. 20006 Ph: (202) 662-8466 Fax: (202) 331-1024 [email protected] (See attached file: TFG SJones Draft 8-25-01.doc)(See attached file: Exhibit STJ-6.xls)(See attached file: Exhibit STJ-3.xls)(See attached file: Exhibit STJ-4.xls)(See attached file: Exhibit STJ-5.xls)(See attached file: Exhibit STJ-2.doc) CONFIDENTIALITY NOTE: This email message is intended solely for the individual or individuals named above. It may contain confidential attorney-client privileged information and/or attorney work product. If the reader of this message is not the intended recipient you are requested not to read copy or distribute it or any of the information it contains. Please delete it immediately and notify the sender by return email or by telephone. Thank you. <<TFG SJones Draft 8-25-01.doc>> <<Exhibit STJ-6.xls>> <<Exhibit STJ-3.xls>> <<Exhibit STJ-4.xls>> <<Exhibit STJ-5.xls>> <<Exhibit STJ-2.doc>> - TFG SJones Draft 8-25-01.doc - Exhibit STJ-6.xls - Exhibit STJ-3.xls - Exhibit STJ-4.xls - Exhibit STJ-5.xls - Exhibit STJ-2.doc
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Subject:: Request for Confidential Information by the CPUC
Body:: nan
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Subject:: Declined: Mtg w/Vince Kaminski
Body:: Eydie I shall be out on Monday July 9. What about the following Tuesday? Vince
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Subject:: Confidential re: McConville--Indemnity
Body:: David As we discussed Mark Haedicke and I discussed the possibility of providing Kevin McConville with some sort of indemnity in order to make sure that he remains available and cooperative during the pendency of the NSM case and other litigation matters. We could agree to enter into a Consulting Services Agreement with Kevin. The terms of that Agreement would include: 1. He agrees to be available and cooperative with Enron and its counsel regarding litigation matters. He will agree to meet with counsel prepare for testimony review documents testify and provide other assistance as needed. 2. Through February 1 2001 Kevin would not be directly compensated for this cooperation/testimony (because he is to be receiving his salary pursuant to the terms of his employment agreement). After Feb.1 2001 he will be paid a rate of $125 per hour for his services in this regard. 3. Enron would agree to indemnify Kevin for his conduct taken in the ordinary course and scope of his employment with Enron up to the last date of his employment with Enron. Excluded from this indemnity would be allegations or claims based upon the following: -- any conduct that is outside the course and scope of Kevin's employment -- any conduct violating policies of Enron or ENA -- Kevin's intentional acts -- Kevin's gross negligence -- Kevin's reckless conduct -- conduct that is in violation of any law statute regulation or other legal obligation or -- the commission of an unlawful or illegal act. 4. Kevin would invoice Enron for time spent in performing the services after 2/1/01. The invoice would be paid within 30 days of receipt. In addition all related expenses would be reimbursed throughout the term of the agreement. Let me know if you have any questions or require additional information. I am available to participate in your call with him if you would like me to attend. Michelle
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Subject:: Re: new contract
Body:: My copy shows long term comp on the exhibit under Grant Award. And yes the date will be revised. Mark Schroeder@ECT 04/14/2000 03:31 AM To: Steven J Kean/HOU/EES@EES Mark Frevert/LON/ECT@ECT cc: Subject: new contract The contract Mark gave me to review yesterday only covers monthly salary. I had expected there to be some discussion/reference to long-term comp plan. Mark had mentioned that what he gave me did not deal with certain non-compete payments owed to me in 2000 so I am not looking for that but I did think he had said that there was something in the doucment re:long-term which I cannot find. Please advise if I am missing something. I will withhold other comments for now except to note that the draft was dated 13 March and had a 14 day period before expiry (now passed) and will assume that that is an irrelevancy. Look forward to hearing from one of you. mcs
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Subject:: Flatscreens approval
Body:: I approve.
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Subject:: Re: Ken Lay/ Jeff Skilling visits
Body:: I spoke with Jeff and he is not going to be available for the speech on the 26th. Do we pass or is there an alternative? Can we get done what we need to get done with Ken's visit the following week? Nicholas O'Day 08/31/2000 06:01 AM To: Steven J Kean/NA/Enron@Enron Rosalee Fleming/Corp/Enron@ENRON cc: John Mark Schroeder/LON/ECT@ECT Joseph P Hirl/AP/ENRON@ENRON Mika Watanabe/AP/Enron Takashi Kimura/AP/Enron@Enron Subject: Ken Lay/ Jeff Skilling visits Ken Lay Visit. Following discussions with the Prime Minister's office and a quick check with venues 31 October is firming up as the preferred date for a meeting with the Prime Minister and an office opening by the PM. Jeff Skilling Visit. The Nikkei and the Tokyo University have now made the decision to invite Mr Skilling to give the key note address at the symposium on 26 November in Tokyo. As mentioned the symposium is the most prestigious conference on IT in Japan. While the conference itself receives significant media attention the President of Nikkei has offered to interview Mr Skilling. This honour is usually reserved for Heads of State. The interview will be featured on the front page of the Nikkei and picked up by other major media services. kind regards Nicholas O'Day 08/29/2000 07:43 PM To: Steven J Kean/HOU/EES@EES Rosalee Fleming/Corp/Enron@ENRON cc: John Mark Schroeder/LON/ECT@ECT Joseph P Hirl/AP/ENRON@ENRON Mika Watanabe/AP/Enron Takashi Kimura/AP/Enron Subject: Re: Ken Lay meeting with Japanese Prime Minister Ken Lay Visit. Balancing the need to push out the arrangement of high level meetings as far as possible with the desire to have a meeting with Prime Minister Mori prior to the US Presidential election the week commencing 30 October would be the optimum time for a visit by Mr Lay. PM Mori is generally available in that week. We will get a preferred time from the PM's chief secretary first thing tomorrow morning Tokyo time. Jeff Skilling Visit. The boards of Nikkei and Tokyo University Institute of Advanced Studies have yet to make a decision on the key note speaker for the one day invitation only seminar to be held on 26 October. As mentioned the boards will choose between the chairman of Cisco and Jeff Skilling. The conference is focused on the IT revolution and an invitation only event for approximately 600 of Japan's corporate leaders. The speaking panel and topics for discussion will be developed around the key note speaker. If Mr Skilling were to give the key note speech it is likely that key senior Government Ministers would be asked to present at the seminar. Following the Prime Minister's commitment at the Okinawa summit of US$15billion expenditure in the region on IT infrastructure and education Japan's focus on e-commerce is almost reaching fever pitch. There will be significant interest in the conference from senior levels of Government and the business community. Further as you would expect with the involvement of the Nikkei there is typically significant media coverage associated with the key note speaker's presentation. kind regards
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Subject:: Re:
Body:: Please send Pam Benson the information for Joe on where to send the check who to make it out to etc -----------------
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Subject:: Oklahoma legislators will be in Houston this afternoon.
Body:: You speak at 3:00
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Subject:: nan
Body:: attached is a copy of my california testimony. The proceeding was somewhat productive but turned into a witch hunt at a couple of points. Our view on this is: the problem is fairly straightforward (demand increases and new supplies are inhibited so prices go up and shortages ensue ... sound familiar?) and the solutions are straightforward (site the power plants suppliers are begging to build let the utilities hedge outside the exchange and finish the job of opening the interstate grid so power can get from where it is to where it is needed). What it comes down to at this point is FERC is the only entity with the authority to start fixing this problem now: Congress isn't going to get anything done this year and the California legislature is (thankfully) out of session now. Our political leaders need to give FERC the room they need to act. Good luck on your speech and give me a call sometime.
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Subject:: Council of Shopping Centers, per Cynthia Sandherr. In Chicago.
John Scoblick doing this.
Body:: Stan Broussard 3-5468 Cynthia Sandherr Subcommittee going to mark up on Oct 13
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Subject:: RE: PRC reviewers
Body:: Steve No problem. I shall spend Friday working on reviews. Vince
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Subject:: RE; Luntz Focus Groups
Body:: -----------------
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Subject:: Re: Andrew Lundquist
Body:: Your assessment makes perfect sense to me. What do you think about having Nels make the call to Lundquist just to find out what his status is what he might look for when his current assignment is over etc. (obviously without identifying us -- presumably Nels would have reason to talk to him anyway in the normal course of business)? I am not wedded to the idea but am inclined toward at least getting the information unless you see a problem. Linda Robertson 03/13/2001 02:16 PM To: Steven J Kean/NA/Enron@Enron Richard Shapiro/NA/Enron@Enron cc: Subject: Andrew Lundquist I got your message about Andrew. He would be an excellent catch. However I see a couple of significant problems. My guess is that Andrew is too senior for this position particularly after having chaired the Cheney task force. Also I would not anticipate that he would be available for several months if then. We should fill this position immediately. We are already missing opportunities because this position is vacant. As for our search using Korn Ferry I have narrowed the field to two very good candidates. I am setting up time for Rick to interview these candidates next Monday. The first candidate is Drew Maloney with Rep. Tom Delay's office. Drew would give us enormous visibility in House Republican leadership circles seems trustworthy and capable of learning most of the substance of the energy portfolio. Drew has strong networking skills which I think would nicely fit with Tom's strategic and technical skills. The second candidate is John Shelk whom I have known for nearly 15 years. John was the lead Republican staff on the House Energy and Commerce Committee under Norm Lent. John left the Committee in 1992. Since then John has worked in the financial services and gaming industries where he has enhanced his political and Republican networking skills. John in very short order would have extremely strong technical skills atlhough he has been away from the industry for eight years. I believe both candidates bring different but very strong talents to the job. I have a second opening for an enviromental advocate. I am discussing with Rick the possibility of whether we could redirect one of these candidates (probably John) to that slot. That said please let me know if I should have Nels pursue Andrew.
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Subject:: Confidential & Proprietaty - Udated PanNat Value
Body:: Mark: Per my voice mail. Jeff
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Subject:: Weekly Regulatory and Government Affairs Report
Body:: print first attachment only
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Subject:: Re: Philippe
Body:: Yes Phillippe left to join a firm in New York -- I don't know who. Christopher Culberson <[email protected]> on 06/26/2001 02:42:53 PM To: [email protected] cc: Subject: Philippe Steven I hear Philippe is leaving for Putnam any truth to this? I've been unable to contact him directly. Thanks in advance. Best Regards Chris M. Culberson [email protected] (281) 556-8104
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Subject:: Re: Western Governors update
Body:: Thanks for the update. The Western Governors remain the best avenue we have for preventing price caps and California's attempts to secede from the grid. We need to keep pushing information to them regarding these issues. Attached is some text I have been using for correspondence with policy makers regarding California issues. Feel free to use it. Susan M Landwehr 03/02/2001 05:09 PM To: Steven J Kean/NA/Enron@Enron John cc: Subject: Re: Western Governors update Gentlemen--FYI--here's an update on what we've been doing lately with the Governors. I'll include you guys on future e mails.
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Subject:: Re: news/updates
Body:: I am attaching the FERC order and staff recommendations. The order provides for $69 million in potential refunds (either pay up or provide cost justification). Enron was not named as one of the 13 overcharging parties but PGE was ($3.18 million). It's not over yet though. The order deals only with Jan 01 and promises further orders regarding Dec 00 and benchmark prices through April 01. The prices used to determine refunds were fairly high ($273/mwh based on gas prices emissions costs and an assumed heat rate of over 16000). With respect to sales to California we have concluded at least one short term sale and have talked with Cal Dept of Water Resources about longer term deals but we were still struggling with credit issues last I heard. I'm copying Jeff Dasovich because I'm sure he has more up to date information. Mark Schroeder@ECT 03/11/2001 02:11 PM To: Richard Shapiro/NA/Enron@Enron Steven J Kean/NA/Enron@Enron cc: Subject: news/updates In the press I saw two news stories that I wondered if we (Enron) had any role/hand in and what was the offical spin in both cases. 1) The FERC Order requiring something like 55-65 million dollars in refunds by generators (or did it include traders) for overcharging in California in December if I recall my facts/news stories correctly and 2) the reports of 40 companies entering into 10-year contracts with California (touted by Davis). Was Enron a contracting party? Do we think this is a good solution (I think I know the answer but defer to your lead on this so we stay on your message)? thanks mcs
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Subject:: Re: Security Assessment Report
Body:: I appreciate you pressing this issue. You should both be aware that Unocal(?) has been sued by the families of four employees who were shot in Pakistan a couple of years ago. Their claim is that the company did not provide adequate security and ignored official warnings of trouble in the region. To: Gabriel cc: David Frank Shawn Elaine Bill Donovan/EPSC/HOU/ECT@ECT Melinda Winkler@ECT Steven J Kean/HOU/EES@EES Subject: Re: Security Assessment Report Gabriel et al: Looks like the risks to Enron travelers to (and employees in) Colombia have increased. This is another indication that a 'travel policy' for travelers to Colombia should be in effect. What happened to the one we were discussing earlier? The steps outlined there would go a long way in improving the security of our travelers. Control Risks' report discusses responses to the media - be sure you have the approval of Enron's media people before making any response. The report also recommends suspending bidding on new projects - probably not viable advice but reinforces the importance that additional security measures be built into all new projects from day one. Now that our name is in front of the Colombian public we could see retaliation for various acts not all of which we have control over. Recent US Government actions such as extraditing criminals to the US for trial and training Colombian anti-drug troops have done little to endear American businesses to the Colombian public who see such actions as interfering with Colombia's right to govern themselves. These actions have significantly raised the risk of all American companies and their employees in Colombia. A meeting I had about two years ago with David Beddow of Control Risks in Bogota indicated that we could see some changes in the methods of attack in urban areas by FARC/ELN. With an elevated risk level we should begin thinking about these threats. FARC seldom uses the car bomb method of attack because it generates little interest among the domestic or international media. FARC plans on using letter bombs mailed to select targets i.e. head of an American-owned corporation who may have an office in Bogota. This method will generate headlines in the press and generate a fear of FARC among businessmen who may be targets. Control Risks' reported timetable for this change in FARC's tactics was to be three to five years but now that our risk is higher the timetable may well be moved up. On a related note - did you employ the security person we recommended? Please let me know how I can help you. Regards Mike Hicks Gabriel 12/05/99 08:15 PM To: David Frank Shawn cc: Michael Hicks@ECT Elaine Subject: Security Assessment Report FYI please find attached the Security Assessment Report carried out by Control Risk . Please let me have your feed back .GSS -----------------
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Subject:: Upcoming Advisory Council Meeting
Body:: I'm looking forward to your discussion regarding the reregulation threat at the next meeting. Below are some of my observations: While it's premature to say we have an energy crisis we are witnessing the triple threat of high summer gasoline prices spiking electricity prices and high natural gas prices for the upcoming heating season (I'll send along some of the data). There is at least the potential for this to become a prominent national political issue: Gore has focussed relentlessly on Bush's ties to big oil (which includes us by the way though we produce nary a drop) and Congressional republicans have blamed the current administration for failing to have a coherent energy policy (though at least so far the dominant characteristic of the administration's policy has been a republicanesque reliance on the market). Notwithstanding the issue's potential to become political fodder and its prominence in the popular press many Americans seem blissfully ignorant at least on the electricity issue. We did some focus group testing recently in Southern California -- a mere 15 minutes from the epicenter of the San Diego price quakes -- and most people knew nothing about it. So while the issue has the potential for political traction it may not have caught on yet (except in places like San Diego and New York city. The reaction in California has been to call for government intervention in electricity markets. Investigations of out of state price gougers and profiteers have been undertaken and wholesale and retail price caps have been put in place. They have not worked -- at least in wholesale markets. Suppliers are deciding to site plants elsewhere and when prices are high elsewhere in the West power flows out of California to those other markets. Ironically though I can't explain it in classical economic terms the setting of rate caps in wholesale markets has had the effect of pulling prices up to the capped levels in offpeak times when there is more than enough supply. For the most part though the caps and the other political reactions have been somewhat muted: policy makers have been reluctant to throw the deregulation plan out and start over and the retail price caps have been relatively narrow ... so far. Outside of California the authors of other states' deregulation plans have distinguished their proposals from California's. Regulators and legislators from such diverse places as Connecticut Texas and Alberta have gone out of their way to defend their plans and explain why California won't happen here. For the most part then the reaction to California has been positive from Enron's perspective in states that have already deregulated. There does remain some threat that aspects of the state plans (e.g. utility plant divestiture) may be postponed or cancelled. The story is a bit more grim in states that were considering deregulation but have not gone forward with their plans: I think it's off the agenda in most places. The fact that most of the major markets (about 70% of total electric revenue) are already deregulated/deregulating is a blessing in that regard. At the federal level there has been a combination of the burn the village in order to save it approach -- allow some price caps to remove the pressure to reverse the whole deregulation program -- and a more positive call for comprehensive reform. All in all I believe we're OK so far and we need to look at this as an opportunity: business is booming we sell protection from price volatility and the need for such protection is now plastered over the front pages of major newspapers. On the public policy front we need to convert the controversy into productive action. Our target has been FERC -- they are somewhat removed from the white hot rhetoric in California and they are a single commissioner's vote away from taking action to further open the market. Enron's response: Initially we hoped to feed information into industry groups and let them carry the message our concern was that Enron -- a company which was in and out of the residential market in Cal. -- would not make the most attractive champion for the open market message. We hoped that the new generators in Cal would take up the mantle. It's fair to say that they fumbled the ball: they are now locked in a pitched battle with the utilities over price caps and fall all to easily into the out of state profiteer label .... standing between Aunt Millie and rate relief. They were also extremely slow out of the blocks with a more productive message. We are now working the issue directly. We are working the issue on a number of levels: 1) PR - we have good contacts in the press and have talked to numerous reporters and editorial writers. As time goes on the information and reporting has gotten somewhat better. 2) Govt relations - we have been pushing for power plant siting legislation in California (the market wants to build capacity but the government won't let it). This may be the best environment we'll ever see for streamlining the permitting process. Also in typical Enron fashion we put a deal on the table. We offered to sell power to the local utility at a price which would enable them to lock in stable rates for their customers at below current rates. Our offer was followed by nine others and we tried to make something of the fact that the market was offering better solutions than California politicians. SDG&E dropped the ball unfortunately. Instead of seizing the opportunity they ended up going along with a government granted rate discount which will cause them to accrue a massive deferral account. At the federal level we are contacting members the DOE and FERC. Here we are making a push for FERC action to finish leveling the playing field in wholesale markets so power can get from where it is to where its needed. Additionally we are developing a prepackaged system (including software) for nondiscriminatory open access (to take away any lingering excuses or delays). 3) Overall messaging -- we have been working with a well known political pollster to check our messages for their resonance at the grassroots level. As we hone these messages we will be using them in the fora we are currently working. Overall we have more opportunity than risk in the current environment but capitalizing on those opportunities continues to be a long shot. An intersting rhetorical challenge for us is this: much of the problem in power markets is blamed on high upstream fuel prices particularly natural gas. The gas market is open and structured pretty much the way we are advocating for electricity so how can we maintain that the problem in power markets is an absence of open markets when the most open commodity market on the planet (natural gas) is producing such outsized prices? The answer is somewhat complicated and therefore a bit unsatisfactory in the current debate: gas prices are still lower in real terms than they were pre-deregulation long term prices are also lower than historical levels ( the curve is backwardated (sp?) meaning that prices in later years are lower than today so you can buy gas for 3 years at a price lower than current spot prices) and the economy is booming and driving up demand for basic inputs (this begs the question: why didn't the market react sooner and avoid the spike?). When all else fails a big part of the problem can be blamed on OPEC. We haven't had this thrown at us yet but we are trying to anticipate it and have answers at the ready. This is just the tip of the iceberg. The issue is a great example of the intersection of our business interests with public policy debates and should promote a lively discussion when we get together. Let me know if there is anything else you need.
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Subject:: External Affairs Meeting in 50M03, conference bridge 853-3233
passcode 3000, you are the host
Body:: Merger call 8004570183 506711
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Subject:: nan
Body:: Tony Pryor (GPG legal) asked if we have any credentials/tickets left for die hard democrats in the company. I know Tony will understand if they are already spoken for but if we have some left that would go unused we have a volunteer. How's it going? Are you partied out yet?
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Subject:: IEP News 4/30
Body:: Today's news and some from the weekend in the following order: A year later energy crisis shows no signs of cooling off By Ed Mendel San Diego Union Tribune April 30 2001 (Quotes ??? ???Smutny on behalf of IEP) The Daily News of Los Angeles April 27 2001 Friday Valley Edition NEWS ????Pg. N9 275 words PROPOSED LAW PUTS BOUNTY ON ENERGY MANIPULATORS Staff ????And Wire Services (Quotes Smutny on behalf of IEP) San Jose Mercury News April 27 2001 Friday SJ-ELECTRIC-SUIT 245 words ????Santa Clara County Calif. Joins Lawsuit against Electric Suppliers By ????John Woolfolk (Quotes Smutny on behalf of IEP) FERC Considers Imposing a Fee on Electricity Sales in California ????? ???Updated: Monday April 30 2001 12:40 AM?ET ????-- Dow Jones News Wire? ? Los Angeles Times April 30 2001 Monday Home Edition Page 3 792 words ???? CAPITOL JOURNAL ?CALIFORNIA AND THE WEST ??How Sales Tax Is Falling ????Through a Loophole GEORGE SKELTON SACRAMENTO Los Angeles Times April 30 2001 Monday Home Edition Page 3 1808 ????words CALIFORNIA AND THE WEST ??THE CALIFORNIA ENERGY CRISIS ??LIST OF ????PG&E CREDITORS SHOWS FIRM'S WIDE REACH IN BUSINESS ??BANKRUPTCY: IT ????INCLUDES SMALL AND BIG COMPANIES GOVERNMENT AGENCIES AND FORMER EMPLOYEES. ????TIM REITERMAN TIMES STAFF WRITER SAN FRANCISCO Los Angeles Times April 30 2001 Monday Home Edition Page 3 1228 ????words CALIFORNIA AND THE WEST ??THE CALIFORNIA ENERGY CRISIS ??POWER WOES ????COMPLICATE DISCUSSIONS ON BUDGET ??FUNDING: GOV. DAVIS' PLAN FOR NEXT YEAR ????FACES DEMANDS FOR BILLIONS AS A RESERVE AND TO CUSHION ELECTRICITY RATE ????HIKES. DAN MORAIN TIMES STAFF WRITER SACRAMENTO Los Angeles Times April 30 2001 Monday Home Edition Page 7 839 words ???? COMMENTARY ??WILL THE FERC SEE THE LIGHT ON THE LAW? FRANK A. WOLAK ????Frank A. Wolak an economics professor at Stanford University is chairman ????of the Market Surveillance Committee of the California Independent System ????Operator The New York Times April 30 2001 Monday Late Edition - Final Section ????A Page 1 Column 5 Business/Financial Desk 1444 words While a Utility ????May Be Failing Its Owner Is Not By By RICHARD A. OPPEL Jr. and LAURA M. ????HOLSON The San Francisco Chronicle APRIL 30 2001 MONDAY FINAL EDITION NEWS ????Pg. A3 1108 words NEWSMAKER PROFILE ???Nettie Hoge ???Taking on power ????Consumer advocate revels in uphill battle Chuck Squatriglia The Washington Post April 30 2001 Monday Final Edition A SECTION Pg. ????A03 1669 words Energy Forecast for Summer: No Blackouts but Price Spikes ????Grid Managers Promote Conservation Await New Plants William Claiborne ????Washington Post Staff Writer CHICAGO The Associated Press State & Local Wire April 30 2001 Monday BC cycle ????9:49 AM Eastern Time State and Regional 594 words Developments in ????California's energy crisis By The Associated Press AP Online April 29 2001 Sunday Domestic non-Washington general news ????item 1313 words Geothermal Plants Need More Steam JENNIFER COLEMAN ????MIDDLETOWN Calif. The Associated Press State & Local Wire April 29 2001 Sunday BC cycle ????State and Regional 413 words Guns in schools deregulation delay on ????lawmakers' agenda By BRAD CAIN Associated Press Writer SALEM Ore. Idaho Falls Post Register April 29 2001 Sunday News Pg. a1 530 words ????Plenty of blame to go around for West's power woes PAUL MENSER Los Angeles Times April 29 2001 Sunday Home Edition Page 6 1312 ????words THE STATE ??HOW KILOWATT SOCIALISM SAVED L.A. FROM THE ENERGY CRISIS ???? JEFF STANSBURY Jeff Stansbury is a PhD candidate in American history at ????UCLA. His dissertation is on the role of the labor movement in the building ????of L.A.'s infrastructure Los Angeles Times April 29 2001 Sunday Home Edition Page 4 558 words ???? CONSERVATION SANDBAGS ??THE DAVIS ADMINISTRATION NEEDS TO LAUNCH A CRASH ????EDUCATION COURSE TO CONVINCE CALIFORNIANS OF THE SERIOUSNESS OF THE ????ELECTRICITY CRISIS AND THE NEED FOR FAR-REACHING ENERGY-SAVING MEASURES. Los Angeles Times April 29 2001 Sunday Home Edition Page 27 1316 ????words BUSH: THE FIRST 100 DAYS ??BUSH IS OFF TO A ROCKY START IN HIS ????HANDLING OF ALL THINGS CALIFORNIAN ??POLITICS: BUT WHY WOO THE GOLDEN STATE ????WHEN HE CAN'T CARRY IT IN AN ELECTION 'NO MATTER HOW HARD HE TRIES' ONE ????ANALYST POINTS OUT. RICHARD SIMON TIMES STAFF WRITER WASHINGTON Los Angeles Times April 29 2001 Sunday Home Edition Page 2 1290 ????words WEEK IN REVIEW ??TOP 10 STORIES / APRIL 23-27 Lisa Girion and ????Terril Yue Jones and Sallie Hofmeister and James Bates and Peter Pae and ????Jeff Leeds and Nancy Rivera Brooks and Peter Gosselin The New York Times April 29 2001 Sunday Late Edition - Final Section ????4 Page 17 Column 1 Editorial Desk 756 words Reckonings The Real Wolf ????By PAUL KRUGMAN Sacramento Bee April 29 2001 Sunday Pg. A1 1323 words Diesel plants ????spark concern They're expected to generate big air-quality problems when ????predicted summer blackouts hit. Chris Bowman and Stuart Leavenworth Bee ????Staff Writers Sacramento Bee April 29 2001 Sunday Pg. A1 1544 words Why Edison ????PG&E split on strategy Dale Kasler Bee Staff Writer Sacramento Bee April 29 2001 Sunday Pg. A3 679 words What will be ????fallout from California's energy meltdown? Dan Walters The San Francisco Chronicle APRIL 29 2001 SUNDAY FINAL EDITION ????INSIGHT Pg. D1 1419 words The energy crisis is good for you Louis ????Freedberg Ventura County Star April 29 2001 Sunday Editorials Pg. B09 704 words ????Reality is what's needed for real policy ?GOVERNOR: Consumers deserve to get ????real facts from Davis. Dan Walters Los Angeles Times April 28 2001 Saturday Home Edition Page 19 679 ????words OFFICIALS CALL PRICE STABILITY PLAN ILLEGAL ??UTILITIES: AGENCY ????CHIEFS SAY THE FEDERAL PROPOSAL COULD ALSO CAUSE MORE BLACKOUTS THIS SUMMER. ???? NANCY VOGEL and MIGUEL BUSTILLO TIMES STAFF WRITERS SACRAMENTO Los Angeles Times April 28 2001 Saturday Home Edition Page 19 688 ????words BILL COULD FOIL DAVIS' ELECTRICITY OFFENSIVE ??POWER: CONGRESSMAN ????WANTS TO LET SMALL PRODUCERS SELL ON WHOLESALE MARKET. BACKERS SAY PLAN ????WOULD BOOST SUPPLY BUT FOES SEE IT COSTING CALIFORNIA DEARLY. JULIE TAMAKI ????and MIGUEL BUSTILLO TIMES STAFF WRITERS SACRAMENTO Los Angeles Times April 28 2001 Saturday Home Edition Page 2 137 ????words BRIEFLY / ENERGY ??PUC ORDERS UTILITIES TO POST BLACKOUT DATA Nancy ????Rivera Brooks Sacramento Bee April 28 2001 Saturday Pg. A3 1109 words Cities take ????new look at public power The state's uncertain electricity picture has local ????officials deciding it's time to revisit the idea of municipal utilities. ????Carrie Peyton Bee Staff Writer A year later energy crisis shows no signs of cooling off By Ed Mendel San Diego Union Tribune April 30 2001 SACRAMENTO -- The first anniversary of the California energy crisis is coming up next month and as the Queen of England once remarked when the royal family seemed to deregulate it's been an annus horribilis. The horrible year for California began last May when electricity prices suddenly began to soar triggering a debate about the cause of the mysterious price increase that is likely to continue for years. It started when a three-day heat wave from May 21 to May 24 set records in some areas of the state and drove up the demand for electricity as Californians sought relief with air conditioning. More record heat June 14 in the San Francisco Bay Area strained the overloaded system of Pacific Gas & Electric and resulted in rolling blackouts the planned temporary power outages that some fear may be routine this summer. The average price of electricity on the now-defunct Power Exchange soared to $120 per megawatt hour in June five times higher than the same month the previous year and remained roughly at that level until skyrocketing to $377 in December. San Diego sounded the statewide alarm last summer as San Diego Gas & Electric the first utility to be deregulated passed along much of the higher cost of electricity to its customers until legislation rolled back and capped the utility's rates in September. The executive director of a San Diego consumers group the Utility Consumers' Action Network thinks the generators and the marketers of power using sophisticated computer methods learned something as the heat wave drove up the demand for power. It was the first time the generators had an opportunity to see how high the price could go said UCAN'S Michael Shames. It was their primer. It was Gouge 101. State Sen. Steve Peace D-El Cajon who chaired a two-house committee that completed the deregulation plan in 1996 had seen routine monitoring data suggesting that the power market was being manipulated to drive up prices. Peace took the unusual step last June of personally urging the adoption of a much lower price cap by the board of the agency that makes last-minute power purchases to maintain the grid the Independent System Operator. But the motion failed by a single vote. The consumer representative who cast the decisive vote against the lower cap resigned afterward with a blast at Peace complaining of heavy-handed pressure. Peace is unapologetic. He believes that stronger action by the ISO last June would have sent a signal that might have discouraged market manipulation. It's just like the Federal Reserve mis-timing an interest-rate move Peace said. The former ISO chairman who represents generators cited an ISO report attributing the price increase last May to the heat wave power plant outages less hydroelectric power and higher prices for the natural gas used by power plants. I think all of those things showing up at the same time resulted in significantly higher prices said Jan Smutny-Jones of the Independent Energy Producers. Why power prices remained at high levels and even soared last winter instead of dropping as usual is more difficult to explain. The ISO contended last month that generators overcharged by more than $6 billion from last May through February. But federal regulators who have their critics have found only $125 million in overcharges making it an annus marvelous for generators. Ed Mendel is Capitol bureau chief for the Union-Tribune. Copyright 2001 Union-Tribune Publishing Co. The Daily News of Los Angeles April 27 2001 Friday Valley Edition SECTION: NEWS Pg. N9 LENGTH: 275 words HEADLINE: PROPOSED LAW PUTS BOUNTY ON ENERGY MANIPULATORS BYLINE: Staff And Wire Services BODY: ??California stepped up its war on the power industry Thursday as state legislators offered to pay millions of dollars to bounty hunters who provide information leading to the arrest and conviction of energy executives and others who manipulate the electricity market. ???California is being plundered by an energy cartel said Lt. Gov. Cruz Bustamente who is promoting a bill that would level criminal penalties for exploiting energy markets. ?If what they are doing isn't illegal it ought to be. ???Bustamente was one of a crowd of state leaders who went before microphones. ???On the floor of the Assembly Speaker Bob Hertzberg D-Van Nuys rallied his Democratic colleagues behind a bill to create a state power authority with equally blistering attacks on private power suppliers. ???But after Thursday's hearing before a Senate committee formed to investigate alleged price-fixing in the energy market committee chairman Joe Dunn D-Garden Grove told a reporter: I've never seen this much smoke when there wasn't a fire. ???Power generators insist they are operating fairly and say there is no evidence of them acting outside the law. ???Jan Smutny-Jones executive director of the Independent Energy Producers Association dismissed the harsh rhetoric as unproductive. Putting people in prison isn't going to encourage more generation Smutny-Jones said warning that the political posturing would make energy generators think twice about investing in California. ???Also on Thursday experts said federally ordered caps on wholesale electricity prices won't necessarily mean California will escape rolling blackouts this summer. Copyright 2001 San Jose Mercury News San Jose Mercury News April 27 2001 Friday KR-ACC-NO: SJ-ELECTRIC-SUIT LENGTH: 245 words HEADLINE: Santa Clara County Calif. Joins Lawsuit against Electric Suppliers BYLINE: By John Woolfolk BODY: ??Santa Clara County agreed Thursday to join a lawsuit against power suppliers alleging they conspired to raise prices and boost profits while subjecting consumers to higher bills and rolling blackouts. ??The county is the first to join the suit originally filed by San Francisco in January. ?The suit seeks refunds for consumers of more than $ 1 billion in alleged excess electricity profits. ??The San Francisco suit contains significant allegations of manipulation and collusion by the wholesalers resulting in the disastrous consequences we're all familiar with said lead deputy county counsel Alan Tieger. We looked at the evidence on which those allegations were grounded and found they were indeed supported by the evidence expert and otherwise. ??The suit names a dozen electricity generating and marketing companies including Duke Energy and Enron Energy Marketing. ??Similar claims have been filed by three water districts in the San Diego area and two class-action lawsuits by private attorneys on behalf of consumers are pending against power suppliers. ??The companies have vigorously denied the charges. ??I don't think there will be any evidence of illegal activity by anyone said Jan Smutny-Jones executive director of the Independent Energy Producers Association when asked about various government probes. ??----- ??To see more of the San Jose Mercury News or to subscribe to the newspaper go to http://www.sjmercury.com FERC Considers Imposing a Fee on Electricity Sales in California ???? Updated: Monday April 30 2001 12:40 AM?ET ????? ? Such a surcharge at least in the short run would fall hardest on the state of California which since January has spent more than $5 billion buying power because the utilities have been unable to meet their obligations. For now the idea is nothing more than a proposal that occupies one paragraph buried in a 39-page order issued Thursday concerning changes to California's flawed deregulated electricity market. The commission is seeking public comment on the surcharge proposal for 30 days. After that it will decide whether to implement it. The fee was proposed by Commission Chairman Curt Hebert a Mississippi Republican as a way to stabilize the market he said Friday since part of the problem in California has to do with nonpayment of bills by the utilities. But the provision also has the potential to funnel billions of dollars to energy suppliers at a time when those payments are the subject of intense negotiation. One of the utilities PG&E Corp.'s Pacific Gas & Electric Co. (PCG news msgs) filed for protection from creditors under U.S. bankruptcy law on April 6 hoping to settle its claims with power suppliers for something less than face value. Representatives of Pacific Gas & Electric and Edison International's (EIX news msgs) Southern California Edison declined to comment on the FERC proposal Friday. The surcharge idea faces stiff opposition from some state officials one of whom said it amounts to an unwarranted intrusion into state jurisdiction. Loretta Lynch president of the California Public Utilities Commission said imposition of a surcharge would put pressure on wholesale-power costs that already are too high. Bulk power cost $7 billion in California in 1999 and topped $27 billion last year as prices careened out of control. Ms. Lynch said she opposes the surcharge provision and the entire order given Thursday but that it will be up to the full commission to decide how -- or whether -- to file a challenge at FERC. A spokesman for Gov. Gray Davis said the governor would be strongly opposed to any attempt to siphon money away from the state and expects to lodge an objection. Los Angeles Times ?????????????????????April 30 2001 Monday Home Edition SECTION: Part A Part 1 Page 3 Metro Desk LENGTH: 792 words HEADLINE: CAPITOL JOURNAL CALIFORNIA AND THE WEST How Sales Tax Is Falling Through a Loophole BYLINE: GEORGE SKELTON DATELINE: SACRAMENTO BODY: ??Dot-coms are in distress and laying off. Silicon Valley is a home buyer's bazaar. The Nasdaq is nauseous. So is this any time to be siccing the tax collector on Internet retailers? ??You bet. Coddling these techie traders with tax favors doesn't seem to be helping them much anyway. So why not treat e-tailers like everyone else like brick-and-mortar merchants? Treat everybody evenhandedly. ??That's the view of Assemblywoman Carole Migden (D-San Francisco) assertive chair of the Assembly Appropriations Committee. For the second straight year Migden is pushing a bill she says will close a loophole that benefits some Internet retailers. She insists it's about fairly enforcing existing law not about a new Web tax as critics claim. ??Present law requires Internet e-tailers to collect the sales tax if they have a physical presence in California such as a traditional brick-and-mortar store. But some big outfits have created separate out-of-state subsidiaries to handle their Internet orders. Same goods same ads--with a large tax loophole because the subsidiary ostensibly does not have a physical presence in California. ??Never mind that an unsatisfied customer of bookseller Barnes & Noble dot-com for example can return the Internet purchase to the local Barnes & Noble store. ??Many e-tailers with dual bricks-and-clicks operations do collect the sales tax from Internet customers. Migden cites Macy's Wal-Mart REI Hewlett-Packard and Eddie Bauer. Others refuse she says: Barnes & Noble Borders Books KB Toys Gateway Computers Radio Shack. ??Her bill simply clarifies that the sales tax applies when the e-tailer is affiliated with a California business sells identical products and they market jointly. ??Right now Migden contends certain big businesses blatantly violate the tax law and put hard-working honest small business people at a disadvantage. ??* ??Gov. Gray Davis is miffed at Migden she hears. He vetoed her bill last year declaring it would send the wrong signal about California's international role as the incubator of the dot-com community. Internet marketing must be given time to mature he maintained. ??Now Migden's at it again. The governor's exercised. He thinks I'm jamming him she says. But I'm moving the bill. He can veto it if he wants. I'm putting it on his desk. ??It already has cleared the Assembly tax committee and will shoot out of her panel Wednesday headed for the Assembly floor. Last year Democrats backed the bill. Republicans opposed it siding with the Democratic governor. ??Davis fears some future opponent will claim he signed a bill to tax the Internet. Migden is frustrated by that Internet tax tag calling it a lazy misinterpretation. ??I'm not picking on e-commerce she protests. I'm picking on the multinationals who are arrogantly evading the law in complicity with the state Board of Equalization. ??That would be in particular Republican board member Dean Andal of Stockton. It's the usual liberal nut case bill Andal says. Just a bill chasing no problem. ??* ??The BOE administers the sales tax. And Andal does agree that if an Internet purchase can be returned to a store the e-tailer legally must collect the tax. We've been looking into that he says. ??The board shouldn't have to look far. Barnes & Noble tells e-customers right on its Web site that you can return purchases to ANY Barnes & Noble store for in-store credit. ??But other than that Andal contends a company has a constitutional right to create an out-of-state subsidiary to avoid taxes. ??And he notes we're talking about relative pennies: $ 17 million annually the BOE estimates compared to $ 39 billion in total California sales tax collections. That lost revenue would cover only about seven hours worth of electricity the state now is buying for utilities. ??But e-tailing is bound to grow. Tax avoidance could become significant benefiting dot-coms while discriminating against small retailers and the poor who cannot afford Internet access. ??Migden will be in a strong position to change sales tax policy if she wins her race next year for the five-member BOE. She's the early front-runner. ??Her concern--her reverence--is for the local booksellers the mom-and-pop merchants the neighbor shopkeepers who can be smothered by the big tax evaders. The little guy with the books stacked in the back she says sweeping the sidewalk putting on extra locks obeying the law and collecting taxes--trying to make a go. ??Davis wants to be seen as a futuristic New Age pol worthy of campaign donations from wealthy Web masters. But he can manage that without tromping on his Democratic roots as protector of the little guy. LOAD-DATE: April 30 2001 of 103 DOCUMENTS 2001 / Los Angeles Times Angeles Times ?????????????????????April 30 2001 Monday Home Edition SECTION: Part A Part 1 Page 3 Metro Desk LENGTH: 1808 words HEADLINE: CALIFORNIA AND THE WEST THE CALIFORNIA ENERGY CRISIS LIST OF PG&E CREDITORS SHOWS FIRM'S WIDE REACH IN BUSINESS BANKRUPTCY: IT INCLUDES SMALL AND BIG COMPANIES GOVERNMENT AGENCIES AND FORMER EMPLOYEES. BYLINE: TIM REITERMAN TIMES STAFF WRITER DATELINE: SAN FRANCISCO BODY: ??It reads like a phone book: Able Auto Body Able Building Maintenance Able Fence Co. Able Printing Able Termite & Pest Control. . . . ??These companies are among about 50000 entries on Pacific Gas & Electric Co.'s roster of creditors recently filed in U.S. Bankruptcy Court. ??Another company A&J Electrical Cable Corp. of Hayward has supplied PG&E with utility cables since 1980. But now the unpaid bills are hitting the $ 100000 mark--and that is a big deal to a relatively small business. ??Who would ever think that PG&E would be in bankruptcy? said owner Magdalene Reilly. This is something affecting people. I've got a lot of paychecks on Friday. ??We have orders for the rest of the year from PG&E she added. It is a question: Do you decide to ship? . . . We probably will. They are a good customer. ??When PG&E filed for Chapter 11 protection from creditors April 6 businesses from California to Canada were caught by surprise. The names of the 20 biggest creditors some with billion-dollar claims were filed with the court. The utility also submitted a list of potential creditors--more than 3500 pages worth. ??The roster speaks to the remarkable economic clout and reach of a company that prospered for almost a century before plunging into the third-biggest bankruptcy case in U.S. history. It provides a glimpse into the relationships between a giant utility--the state's largest--and businesses of all sorts and sizes. And it underscores the high stakes as a bankruptcy judge reorders PG&E's financial affairs and decides in the coming months if not years who should be paid and how much. ??The case said U.S. bankruptcy trustee Linda Ekstrom Stanley has a ripple effect. . . . Creditors are affected and they can't pay their bills either. ??There are small companies and conglomerates that sold power to PG&E. ??There are financial institutions from Wall Street to San Francisco's Montgomery Street that lent money or provided services. ??There are government agencies at all levels even the California Public Utilities Commission. ??There are some retired PG&E employees and officers including at least one of the company's former chief executive officers. ??But there also are vendors that have provided goods and services to PG&E for years: tree trimming around power lines bodywork for the utility's truck fleet fencing for its vast land holdings calibration of meters fans to cool electrical transformers printing of brochures signs for office doors flight suits for aviators who patrol power lines limousine service for traveling executives. ??No dollar amounts are attached to names on the master list. But records and interviews with dozens of creditors show that the sums owed range from hundreds of millions of dollars to very little--or nothing at all. Many of the smaller creditors were unaware they were on the roster until contacted by The Times. ??PG&E used to buy pump filters from California Pump & Supply in Sacramento. ??We just closed out their account because they owed us $ 29 said office manager Lisa Giordano. It's a hassle to get anyone over there. I just wrote it off. ??The utility bought $ 38 worth of plants from Forest Nursery in Los Osos west of San Luis Obispo. It's nothing to go to court about especially since they paid it said bookkeeper Lori Parsons. ??A wine wholesaler an ice cream company and a coastal hotel are listed. So is Sing A Long Productions in Burlingame which supples disc jockeys and karaoke. ??I am sure we have done business with PG&E and other companies that have parties from time to time said owner Nick Foster. Maybe somebody forgot that we did not get paid. ??PG&E spokesman Ron Low said the list includes everyone to whom the utility wrote a check in the last two years such as homeowners who received energy conservation rebates and retirees who received checks related to benefits. ??It was an attempt to notify anybody who possibly could have a claim against the company and to cast the widest net possible he said. ??Several PG&E retirees such as Robert W. Oliver of Berkeley were baffled by their inclusion on the list. I draw a little pension said Oliver who was a personnel executive and left the company in 1980. It's a vested pension. ??Another retiree on the list is former Chief Executive Richard A. Clarke. ??He and about 10 other former high-ranking PG&E executives or their survivors have retained an attorney to help ensure that their retirement benefits are protected during the bankruptcy case. ??We don't want someone to get the idea that this is a bunch of well-heeled executives trying to get a piece of the action said the attorney John T. Hansen. Some in our group are widows of former executives who depend on the pensions they receive as survivors. ??Hansen said some retired executives have deferred-compensation packages that might be considered a general unsecured bankruptcy claim. ??One concern he said is that PG&E Chairman Robert D. Glynn Jr. wrote recently in a San Francisco Chronicle op-ed article that health care plans and other benefits for employees and most retirees will continue. ??We would want to know what 'most' is Hansen said. We want to sort it out. ??Low of PG&E said fewer than 100 retired employees most former officers have a portion of their pension that is unsecured. That means their claims will be handled in Bankruptcy Court with those of other unsecured creditors whose debts are not backed by utility assets. ??The spokesman emphasized that ex-employees could be on the list because they received a check from the company for something. ??Companies and individuals on the list PG&E said will be contacted and given an opportunity to state their claims which the utility will file with the court May 11. ??Meanwhile the effects of the bankruptcy filing continue to ripple beyond the utility. ??PG&E's action hit AA Safe & Lock Co. in Santa Cruz particularly hard. The firm replaces keys and locks for PG&E offices and trucks. ??We are a small business and it is a big account said owner Paul Bing who declined to say what the utility owes. We haven't been doing as much for them since the whole crisis started. ??A Hayward firm that conducts environmental testing when PG&E remodels or razes buildings is out money too. Ken Byk president of Forensic Analytical would not provide a figure but said: I am obviously concerned. . . . They are a good customer but any time you run into these problems it's disappointing. ??California Steam Inc. of Sacramento services PG&E pressure washers and water recyclers at its truck-cleaning facilities. I have just a couple of invoices out said service manager Bruce Amlin. The debt he said is less than $ 500. ??A similar amount is owed to California Turbo Inc. in Ontario. Sales manager Cam Young said the utility has not paid for eight fans used to cool electrical transformers. We're a small business Young said adding with a laugh: We might have to eat peanut butter and jelly for four or five months. ??Within days of the bankruptcy filing PG&E sent about 12000 creditors letters that began: Valued Goods and Services Provider: . . . Unfortunately the bankruptcy code precludes payment for goods and services received prior to the date of filing. Payments on this pre-petition debt will be settled as part of the plan of reorganization. The company assured vendors that they will be paid for any future purchases. ??Some are not only forgiving they are outspokenly loyal to PG&E. ??The relationship between the utility and AG Signs of Stockton spans two decades. When Tony Guebara was starting his company PG&E gave him business. They try to help the little guy he said. Just about everybody in town is a vendor. They have people here who paint their trucks. ??AG Signs now has five employees and supplies PG&E with door lettering for trucks name plaques for office doors and signs and flags for construction sites. ??Guebara said the utility's debt does not worry him: PG&E has treated me real well. If I lose a couple of bucks because of this adversity that is OK. . . . I don't think we've seen the last of PG&E. ??Many businesses and individuals said they had no idea why the company believes it owes them money. ??Being included on the creditors list left the Vallejo Camp Fire Girls & Boys and other charitable organizations somewhat confused. Officials of one Berkeley church could only speculate that it was listed because PG&E stock was bequeathed to the congregation decades ago. ??Twylah Lemargie manager of the Cancer Aid Thrift Shop in Grass Valley said the utility is not even a customer. PG&E did come in and replaced lots of our ceiling lights with the long tubes she said. But it was done free as an energy saver. ??A number of vendors said PG&E's account is paid up. ??The utility rented temporary housing units for workers on a hydroelectric project about two years ago but California RV Rentals in Rio Lindo is still named as a creditor. They don't owe me money said Sandra Weaver the manager. If they want to give me some it's OK. ??Many creditors are health clubs and health care providers: medical and dental offices foot and joint specialists pharmacies chiropractors. ??When informed that the Castro Valley Chamber of Commerce was on the creditors list the woman who answered the phone laughed uproariously. Then Executive Director Bonnie Dettmer came to the line. ??I'm going to guess it's membership dues she said. They are a member and they have been very supportive. I would bet they belong to every chamber of commerce. ??One creditor is the state agency that PG&E says drove the company into insolvency by not allowing full recovery of its wholesale power costs. ??They owe us $ 5.9 million . . . for environmental impact reports on PG&E projects said Paul Clanon director of the Public Utilities Commission's energy division. It's a serious amount of money but currently is not having an impact. ??Top 10 Creditors ??The creditors owed the most money by Pacific Gas & Electric Co. according to the company's Chapter 11 filing: ???Creditor owed ???Bank of New York ????????????????????????$2.20 billion ???California Power Exchange ???????????????$1.96 billion ???Bankers Trust Co. ???????????????????????$1.30 billion ???California Independent System Operator ??$1.12 billion ???Bank of America* ?????????????????????????$938 million ???US Bank million ???Calpine Gilroy Cogeneration LP ????????????$58 million ???Calpine Greenleaf Inc. ????????????????????$49 million ???Crocket Cogen million ???Calpine King City Cogen LLC ???????????????$45 million ??* Heading a group of banks ??Source: U.S. Bankruptcy Court Northern DIstrict of California GRAPHIC: GRAPHIC: Top 10 Creditors Los Angeles Times PHOTO: Magdalene Reilly owner of A&J Electrical Cable Corp. of Hayward says her company has supplied Pacific Gas & Electric with utility cables since 1980 and that their unpaid bills are now hitting the $100000 mark. ?PHOTOGRAPHER: ROBERT DURELL / Los Angeles Times PHOTO: They try to help the little guy says Tony Guebara owner of AG Signs in Stockton of PG&E. He has been doing business with utility for two decades. ?PHOTOGRAPHER: ROBERT DURELL / Los Angeles Times LOAD-DATE: April 30 2001 of 103 DOCUMENTS 2001 / Los Angeles Times Angeles Times ?????????????????????April 30 2001 Monday Home Edition SECTION: Part A Part 1 Page 3 Metro Desk LENGTH: 1228 words HEADLINE: CALIFORNIA AND THE WEST THE CALIFORNIA ENERGY CRISIS POWER WOES COMPLICATE DISCUSSIONS ON BUDGET FUNDING: GOV. DAVIS' PLAN FOR NEXT YEAR FACES DEMANDS FOR BILLIONS AS A RESERVE AND TO CUSHION ELECTRICITY RATE HIKES. BYLINE: DAN MORAIN TIMES STAFF WRITER DATELINE: SACRAMENTO BODY: ??Jockeying over the state's next spending plan a tradition that usually takes place in the summer already is turning intense as the energy crisis casts a pall over what otherwise might have been relatively painless budget squabbles. ??A key state senator worried about the slowing economy is looking for places to pare as much as $ 4 billion from Gov. Gray Davis' proposed $ 104.7-billion budget. And Republicans are beginning to demand that the state spend billions in general tax money to cushion electricity rate hikes of up to 40% being imposed on consumers and businesses. ??Davis won't sign the budget for the 2001-02 fiscal year into law until late June at the earliest. But with California mired in the energy crisis and the economy slowing the new budget is shaping up to be especially vexing. ??California's largest utility and a major private employer Pacific Gas & Electric is in bankruptcy. The state has spent $ 5.2 billion in general tax money to buy electricity with no end in sight. Even before summer temperatures hit Sacramento shelled out $ 90 million to buy electricity in a single day last week. ??And the Wall Street rating firm Standard & Poor's unsure that the state will be reimbursed for the power purchases lowered California's credit rating two notches for the first time since the recession of the 1990s. ??Brightening an otherwise cloudy situation income tax payments are meeting or exceeding predictions. More than $ 8 billion in checks from April income tax returns have flooded into the Franchise Tax Board said Department of Finance economist Ted Gibson. On one day last week the state's haul was $ 3.6 billion a record. ??Receipts are very much on track I'm relieved to tell you Gibson said. ??But even as budget writers were exhaling the payments merely offered proof that the economy was strong last year back when then-President Bill Clinton was heralding the longest period of economic growth in U.S. history and Californians' lexicon did not include the term rolling blackout. ??State income and sales tax receipts softened in the first few months of 2001 an indication that people will be earning less this year--and paying less in taxes next year. ??Seeing trouble ahead Senate Budget Committee Chairman Steve Peace (D-El Cajon) wants to boost the state's emergency reserve which was $ 1.9 billion in January. To do that Peace last week called on budget committee members to come up with a list of cuts totaling $ 2 billion to $ 4 billion. ??Without a larger reserve heading into 2002 Peace said the slowing economy could force the state to make deep cuts or raise taxes next year at a time when most legislators and Davis will be running for reelection. ??The thing to be worried about is not the current year but the trend line Peace said. ??He adds a caveat for the spending plan that by law must be in place by July 1: There will be cuts if legislators fail to approve legislation that state Treasurer Phil Angelides says he needs to obtain short-term loans and market long-term bonds to finance electricity purchases. ??Davis and Angelides are preparing the largest bond sale--a way that government borrows money--in U.S. history as much as $ 12.4 billion. The state would use the proceeds to ease the shock to utility customers of record high electricity prices this year. The bond debt would be paid off over a period of perhaps 15 years. ??Given the size and complexity of the bond issue many legislators say Angelides may not be able to sell it for months. ??Davis however has an immediate need for money. The governor must release a revised state budget within weeks. So he is pushing for legislators to approve legislation that would allow Angelides to obtain a short-term loan of as much as $ 6 billion. ??At least some of the proceeds of the long-term bonds would be used to pay off the short-term loan--sort of like using one credit card to pay the balance on a second piece of plastic. ??Republican legislators are balking at the idea. ??Back in December before the state entered the power buying business GOP legislators had called for $ 3.2 billion in tax cuts. With the energy crisis complicating the financial situation some Republicans are contending that Davis should use as much as $ 5 billion from the budget surplus to soften the impact of electricity rate hikes. ??That will be a de facto tax cut said Senate Republican leader Jim Brulte of Rancho Cucamonga. Our Democratic friends want to do the bridge financing so they can increase the size of government. ??Republicans are in the minority. But they have a significant voice because state law requires that both houses of the Legislature approve spending decisions by a two-thirds vote. ??The state Constitution says the budget must be in place by the July 1 start of the new fiscal year. Davis signed his first two budgets on time. Given this year's uncertainties however some legislators are thinking twice about making July vacation plans. ??The sudden turnaround may come as a shock to many legislators and lobbyists who seek slices of the state budget pie. ??In recent years legislators have grown used to the multibillion-dollar windfalls of tax payments which allowed them to deliver new swimming pools school programs museums parks social and health care spending and tax cuts to their constituents. Indeed the budget in Davis' first two years grew 37% even as the Democratic governor and legislators cut taxes by $ 3.9 billion. ??In a Legislature populated by term-limited newcomers only a handful of current legislators were in the Capitol in the early 1990s when the worst recession to hit California since the Great Depression caused the state budget to actually shrink. Then-Gov. Pete Wilson and the Legislature reacted to a $ 14-billion budget gap by raising taxes by more than $ 5 billion and slashing spending. ??It is not going to be the pie-in-the-sky budget some of us thought it would be last year and even as late as January said Sen. Jack O'Connell (D-San Luis Obispo). ??Veterans of the annual summer rite say there is no template for the coming budget fights. Jean Ross of the California Budget Project a private budget watchdog and advocacy group said Davis and legislators not only must pay attention to the economy. ??They also must take into account many unknowns: Will the judge overseeing PG&E's bankruptcy proceeding seek to raise rates further? Will federal energy regulators be able to effectively limit wholesale electricity costs? What will the economic impact be of summer blackouts? ??It's a lot more complex and unpredictable than other years Ross said. ??Legislators say they are lowering their sights. But letters from state senators requesting money for their favored projects fill five large red binders. You wouldn't know there is a money shortage based on requests in appropriations said Assembly Appropriations Committee Chairwoman Carole Migden (D-San Francisco) preparing for what she calls her hatchet role of blocking bills that require spending. ??For his part Davis has not decided to significantly cut back on his proposals ranging from a sales tax holiday timed for back-to-school shopping to plans to clean sewage from beaches. He won't reveal those decisions until he releases his revised spending plan. LOAD-DATE: April 30 2001 of 103 DOCUMENTS 2001 / Los Angeles Times Angeles Times ?????????????????????April 30 2001 Monday Home Edition SECTION: Metro Part B Page 7 Op Ed Desk LENGTH: 839 words HEADLINE: COMMENTARY WILL THE FERC SEE THE LIGHT ON THE LAW? BYLINE: FRANK A. WOLAK Frank A. Wolak an economics professor at Stanford University is chairman of the Market Surveillance Committee of the California Independent System Operator BODY: ??Out-of-state firms selling into the California wholesale electricity market at exorbitant prices have been blamed for the current electricity crisis. They are claim many observers exercising their market power to raise wholesale electricity prices. ??Although it is not illegal under California or U.S. antitrust law for a firm to exercise its market power it is illegal to do so under the Federal Power Act. The Federal Energy Regulatory Commission or FERC which regulates the California wholesale electricity market is the entity charged with enforcing this law. Its refusal to take sufficient actions that would result in just and reasonable wholesale electricity rates is the fundamental cause of California's current energy crisis. It is highly unlikely that anything it has done in the last week has changed things at all. ??In 1935 Congress passed the Federal Power Act and required the Federal Power Commission (the predecessor to FERC) to set just and reasonable wholesale electricity prices. Just and reasonable prices are those that recover production costs including a fair rate of return on the capital invested by the firm. Moreover if the FERC finds that wholesale electricity prices are unjust and unreasonable the Federal Power Act gives it wide-ranging discretion to take actions that result in just and reasonable prices. The FERC can also order refunds for any payments by consumers in excess of just and reasonable prices. ??Almost 10 years ago the FERC began to allow generators to receive market prices instead of prices set through a cost-of-service regulatory process. However there is no guarantee that market prices meet the just and reasonable standard required by the Federal Power Act. Markets often set prices substantially in excess of the production costs for significant periods of time. This occurs because one or more firms operating in the market have what economists call market power--the ability of a firm to raise market prices and profit from it. ??However if no firm possesses market power the market price should be very close to a price that only recovers production costs. In such a circumstance the price set by the market satisfies the just and reasonable standard of the Federal Power Act. ??Before it allows any market participant to receive a market price rather than a cost-based price set through a regulatory process the FERC requires each participant to demonstrate that it does not have market power. In other words each market participant must submit sworn testimony to the FERC demonstrating it does not have the ability to raise market prices and profit from this behavior. ??Each of the out-of-state generators made these filings before they began selling into the California market which started in April 1998. Each firm had its authority to receive market prices approved by the FERC for a three-year period that ends before this summer for several of the firms. It is virtually impossible to determine on a prospective basis whether a firm possesses market power. Moreover the methodology used by the FERC to make this determination uses analytical techniques that have long been acknowledged by the economics profession as grossly inadequate. The events of the past 10 months have demonstrated that contrary to their filings stating otherwise all of the out-of-state generators possess significant market power. ??A number of independent studies have shown that the market power exercised by these firms has resulted in unjust and unreasonable rates from May 2000 until now. Moreover in its Dec. 15 2000 report on the California electricity market the FERC concluded that wholesale electricity prices during the summer and autumn of 2000 were unjust and unreasonable and reflected the exercise of significant market power. ??Despite its own conclusion the FERC thus far has refused to set just and reasonable prices for wholesale electricity in California. Instead the FERC implemented market rule changes that have enhanced the ability of these firms to set excessive wholesale electricity prices. In addition it has refused to order refunds for any overpayment during the summer and autumn of 2000 for the prices that it deemed unjust and unreasonable. ??Fortunately for California consumers the California Public Utilities Commission and Gov. Gray Davis refused to be accomplices in the FERC's decision not to enforce the Federal Power Act. They refused to pass on to California consumers prices that the FERC itself had determined were unjust and unreasonable. ??Because these out-of-state firms must apply for renewal of their market-based pricing authority before this summer the FERC has one more opportunity to set just and reasonable prices for wholesale electricity in California. It has before it several proposals that would enforce all provisions of the Federal Power Act. The health of the California and national economies would be severely undermined if the FERC continues to ignore its legal obligations. LOAD-DATE: April 30 2001 of 103 DOCUMENTS ??????????????????Copyright 2001 The New York Times Company New York Times ?????????????????April 30 2001 Monday Late Edition - Final SECTION: Section A Page 1 Column 5 Business/Financial Desk LENGTH: 1444 words HEADLINE: While a Utility May Be Failing Its Owner Is Not BYLINE: ?By By RICHARD A. OPPEL Jr. and LAURA M. HOLSON BODY: ??Pacific Gas and Electric the giant California utility may have just made one of the largest bankruptcy filings in history but it has been a banner year for the rest of its parent company the PG& E Corporation. ??In Bethesda Md. far from the energy crisis in California another PG& E subsidiary National Energy Group earned $162 million last year and ranked as the nation's third-largest power trader. Compensation for the unit's executives soared. Many investors now believe that the subsidiary just a decade in the making is by itself worth more than its 96-year-old utility sibling. ???How did National Energy get so big so fast? By using cash partly generated by its sister utility to buy unregulated power plants in the Northeast expand trading-floor operations and sell power across the country. The exact numbers are in dispute but much of Nationals Energy's profits last year came from California. ??Most other large utilities have done the same thing over the past decade building national or even global power companies from roots in local monopolies. But nowhere is the success of these unregulated businesses more of an issue than in California where PG& E's investments may be challenged in bankruptcy court. ??Still such transfers of assets were fundamental to deregulation plans in two dozen states and they were encouraged by federal rules designed to build a new wholesale marketplace in electricity. ??And today the offspring of the nation's utilities dominate that market after industry leader Enron. ?Eight of the nation's 10 largest power marketers are affiliates or spinoffs of regulated utilities controlling about 42 percent of power trading. ??It is largely these unregulated power producers and traders whose sales of power in California have prompted accusations by state leaders of price gouging and demands for the price caps that federal regulators took their first halting steps toward embracing last week. ??The profitability of the utilities' unregulated operations is becoming clear as companies report earnings for the first three months of the year. ??For example Reliant Energy reported that operating income at its unregulated wholesale energy business soared to $216 million in the first quarter or 16 percent more than at its regulated utility which serves Houston. This week Reliant expects to spin off its unregulated businesses through an initial public stock offering that would put a market value on the new company of as much as $8.8 billion -- more than the rest of Reliant. ??A number of other major utility companies have spinoffs or trading and generation units that now earn nearly as much as or more than their core utility operations. These include Duke Energy in Charlotte N.C. Sempra Energy of San Diego the Southern Company in Atlanta the Constellation Energy Group in Baltimore and Utilicorp United in Kansas City Mo. ??In some places the growth of the unregulated businesses continues to raise questions of fairness -- particularly where utilities have been permitted to transfer plants to the new units at deep discounts to their market value. Critics say that ratepayers whose bills paid for the plants' construction should benefit more when the plants are sold. ??In Florida a commission on energy deregulation formed by Gov. Jeb Bush has proposed permitting such transfers on the grounds that they are needed to create a new wholesale marketplace. Opponents including the Florida Municipal Electric Association which represents utilities owned by local governments say the plan would produce a $9 billion windfall that should go to ratepayers. ??In California some creditors of Pacific Gas and Electric have signaled that they will want the bankruptcy court in San Francisco to review parent PG& E's efforts to keep its unregulated businesses out of creditors' reach. ??And the California Public Utilities Commission is investigating whether PG& E and Edison International whose Southern California Edison utility unit is also near insolvency have improperly transferred cash to their parents and to unregulated sister companies. ??A recent audit ordered by the commission showed that Pacific Gas and Electric transferred $4.1 billion to PG& E from 1997 to 1999. Most of that went to dividends and stock repurchases but $838 million was invested in other subsidiaries primarily its National Energy Group unit. Southern California Edison transferred $4.8 billion to its parent company between 1996 and November 2000 a separate audit showed Edison International invested $2.5 billion in its unregulated Mission Group subsidiaries during the same period. ??Executives of the companies say the transfers were proper. Audits have shown that we followed the rules and didn't do anything wrong said PG& E's chief executive Robert Glynn. We did not ask consumers in California to support any of the losses that occurred in those businesses when we started them up he said. Now forcing the unregulated units to support their ailing sister utility he said would be no different than calling up shareholders and saying 'The California electric bills are pretty high send some money in so we can give it back to them.' ??Loretta Lynch the president of the utilities commission took a different view. Should we look backward she asked and say 'Hey wait a minute -- that corporate structure profited by all of our power payments to them in the past and they should participate in helping us through to get to a solution in the future?' ??The cornerstone deal of PG& E's unregulated energy business was struck four years ago when it acquired the hydroelectric and fossil-fueled generation plants of New England Electric System for $1.6 billion. PG& E is now one of the largest generators in the Northeast operating plants that can light up to five million average-sized homes. ??While California officials say Pacific Gas and Electric's woes have been caused at least in part by market manipulation by out-of-state generators the Justice Department has been investigating possible market abuses involving PG& E and two other companies in New England. Mr. Glynn said that PG& E had done nothing wrong and that the company has responded to Justice Department requests for information. ??Overall PG& E's National Energy Group has 30 power plants in 10 states and others under development or construction that include one in Athens N.Y. that is expected to begin supplying electricity to New York City in 2003. It also operates an energy trading operation in Bethesda and controls a natural gas pipeline into Northern California. ??To Wall Street the utility companies' investments in unregulated businesses were a necessary survival tactic as investors demanded faster-growing profits. ??The stock market was going like gangbusters and the utilities' returns of 11 percent weren't cutting it said Richard Cortright a utility analyst at Standard and Poor's the bond rating agency. ??Moreover as deregulation loomed industry executives saw no choice but to make new investments. It looked like the utility opportunity was going to start shrinking Mr. Glynn said. ??Consumer groups question whether utilities would have invested more in improving basic service if they had not had the option of putting money elsewhere. ??Mike Florio a lawyer with The Utility Reform Network a consumer group in San Francisco cited findings last year by state regulators that from 1987 to 1995 Pacific Gas & Electric spent nearly $550 million less on maintaining electric and gas facilities than had been factored into its rates. Separately in 1999 the utility agreed to pay about $29 million to settle charges that consumers were endangered because it failed to trim trees near high-voltage power lines. ??Several hundred million dollars didn't get spent for maintenance and that ultimately falls to the bottom line as profit Mr. Florio said. ??Mr. Glynn said the utility had always spent appropriate sums on maintenance coming within one-half of one percent of the amount built into rates over a 20-year period. ??In the big picture he said it was hard to see how PG& E had been a winner in deregulation even before its utility's humiliating bankruptcy. If you look at what happened the net of it was a loss Mr. Glynn said because the value leaked out on the regulated utility side faster than we were able to build it on the nonregulated side. About This Report ??This article is part of a joint reporting effort with the PBS series Frontline which will broadcast a documentary about California's energy crisis on June 5. ??http://www.nytimes.com GRAPHIC: Charts: The Biggest Power Marketers Most of the biggest unregulated power marketers and traders are owned by the the country's biggest electric utilities or have been spun off by them. Here are the top 10 based on 2000 sales. Companies owned or spun off from utilities: Enron Power and affliliates MEGAWATTS SOLD IN 2000 (IN MILLIONS): 590.2 MARKET SHARE: 13.03% CHANGE FROM 1999: + 97% Companies owned or spun off from utilities: American Electric Power Service MEGAWATTS SOLD IN 2000 (IN MILLIONS): 401.3 MARKET SHARE: 8.86 CHANGE FROM 1999: +84 Companies owned or spun off from utilities: PG&E Energy and affiliates MEGAWATTS SOLD IN 2000 (IN MILLIONS): 282.6 MARKET SHARE: 6.24 CHANGE FROM 1999: +62 Companies owned or spun off from utilities: Duke Energy and affiliates MEGAWATTS SOLD IN 2000 (IN MILLIONS): 276.2 MARKET SHARE: 6.10 CHANGE FROM 1999: +226 Companies owned or spun off from utilities: Reliant Energy and affiliates MEGAWATTS SOLD IN 2000 (IN MILLIONS): 204.3 MARKET SHARE: 4.51 CHANGE FROM 1999: +166 Companies owned or spun off from utilities: Mirant Americas Energy and affiliates MEGAWATTS SOLD IN 2000 (IN MILLIONS): 202.6 MARKET SHARE: 4.47 CHANGE FROM 1999: +23 Companies owned or spun off from utilities: Aquila Energy Marketing MEGAWATTS SOLD IN 2000 (IN MILLIONS): 186.7 MARKET SHARE: 4.12 CHANGE FROM 1999: +4 Companies owned or spun off from utilities: Cinergy operating companies MEGAWATTS SOLD IN 2000 (IN MILLIONS): 166.4 MARKET SHARE: 3.67 CHANGE FROM 1999: +246 Companies owned or spun off from utilities: Constellation Power Source MEGAWATTS SOLD IN 2000 (IN MILLIONS): 162.3 MARKET SHARE: 3.58 CHANGE FROM 1999: +222 Companies owned or spun off from utilities: Williams Energy and affiliates MEGAWATTS SOLD IN 2000 (IN MILLIONS): 138.4 MARKET SHARE: 3.05 CHANGE FROM 1999: +127 (Source: Platt Power Markets Week)(pg. A17) Outdoing Their Parents Taking advantage of deregulation many of the country's biggest power utilities have set up unregulated subsidiaries to trade and produce power. These subsidiaries have become extremely profitable often outperforming their regulated corporate siblings. UTILITY: Duke Energy OPERATING INCOME (MILLIONS) 1Q '00: +$465 1Q '01: +460 UNREGULATED BUSINESS: North American Wholesale Energy OPERATING INCOME (MILLIONS) 1Q '00: +82 1Q '01: +348 RELATIONSHIP OF UNREGULATED BUSINESS TO UTILITY North American Wholesale Energy is a subsidiary of Duke Energy. UTILITY: Reliant Energy OPERATING INCOME (MILLIONS) 1Q '00: +$202 1Q '01: +186 UNREGULATED BUSINESS: Wholesale Energy OPERATING INCOME (MILLIONS) 1Q '00: -22 1Q '01: +216 RELATIONSHIP OF UNREGULATED BUSINESS TO UTILITY Reliant Energy plans to sell 18 percent of Reliant Resources -- mostly Wholesale Energy -- this week. UTILITY: Southern OPERATING INCOME (MILLIONS) 1Q '00: +$439 1Q '01: +483 UNREGULATED BUSINESS: Mirant OPERATING INCOME (MILLIONS) 1Q '00: +169 1Q '01: +279 RELATIONSHIP OF UNREGULATED BUSINESS TO UTILITY Southern completed the spinoff of Mirant on April 2. (Source: S.E.C. filings)(pg. A17) LOAD-DATE: April 30 2001 of 103 DOCUMENTS ?????????????????Copyright 2001 The Chronicle Publishing Co. ?????????????????????????The San Francisco Chronicle ????????????????????APRIL 30 2001 MONDAY FINAL EDITION SECTION: NEWS Pg. A3 LENGTH: 1108 words HEADLINE: NEWSMAKER PROFILE Nettie Hoge Taking on power Consumer advocate revels in uphill battle SOURCE: Chronicle Staff Writer BYLINE: Chuck Squatriglia BODY: Given a choice Nettie Hoge would rather be out in her garden right about now digging in the dirt. ???Instead the head of The Utility Reform Network is digging into California's energy mess making sure the average Joe doesn't take it in the kisser as lawmakers regulators and utility brass hats try to keep the lights on and utilities afloat. ???It's grueling work full of long hours that leave precious little time for the gardening Hoge so adores. Not that she's complaining. Hoge 50 honestly loves her job and insists she wouldn't do anything else. ???I've got a mutant gene she said with a laugh as she relaxed for just a moment in a spartan office littered with messy piles of paperwork. I've always wanted to do this. ???TURN has been keeping tabs on companies like Pacific Gas and Electric Co. and Pacific Bell for more than 25 years. Hoge and her crew lobby the Public Utilities Commission counsel lawmakers analyze reports and file the occasional lawsuit. They are in short professional gadflies who represent the public in a system that some say favors big business. ???The biggest protector of the consumer by far has been TURN said Bob Gnaizda public policy director for the Greenlining Institute in San Francisco. (Hoge) has made TURN into the leading consumer utility advocate in the nation. ???It's not glamorous work nor is it particularly lucrative. Hoge a lawyer by training took a pay cut when she accepted the $75000-a-year job in 1995. And truth be told most folks have no idea Hoge is in their corner. ???There are other rewards she said. You don't get the adoration of Joe Citizen standing up and yelling 'Yay TURN!' But there's an excitement about being involved in the discussions where the big decisions are made. ???The youngest of four children Hoge bounced around the middle of the country as she grew up following her career Army officer father from Kansas to Oklahoma to Texas. ???All the places where you can shoot big guns she joked. ???Hoge graduated from high school in Pullman Wash. After a stint at the University of Southern California she graduated Phi Beta Kappa from Washington State University and earned a law degree from the University of San Francisco. ???Hoge's entire career has been spent protecting the underdog. During a two-year stint as a law school graduate at Brobeck Phleger & Harrison in San Francisco I got into trouble for doing too much pro bono work Hoge recalled. The partners would come around each month to check our billable hours. Mine were always zero. ???Since taking the helm almost six years ago Hoge has led TURN to some impressive consumer victories. They include persuading the Public Utilities Commission to create a $352 million fund to underwrite rural telephone service and bringing an end to ratepayer subsidies of PG&E's Diablo Canyon nuclear power plant in 2002. ???Hoge a stickler for detail has a reputation for giving exhaustive answers to even mundane questions. ???Everybody agrees she knows what she's talking about said Harvey Rosenfield president of the Foundation for Taxpayer and Consumer Rights. In many respects TURN is the intellectual force in this debate. Those of us who are deeply involved in this issue rely upon Nettie to lay out the facts for us. ???Hoge is surprised people think her wonkish but admits she is circumspect. ???My big fear is being marginalized and having people think we (at TURN) don't know what we're talking about she said. Maybe I overcompensate. ???Few doubt Hoge's smarts but she has plenty of critics among the utilities lawmakers and lobbyists she has crossed swords with over the years. However none of them will say anything publicly. ???We have no comment on her said Shawn Cooper a spokesman for Pacific Gas and Electric Corp. the parent company of the foundering utility. ???It was the same story with Southern California Edison and many of the legislators who have criticized Hoge and TURN in recent years. ???Hoge isn't surprised her adversaries are keeping mum. ???There's nothing for them to gain by saying anything negative about us because the public is on our side she said. ???Still TURN has drawn criticism from Carl Wood generally considered the most ardent consumer advocate on the PUC. ???Frankly I would have expected myself to be on the same page with (TURN) more than I actually am Wood said. I'm not sure they wholeheartedly believe in regulation and I think it comes from a distrust of regulators. But maybe I'm taking it personally. ???Wood chastised TURN for supporting utility divestiture of generating plants as California's deregulation effort got under way. And he said Hoge places too much emphasis on the utilities' role in the energy mess instead of focusing on the profiteering of power generators. ???The utilities have some culpability but they are not the main driver behind the crisis Wood said. TURN's interventions do not reflect that reality. ???Still he gave TURN high marks and credited Hoge with making it a far more effective advocate. ???Hoge admits she has had her hands full with the energy crisis saying she and her staff are trying to keep our health and sanity. ???Asked if she would have joined TURN if she had known how crazy California's energy market would become and how hard she would have to work Hoge was characteristically wary. ???I don't think anyone would want to sign up for this she said after a moment's pause. On the one hand it's very serious very rewarding work. But on the other hand sometimes you're just beating your head against the wall. ???Still Hoge doesn't plan to give up the fight anytime soon. ???But at some point I'd like to retreat and spend some time contemplating the forest for the trees. ???Or the garden for the plants. ??Nettie Hoge -- Age: 50. ???-- Residence: Oakland. ???-- Job: Executive director The Utility Reform Network October 1995 to present. The utility and telecommunications industry watchdog group in San Francisco represents consumers before the Public Utilities Commission the Legislature and elsewhere. ???-- Education: Bachelor's degree in communications Phi Beta Kappa from Washington State University 1976. Law degree cum laude from University of San Francisco 1985. ???-- Background: Most of Hoge's 25-year career has been spent protecting the little guy first as a social worker and later as an attorney with Consumers Union and the California Department of Insurance under Insurance Commissioner John Garamendi.E-mail Chuck Squatriglia at [email protected]. GRAPHIC: PHOTO (1) Nettie Hoge is respected for her encyclopedic knowledge of regulatory issues. (2) Nettie Hoge has headed The Utility Reform Network for six years. I've always wanted to do this she says. / John O'Hara/The Chronicle LOAD-DATE: April 30 2001 of 103 DOCUMENTS 2001 The Washington Post Washington Post ????????????????????April 30 2001 Monday Final Edition SECTION: A SECTION Pg. A03 LENGTH: 1669 words HEADLINE: Energy Forecast for Summer: No Blackouts but Price Spikes Grid Managers Promote Conservation Await New Plants BYLINE: William Claiborne Washington Post Staff Writer DATELINE: CHICAGO BODY: ??The rest of the United States is virtually certain to escape rolling blackouts this summer like the ones that have plagued California but record price hikes for electricity are likely in many places energy experts agree. ???Despite their confidence that they can survive everything but an extremely hot summer without power outages managers of the nation's interconnecting electrical power grids are anxiously awaiting new power plants that are scheduled to come on-line. They are also promoting more frugal consumption by power customers and seeking ways to avoid distribution logjams during peak demand periods this summer. ???We see a big distinction between California and the rest of the country said David Costello an economist in charge of short-term forecasting for the Energy Information Administration the statistical arm of the Department of Energy. We have no real reason to believe anyplace is unusually at risk. ???But record spikes in the price of electricity are a given for this summer some industry analysts say because a growing proportion of power plants now run on natural gas which has doubled in price over the past year. ???The DOE estimates that electricity demand will grow 2.3 percent nationally this year with much higher increases in the West and the South. At the same time the reserve capacity margin that utilities try to build into their systems to handle the hottest days -- when use of air conditioners and other appliances taxes supplies -- has been falling in some regions to well less than the desired 15 percent above peak summer loads. ???That means utilities may have to import large volumes of electricity over transmission systems that were not designed to handle them. What power officials are hoping to avoid are critical shortfalls in generating capacity in some regions followed by overwhelming strains on aging high-voltage transmission lines as power is bought and sold across the country in increasingly competitive electricity markets. ???Even though scores of new power plants have been built in the Northeast South and Midwest in recent months and many more are on the drawing boards the expected 15 percent increase in new generation will not be fully on-line for another two years. That leaves parts of the nation vulnerable to outages if there are prolonged heat waves this summer or if utilities are unable to start up new or rebuilt gas-fired power plants as scheduled according to energy experts. ???Despite all those potential problems there is no reason to believe that California's power nightmares will spread to the rest of the country officials said. ???This year utilities have announced they are adding 40 to 50 gigawatts of new generating capacity to gas-fired plants across the nation compared with only 22 gigawatts that were added last year Costello said. He said that even if half of those announced plants never materialize this year's new capacity is certain to be as great or greater than last year's meaning that the predicted increased consumption can probably be met. A gigawatt is 1000 megawatts or enough to power about 1 million homes. ???We don't know that [transmission] infrastructure has really been fixed but my sense is they're in better shape overall as far as capacity is concerned Costello said. ???The nation's 203600-mile high-voltage network has undergone relatively few changes in 50 years during which deregulation has prompted electricity wholesalers to sell power at even greater distances to reach more lucrative markets adding to the pressure on the grid system. ???California in a sense has been serving as a stalking horse for other states some of which also deregulated their electricity systems and are consciously avoiding doing anything that resembles the California model. ???Eugene Gorzelnik spokesman for the North American Electric Reliability Council (NERC) which oversees the interlocking power grids said: Obviously there will be problems in California and there's nothing that's going on that will solve those problems. But a lot of [utilities] people are looking at California and saying to themselves 'Can I do this in a way they didn't?' That's a positive development. ???Apart from California the worst problems are expected in adjoining western states as Golden State electrical grid managers scramble to buy electricity at a time when power production at the region's hydroelectric dams is already being cut because of shrinking water levels in reservoirs. ???The Northwest Power Planning Council recently reported that the demand for electricity has grown 24 percent in the past decade while new generation has grown only 4 percent. ???NERC is not expected to issue its long-awaited pre-summer electricity reliability assessment -- a document that forecasts peak generation and consumption -- until next month. But in interviews officials of many of the 10 regional reliability councils that comprise the national grid system appeared fairly sanguine about the prospect of avoiding widespread brownouts this summer. ???Assuming normal weather and assuming our generating units come off maintenance on schedule we don't anticipate any particular problems meeting our loads said Bill Reinke executive director of the Southeastern Electricity Reliability Council. ???Reinke said the region was adding 300 miles of new transmission lines has 5600 megawatts of new generating capacity -- enough to power 5.6 million homes -- and is seeking to identify potential transmission bottlenecks so it can take preemptive corrective measures against distribution failures. ???Outside the West the greatest potential for blackouts may be in New York where the near certainty of transmission logjams in an antiquated infrastructure prompted Consolidated Edison Co. to request approval for 11 combustion turbine mini-generators in case of a power shortage. Residents and conservationists are appealing court approval of the generators on environmental grounds. ???Stephen Allen spokesman for the Northeast Power Coordinating Council said If the 400 megawatts the generators provide go on-line it'll still be tight but New York should be okay. He said Upstate New York should have surplus electricity to sell to New York City although some experts say transmission bottlenecks could make it difficult for New York City to import power on abnormally hot days. ???New York City customers who have already had their electricity rates increased 40 percent in the last two years could see prices rise an additional 50 percent because of the deregulated power industry's dependence on gas-fired generation according to some analysts. ???Allen said that since last June New England has added mostly gas-fired plants that generate more than 1000 megawatts and should have an additional 2000 megawatts on-line before the end of the summer. He said the region should have a 15 percent to 18 percent capacity margin. ???The Mid-Atlantic Area Council made up of Maryland Virginia the District of Columbia Delaware New Jersey and Pennsylvania is expecting a reserve margin of more than 16 percent and an increase of 2100 megawatts in generating capacity over last year to about 60000 megawatts according to the council's president Phillip G. Harris. Harris said the council met last year's peak of 49288 megawatts with no problems though the summer of 2000 was relatively cool. ???Harris cited several reasons why we are not like California including a decision to centralize all planning which California did not the creation of a regional market instead of a state-based marketplace like California's and a policy of only slow incremental changes in the grid. ???A single misstep can have huge consequences Harris said. We're tinkering with something that has worked for 100 years so you better do it right. ???In the Midwest utilities expect a peak demand this summer of 55221 megawatts compared with 52214 megawatts last summer according to Richard Bulley executive director of the six-state Mid-America Interconnected Network. But keeping pace with the nearly 6 percent increase in demand is the addition of 5470 megawatts of capacity Bulley said. ???We do not anticipate any major limitations on the region's bulk transmission system and we project a healthy reserve margin of more than 18 percent he said. ???Since 1998 33 companies have proposed projects in Illinois totaling 25000 megawatts of gas-fired power. Although no one expects all of that to come on-line the state's total generating capacity is just under 34000 megawatts meaning that even if only a modest amount of the anticipated power was added the region would have a cushion even in a hot summer. ???Officials of Commonwealth Edison Co. the biggest utility in Illinois say that new or rebuilt electrical distribution facilities should prevent a repeat of the kind of disastrous power outages that crippled offices in Chicago's Loop last summer when lines broke and transformers burst into flames. ???Few power grids are in as good shape as Texas's. The state anticipates a 23 percent power margin this summer and the addition of 9188 megawatts of new generating capacity this year according to Heather Tindall spokeswoman for the Electric Reliability Council of Texas (ERCOT). Texas utilities have 27 new power plants under construction and 31 more in the planning stages she said. ???As a result ERCOT is forecasting almost 70000 megawatts of generating capacity this summer compared with a peak demand of 57600 megawatts on one 111-degree day last summer. ???Tindall said that after studying California's system the Texas grid made a concerted effort to operate theirs differently. For example she said Texas supports utilities entering into long-term contracts for power while in California power companies did not enter into such contracts and were forced to pay exorbitant prices at peak times. LOAD-DATE: April 30 2001 of 103 DOCUMENTS ???????????????????The Associated Press State & Local Wire The materials in the AP file were compiled by The Associated Press. ?These materials may not be republished without the express written consent of The Associated Press. ???????????????????????April 30 2001 Monday BC cycle AM Eastern Time SECTION: State and Regional LENGTH: 594 words HEADLINE: Developments in California's energy crisis BYLINE: By The Associated Press BODY: ??Developments in California's energy crisis: ??MONDAY: ??- Members of the Assembly Subcommittee on Natural Gas Costs and Availability unveil legislation to cut natural gas prices. ??- The state remains free of power alerts as electricity reserves stay above 7 percent. ??FRIDAY: ??-Gov. Gray Davis calls a federal regulatory order a Trojan horse that will profit power generators at California ratepayers' expense. The Federal Energy Regulatory Commission is considering requiring the state's electric grid operator to add a surcharge on power sales to pay generators the money they are owed by the state's two large financially strapped utilities. ??- State power buyers have asked for another $500 million to buy electricity for the customers of three cash-strapped utilities. That brings the total amount authorized for power purchases to $6.2 billion since mid-January when the state began purchases power for Pacific Gas and Electric Co. Southern California Edison and San Diego Gas and Electric. ??- Gov. Gray Davis says state office buildings cut energy use by an average of 20 percent in January and February saving taxpayers $286000 in utility bills. ??- State officials negotiating long-term power contracts for customers of three cash-strapped utilities have secured five more contracts. Four of the contracts signed in March by the Department of Water Resources will provide 466 megawatts of electricity during times of peak demand this summer according to DWR documents. One megawatt is roughly enough power for 750 homes. ??- California Public Utilities Commission attorneys are advising state agencies to avoid submitting monetary claims against Pacific Gas and Electric Co. despite the company's bankruptcy. The PUC is trying to retain their electric rate-setting authority over the utility and says submitting claims could bring the state under the court's jurisdiction as a creditor which could allow the judge to set electric rates. ??- Shares of Edison International closed at $9.90 up 15 cents. PG&E Corp. closed at $8.94 up 20 cents. ??-The state remains free of power alerts as reserves stay above 7 percent. ??WHAT'S NEXT: ??- Davis' representatives continue negotiating with Sempra the parent company of San Diego Gas and Electric Co. to buy the utility's transmission lines. Davis says he expects to have an agreement within two weeks. ??THE PROBLEM: ??High demand high wholesale energy costs transmission glitches and a tight supply worsened by scarce hydroelectric power in the Northwest and maintenance at aging California power plants are all factors in California's electricity crisis. ??Edison and PG&E say they've lost nearly $14 billion since June to high wholesale prices the state's electricity deregulation law bars them from passing on to consumers. PG&E saying it hasn't received the help it needs from regulators or state lawmakers filed for federal bankruptcy protection April 6. ??Electricity and natural gas suppliers scared off by the two companies' poor credit ratings are refusing to sell to them leading the state in January to start buying power for the utilities' nearly 9 million residential and business customers. The state is also buying power for a third investor-owned utility San Diego Gas & Electric which is in better financial shape than much larger Edison and PG&E but also struggling with high wholesale power costs. ??The Public Utilities Commission has raised rates as much as 46 percent to help finance the state's multibillion-dollar power buys. LOAD-DATE: April 30 2001 of 103 DOCUMENTS 2001 Associated Press Online 29 2001 Sunday SECTION: Domestic non-Washington general news item LENGTH: 1313 words HEADLINE: ?Geothermal Plants Need More Steam BYLINE: JENNIFER COLEMAN DATELINE: MIDDLETOWN Calif. BODY: ???Geothermal plants in The Geysers area north of the Napa Valley have tapped steam fields to produce electricity since the 1960s. The 350-degree steam rushes more than 1500 feet up from the earth spinning turbines that create a constant flow of electricity. ??But mismanagement of the steam fields beneath the hilly northwestern California region that straddles the Sonoma and Lake county lines has led to a large decline of pressure and a drop of more than 50 percent in the amount of power the plants produce. ??The geothermal decline comes as California already faces short supplies of hydroelectricity from the drought-ridden Pacific Northwest and growing competition for megawatts from other power-starved states. ??State power grid managers estimate they're losing about 900 megawatts of geothermal electricity due to the gradual depletion of the steam fields. That's enough power for roughly 675000 homes. ??''They just overproduced. It is a renewable source of power but it's renewable over geologic time'' says Katherine Potter a spokeswoman for Calpine Energy which owns 19 of the 21 geothermal power plants in The Geysers region which incidentally has no geysers. ??The first electricity produced by tapping into pockets of steam trapped in the earth made its debut in 1904 in Larderello Italy. That plant rebuilt due to World War II damage is still operating. The first U.S. geothermal plant was a small operation at The Geysers built in 1962. ??Steam fields are created when water flows through fissures in the rock deep in the earth and is heated by hot magma. Geothermal plants tap into that pressure and use it to spin turbines. The plants' cooling towers release plumes of white steam which can be seen for miles on a clear day. ??While The Geysers is a unique geologic formation called a dry steam field there is the potential for thousands of megawatts of geothermal power from other regions that could use the more common ''wet steam'' process said Karl Gawell executive director of the Geothermal Energy Association in Washington D.C. ??Wet steam plants tap into superheated water in the earth separate the steam and use it to power generators. The water and the condensed steam is pumped back into the earth. ??CalEnergy Corp. owns 10 power plants in Imperial County that produce about 330 megawatts of power enough for about 247500 homes. Those plants and others like them haven't seen a decline in pressure like Calpine's plants. ??Geothermal energy is second only to hydroelectricity as a continuous cheap source of power said Jan Stewart Calpine's public relations manager. ??The plants in The Geysers reached their peak power production in the 1980s producing about 2000 megawatts of electricity enough to power about 1.5 million homes. ??At that time about 30 companies were involved in various geothermal ventures in the area and didn't work together Stewart said. ??''The resource wasn't being managed properly. As a result it was a very fractured environment'' she said. ''If one plant shut down the steam would be vented to the atmosphere instead of being rerouted to another plant where it could be used.'' ??In the 1960s and '70s when The Geysers got started there was ''a real wildcatter's mentality'' among power generators said Rich Ferguson energy chairman for Sierra Club California. ??''Basically they took out the water in the form of steam faster than Mother Nature was putting it back in'' he said. ??The available steam declined and the area now puts out about 850 megawatts sufficient power for roughly 637500 homes. ??Since then geothermal engineers have learned more about managing the resource Ferguson said. ??The superheated self-contained system at The Geysers has no ??ater running through it. ?''The Geysers is unique worldwide. There really aren't other dry steam fields'' Gawell said. ''In effect there was never a sustainable level of production you always would have depleted it eventually. It's like a giant pressure cooker. As soon as you put the first straw in you began to deplete the resource.'' ??Calpine is experimenting with replenishing the steam fields by pumping treated waste water back into the earth. It began three years ago when Lake County stopped pumping its treated waste water into Clear Lake. ??Now more than 8 million gallons of treated waste water is returned daily to the earth. The experiment appears to be working _ power output is up 68 megawatts. ??''People like the stewardship that Calpine provides now'' Ferguson said. '' Calpine has taken on as a long-term goal to make that sustainable.'' ??Calpine is building a 50-mile pipeline to Santa Rosa and plans to pump another 11 million of treated waste water daily from that city. The company expects that will boost production another 85 megawatts. ??Even with the new project power grid managers say they're planning for diminishing geothermal electricity. ??''We've lost a considerable portion of their output due to the decline in the output of the steam'' said Jim McIntosh director of grid operations for the Independent System Operator. ''All supplies are very important to us at this point.'' ??The plants are relatively low-maintenance once they're running _ only one engineer staffs each of the 19 Calpine plants in The Geysers. ??But geothermal plants are more expensive to build than natural gas-fired power plants Gaywell said. ??''It's like choosing between two identical cars one is $10000 and the other is $30000 but the $30000 car comes with a lifetime supply of fuel'' he said. ''People are shortsighted on investments and it takes more money upfront to build geothermal.'' ??Most geothermal resources are on public land lengthening the building process because more permits are needed Gawell said. ??Two new plants are in the application process in California. ??Researchers estimate there are 2500 megawatts of untapped geothermal resources in Nevada Gawell said. Idaho New Mexico and Oregon also have sites that could be tapped he said. ??''Many of these sites were looked at in the '80s but then nothing happened because in the '90s natural gas was too cheap to meter'' he said. ??Ferguson said the state spent $540 million over the last four years on incentives for renewable energy projects including geothermal solar wind and biomass and he expects the plan will be renewed when it expires in December. ??''We think there will be an equivalent amount of money'' he said. ''All the technologies have to compete against each other but geothermal should do pretty good.'' ??___ ??There are three types of geothermal power plants. Here's a look at how they work: ???Dry steam: Such plants are rare producing steam and not hot water. The Geysers region is the world's largest dry steam field. Steam from the earth is piped to the power plant where it spins turbines to create electricity. After the remaining steam condenses back to liquid it is returned to the earth. ???Wet steam: This type of geothermal plant is more common. There are several such plants in Southern California. Hot water and steam are brought to the surface separated and the steam is used to power turbines. The water is returned to the earth as is the condensed steam. ???Binary: These plants use hot water and steam from the earth to heat another liquid such as isobutane which has a lower boiling point than water. That liquid's steam is used to power turbines to make electricity. When the steam cools and becomes liquid it's returned to the tank and reused. This type of system is self-contained and has no emissions. ??___ ??On the Net: ??Geothermal Education Office: http://geothermal.marin.org ??California ISO: http://www.caiso.com ??Calpine Corp.: http://www.calpine.com ?????(PROFILE ?????(CO:Calpine Corp TS:CPN IG:ELC) ?????) LOAD-DATE: April 29 2001 of 103 DOCUMENTS ???????????????????The Associated Press State & Local Wire The materials in the AP file were compiled by The Associated Press. ?These materials may not be republished without the express written consent of The Associated Press. ???????????????????????April 29 2001 Sunday BC cycle SECTION: State and Regional LENGTH: 413 words HEADLINE: Guns in schools deregulation delay on lawmakers' agenda BYLINE: By BRAD CAIN Associated Press Writer DATELINE: SALEM Ore. BODY: ??Backers of a bill to prevent holders of concealed handgun licenses from bringing their weapons onto school property will spend the coming week trying to force a Senate vote on the issue. ??Also this week House Speaker Mark Simmons is planning to schedule a hearing on his bill to pull the plug - at least for now - on a key part of an electric deregulation law that's due to take effect this fall for large businesses. ??The guns-in-schools bill has been on life support for weeks with a key Senate committee chairman refusing to schedule a hearing on the bill on grounds that it is overly contentious and wouldn't pass anyway. ??The sponsor of the bill Sen. Ryan Deckert D-Beaverton and other supporters aren't giving up however. ??They are hoping to use a parliamentary maneuver that would enable them to move the school guns issue to the full Senate for debate by attaching it to another education-related bill. ??Gun owner groups say SB508 is unnecessary because there have been no documented cases of law-abiding carriers of concealed handguns causing any problems at schools. ??But a key supporter of the bill Sen. Ginny Burdick D-Portland says she is convinced the measure would pass in both the House and Senate - if it can be brought up for vote. ??I don't think we should wait to have dead children before we ban guns in schools said Burdick who was a chief sponsor of a measure passed by voters last fall expanding background checks at gun shows. ??California's power woes that were precipitated by that state's move to deregulation are giving Oregon lawmakers second thoughts about their decision to approve a phased-in deregulation of the electricity market in Oregon. ??A bill passed by the 1999 Legislature is supposed to open Oregon's electric markets to industrial and large commercial customers beginning this October. ??The 1999 law is supposed to free large businesses to buy power on the open market and does not deregulate electric rates for residential customers. ??Still Simmons says that drought conditions and the power market turmoil caused by California's energy crisis require reconsideration of the law. ??For that reason the House speaker is planning hearings this week on his proposal to enact a 15-month delay in Oregon's electricity restructuring efforts. ??This just gives the opportunity for the energy markets to settle for a while the Elgin Republican said. ??Similar legislation is pending in the Senate. LOAD-DATE: April 30 2001 of 103 DOCUMENTS 2001 The Post Register Falls Post Register 29 2001 Sunday SECTION: News Pg. a1 LENGTH: 530 words HEADLINE: Plenty of blame to go around for West's power woes BYLINE: PAUL MENSER BODY: ??When it comes to power the West is a mess. ??Because of its botched deregulation attempts California bears a lot of the blame - but not all of it said Susan F. Tierney a former assistant secretary in the Energy Department now a consultant for Lexecon a Cambridge Mass. consulting firm. ??Like planets lining up to usher in an age of hysteria a combination of unforeseen circumstances have put the Northwest behind the eight ball. In addition to California's self-created tangle oil and natural gas prices are rising and a drought is stymieing the region's hydropower production. ??The situation is less volatile in other parts of the country. In the Northeast South and Midwest where growth has been modest and generating capacity has been more stable there's less discrepancy between supply and demand. ??Undergirding the West's situation was some serious lack of foresight Tierney said. ??When it looked like California power customers would be able to get electricity from whoever offered it at the cheapest price utilities worried about recovering the money they'd spent building plants and transmission lines in the '70s and early '80s. So they sold off their power plants and bought power on the wholesale market where it was cheap and plentiful. ??Not trusting the marketplace California legislators capped the rates utilities could charge residential customers. When wholesale power prices went up they couldn't pass those increases on to consumers. ??At the time they did not realize that in a couple of years there would not be an adequate power supply Tierney said. ??California's economic explosion of the late '90s coupled with a failure to build any new plants brought the crisis to a head. Computers are not by themselves big energy consumers but the factories that make them are. The Internet with all its server farms and data hotels also became a heavy power user. ??When demand in California finally caught up with supply all of a sudden utilities had to buy power and it became a seller's market Tierney said. ??But most of the Northwest's power comes from hydroelectric dams and there has to be water in the rivers to power the turbines at the dams. In a drought year like this the power has to come from somewhere else most likely oil- and natural gas-fired plants which fire up when demand is high. ??Because demand is so high this year generators can charge exorbitant prices knowing that California and the Northwest have nowhere else to buy power. ??Also natural gas prices have gone through the roof in the last 18 months and aren't likely to come down until next year at the earliest. Until 18 months ago the price of natural gas had been at a prolonged low so companies weren't interested in expensive drilling projects. ??The problem is not likely to be permanent. As exploration and extraction pick up prices will come down. The public has already begun to hear a conservation message and the Federal Energy Regulatory Commission is being deluged with applications for new power plant construction. ??Staff writer Paul Menser can be reached at 542-6752 or via e-mail at [email protected]. LOAD-DATE: April 29 2001 of 103 DOCUMENTS 2001 / Los Angeles Times Angeles Times ?????????????????????April 29 2001 Sunday Home Edition SECTION: Opinion Part M Page 6 Opinion Desk LENGTH: 1312 words HEADLINE: THE STATE HOW KILOWATT SOCIALISM SAVED L.A. FROM THE ENERGY CRISIS BYLINE: JEFF STANSBURY Jeff Stansbury is a PhD candidate in American history at UCLA. His dissertation is on the role of the labor movement in the building of L.A.'s infrastructure BODY: ??Why is Los Angeles an island of tranquillity in the electric-power crisis that has rocked California and threatens to spread across the nation? ??News stories have repeatedly told us that the city's ownership and operation of its own generating stations is the principal reason. By staying clear of the state's 1996 deregulation scheme for private utilities the Department of Water and Power was able to hold onto its power plants. ??So far so good. But when we ask how Los Angeles came to enjoy public power in the first place the answer commonly given makes a hash of history. ??Most historians and political scientists credit the city's progressive reform movement of 1890-1915 for having wisely settled on a municipal utility. True some of the entrepreneurs lawyers and reform-minded professionals who called themselves the best men during that era agitated for the city-built Owens Valley aqueduct and its generating stations. But many reformers opposed the city's effort to distribute its own power. Because they had allied themselves with railway magnate Henry Huntington who owned an electric company or because they favored regulation over municipal ownership they wanted L.A.'s three private electric companies to sell and profit from aqueduct power. Meyer Lissner a reform attorney often portrayed as a champion of public power opposed the holding of a decisive 1911 citywide straw poll on the subject because he knew most Angelenos would cast their ballots for municipal ownership. That he said would be unfair to the three utilities. ??The most steadfast partisans of public power were not progressive reformers like Lissner but the city's much-maligned labor unions and for a simple reason. While mistrust of oligopoly ran through nearly all sectors of society it burned hottest in working-class wards. Without organized labor's dogged campaign for gas and water socialism as well as its willingness to hand control of these resources to the anti-union regimes of Mayors George Alexander and Henry Rose there would be no DWP today. ??Organized labor played a key role in the city's original decision to municipalize its water distribution system. On Oct. 24 1892 700 union members met to demand that the city build a small neighborhood waterworks as a step toward public control of the entire water supply. From that day on L.A.'s unions never wavered in their call for a public water supply publicly managed. They mobilized the rank and file for the water-company buyouts of 1901-04 and in 1906 the Public Ownership Party's citywide campaign primed voters to pour $ 23 million into construction of the Owens River aqueduct a year later. The aqueduct was the sine qua non of public power. At a time when most progressive reformers were mute on the subject organized labor insisted that the aqueduct be used to generate electricity for the city's streets homes and businesses. ??A broad consensus backed the city's construction of hydroelectric plants while the aqueduct was being built but most of the city's politicians and corporate lobbyists were committed to public subsidies not public ownership of aqueduct power. The 1911 straw poll in which city voters declared their support for municipal ownership and distribution of Owens River power upset their plans. ??The most consistent fighters for public power during the decades after the straw poll were the Central Labor Council International Brotherhood of Electrical Workers other unions and city employees who stuffed campaign envelopes canvassed precincts and got out the vote. Voters who favored municipally owned power and initiatives bolstering the DWP tended to be working class and Democratic those opposed were mainly middle and upper class and Republican. ??In this polarized political climate Mayor Alexander called for a $ 6.5-million bond issue to complete the aqueduct-power distribution network he left open the question of who would sell the power to consumers. Unions and socialists tied their support for the bonds to a city charter reform that would guarantee them a long-sought role in city government through proportional representation. When the reform failed at the polls they withheld support from the power bonds and these too went down to defeat in 1913. Much of the rancor workers felt was aimed at progressives like Lissner head of the Good Government Organization who fought labor's charter plank because it would bring socialists onto the City Council. ??The labor movement's dedication to public ownership soon reasserted itself however. With a citywide election coming up that June five unionists seeking council seats on the Socialist Party ticket revived labor's long-standing demand for city operation of all public utilities at cost. They urged the City Council to hold a new power-bond election with a clear public ownership mandate. They attacked the power companies' efforts to buy aqueduct power from the city and sell it to Angelenos at a profit. Soon the great majority of unions in the Central Labor Council were locked in what turned out to be a decisive struggle against the power oligopoly made up of Southern California Edison Pacific Light & Power and Los Angeles Gas & Electric. ??An unprecedented event brightened the bonds' chances. A machinist Fred C. Wheeler won a seat on the City Council the first unionist to do so in the 20th century. Wheeler led a successful fight against an attempt to split the power-bond issue into two separate ballot propositions one to complete the aqueduct's generating stations the other to create a city-owned distribution system. Such a division would probably have doomed public power. ??The large majority of unionists who favored public power had little time to savor Wheeler's victory. While pressing the attack on the three electric companies they faced a small but angry split in their own ranks. Dissenters in the Building Trades Council and a few of its unions argued that labor's grievances against the progressive regimes of 1909-14 had turned the argument for municipal ownership on its head. What good was municipal ownership in the hands of a council and mayor who had caused the arrest of hundreds of peaceful picketers during the citywide strikes of 1910 had underpaid aqueduct workers and fed them bad food and had denied unionists influential city jobs? The final blow was the council's rebuff of a petition signed by thousands of workers for a living wage law. Was it not folly to reward labor's foes with control of the aqueduct's power? ??Union activists who favored the bonds conceded that the dissenters were correct in their assessment of progressive city government. But the progressive star was fading. What counted in the long run was whether Los Angeles could wrest the city's electric power system from the grasp of private utilities. The Central Labor Council's unions took this challenge to heart and voted 60-4 for a resolution favoring the bonds. ??On its own as well as in coalition with other groups the labor movement marshaled its rank and file on behalf of public power. It turned out hundreds of poll-watchers and canvassers on election day. The pro-bond unions never did win over the dissenting faction rather they overwhelmed it at the polls. On May 8 1914 L.A.'s voters emphatically endorsed the power bonds by a hefty 71%-29% with the city's working-class wards providing by far the largest margin of victory. ??Within a year Los Angeles sold its bonds and began buying out the three investor-owned utilities. The first public power flowed into local homes and businesses in 1916. Two decades later the DWP eliminated the last of its private competition and consolidated the working-class legacy of kilowatt and water socialism that has served the city so well in the current energy crisis. GRAPHIC: GRAPHIC-DRAWING: (no caption) JENNIFER HEWITSON / For The Times LOAD-DATE: April 29 2001 of 103 DOCUMENTS 2001 / Los Angeles Times Angeles Times ?????????????????????April 29 2001 Sunday Home Edition SECTION: Opinion Part M Page 4 Editorial Writers Desk LENGTH: 558 words HEADLINE: CONSERVATION SANDBAGS THE DAVIS ADMINISTRATION NEEDS TO LAUNCH A CRASH EDUCATION COURSE TO CONVINCE CALIFORNIANS OF THE SERIOUSNESS OF THE ELECTRICITY CRISIS AND THE NEED FOR FAR-REACHING ENERGY-SAVING MEASURES. BODY: ??Natural disasters and crises can be devastating but are relatively simple and easy to grasp. A brush fire you fight with shovels. An earthquake you clean up the rubble afterward and strengthen buildings in anticipation of the next. But California's energy crisis is far different and more complex. It's a quiet disaster on scattered invisible fronts. Most people see it only when their own lights go out. ??There also is no precedent for this crisis in California and no accurate way to forecast how bad it can get either the blackouts or the financial consequences. But as May approaches it's certain that most Californians are not adequately informed about the severity of the problem or what they can do to limit its impact. ??Gov. Gray Davis the utilities and others need to engage in a crash education program that will convince Californians of the seriousness of the problem and motivate them to undertake their own conservation programs in homes and businesses. California has been a pioneer in power conservation and its citizens will listen to persuasive reasoning. ??As the chairwoman of the state Senate's Energy Committee Sen. Debra Bowen (D-Marina del Rey) deals with problems ranging from utility company insolvency to rate gaming by energy producers. But I'm really worried about this summer she said last week referring to the potential for day after day of rolling blackouts. She told of one businessman in her district who reported he will lose an estimated $ 30000 every time his power is cut. Why not at least schedule blackouts so people can plan for them? she asked. Why not? ??In San Francisco the Bay Area Economic Forum released a study indicating that power woes could deliver a $ 17-billion blow to the state's economy in lost production the cost of rate increases and increased product prices. That may be conservative. The study did not include the $ 5.1 billion the state has spent so far to buy power for the insolvent private utilities. ??Republicans in the Legislature are stalling bills that would float a $ 10-billion revenue bond issue to finance power purchases and keep the state fiscally above water. They have latched onto a powerful issue Davis' unwillingness to detail how he's spending the taxpayers' billions. Davis says he needs secrecy for competitive reasons as he bargains with power companies though he is letting out a slightly wider trickle of figures. ??Wall Street already wary about the credit-worthiness of the state thinks poorly of the delay in issuing the bonds. Republicans should put a temporary hold on their battle with Davis and get the measure to the governor's desk this week. ??Lawmakers were slow in passing an $ 850-million conservation program Bowen acknowledges. But Davis put the new program on a fast track Friday and made a smart choice in S. David Freeman former chief of the Los Angeles Department of Water and Power to run the conservation effort. ??Freeman 75 is a canny veteran of electric power politics. Davis may abhor giving out bad news but Freeman need not shrink from it. Freeman should be on radio and television every day telling California just how bad the problem is and what they can do about it. If this were a flood we'd be stacking sandbags. Our sandbags are conservation programs. We need to start stacking them now. LOAD-DATE: April 29 2001 of 103 DOCUMENTS 2001 / Los Angeles Times Angeles Times ?????????????????????April 29 2001 Sunday Home Edition SECTION: Part A Part 1 Page 27 National Desk LENGTH: 1316 words HEADLINE: BUSH: THE FIRST 100 DAYS BUSH IS OFF TO A ROCKY START IN HIS HANDLING OF ALL THINGS CALIFORNIAN POLITICS: BUT WHY WOO THE GOLDEN STATE WHEN HE CAN'T CARRY IT IN AN ELECTION 'NO MATTER HOW HARD HE TRIES' ONE ANALYST POINTS OUT. BYLINE: RICHARD SIMON TIMES STAFF WRITER DATELINE: WASHINGTON BODY: ??So what if President Bush has opposed electricity price controls sought by California officials? Or that he has proposed cutting aid to states for incarcerating illegal immigrants convicted of crimes? Or that he has visited 26 states in his first 100 days in office--but not the most populous? ??Bush really does care about California the White House insists even if the state preferred Al Gore on election day. Administration officials said they have done a lot and plan to do more to lessen the electricity turmoil expected this summer. ??I don't think he's treated California any differently than any other state said Rep. George P. Radanovich (R-Mariposa). ??Some Californians feel otherwise. ??The Bush administration's treatment of California started at indifference moved to neglect and has now reached actual harm complained Phil Schiliro chief of staff for Rep. Henry A. Waxman (D-Los Angeles). ??Sen. Dianne Feinstein (D-Calif.) has asked three times for a meeting with Bush to discuss the energy crisis. Her response from the White House: a form letter with her name misspelled. ??Bush has called for requiring public agencies to buy costly earthquake insurance a measure opposed by California lawmakers of both parties. He has proposed cutting an earthquake preparedness program. And he provided no money in his proposed budget to clean up a pile of uranium processing waste in Utah leaking into the Colorado River. ??That's our water supply political analyst Sherry Bebitch Jeffe said. What kind of message is that? ??John J. Pitney Jr. associate professor of government at Claremont McKenna College said Bush's apparent indifference makes political sense. ??It's hard to argue that Bush should spend any political capital in California he said. The 2000 election suggested that he cannot carry the state no matter how hard he tries. The Republicans have already lost several House seats and have probably hit rock bottom. . . . From a purely political angle there's little point in giving California any money or attention that could otherwise go to more competitive states such as Florida. ??But Jeffe senior scholar at USC's School of Policy Planning and Development said Bush's failure to visit the state is hurting GOP efforts to rebuild itself in California. We are ground zero for the kind of Latino outreach that he said he wanted to do. ??And veteran California Republican political strategist Kenneth L. Khachigian said Bush at least needs to prepare for the electricity problems predicted for summer. ??If you get three or four days of successive blackouts air conditioners going out traffic lights going out a second bankruptcy--whether he wants it or not--it's his problem Khachigian said. It would be wise for him to have a proactive stance not just reactive. ??Tough Act to Follow ??Some political analysts have suggested that if Bush becomes too involved in California's troubles what is now Democratic Gov. Gray Davis' problem could become Bush's. But Khachigian said there's a fine line between taking responsibility for a problem and claiming that California isn't part of the United States. ??In dealing with heavily Democratic California Bush has made this much clear: He is no Bill Clinton. ??Bush has a hard act to follow. When Clinton was president he visited California often and rewarded it with federal largess. And California in return showered him with buckets of campaign dollars and electoral votes. ??But Rep. Ed Royce (R-Fullerton) said California will benefit from Bush's presidency too. As Californians bear a disproportionately higher tax burden they stand to benefit greatly from the president's tax relief plan. ??While House spokeswoman Claire Buchan assured that Bush will visit California soon. His wife already has done so. ??As proof that California is on their mind administration officials point to the three Californians in the Cabinet--Ann M. Veneman of Agriculture Norman Y. Mineta of Transportation and Anthony J. Principi of Veterans Affairs--and others in top White House jobs. ??Bush also has appointed California Latinos to high-level posts: Huntington Park Councilwoman Rosario Marin as treasurer Los Angeles entrepreneur Hector V. Barreto Jr. as head of the Small Business Administration and former San Mateo County Supervisor Ruben Barrales as deputy assistant for intergovernmental affairs. ??Critics said that a Californian at the top does not guarantee that the Cabinet departments will develop California-friendly policies. The proposed Agriculture budget for example provides only $ 5 million--not the $ 15 million that California lawmakers said they need--to fight the glassy winged sharpshooter an agricultural pest that threatens the state's wine industry. ??A spokesman for Veneman assured that additional funding will be considered if requested by California lawmakers. And Rep. Mike Thompson (D-St. Helena) who assailed Bush for missing opportunities to help California nonetheless expressed confidence in Veneman. She's going to keep pounding away to make sure that the California wine industry gets what it needs. ??Some Good News ??Though he has proposed cuts in some programs that are important to California Bush has taken some actions that please state officials. He has proposed a permanent research and development tax credit--an action that would particularly benefit Silicon Valley. ??His proposed budget includes additional money to crack down on illegal immigration and drug smuggling and unsafe trucks crossing into California from Mexico. And he has proposed increased funding to reduce backlogs at immigration offices. ??In one area Bush even bested Clinton. He proposed $ 14 million to clean Lake Tahoe more than the $ 3 million recommended by Clinton last year. ??And although he has drawn flak for proposing cuts in programs to promote energy efficiency and alternative fuels his proposal to boost assistance to low-income families for insulating their homes and reducing their utility bills would nearly double California's allocation to $ 8 million next year. ??No Bush policy has been more criticized in California than his approach to the state's energy woes--particularly his adamant opposition to price controls. Steve Maviglio a spokesman for Davis said Bush and his aides got off to a strong start by extending federal orders sought by the state to keep power flowing into California. ??Since then . . . they've been AWOL Maviglio said. In a reference to price controls he added: They're skirting around the edges of the problem without taking the bold action they need to take. ??The feds are the only ones who can step in and bring some sanity to the cost of electricity in California Thompson said. ??Administration officials said they have taken steps from our first hours in office to address the energy crisis. They said they have responded favorably to all the state's requests except price controls which Bush contends would discourage the building of power plants. ??While some seek to portray Bush's opposition to price controls as unsympathetic to California's plight a number of California's House Republicans also oppose price controls. And even those who support them argue that the issue misses the larger point. ??Rep. Randy Duke Cunningham (R-San Diego) an advocate of price controls nevertheless said: I agree with the administration that the state alone remains responsible for solving this crisis. ??Added Rep. Mary Bono (R-Palm Springs): I don't believe Bush should bear the brunt of responsibility that the Clinton administration left over. ??Tim Ransdell executive director of the California Institute for Federal Policy Research doubted that Bush would ignore California. California represents one-eighth of the nation. One in eight Americans can't be ignored. LOAD-DATE: April 29 2001 of 103 DOCUMENTS 2001 / Los Angeles Times Angeles Times ?????????????????????April 29 2001 Sunday Home Edition SECTION: Business Part C Page 2 Financial Desk LENGTH: 1290 words HEADLINE: WEEK IN REVIEW TOP 10 STORIES / APRIL 23-27 BYLINE: Lisa Girion and Terril Yue Jones and Sallie Hofmeister and James Bates and Peter Pae and Jeff Leeds and Nancy Rivera Brooks and Peter Gosselin BODY: ??1. Economic Growth a Welcome Surprise: The U.S. economy grew at an unexpectedly strong 2% annual rate in the first three months of the year thanks largely to buoyant shopping by American consumers. The gross domestic product--the country's total output of goods and services--expanded at twice the pace it did in the final three months of 2000 and at twice what analysts had expected the government said Friday. Although many analysts said the economy remains balanced between strong growth and recession economic optimists exulted over the report. Fed Chairman Alan Greenspan added to the celebratory mood by saying that a key trend behind the economy's strong performance of the last decade--its ability to improve productivity--is likely to resume despite the current slowdown. ??(Peter Gosselin) ??* ??2. Stocks Rise on Good News: The GDP report boosted stock prices which already had gotten a lift from better-than-expected home sales figures earlier in the week. The Dow Jones industrial average rose 117.70 to close at 10810.05 on Friday up 2.2% for the week while the S&P 500 index climbed 18.53 to 1253.05. The Nasdaq which had fallen Thursday on concerns over weak technology profits rose 40.80 to 2075.68 finishing the week down 4.1%. Meanwhile the yield on the benchmark 10-year Treasury note rose to 5.33% from 5.19%. ??(Times Staff Writer) ??* ??3. Power Crisis Zaps State Bond Rating Price Controls OKd: The mounting cost to the state general fund of buying electricity for California consumers prompted Standard & Poor's Corp. to downgrade $ 25 billion of California's general obligation bonds. S&P lowered California's bond rating by two notches to A-plus from AA. The move could add hundreds of millions of dollars to the state's borrowing costs bond experts said. Separately federal regulators approved a plan to control electricity prices in California during times of supply shortages. The Federal Energy Regulatory Commission tied prices during power emergencies to the cost of natural gas and emission controls among other things with the least efficient generator setting the market price. Critics said the order contains loopholes that will allow market manipulation. ??(Nancy Rivera Brooks) ??* ??4. FTC Pans Music Industry Marketing: A much-anticipated sequel to last year's Federal Trade Commission report on the marketing of violent entertainment to children slammed the record industry for failing to heed regulators' recommendations. Though it gave some credit to the film and video-game industries for revising the way they marketed to young audiences the FTC found the five major record conglomerates continued to advertise explicit-content albums on popular teen shows such as MTV's Total Request Live and BET's Top 10 Live. Just before the release of the first report the Recording Industry Assn. of America had blunted some of the criticism by introducing a policy against ads for such albums on TV shows or in publications whose audience is mostly 16 years old or younger. But the RIAA said it rescinded the policy in September. ??(Jeff Leeds) ??* ??5. Gas Prices Continue Upward Spiral: The average price of self-serve regular gasoline spurted higher again in California and around the nation on an increase in demand and a switch by refiners to the more costly summer gasoline blend required in parts of the country by air-quality regulations. Prices in California got an extra boost from a fire at a Los Angeles-area refinery owned by Tosco Corp. and by a change in Tosco's pricing strategy. In late March Tosco increased wholesale prices to its dealers in Southern California and Arizona and tied prices to the cost of gasoline in the spot market. Some other major suppliers have begun matching the Tosco increase market experts said. Some market watchers foresee gas at $ 3 a gallon or more. ??(Nancy Rivera Brooks) ??* ??6. General Dynamics Renews Newport News Bid: General Dynamics Corp. agreed to acquire Newport News Shipbuilding Inc. in a $ 2.1-billion deal that would create the nation's largest military shipbuilder and leave only one maker of U.S. aircraft carriers and submarines. The proposed merger which the Pentagon had rejected two years ago marks the latest in a renewed wave of consolidations in the defense industry and would again make General Dynamics one of the largest private employers in San Diego. General Dynamics executives said they are confident of receiving the necessary approvals because this time they will be dealing with the Bush administration which may view the takeover differently. ??(Peter Pae) ??* ??7. Disney Earnings Beat Estimates: Walt Disney Co.'s second-quarter operating results exceeded Wall Street's expectations as the company's studio and consumer products units improved although Disney did post a net loss stemming largely from a one-time charge related to the restructuring of its Internet portal. Disney also confirmed that it will shrink its venerable animation unit with a union official estimating as many as 300 jobs of about 1000 in Burbank could be cut. Separately President Robert Iger confirmed that layoffs will be needed to reach Disney's previously announced goal of cutting 4000 jobs companywide. Disney's studio and consumer products groups showed improved results in the quarter while earnings were flat in its theme parks and softer in broadcasting. ??(James Bates) ??* ??8. New FCC Chief Vows Deregulation: Repudiating decades-old media ownership rules Federal Communications Commission Chairman Michael K. Powell said he envisions a broad rollback of restrictions which could bring about a tidal wave of consolidation. In his most candid remarks about the role of the FCC since taking office Powell said he would move in early May to eliminate regulations that prevent one company from owning a newspaper and a television station in the same city. Powell also told broadcasters meeting in Las Vegas that Viacom Inc. was likely to prevail in its challenge of federal rules that prevent any broadcaster from owning stations that reach more than 35% of the nation's television viewers. ??(Sallie Hofmeister) ??* ??9. Ford Takes More Heat Over Explorer Tires: Ford Motor Co. came under the most direct criticism leveled against it yet regarding last year's massive Firestone tire recall. Two prominent consumer safety groups issued a report saying that the auto maker was largely to blame for accidents in which Ford Explorer sport-utility vehicles equipped with Firestone tires spun out of control after the tires lost their treads. Though they blamed Bridgestone/Firestone for producing tires prone to failure Public Citizen and Safetyforum.com said Ford bore the bulk of the responsibility for dictating an insufficiently robust tire design and designing the Explorer so it would overly stress the tires and tip over too easily once a tire blew. ??(Terril Yue Jones) ??* ??10. American Airlines Sued Over Health Coverage: A flight attendant filed a complaint with the Equal Employment Opportunity Commission in Los Angeles charging that American Airlines discriminated against some employees by refusing to offer insurance coverage for birth control Pap tests and infertility treatments. The case could test the position the EEOC took in December that the federal Pregnancy Discrimination Act forbids employers from excluding contraceptives from prescription drug plans. ??(Lisa Girion) ??* ??These and additional stories from last week are available at divided by category. Click on Money and Investing Entertainment Business and other topics. ??* Please see Monday's Business section for a preview of the week's events. GRAPHIC: PHOTO: Though Disney's second-quarter profit beat Wall Street predictions its theme-park earnings were flat. ?PHOTOGRAPHER: Associated Press LOAD-DATE: April 29 2001 of 103 DOCUMENTS ??????????????????Copyright 2001 The New York Times Company New York Times ?????????????????April 29 2001 Sunday Late Edition - Final SECTION: Section 4 Page 17 Column 1 Editorial Desk LENGTH: 756 words HEADLINE: Reckonings The Real Wolf BYLINE: ?By PAUL KRUGMAN BODY: ??Recently I received a letter from an economist I respect chiding me for my Naderite columns on the California energy crisis. He just didn't believe that market manipulation by power companies could possibly be an important issue it sounded too much to him like the sort of thing one hears from knee-jerk leftists who blame greedy capitalists for every problem be it third-world poverty or high apartment rents. The left has cried Wolf! so many times that sensible people have learned to discount such claims. ??But now a bona fide wolf has arrived whose predatory behavior is doing terrible damage to our most populous state -- and nobody will believe it. ???True California would be heading for a summer of power shortages even if it had never deregulated. And even if there was workable competition in the wholesale electricity market prices in that market would spike during periods of peak demand transferring billions of dollars from either taxpayers or consumers to the generators. ??But the evidence is now overwhelming that there isn't workable competition in California's power market and that the actions of generators gaming the system have greatly magnified the crisis. The key fact is that California has somehow remained in a state of more or less continuous power shortage and very high wholesale prices regardless of the level of demand. A rash of outages has kept the electricity market conveniently -- and very profitably -- short of supply even during periods of low demand when there ought to be lots of excess capacity. ??As Frank Wolak the Stanford economist who also advises the state's power grid has pointed out an outage at a power plant is a lot like an employee calling in sick. You can't tell directly whether he is really sick or has chosen to take the day off for other reasons but you can look for circumstantial evidence. And such evidence has convinced Mr. Wolak that generators use forced outages strategically to withhold capacity from the market -- a view shared by a growing number of other researchers. ??Which brings us to the latest move by the Federal Energy Regulatory Commission. On Wednesday the commission apparently decided to offer California some relief and put new price caps in place on the California electricity market. I say apparently because the more you look at the plan the less likely it seems to be any help at all. Indeed the measure was passed on a 2-to-1 vote with William Massey -- the one commissioner who has been sympathetic to calls for price controls -- voting against it on the grounds that it would be ineffectual. ??What's wrong with FERC's plan? First it caps prices only in emergency conditions -- ignoring the fact that electricity prices have stayed at hard-to-explain levels even when there is no emergency. In effect the plan is laid out as if the electricity market were really competitive in spite of all the evidence that it is not. ??Second even those emergency price caps are full of loopholes offering extensive opportunities for what Mr. Wolak calls megawatt laundering -- selling power to affiliated companies that for one reason or another are exempted from the price controls (for example the controls do not apply to imports from neighboring states) then selling it back into the California market. Severin Borenstein of the University of California Energy Institute adds that because the allowed price depends on the cost of generation at the least efficient plant generators will have a clear incentive to produce inefficiently: I predict we will find some plants we never heard of before that are suddenly operating again and they will be pretty inefficient. ??The general verdict seems to be that this is not a serious plan. There are serious proposals to mitigate the crisis out there -- indeed last fall Mr. Wolak submitted a proposal that was well received by other experts -- but FERC has ignored all of them. ??The charitable interpretation is that FERC still doesn't get it that it just can't bring itself to believe that this time the wolf is real. The uncharitable interpretation is that last week's action was meant to fail. The Medley Report an online newsletter calls the FERC plan a grand exercise in posturing without substance . . . a very clever temporary move by the Bush administration to deflect any political fallout from the looming disaster. ??Whatever the explanation the plain fact is that FERC and the administration have yet to offer California any significant relief. ??http://www.nytimes.com LOAD-DATE: April 29 2001 of 103 DOCUMENTS ??????????????????Copyright 2001 McClatchy Newspapers Inc. Bee ??????????????????April 29 2001 Sunday METRO FINAL EDITION SECTION: MAIN NEWS Pg. A1 POWER CRUNCH LENGTH: 1323 words HEADLINE: Diesel plants spark concern They're expected to generate big air-quality problems when predicted summer blackouts hit. BYLINE: Chris Bowman and Stuart Leavenworth Bee Staff Writers BODY: ??When blackouts roll across California in the coming months - as captains of the crippled electricity grid say they surely will - tens of thousands of miniature powerhouses will whine cough and rumble to the rescue. ??These backup plants will ignite the same fuel that powers locomotives ships and 18-wheel trucks. And they'll be spewing the same pollution - only more so because most are old with little or no emissions controls. ??They are diesel-powered generators the dirtiest of internal combustion engines. And unlike trucks and other vehicles they've largely escaped 30 years of air pollution restrictions because they were intended only for emergencies as when a storm or earthquake knocks out power. ??But now as a season of multiple planned blackouts appears imminent many California businesses are expected to fire up the old stogies more often than was ever imagined. ??And the generators will kick in when their expelled gases can do the most harm. The hot weather that taxes air conditioners and drains electricity supplies also accelerates the conversion of engine exhaust to ozone gas the ingredient in smog that inflames airways and impairs breathing. ??That is why we think this is going to be the most challenging summer ever for air quality said Luna Salaver spokeswoman for the Bay Area Air Quality Management District a nine-county region with thousands of unregulated standby generators. ??On those hot days when we want people to stop driving and doing things that pollute the air the generators will kick in and air quality will worsen Salaver said. ??No one knows how many diesel generators are scattered around the state at hospitals universities factories and businesses. But air districts report there are at least 641 in Sacramento up to 5000 in the Bay Area 1200 in the San Joaquin Valley and thousands more in the smog-plagued valleys of Southern California. ??Some are relatively clean particularly if they have been built or retrofitted in the last few years. But most are tiny pollution factories and were intended only to be run for short periods following natural disasters. ??According to the state Air Resources Board a typical diesel generator emits about 50 to 100 times more smog-forming compounds per unit of energy than a typical gas-fired power plant. When the plants run for hours people downwind can get a heavy dose of the tiny toxic particles contained in diesel exhaust. ??Go down to the Greyhound bus station and have them turn on their engines and hang around there - that's what it's like said Michael Scheible deputy executive officer of the state Air Resources Board which regulates engines and fuels. ??Environmentalists say generators should be cranked up only during power outages. But in recent months farmers and manufacturers have pressured regulators to redefine an emergency and allow generators to be used well before a blackout is ordered. ??Business groups say regulators need to be sensitive to data centers chip makers and other manufacturers that can't afford even a one-second interruption in power. ??We would like some kind of statewide policy on when and where we can use the diesel generators said Gino DiCaro a spokesman for the California Manufacturers and Technology Association. Obviously we would like to use them more than we can now. ??We need to basically let go of this air-quality issue said Mike Jennings a Fresno energy consultant whose clients include members of the food-processing and dairy industries. ??State air and energy regulators are pushing energy conservation as the best way to avoid power outages. Nonetheless the California Energy Commission has been compiling a list of generators statewide to see how their use could be coordinated a move that stirs hope from business groups. ??Six months ago nobody wanted to talk about this because diesel was a big bad word DiCaro said. Now at least we have agencies like the Energy Commission and the Public Utilities Commission talking about how diesel generators can fit into our electrically unreliable world. ??Environmentalists worry that as the summer drags on Gov. Gray Davis will allow unrestricted use of the diesels. ??So far the governor's staff has held firm said Gail Ruderman Feuer an attorney with the Natural Resources Defense Council a national environmental group. But if blackouts start happening in a big way they could change their tune. ??Along with other forecasters officials with the California Independent System Operator manager of the state's electricity grid expect a flurry of blackouts in coming months. The next two months could be critical because most new power plants under construction won't go on line before July. In addition California will be losing one of its largest generators of electricity today when one of two units at the Diablo Canyon nuclear power plant is taken off-line for 35 days of scheduled refueling. ??You should be ready for the worst-case scenario said Del Evans Pacific Gas and Electric Co.'s head of power load management at a media briefing last week. ??For sellers and makers of diesel generators the gloomy predictions are a gold mine. Small businesses farmers manufacturers - all are rushing to buy generators before the blackouts hit. ??We are busier than we have ever been said Rob Bly president of Tuban Industrial Products Co. which assembles about 300 generators a year at its plant in Sacramento. We are twice as busy as we were in the height of the Y2K madness. ??Bly says the generators he makes are 10 times cleaner than ones of a decade ago. Still he acknowledges diesel is diesel. ??If you are a hospital and you want standby power you can't use propane. The fire marshall won't let you said Bly. That leaves you with just one thing and that is diesel. ??Responding to such concerns state Sen. Rico Oller R-Andreas introduced a bill this year to exempt thousands of backup generators from pollution controls whenever any power alert is called. The bill however was blocked by a Senate committee and environmentalists say air districts have already relaxed their rules enough. ??One of the big concerns is the cancer risk Ruderman Feuer said. Air board studies she noted have found that a person's lifetime cancer risk increases 50 percent if he or she lives near a big diesel generator that runs 250 hours a year. ??In January the U.S. Environmental Protection Agency allowed air districts to loosen their restrictions on generators. In turn the South Coast Air Quality Management District extended the number of hours that diesel generators could be operated each year. The San Joaquin Valley Air Pollution Control District went even further allowing businesses to run generators when state power reserves drop to 1.5 percent or when the ISO predicts blackouts anywhere in the Valley. ??The Sacramento Metropolitan Air Quality Management District still requires businesses and public agencies to wait for blackouts before generators are fired up. Altogether the district has permits for 641 generators including major clusters at data centers and companies such as Intel. ??In the Bay Area regulators are even more uncertain of what could happen this summer. Unlike other regions of the state the Bay Area never required permits for diesel generators smaller than 250 horsepower. (In Sacramento the threshold is 50 horsepower.) ??As a result only 12 of the region's estimated 5000 generators are subject to pollution controls. ??Salaver the district's spokeswoman said officials assumed the generators would be used only during earthquakes and therefore didn't need any regulation. ??Now we find people are operating generators even if we are in a Stage Two alert Salaver said. That is not what emergency generators are for. ??* * * ??The Bee's Chris Bowman can be reached at (916) 321-1069 or [email protected]. GRAPHIC: Sacramento Bee / Jay Mather Mark Karakas checks a newly assembled diesel generator at Tuban Industrial Products in Sacramento. Sacramento Bee / Sheldon Carpenter Lights out generators on Diesel-powered generators can save lives during emergencies but they spew far more pollution per unit of energy than other power sources and could significantly degrade air quality during the blackouts expected in the next six months. Smog-forming compounds Power source / Pounds of nitrogen oxides per megawatt-hour of electricity Existing diesel generator / 25 to 30 Diesel generator wiht latest pollution controls / 7 Uncontrolled gas-fired power plant / 2 to 4 Controlled older gas-fired power plant / 0.1-0.15 New combined cycle gas-fired power plant / 0.05 Cancer causing particulates (PM) Power source / Pounds of PM per megawatt-hour of electricity Existing diesel generator / 1 to 3 Diesel generator wiht latest pollution controls / 0.1 to 0.5 Gas-fired power plant / 0.03 to 0.07 Snapshot of generators Number of emergency diesel generators in selected air districst: Bay Area Air quality Management District Generators: 3000 to 5000 Sacramento Metropolitan Air Quality Management District Generators: 641 San Joaquin Valley Air Pollution Control District Generators: 1200 South Coast Air Quality Management District Generators: 5000 Sources: California Air Resources Board regional air quality districts LOAD-DATE: April 30 2001 of 103 DOCUMENTS ??????????????????Copyright 2001 McClatchy Newspapers Inc. Bee ??????????????????April 29 2001 Sunday METRO FINAL EDITION SECTION: MAIN NEWS Pg. A1 LENGTH: 1544 words HEADLINE: Why Edison PG&E split on strategy BYLINE: Dale Kasler Bee Staff Writer BODY: ??One utility was more entrepreneurial accustomed to the rough-and-tumble of free markets - and apparently believed only a radical remedy would cure its ills. ??The other was a more political animal conversant with the language of Sacramento - and confident that negotiations and compromise with state officials could fix its problems. ??Different cultures and different circumstances sent Southern California Edison and Pacific Gas and Electric Co. on separate paths this month. Edison run by a former president of the Public Utilities Commission negotiated a rescue package with Gov. Gray Davis. PG&E with fewer ties to government and possessed of an independent streak walked away from Davis and straight into U.S. Bankruptcy Court. ??As California's energy crisis hurtles toward a summer of blackouts and higher rates experts are debating which company found the best solution for digging its way out of billions in debt. ??We now have two models it'll be interesting to see who recovers the quickest said Mitch Wilk a former PUC president who is now an energy consultant in San Francisco. ??At first blush Edison and PG&E had plenty in common. Both utilities were afflicted with the same problem: runaway wholesale electricity costs they weren't able to recover from customers because of a state-mandated rate freeze. Both had been teetering on the edge of bankruptcy since January when their losses depleted their cash reserves and credit. ??But PG&E was far sicker financially than Edison. Its debts from the state's flawed deregulation scheme reached $6.6 billion vs. $3.5 billion for Edison. That's because Edison serves a smaller territory and has more long-term supply contracts so it was buying far less electricity than PG&E on the horrendously expensive spot market. ??Faced with a comparatively manageable loss Edison was receptive to selling its share of California's transmission grid to the state a deal that would generate $2.76 billion. The proceeds along with funds from a proposed long-term bond sale would pay off Edison's debts according to the terms of the deal. ??Although PG&E says it was willing to sell its transmission lines too there was a crucial difference in the two companies' backgrounds that ultimately would influence their approach to the financial crisis. ??Unlike Edison PG&E is a natural gas company as well as an electric company. PG&E a subsidiary of PG&E Corp. had survived the bruising wars of natural gas deregulation in the late 1980s and early 1990s. The experience took PG&E out of the cozy world of the regulated monopoly - in which the utility had exclusive rights to its service territory but was subject to state price controls - and into the world of competition. ??The experience gave PG&E more of a free-market bent said a former PUC staffer who requested anonymity. ??So even though Davis' aides say the governor offered PG&E a plan that would have paid off its debts - including $3 billion to $4 billion for its share of the grid - the utility balked at a key provision. While the original deregulation called for the cap on customer prices to end in 2002 Davis was insisting the utility remain regulated for a decade. ??PG&E wanted an immediate end to Public Utilities Commission regulation and would agree only to a cursory review of rates through a jury-rigged arbitration Davis said last week. ??I believe PG&E was in denial Davis said in an interview with Bee editors and reporters. ??PG&E says it wasn't demanding an end to regulation. Rather what it wanted - and what Davis' negotiator Michael Peevey agreed to in principle - was to let the utility charge ratepayers for all its costs of buying wholesale electricity said PG&E spokesman Ron Low. ??In that same deal reached Feb. 25 in Los Angeles PG&E made a handshake agreement to sell its transmission grid Low said. He wouldn't reveal the price. ??In the weeks that followed the governor's team reneged Low said. The discussions and negotiations broke down because they would not agree to the basic principles that were reached by (PG&E Chairman) Bob Glynn and Michael Peevey Low said. ??PG&E also became disgusted with a series of PUC rulings in late March and early April that it believed would seriously hinder its ability to recover its debts. ??Things came to a head April 5 when Davis proposed a rate increase and outlined his rescue plan in a televised address. A few minutes later Joseph Fichera a Wall Street financier advising Davis and other Davis advisers held a conference call in which they fleshed out the details for investors. Edison officials and directors listened in but PG&E didn't Fichera said. ??They had made up their minds Fichera said referring to PG&E officials. ??The next morning with Glynn dismissing Davis' speech as a lot of words the utility filed for bankruptcy protection. ??That afternoon Davis called PG&E selfish and pointedly went into a negotiating session with John Bryson the chairman and chief executive of Edison's parent Edison International. ??For Davis the meeting was crucial. Although Edison had tentatively agreed in February to sell its transmission lines the deal wasn't sewn up and Davis was nervous the PG&E bankruptcy would prompt Edison's creditors to jerk Edison into bankruptcy Davis said last week. ??That afternoon conceptually we reached an agreement Davis said. The deal was announced the following Monday. ??Consumer advocates and some legislative leaders blasted the agreement as a giveaway and said Davis hastily sweetened the terms for Edison because he needed to show progress on the energy crisis in the wake of the PG&E imbroglio. ??Not true Davis said the basic terms were already on the table before PG&E filed for bankruptcy. Either way Edison was receptive to negotiating with Davis. ??Edison's background is different from PG&E's. Because it isn't in the natural gas business it doesn't have the track record PG&E does with free markets. It is more comfortable in the regulatory and political realm experts say. ??Notably Bryson was president of the PUC in the 1970s - when Davis was Gov. Jerry Brown's chief of staff. ??He knows Gray Davis said ex-PUC President Wilk. He may feel a higher level of comfort in dealing with a very adversarial process. He felt he could rely on the governor. ??Politically savvy Edison is one of the utility industry's biggest contributors to national political campaigns and it usually spends more than PG&E on California campaigns. Edison International's board of directors includes Los Angeles attorney Warren Christopher the former U.S. secretary of state and an elder statesman of the Democratic Party. ??Though it's open to negotiations Edison isn't a pussycat. To the contrary experts say. ??It was usually Edison that was more combative than PG&E said Tom Willoughby a retired PG&E lobbyist. ??Wilk agreed adding: I find it curious that PG&E's being painted as the confrontational aggressive company and Edison as the get-along company. ??Edison hasn't been shy about going to Sacramento for favors last year for example Edison wanted some changes made in the operation of the state's power grid. Instead of talking to the grid manager the Independent System Operator Edison went to the Legislature a source said. Lawmakers then pressured the ISO to make the changes. ??One more factor may have played into Edison's willingness to deal with the governor. ??Last year it became involved in a protracted dispute with the Federal Energy Regulatory Commission which oversees the transmission grid over how much profit Edison could earn from the grid. ??Edison eventually won its point but the case influenced the utility's thinking when Davis offered to buy the grid. According to industry consultant Barbara Barkovich Edison figured why wrestle with the federal government over profits when it simply could raise billions through a cash sale? ??Besides Edison has a back-up plan if the Legislature scraps the grid purchase as many lawmakers have threatened. The company has said it would follow PG&E's lead and file for bankruptcy. ??But its willingness to negotiate with the governor will have served it well even if it goes into bankruptcy said Nancy Day a utility industry veteran consulting for the Legislature. ??Day said she believes the governor's appointees on the PUC will punish PG&E for its behavior. If Edison winds up in bankruptcy court it won't be punished for it Day said. ??PUC President Loretta Lynch couldn't be reached for comment. ??Energy companies at a glance Edison Main subsidiary: Southern California Edison Headquarters: Rosemead Los Angeles County Customers: 4.2 million in Southern California Chairman: John Bryson Performance: Lost $1.94 billion in 2000 on revenue of $11.72 billion Stock ticker symbol: EIX ??PG&E Main subsidiary: Pacific Gas and Electric Co. Headquarters: San Francisco Customers: 13 million in Northern Central California Chairman: Robert Glynn Jr. Performance: Lost $3.36 billion in 2000 on revenue of $26.23 billion. Stock ticker symbol: PCG ??* * * ??The Bee's Dale Kasler can be reached at (916) 321-1066 or [email protected]. GRAPHIC: Bryson Glynn LOAD-DATE: April 30 2001 of 103 DOCUMENTS ??????????????????Copyright 2001 McClatchy Newspapers Inc. Bee ??????????????????April 29 2001 Sunday METRO FINAL EDITION SECTION: MAIN NEWS Pg. A3 LENGTH: 679 words HEADLINE: What will be fallout from California's energy meltdown? BYLINE: Dan Walters BODY: ??No one knows for certain how - or when - California's energy crisis will conclude. It is an inordinately complicated four-dimensional chess game that has so far defied politicians' simplistic - perhaps simple-minded - efforts at resolution. ??That said one may speculate reasonably on the financial social and political consequences for California in the months and years ahead. ??Financially Californians - especially the 70 percent who are served by private electric utilities - will feel the pinch for years if not decades to come. Before the crisis hit California's power rates were already among the highest in the nation. Given the nearly $20 billion in power purchase debts that the utilities and the state have accumulated so far the stubbornly high wholesale prices and other data it's not unreasonable to project that Californians in private utility areas will see their rates double or rise even higher. ??Politicians have been laying the rhetorical groundwork for big increases although they've been disingenuous about the outer parameters. The burden will fall most heavily on business customers and coupled with doubts about power reliability and rising natural gas prices will damage the state's ability to attract job-creating investment. States with low and stable energy prices already are using the crisis as a recruiting tool. In February Intel President Craig Barrett told the Wall Street Journal: As long as California is a Third World country we won't build $2 billion manufacturing plants here. ??The inevitable escalation of utility rates will create distortions within the state as well since utility rates for the 30 percent of Californians served by publicly owned utilities are not likely to rise by more than token amounts. The municipal utilities' rates were roughly a third lower than private utilities' rates prior to the crisis. By the time the dust settles they may be just half as much. It will contribute to the balkanization of California that was already being defined by such factors as housing prices ethnicity and income levels. Low-cost regions will become magnets for people and jobs while high-price regions will be shunned. ??The energy crisis will certainly be the defining issue of the 2002 elections and perhaps for others to follow. Gov. Gray Davis' popularity has plummeted since he took charge of the crisis laying waste to his intentions to seek an easy re-election next year as a middle-of-the-road business-friendly tough-on-crime education reformer. ??With his popularity waning Davis may be compelled to turn left shoring up his base by catering to demands of labor unions environmentalists trial lawyers and other liberal elements of the Democratic Party. That in turn would undermine the triangulating strategy he has pursued in which he took Democratic voters for granted and cultivated business executives and social conservatives. Business interests are worried for example that Davis may now feel compelled to sign union-friendly legislation such as boosts in workers' compensation and unemployment benefits that he vetoed in the past. ??Davis' relations with fellow Democrats in the Legislature have turned from cool to poisonous with lawmakers openly trashing his leadership and management of the energy crisis and worrying that he'll try to shift the blame to them if the crisis turns to disaster. If Democratic leaders fear that voters will be in a throw-the-bums-out mood next year they may throttle back on intentions to maximize their party strength in drawing new legislative districts. Such maximization would require spreading Democratic voters out among many districts and such margin-thinning could make Democrats vulnerable in an energy crisis-spawned voter rebellion. Democrats may well strive for fewer but safer seats. ??These are but a few of the potential effects that California will experience long after the immediate crisis has faded whenever that may be. ??* * * ??The Bee's Dan Walters can be reached at (916) 321-1195 or [email protected]. LOAD-DATE: April 30 2001 of 103 DOCUMENTS ?????????????????Copyright 2001 The Chronicle Publishing Co. ?????????????????????????The San Francisco Chronicle ????????????????????APRIL 29 2001 SUNDAY FINAL EDITION SECTION: INSIGHT Pg. D1 LENGTH: 1419 words HEADLINE: The energy crisis is good for you SOURCE: Insight Senior Writer BYLINE: Louis Freedberg BODY: Here's a message for pampered and overindulged citizens of the Golden State who complain unceasingly about high energy bills and the day-to-day prospect of rolling blackouts: Stop whining. ???It's not a crisis -- it's an opportunity. The energy crisis is good for us. ???For decades we burned lights whenever we wanted bought more and more energy-guzzling appliances bigger and bigger television sets. Today as citizens of the richest state in the world's only superpower who is going to tell us when to stop? ???We talk about having to hit mules over the head with a 2 by 4 to get their attention but I don't think human beings are much more responsive or foresighted. I hate to see people suffering but on the other hand if that is the way we learn so be it says Ernest Callenbach the Berkeley author of the futuristic 1975 novel Ecotopia. Callenbach's work was a major influence on the alternative energy policies of former Gov. Jerry Brown. ???Nowhere has the ethic of unlimited consumption been more out of control than in the Bay Area where the energy demands of high tech outstripped what the electricity grid could supply. Aside from the energy needs of the industry itself the wealth it generated encouraged avaricious lifestyles that include power-swilling mansions and freeways clogged with monster sport utility vehicles. ???Perhaps the 34 days of blackouts some experts predict for this summer will bring the discipline that eludes us. Except for the hardships the crisis has inflicted on the poor Californians still enjoy a sybaritic lifestyle that in ways would put to shame the pharaohs of Egypt or the court of Louis XIV. Lights still burn when they're not needed. Except for very occasional blackouts electricity still flows 24 hours a day. Our daily routines have barely been affected. A visitor from another state or country would have a hard time finding signs of our highly publicized crisis. ???As we brace for deregulated electric bills courtesy of the state Public Utilities Commission imagine what life was like for Native Americans who lived for millennia in a bounteous Bay Area without microwaves waffle irons air conditioning or 24-cubic-foot refrigerators. No one is suggesting that we revert to those days. But let's consider the thought that we may actually be better off without the piles of appliances whose tangle of cords clogs our homes and offices. ???Smug Californians love to point to the state's ranking as a miserly consumer of energy -- only three other states consume less per capita -- to rebut accusations that we have become greedy energy hogs. Tougher efficiency standards have helped but so has our great weather. California has a uniquely good climate to be efficient says Dan Kammen director of the Renewable and Appropriate Energy Laboratory at the University of California at Berkeley. Compared to countries with much harsher climates we have not done enough. ???There's no denying the sudden sharp pain caused by the crisis -- from threats of sky-high electric bills to fears that California's economic engine is near collapse. But if we handle it right all kinds of positive energy will result. Potential benefits extend from the spiritual (a revival of the conservation ethic) to the curative (making the state immune to power-problem overloads) to the liberating (throwing off for good our dependence on the Texas energy overlords). ???Consumers shocked into action by tripled or quadrupled energy bills are already rushing to Bay Area hardware stores snapping up setback thermostats hot water heater blankets insulating window film and outdoor clotheslines. Alan Ginsberg of Satco Products in Hayward who imports from China container-loads of squiggly shaped energy-saving fluorescent bulbs says They're flying out the door. ???More significantly the crisis impels the state to move ahead with the construction of badly needed power plants. It puts on the agenda of public debate the fundamental question of whether our energy system should be in the hands of giant utilities or run by municipalities or by the state. It certainly unveiled the greed of out-of-state energy producers who have sucked billions of dollars from California. ???The crisis has also made us focus on fundamental flaws in our energy grid such as the 4500-megawatt electricity shortage that emerged in the 1990s while we were all reveling in California's boom times. ???By exposing those who got us into this predicament -- producers utilities regulators and politicians -- there's a chance we'll get out of it with a more rational and efficient energy grid and be better prepared to deal with challenges down the road. If that happens Gov. Gray Davis might yet confound critics who say his political prospects are sinking faster than you can say megawatt. ???The ease and convenience of modern life fools us into thinking that power water and food are infinite. Flip a switch and the lights magically go on. Turn a faucet and water flows. These days the biggest challenge in gathering our daily bread is the hunt for a space in the supermarket parking lot. ???And we want it all leading us straight into denial. We want instant abundant power -- but we don't want any new power plants especially in our backyards. Coal is dirty. Natural gas is expensive. Dams kill salmon. Nuclear power? Forget about it. The contradictions haven't mattered -- so long as an endless supply of electrons flowed from our wall outlets. But that mindless ease the crisis taught us is history. ???The energy crisis warns us that we must become more self-sufficient or risk slipping toward oblivion if we continue to spend billions of dollars on shrinking non-renewable energy sources such as coal and natural gas. ???The Roman Empire fell because of the decadence of its ruling elites. And the British empire dependent on raw materials from the colonies began to collapse when it became too expensive to import goods across oceans. ???A new consciousness about where electricity comes from is the first step toward using less of it. It could also translate into a greater awareness of other environmental causes. ???If we get the message the net outcome (of the energy crisis) will be a quite profound shift in consciousness in energy conservation predicts Michael Lerner executive director of Commonweal a health and environmental institute in Bolinas. ???Such a turnaround is no snap. ???During the last energy crisis in the 1970s there was a similar rush toward conservation. President Jimmy Carter installed solar panels on the White House roof. President Ronald Reagan took them down. He also phased out tax credits and other inducements to encourage development of renewable energy sources. ???Closer to home one of former Gov. George Deukmejian's first acts was to abolish the Office of Appropriate Technology established by Gov. Jerry Brown to move us away from our dependence on non-renewable fossil fuels. ???Since then we have regressed further. Even record high gasoline prices have done nothing to depress the sales of SUVs which now account for the largest share of automobile and light truck sales (20 percent at last count). ???But today's crisis could lead to permanent changes in behavior if only because the technology needed to harness sun wind and other renewable energy sources has become far more cost effective than a generation ago. California already gets 12 percent of its energy from these alternative sources and the market incentives to develop them further has never been higher. ???Stratospherically high electricity bills could finally force on us the technological changes and the discipline that Europeans -- who use two-thirds as much energy per capita as we do -- and the Japanese -- who use only half as much -- have had to embrace. ???This difficult moment in California's history has already yielded some ecological epiphanies like those experienced by Ernest Callenbach's neighbors. They installed solar photovoltaic cells on their roof. The installation now puts surplus electricity back into the energy grid instead of sucking more out of it. ???The magical moment is the idea that by having a photovoltaic cell on your roof you can make your electric meter run backward said Callenbach. Instead of it going to the right you actually see it going in the other direction. You say to yourself 'Oh Lord Oh Lord I have seen the future.' ??Email Louis Freedberg at [email protected] GRAPHIC: GRAPHIC Don McCartney/The Chronicle LOAD-DATE: April 29 2001 of 103 DOCUMENTS 2001 Ventura County Star County Star 29 2001 Sunday SECTION: Editorials Pg. B09 LENGTH: 704 words HEADLINE: Reality is what's needed for real policy GOVERNOR: Consumers deserve to get real facts from Davis. BYLINE: Dan Walters BODY: ??Gov. Gray Davis is continuing to tell Californians that he's on top of the state's energy crisis and as he said at one gathering last week in three years this problem will be a distant memory. Fat chance. All major aspects of the situation are growing worse not better minute-by-minute. ??Politicians took over the crisis in January as the state's major utilities exhausted their cash reserves and lines of credit. Davis began what he said then would be a short-term emergency program of power purchases to keep electrons flowing into homes and businesses. ??From that moment forward the situation has steadily deteriorated moving toward a three-pronged disaster: severe summer blackouts the bankruptcy of the utilities and sharply escalating power bills. With the bankruptcy filing by Pacific Gas & Electric Co. and decisions by Davis and the Public Utilities Commission to begin ratcheting up utility rates two of the three negative scenarios are now in place. And everyone involved in the crisis expects blackouts this summer as demands for power soar and supplies dwindle. ??The Davis strategy if there is one is to continue the state's massive power purchases while negotiating longer-term and presumably cheaper supply contracts encourage conservation help utilities pay off their debts by selling their intercity transmission system to the state and tapping ratepayers and build more power plants to ease the supply crunch. ??Currently the governor is touting his deal with Edison International parent company of Southern California Edison to sell its portion of the grid and is working on a similar deal with Sempra the parent of San Diego Gas and Electric. But PG&E's bankruptcy casts doubt on the viability of the cash-for-grid concept and legislators particularly Davis' fellow Democrats are very skeptical of the Edison deal. ??Clearly Davis rushed into the Edison deal just three days after PG&E filed bankruptcy in hopes of erasing the political stain of the latter action but its provisions are being labeled a bailout by critics. It places only a token financial burden on Edison International while guaranteeing the profitability of its utility subsidiary by charging its customers whatever is required to cover its costs and past debts. ??Meanwhile the state is spending -- by Davis' own account -- about $70 million a day or $2-plus billion a month on spot power purchases paying roughly five times what consumers are being charged at the retail level. And the current futures market for power indicates that wholesale power prices will jump by another 50 percent by mid-summer higher prices and greater purchases could increase the drain on the state treasury to as much as $5 billion a month. ??State Treasurer Phil Angelides is desperately trying to arrange a bridge loan to relieve pressure on the state's rapidly vanishing reserves but Wall Street is reluctant to lend without a fuller explanation of what's happening and a specific authorization from a suspicious Legislature. ??He said Tuesday that Davis who has maintained secrecy on power purchases must offer a comprehensive and public plan for dealing with the financial squeeze. ??Meanwhile bankers are sending strong signals that the state government is becoming as poor a lending risk as the utilities. ??Davis for some reason is unwilling to declare this situation the emergency that it is truly becoming -- one that could take a toll of human life if major blackouts shut down air conditioners respirators and traffic lights. He insists on issuing his periodic -- and wholly unrealistic -- assurances that things will turn out all right even declaring to reporters this past Tuesday that we think we'll have this thing licked by the end of fall. ??It's time for someone -- the governor preferably but someone -- to lay out for Californians exactly what's happening the downside financial and power supply risks and what's being done to deal with the looming disaster facing this state. ??It's time for politicians to treat us as adults who can face reality not as children to be fed sugarcoated sound bites and slogans. ??-- Dan Walters writes for the Sacramento Bee. LOAD-DATE: April 29 2001 of 103 DOCUMENTS 2001 / Los Angeles Times Angeles Times ????????????????????April 28 2001 Saturday Home Edition SECTION: Part A Part 1 Page 19 Metro Desk LENGTH: 679 words HEADLINE: OFFICIALS CALL PRICE STABILITY PLAN ILLEGAL UTILITIES: AGENCY CHIEFS SAY THE FEDERAL PROPOSAL COULD ALSO CAUSE MORE BLACKOUTS THIS SUMMER. BYLINE: NANCY VOGEL and MIGUEL BUSTILLO TIMES STAFF WRITERS DATELINE: SACRAMENTO BODY: ??Two top state energy officials said Friday that a federal plan to stabilize electricity prices in California could increase the odds of blackouts this summer and most likely is illegal. ??In a barrage of complaints attacking the Federal Energy Regulatory Commission the state's top power regulator and the head of the board overseeing California's transmission grid said they might challenge the federal order in court. ??The order was approved on a 2-1 vote Wednesday and released to the public late Thursday. ??We're going to take whatever actions we can to oppose this to the extent our lawyers tell us it's illegal said Michael Kahn an attorney named by Gov. Gray Davis to head the board overseeing the California Independent System Operator. Cal-ISO manages the transmission grid reaching three-quarters of the state. ??In a conference call with reporters Kahn and Loretta Lynch president of the California Public Utilities Commission said the order also seems to indicate that FERC is unwilling to force power sellers to rebate any of the extraordinary profits earned before last October in California's market where wholesale electricity prices began soaring last May. ??And according to Kahn the federal order illegally ties limits on power prices to a requirement that California link its transmission grid with those of other states. ??It's not within their authority to have this kind of linkage he said. ??The federal order is scheduled to take effect May 29. Though it is not clear how the order will play out in the state's electricity market Lynch and Kahn said they do not believe it will bring down power costs or help the state avoid blackouts as intended. ??They're creating a whole new wholesale blackout system said Lynch referring to a section of the order that allows large customers such as steel mills and food processors to get paid to shut down when grid operators are struggling to find enough electricity to meet demand. ??Though a somewhat similar program has helped California avoid blackouts the federal order requires state power buyers to name the price to which electricity must rise before they shut down customers. ??The requirement of naming a price could lead to more blackouts said Stanford University economist Frank Wolak because it prevents power buyers from paying more if that's what it takes to keep electricity flowing. ??Stating your price and sticking to it means that somebody could call your bluff Wolak said. The generators just say look we can't supply all you want at the price you want to pay. ??So they supply everything they can at the price we're willing to pay--and no more--and we have rotating blackouts he said. ??Lynch said that no matter how this aspect of the FERC order unfolds it ain't for Washington bureaucrats to decide when the lights go out in California. ??Grid operators at Cal-ISO must quickly buy batches of electricity to constantly match supply and demand on the transmission system serving most of the state excluding the city of Los Angeles. When Cal-ISO cannot find enough power it must order Southern California Edison Pacific Gas & Electric and San Diego Gas & Electric to trigger rotating blackouts. ??The state suffered such controlled outages on four days in January and March and many such days are predicted for this summer as air conditioning drives up demand for power. ??In other energy news Friday Gov. Gray Davis announced in Los Angeles that electricity use in California state office buildings dropped by an average of 20% in the first two months of this year compared to the same months of 2000. State workers have been under orders since late last year to turn off nonessential lights computers printers and other electrical appliances. Some agencies have even changed workers' schedules eliminating flextime so that everyone works the same hours and the offices can open later and close earlier shortening the energy-using day. ??* ??Times staff writer Mitchell Landsberg in Los Angeles contributed to this story. LOAD-DATE: April 28 2001 of 103 DOCUMENTS 2001 / Los Angeles Times Angeles Times ????????????????????April 28 2001 Saturday Home Edition SECTION: Part A Part 1 Page 19 Metro Desk LENGTH: 688 words HEADLINE: BILL COULD FOIL DAVIS' ELECTRICITY OFFENSIVE POWER: CONGRESSMAN WANTS TO LET SMALL PRODUCERS SELL ON WHOLESALE MARKET. BACKERS SAY PLAN WOULD BOOST SUPPLY BUT FOES SEE IT COSTING CALIFORNIA DEARLY. BYLINE: JULIE TAMAKI and MIGUEL BUSTILLO TIMES STAFF WRITERS DATELINE: SACRAMENTO BODY: ??A Texas congressman plans to introduce legislation next week that would allow California's small power producers to sell their supplies on the wholesale market--a move that could threaten Gov. Gray Davis' plan to end the state's energy crisis. ??The proposal by Republican Rep. Joe Barton the influential chairman of the House energy and air quality subcommittee would permit producers of alternative and renewable energy to suspend their contracts with the state's two biggest investor-owned utilities and sell their supplies to a third party. ??Proponents say the bill could dramatically bolster the state's electricity supplies by luring producers whose plants have been shut down by payment disputes to restart them in time for summer when supplies are expected to be tight and blackouts are feared. ??But allowing producers to sell to a third party would essentially devastate Davis' plan to rescue the utilities and get the state out of the business of making emergency electricity purchases. ??The governor's plan is based on California locking down the costs of electricity from the utilities and small power producers for several years at a reduced cost. ??During that time the state would buy the remaining portion of the electricity the utilities need to serve their customers. Meanwhile the utilities would regain their financial footing by selling assets to the state in exchange for being allowed to recover a portion of their back debt through a surcharge on electricity bills. ??If the alternative producers were allowed to sell their power on the wholesale market the state could be forced to purchase much more electricity on the expensive open market. ??That would dramatically increase California's already massive power costs forcing the state to further raise electricity rates and borrow even more than the record $ 12 billion in bonds it is planning to finance the plan. The state has spent more than $ 5 billion buying electricity that the utilities cannot afford and Davis expects to spend $ 15 billion by year's end. ??It is a way of busting the budget for the state of California said Joseph Fichera a Wall Street energy consultant hired by the Davis administration. He called the potential release of the small producers a disaster scenario for the state. ??Added Stephen E. Frank chairman president and chief executive of Southern California Edison: Releasing them from their contractual obligations will simply exacerbate the problem because they would then be selling into the market at additionally higher rates and just compound the state's problems. ??But Eugene Peters of the Electric Power Supply Assn. disputed that contention. The state he said is already buying replacement supplies on the open market because of reduced output by small producers. ??If 3000 megawatts are made available again it will have a potentially profound effect on what people pay for power by bolstering overall electricity supplies Peters said. ??Utility executives contend that only 1200 megawatts are offline because of payment problems. ??California is home to nearly 700 small energy producers which generate more than a quarter of the electricity consumed in the state. They differ from their big out-of-state counterparts which have been getting paid by the state. ??The Barton proposal will be the subject of public hearings Tuesday and Thursday and could move to the full House Energy and Commerce Committee for a vote the next week. Barton could not be reached for comment Friday. ??The alternative-energy provision is one of several in his emergency energy bill. Others designed to help the West through a difficult summer of price spikes and energy shortages range from offering federal aid to relieving a bottleneck in the transmission system to permitting governors to secure waivers from environmental rules to boost power supplies. ??The provisions dealing with waivers of environmental rules have been among the most controversial drawing opposition from environmentalists. ??* ??Times staff writer Richard Simon in Washington contributed to this story. LOAD-DATE: April 28 2001 of 103 DOCUMENTS 2001 / Los Angeles Times Angeles Times ????????????????????April 28 2001 Saturday Home Edition SECTION: Business Part C Page 2 Financial Desk LENGTH: 137 words HEADLINE: BRIEFLY / ENERGY PUC ORDERS UTILITIES TO POST BLACKOUT DATA BYLINE: Nancy Rivera Brooks BODY: ??Responding to customer complaints the California Public Utilities Commission ordered Southern California Edison and San Diego Gas & Electric to tell customers more about when they will be blacked out during times of extreme power shortages. The PUC told Edison and SDG&E to begin listing on electricity bills by June 1 the outage block into which each customer falls. ?The utilities then must use their Web sites to tell customers which blocks are slated for blackouts should more rotating outages be required. Pacific Gas & Electric Co. already lists outage block numbers on its customer bills. A pop-up box on PG&E's Web site shows which blocks are next in line for blackouts. Edison and SDG&E said they have been working on implementing such notification on their own and will comply with the PUC ruling. LOAD-DATE: April 28 2001 of 103 DOCUMENTS ??????????????????Copyright 2001 McClatchy Newspapers Inc. Bee ?????????????????April 28 2001 Saturday METRO FINAL EDITION SECTION: MAIN NEWS Pg. A3 POWER CRUNCH LENGTH: 1109 words HEADLINE: Cities take new look at public power The state's uncertain electricity picture has local officials deciding it's time to revisit the idea of municipal utilities. BYLINE: Carrie Peyton Bee Staff Writer BODY: ??From the shipwreck of California's electric industry Albert Vera sees a chance to build a life raft. ??This is an opportunity that shall never come again the former Culver City mayor told city and county officials gathered this week in Sacramento. ??Every rate hike every blackout every corporate bonus is more evidence for believers that it's time for local government to get into the power business. They pin their hopes on municipal utility drives in San Francisco Corona San Diego County and beyond. ??Over the past few years however only a handful of cities have set up their own electric departments and they are mostly limited entities that fall short of full-fledged utilities. More commonly cities - including Davis Lincoln and Culver City - have studied the idea and rejected it at least temporarily. ??They all face the same question said Santa Rosa City Manager Jeffrey Kolin: ??Is the investment worth the risk? Most of us would say we don't know yet. ??Kolin's city like scores of others across the state has decided it is time to study the issue anew motivated by the prospect of soaring electric bills repeated blackouts and Pacific Gas and Electric Co.'s bankruptcy filing. ??All their citizens are screaming said Yvonne Hunter a lobbyist for the League of California Cities. ??The highest visibility fight will likely come in November when San Franciscans go to the polls to decided whether to create their own utility in a city that houses PG&E's corporate headquarters. ??We will take it very seriously PG&E spokesman John Nelson said. ??Shortly after deregulation in 1996 several drives for ratepayer-owned utilities stumbled or stalled. An effort in the far north state to create a multicounty public power agency was rejected by state regulators because some local governments objected. ??Now with a bill to create a state power authority moving through the Legislature some believe the climate may be changing. ??One of the things this crisis has proved is the value of local control said Jerry Jordan head of the California Municipal Utilities Association. ??Since January the cities of Hercules in the Bay Area and Corona in Southern California have formed utilities to deliver electric service to new neighborhoods - a strategy that sidesteps potential condemnation fights with the existing utility. The county of San Diego is trying to get special legislative authority to create a regional power agency without a popular vote. ??We could produce power better cheaper and faster than the private sector county Supervisor Dianne Jacob said. ??Not so say PG&E and Southern California Edison. ??There's been much more talk of it but as soon as most folks sit down and take a look at the realities ... they realize that they would have to buy on the same market at the same outrageous prices that we and the state have been paying Nelson said. The talk quickly evaporates. ??For-profit utilities have long argued that government shouldn't usurp the role of private industry in delivering electricity. PG&E contends that the factors that once made public power attractive - such as access to low-cost electricity from federal dams - have evaporated. ??In addition cities that try to withdraw from PG&E or Edison now probably would still have to funnel money their way for years to come to pay off still-unsold state bonds that will stretch out a single year's power costs for up to 15 years. ??With so many unknowns the next few years are likelier to produce more studies than new utilities said a number of city officials who attended a seminar in Sacramento this week sponsored in part by the American Public Power Association. ??Former New York state Sen. Al Coppola told the group the session should have been titled: Independence from the greedy robber baron utilities. ??Public power backers share three key beliefs: ??* They can charge customers less because they don't have to pay dividends to investors or pay taxes on their sales they can respond to local preferences on issues like which customers pay the lowest rates and how blackouts are staged and existing utilities will do everything in their power to oppose them. ??Edison did the right thing - (use) fear to discourage Culver City from creating an electric arm in 1995 Vera the city's former mayor told the group. ??And Glenn Prentice head of the newly created Corona electric utility said in an interview that a half-dozen other cities have contacted him for more information but he declined to name them. ??If I do Edison will start the attack on them. We're talking about a lot of money he said. We're here to serve the public. They're here to make money. ??PG&E sees new utilities as competition for our business and it has a policy of lobbying hard against them Nelson said. ??Less than 18 months ago it warned residents of the Placer County town of Lincoln that a city power enterprise would be costlier and less dependable than PG&E and its officials labeled the effort a tax dodge. ??But by January of this year PG&E barely blinked when Hercules set up a utility to deliver power and telecommunications service in new neighborhoods. ??We got more resistance from AT&T and PacBell said Raj Pankhania assistant to the city manager of Hercules. ??Pankhania has been researching utility drives across the state and has seen no groundswell for public power although he believes it can bring cities added revenue and more local control. ??That could change this summer Prentice said. ??It really depends on how bad the blackouts are. ??A blackout that left one city councilmember's daughter at a darkened school was part of what led the Riverside County city of Corona to vote April 4 to form its own electric arm he said. Heavy industry became anxious too. ??They said to the city council 'Do something!' Prentice said. ??Skipping detailed studies Corona quickly decided to create a utility that will build small power plants under 50 megawatts to serve city operations and new neighborhoods in the city of 127000 east of Disneyland. ??In time said Hercules' Pankhania cities like his could become the living laboratory for whichever system can deliver better service and lower rates. ??Hercules' plans calls for the older two-thirds of its homes and businesses to retain their PG&E service and the newest third to be served by the city utility. ??The existing homeowner will definitely compare five to 10 years down the road he said. Then let the people decide which way they want to go. ??* * * ??The Bee's Carrie Peyton can be reached at (916) 321-1086 or [email protected]. LOAD-DATE: April 29 2001
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Subject:: Re: Letter to President on Energy Efficiency - Immediate Review
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Body:: Decline. Rosalee Fleming 09/21/2000 05:29 PM To: Steven J Kean/NA/Enron@Enron cc: Subject: Letter to President on Energy Efficiency - Immediate Review Reque sted Is this something we want to do? -----------------
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Subject:: Re: CONFIDENTIAL - Residential in CA
Body:: I like the idea particularly if we can time any decision to turn the customers back so it falls after the failure to get some action out of Sacto (instead of after our earnings release). The only problem I see is that we would need a decision from the top that we're not going to turn the customers back if we get direct access (so we can end the debate). I don't think it helps us if we get lucky get direct access back then make a decision to return customers to the utility. Karen Denne@ENRON 04/13/2001 10:30 AM To: James D Steffes/NA/Enron@Enron cc: Jeff Dasovich/NA/Enron@Enron Paul Kaufman/PDX/ECT@ECT Sandra McCubbin/NA/Enron@Enron Richard Shapiro/NA/Enron@Enron Janel Guerrero/Corp/Enron@Enron Mark Palmer/Corp/Enron@ENRON Susan J Mara/NA/Enron@ENRON Peggy Mahoney/HOU/EES@EES Harry Kingerski/NA/Enron@Enron Dan Leff/HOU/EES@EES Subject: Re: CONFIDENTIAL - Residential in CA Before any decision is made I think we really need to weigh in with EES on the ramifications (both PR and legislative) of turning back 16000 residential customers. I strongly believe that the public hit we will take will be far greater than our actual out-of-pocket losses. We will be crucified by the public media consumer groups legislators governor attorney general etc. and this action will reaffirm our reputation of packing up and leaving when it's not in our interest. The impact of this action would be exacerbated since it is on the heels of UC/CSU. I would also argue that this hurts our national dereg efforts. If we're advocating that competition and choice benefits consumers and then we turn around and pull out of a market and abandon customers when we're not profiting we'll kill any chances we have of ever serving retail customers in California -- or in any other state. We look foolish advocating for direct access when we're not willing to serve our existing -- let alone future customers What about a preemptive strike that engages these 16000 customers to weigh in on direct access -- i.e. a letter that says Enron may be forced to cancel its contract -- call/write/send the enclosed postcard to your legislator and tell them you want to keep your right to choose your energy service provider. Our credibility is on the line. Before we take this action we need to be cognizant of all the long-range strategic implications and we need to seriously weigh the negative impact this will have on our corporate reputation on our legislative abilities and on our commercial success going forward. kd James D Steffes 04/12/2001 09:05 PM To: Jeff Dasovich/NA/Enron@Enron Paul Kaufman/PDX/ECT@ECT Sandra McCubbin/NA/Enron@Enron Richard Shapiro/NA/Enron@Enron Janel Guerrero/Corp/Enron@Enron Mark Palmer/Corp/Enron@ENRON Karen Denne/Corp/Enron@ENRON Susan J Mara/NA/Enron Peggy Mahoney/HOU/EES@EES Harry Kingerski/NA/Enron@Enron cc: Dan Leff/HOU/EES@EES Subject: CONFIDENTIAL - Residential in CA In the meeting today no decision was made about what to do with Enron's 16000 residential customers. Each of the contracts gives a basic 30 day out right to Enron. That being said I think that we have a short window to push for DA before any public action impacts us in Sacramento. I realize that the ultimate action (which I think is inevitable) makes it harder for our advocacy on DA but real $ are flowing out of the company. EES will give us notice when a decision is reached. Thanks Jim
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Subject:: Re: Astros
Body:: Yes please. From: Elizabeth Linnell on 05/16/2001 12:02 PM To: Steven J Kean/NA/Enron@Enron cc: Subject: Astros I noticed that several groups within your overall organization charged tickets or our suite to their cost centers this month. I know of the business purpose for a couple but not all. Let me know if you're interested in this info and I'll get more data from Greg.
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Subject:: Request from Bob Frank
Body:: nan
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Subject:: Enron Mentions
Body:: How important is this fight to us now (see attached article on ExIm)?
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Subject:: Re: USG overtures on Dabhol
Body:: Thanks for the update. From: John Hardy@ENRON_DEVELOPMENT on 05/10/2001 09:48 AM To: Rebecca McDonald/Enron@EnronXGate cc: Ben Glisan@ECT Steven J Kean/NA/Enron@Enron Rob Walls/ENRON@enronXgate Subject: USG overtures on Dabhol Rebecca At a meeting yesterday at OPIC on Trakya another of our problem projects Dabhol was raised. A representative from the White House transition team joined the conversation. I was asked the terms under which we were prepared to negotiate and I told them at a minimum upon a commitment by the Indian authorities to serious negotiations which would include full compliance with the terms of the contracts and progress in the reform of the MSEB. I made clear that we do not see the Godbole Committee as the basis for such a discussion. I think the USG wants to be on record politically encouraging the Indian Govt. to engage in discussions all parties consider to be meaningful in hopes of working things out before it is too late even while through OPIC and EXIM it is supporting the move towards PNT. The administration may be concerned that without such a diplomatic overture on its part it could be concluded that the USG has politically taken a position on the project. In Trakya for example the USG has been quite proactive in pressing the Turkish govt on the payments issue and even in discussing the payment concerns with the IMF so that the payments issues for the BOTs (two of the four in Turkey are US sponsored) are taken into account as the IMF program moves forward. So I anticipate that the USG will shortly be meeting with the Indian ambassador here and the US Charge in Delhiwill likely be directed to make the rounds and meet with senior government officals on the project. I wanted you to be aware of this also any guidance you can provide would be helpful. Thanks John
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Subject:: Re: Job Titles and Job Banding
Body:: Thanks for your message. I do think we need to talk this through. In the meantime though let's not make anymore VPs until this is resolved. As I said in my original message I am not looking to undo what has been done but to make sure we don't do it again unless the process is followed. I understand that there are significant title differences across the regions we operate. In fact one of the people in my organization who did not make VP is Dennis Vegas who has done an extraordinary job in Latin America. Notwithstanding his regional focus (and the significance of a VP title in his region) he was put through the company wide process and he David Haug and I submit everyone else on the Exec Comm understood that every new VP would go through the same process regardless of regional assignment (with the exception of certain joint venture companies). But I maintain that we need some consistency in the VP title in particular -- i.e. that it remain an Enron-wide title granted only through the PRC process. Though I don't personally feel this way for many people in the organization the VP title means something separate from the compensation structure it implies something like making partner in a legal or consulting firm. Making that cut should not vary based on where you live or what region you support. I also understand the point about needing a certain title for external purposes. In my organization we are dealing with very title-conscious elected officials and media. I can make the case for every one of my directors and senior directors that they would be more effective externally if they carried a more senior title regardless of any change in compensation. As an executive committee we elected to make such an exception only for legacy title holders -- i.e. people who had previously made VP outside the process. Everyone in my organization To: Cindy Olson@ENRON Steven J Kean@EES cc: Sanjay Subject: Job Titles and Job Banding From reading the e-mails on the issue regarding Regional Vice President at Enron India it sounds like there will be more discussion on this issue. I know that issues like this generally come up at the Enron ExCom level. There are a few issues that need to be kept in mind and although Cindy and I have discussed these in the past I have not had an opportunity to pursue them further (but would be happy to help out on this). I have noticed these not only in India but also in the other international settings where I have worked for Enron during the past several years. 1. International job titles and domestic job titles do not correlate. For example in India the title Director implies a very senior person within the organization (well above VP) whereas in the Enron domestic world it is a position below VP. Managing Director within Enron is below the most senior levels but in India a MD is the Ken Lay equivalent. For this reason I cannot use Managing Director in my title or on my business card although this is my title for Enron Houston purposes. 2. Job titles are much more important in an international setting than in a domestic setting. For example in Houston we have people at the director (and probably manager) level who lead deal teams and bring deals to successful closing. In an international setting particularly India to get to the decision-makers in your counterpart organization an officer title of VP or above is very often required. To a certain degree this is form over substance but that's what works over here. 3. To solve some of these problems Enron should consider doing what some other international companies have done (and I think Cindy and her team may already be working on this). A job banding study should be done and based on responsibilities everyone globally should be placed in a band. It would not be a title band of VP or director or manager but rather a band with a non-title classification. I hate to suggest a band with numbers such as 1 through 15 because that sounds way too much like the government but something like that would work. Once this is done communication is made to employees that the band is what is key in determining their compensation and level within the organization. Then the business units can rely on their particular market dynamics or on what their competition is doing to determine job titles. Thus if the Global Origination group needs to have a title of Senior Trader and EECC needs a title of Project Leader and Enron India needs a Regional Vice President all can be accomplished while keeping these same people at a consistent level for global Enron purposes. I will be happy to discuss this further with any of you. Plus I will volunteer to participate in finding a solution that works for all of Enron while taking into account the specifc business unit and/or global function needs. Wade
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Subject:: Re: Opinion Elite Survey
Body:: Have we made this available to the Cheney team? From: Mark Palmer on 04/25/2001 04:02 PM To: Richard Shapiro/NA/Enron@Enron Steven J Kean/NA/Enron@Enron Linda Robertson/NA/Enron@ENRON Karen Denne/Corp/Enron@ENRON Joe Hartsoe/Corp/Enron@ENRON cc: Subject: Opinion Elite Survey Here's the Opinion Elite file. It looks very strong for our open access argument. Suggest we update the WH. Any other uses? I have the verbatims and cross tabs. We'll send a sanitized version (although there's not much I wouldn't want everybody to see) to some of the interviewees who requested it. Mark
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Subject:: RE: the summary report, I am sorry.
Body:: Thanks Vince
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Subject:: nan
Body:: Nick Lampson called and asked for a contribution. I committed to one without knowing about his vote on PNTR. I will keep my word by making an individual contribution but will also communicate to him that in my capacity as Enron PAC chair i cannot authorize the PAC to make a contribution as a result of that vote. Sorry I jumped the gun.
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Subject:: Energy Issues
Body:: Please see the following articles: AP Wire services Tues 3/20: Calif. Officials Order Blackouts Dow Jones News Tues 3/20: California Panel to Order Utilities to Make $1= =20 Billion in Back Payments SF Chron 3/20: As Davis Seeks Money Lawmakers Want Answers=20 Members of both parties angry at lack of dialogue Fresno Bee Tues 3/20: Jones rips state on energy crisis Sac Bee Wed. 3/21: Day 2 -- Battling blackouts: Payment plan sought to= =20 restart small plants Sac Bee Wed. 3/21: Hospitals take hit seek power guarantee Sac Bee Wed. 3/21: Lodi still won't pull the plug San Diego Union Tues. 3/20: Blackouts hit for second day break seen=20 Wednesday San Diego Union Tues. 3/20: State power regulators working on energy=20 rescue=20 San Diego Union Tues. 3/20: Federal regulators scored for not ordering= =20 more California refunds LA Times Wed. 3/21: Second Day of Blackouts Disrupts 500000 Home and= =20 Businesses LA Times Wed. 3/21: Fragile Supply Network Apt to Fail LA Times Wed. 3/21: Elevator Anxiety is Riding High LA Times Wed. 3/21: State says it's accelerating plan to buy Power=20 Utilities' Grid LA Times Wed. 3/21: L.A. Long Beach File Suits Over Gas Companies'=20 Prices LA Times Wed. 3/21: Davis OKs Subsidy of Pollution Fees LA Times Wed. 3/21: As Losses Mount Companies work around outages LA Times Wed. 3/21: Commentary: A Blackout on Answers LA Times Wed. 3/21: Commentary: Rolling Blackouts: Blatant Extortion SF Chron Wed. 3/21: Utilities' Demand Blocks Bailout=20 NEGOTIATIONS HIT SNAG: PG&E Edison want end to price freeze if they sell= =20 transmission lines to state SF Chron Wed. 3/21: Utilities' Demand Blocks Bailout=20 BLACKOUTS ROLL ON: Weather increased consumption blamed SF Chron Wed. 3/21: Manners Go Out the Window=20 Pedestrians in peril as drivers turn darkened S.F. streets into free-for-al= l SF Chron Tues. 3/20: Historic Blackouts in State=20 Bay Area learns to cope SF Chron. Tues. 3/20: Second day of rolling blackouts in power-starved= =20 California Mercury News. Wed. 3/21: Bay Area Residents Learning to roll with=20 Blackouts Orange County Wed. 3/21: Powerless Again Orange County Wed. 3/21: The iceman shunneth effects of hourlong blacko= ut Orange County Wed. 3/21: Traffic officials are seeing red over blackout= s Orange County Wed. 3/21: Alternative power producers cut back or shut= =20 down as payments from big utilities lag Orange County Wed. 3/21: O.C. saves its energy -- for blaming others Orange County Wed. 3/21: Blackout readiness on agenda Dow Jones Energy News Wed. 3/21: Calif To Order Utils To Pay Small=20 Generators Up Front-Gov Dow Jones Energy News. Wed. 3/21: PG&E Says It Is Negotiating With=20 Qualifying Facilities Energy Insight Wed. 3/21: New York at the Crossroads --- Calif. Officials Order Blackouts=20 By PAUL CHAVEZ Associated Press Writer=20 LOS ANGELES (AP) - State power managers ordered rolling blackouts across=20 California for a second straight day Tuesday as demand for electricity agai= n=20 exceeded supply.=20 The same factors that collided to strap California's power supply on Monday= =20 hit again officials with the Independent System Operator said. Those inclu= de=20 reduced electricity imports from the Pacific Northwest numerous power plan= ts=20 offline for repairs and higher-than-expected demand because of warm=20 temperatures.=20 A two-unit Southern California plant that the ISO hoped would be working=20 Tuesday had not been fixed. One of its units might go online at noon to hel= p=20 the situation the ISO's Jim Detmers said.=20 In addition hydroelectric power imports from the Northwest were 800=20 megawatts lower than Monday he said. The ISO oversees most of the state's= =20 power grid.=20 --- California Panel to Order Utilities to Make $1 Billion in Back Payments By Jason Leopold 03/20/2001 Dow Jones Business News (Copyright (c) 2001 Dow Jones & Company Inc.) Dow Jones Newswires=20 LOS ANGELES -- The California Public Utilities Commission will order Edison= =20 International's Southern California Edison and PG&E Corp.'s Pacific Gas &= =20 Electric unit to pay small power generators that are qualified utilities=20 about $1 billion in past-due payments in order to keep the plant owners fro= m=20 dragging the utilities into an involuntary bankruptcy proceedings and to= =20 also ensure the generation units keep pumping out electricity people=20 familiar with the matter told Dow Jones Newswires late Monday. Gov. Gray Davis state Sen. Debra Bowen and Assemblymembers Fred Keeley an= d=20 Robert Hertzberg all Democrats spent most of the day y trying to hammer o= ut=20 an agreement with the so-called qualifying facilities alternative power=20 producers that use the wind sun steam and biomass to generate electricity= =20 for the state on supply contracts and past payments the utilities failed t= o=20 make.=20 The qualifying facilities which represent about one-third of the state's= =20 total power supply and signed contracts to sell power directly to the=20 utilities under a government mandate would then agree to sign power-supply= =20 contracts with the utilities for a period of five to 10 years for about $79= a=20 megawatt hour for the first five years and about $61 a megawatt hour=20 thereafter two sources involved in the negotiations said.=20 The PUC is expected to issue a draft resolution on the issue sometime this= =20 week one source said.=20 The lawmakers wouldn't comment on the details of their talks Monday.=20 Representatives with SoCal Ed (EIX) and PG&E (PCG) said they were unaware= =20 Gov. Davis and his administration were meeting on the issue.=20 The utilities are more than $13 billion in debt and have failed to make=20 payments on their qualifying-facilities contracts since November. PG&E has= =20 paid some of its qualified facilities just a fraction of what they are owed= .=20 Legislation To Restructure QF Rates Stalls In Senate Energy Committee=20 Mr. Keeley had recently drafted legislation along with state Sen. Jim=20 Battin a Republican from Palm Desert that would have restructured the rat= es=20 the qualified facilities charge the utilities from $170 a megawatt hour to= =20 $80 a megawatt hour for five years.=20 The bill SB47X stalled in the Senate Energy Committee of which Ms. Bowen= =20 chairs. SoCal Ed opposed the legislation saying the rates were still too= =20 high. A utility spokesman said the qualified-facilities rates should be=20 reduced to under $50 a megawatt hour.=20 But the lawmakers and the governor is trying to avoid the need for=20 legislation largely because there isn't much support in both houses for su= ch=20 a bill and the chance that it won't be passed in time to keep the qualified= =20 facilities from dragging the utilities into involuntary bankruptcy=20 proceedings the legislative source said.=20 The PUC will take over the issue from the Legislature the source said.=20 Monday about 3000 megawatts of qualified-facilities generation went offli= ne=20 because the companies that operate the power plants can no longer afford to= =20 buy natural gas used to fuel the plants due to the utilities' failure to pa= y=20 money owed to the companies said Jim Detmers vice president of operations= =20 for the state's Independent System Operator.=20 The outages triggered a major shortfall in the state which resulted in near= ly=20 eight hours of statewide rolling blackouts Monday.=20 Many owners of the qualified-facilities said without immediate relief they= =20 would likely force SoCal Ed and possibly PG&E into involuntary bankruptcy= =20 perhaps as soon as Thursday.=20 One such facility CalEnergyOperating Co. wants to be freed temporarily fr= om=20 its contract with the utility and be allowed to sell its electricity to thi= rd=20 parties until the utility is able to pay its bills. CalEnergy is an affilia= te=20 of MidAmerican Energy Holdings Co. which is majority owned by Warren=20 Buffet's Berkshire Hathaway Inc. (BRKA).=20 The company sued SoCal Ed last month and the case is scheduled to be heard= =20 Thursday in Imperial County Superior Court. If a judge delivers an=20 unfavorable ruling CalEnergy and other unsecured creditors would drag SoCa= l=20 Ed into involuntary bankruptcy three executives with the companies involve= d=20 said.=20 CalEnergy is said to be organizing a bankruptcy petition now circulating=20 among six of Southern California Edison's independent power suppliers and= =20 could file the petition very quickly if it fails in its suit Thursday said= =20 executives with three of the six companies.=20 Write to Jason Leopold at [email protected]=20 Copyright (c) 2001 Dow Jones & Company Inc.=20 All Rights Reserved --- --- As Davis Seeks Money Lawmakers Want Answers=20 Members of both parties angry at lack of dialogue=20 Lynda Gledhill Greg Lucas Chronicle Sacramento Bureau Tuesday March 20 2001=20 2001 San Francisco Chronicle=20 Sacramento -- The Legislature has warned it may block further state purchas= es=20 of electricity as lawmakers' frustration with Gov. Gray Davis' handling of= =20 the energy crisis increases.=20 A test may come soon because Davis asked yesterday for another $500 million= =20 to continue buying power.=20 Sen. Steve Peace D-El Cajon chairman of the Joint Legislative Budget=20 Committee wrote to Davis' Finance Department on Friday that the committee= =20 might deny further spending requests in the absence any discernable=20 progress from the Public Utilities Commission to ensure that the state wou= ld=20 get its money back.=20 Members of the committee both Republican and Democratic said they support= ed=20 Peace's call for more oversight of the spending given the lack of=20 information from Davis on details of the state's power purchases.=20 He's been holding things close to the chest and that bothers me said Se= n.=20 John Vasconcellos D-Santa Clara. I want to know a lot more.=20 Sen. Dick Ackerman R-Fullerton said the administration has been=20 stonewalling us about how much is being spent and how much power we're=20 getting for it. When the state is spending that kind of money at a minimum= =20 legislators should know for what.=20 The state had spent $2.6 billion on electricity through March 11. Davis'=20 request for more money would put the state at the $3 billion mark by the=20 middle of April. The state is spending an average of $49 million a day.=20 The money is supposed to be paid back through the rates collected from=20 utilities' customers. It is up to the PUC to decide how to divide that mone= y=20 among the state the utilities and the utilities' debtors. The commission i= s=20 scheduled to take up the issue at its March 27 meeting.=20 The problem is that there appear to be more demands on the money than there= =20 is money to go around.=20 The utilities have said they need the money to pay off some of their=20 creditors. Among those looking for cash are alternative-power generators th= at=20 were selling electricity to Pacific Gas and Electric Co. and Southern=20 California Edison. Half of them have shut down because they have not been= =20 paid.=20 Earlier this month the PUC granted the Department of Water Resources whic= h=20 has been purchasing electricity for the state the power to recoup its full= =20 costs through rates.=20 It's unclear whether that can be accomplished without raising electricity= =20 prices though Davis has insisted he can solve the crisis without boosting= =20 rates.=20 Lawmakers said they approved the bill that allowed the state to buy power i= n=20 the belief such purchases would be a stopgap until the Davis administration= =20 could sign long-term contracts with power suppliers. However only about 19= =20 contracts have been signed to date out of 42 agreements. If all the=20 contracts are signed they will account for about 70 percent of the power= =20 California is expected to need.=20 It was our expectation some of these contracts would kick in said=20 Assemblywoman Carole Migden D-San Francisco. This was designed to only be= =20 bridge money to avert a power disaster. We should hold firm and come up wit= h=20 a plan.=20 I recall about three weeks ago when we first asked about one of these $500= =20 million letters Migden said. We said maybe this one is necessary but=20 there won't be carte blanche approval of any future requests. I'm pleased= =20 Sen. Peace is taking that approach.=20 To Assemblyman George Runner R-Lancaster Peace's letter was another way= =20 for the Legislature to send a message we need to be in this loop. We're jus= t=20 getting a small little dribble of information which just creates more=20 questions.=20 A spokesman for the Department of Finance said officials hoped to work with= =20 the committee members about their concerns.=20 --- --- Jones rips state on energy crisis=20 Secretary of state hints that he'll take on Davis in 2002.=20 By John Ellis=20 The Fresno Bee (Published March 20 2001)=20 Officially he's Bill Jones secretary of state for California. Unofficiall= y=20 he's Bill Jones 2002 gubernatorial candidate.=20 The evidence is right there between the lines -- in the subtleties of his= =20 speeches their subject matter and the way Jones carries himself when he's= =20 in public.=20 Monday was no different as Jones addressed a Rotary Club luncheon in Fresn= o=20 full of people who are assuming -- though nothing is official -- that the= =20 Fresno native will soon announce his intention to challenge Gov. Davis next= =20 year.=20 Bill they call me governor Chas Looney a former Rotary Club district= =20 governor quipped to Jones. I look forward to the day we all can call you= =20 governor.=20 Jones then proceeded to deliver a speech to a packed house in the DoubleTre= e=20 Hotel that touched on his accomplishments as secretary of state but quickl= y=20 moved to his main topic: California's crumbling infrastructure and how the= =20 energy crisis is affecting the state.=20 Always in the background but never mentioned by name was Davis. Jones was= =20 careful to hew to the Rotary rule that speeches steer clear of partisan=20 politics.=20 Still Jones looked sounded and acted like a candidate for governor and= =20 near the end of his speech he promised his decision would come soon.=20 The Fresno Republican's speech began by highlighting his work in passing th= e=20 Three Strikes and You're Out initiative in 1994.=20 Jones also talked of his efforts to remove 2 million inactive California=20 voters from the rolls.=20 But it was clearly the energy crisis and its ramifications -- an issue=20 Republicans feel they can pin on Davis and the Democratic-controlled=20 Legislature -- that was the centerpiece of the speech.=20 Today the energy crisis is being driven he said by a lack of power plant= =20 construction. And while billions go to solve the crisis he said the state= =20 faces $100 billion in unmet infrastructure needs -- everything from school= =20 repair to road repair.=20 Doesn't that scare you? Jones asked.=20 He then recounted the warning signs -- ignored by the state he said -- of= =20 the looming energy crisis.=20 He cited the initial warnings that the deregulation bill was flawed last= =20 summer's request by Edison and Pacific Gas & Electric to allow forward=20 contracting and the Republican request for a special session to deal with t= he=20 energy crisis. All ignored Jones said.=20 Now Edison and PG&E are near bankruptcy and the state finds itself steppin= g=20 up as a creditor. And the solution now becomes California getting into the= =20 energy business he said. Or even carrying it to a greater degree not= =20 just in the short term to buy power to keep the lights on. I'm talking abou= t=20 basically socializing the energy business.=20 Jones said he prefers low-interest loans to Edison and PG&E taking the=20 electric grid as collateral.=20 I just do not believe in California getting into something it does not kno= w=20 how to do -- has never done before -- on top of all of our other=20 obligations he said.=20 It really worries me that California will not be able to endure that type = of=20 obligation.=20 Jones said polls now show increasing numbers of residents saying the state = is=20 headed in the wrong direction.=20 I feel obligated to speak out and say there is a better way Jones said. --- --- Day 2 -- Battling blackouts: Payment plan sought to restart small plants By Dale Kasler and Carrie Peyton Bee Staff Writers (Published March 21 2001)=20 Blackouts rolled across California for a second straight day Tuesday=20 snarling traffic darkening businesses and sending state officials scrambli= ng=20 to craft a payment plan to revive the wind farms and other critically neede= d=20 small energy producers that have shut down because of financial woes.=20 On a day when another 570000 customers lost power Gov. Gray Davis said th= e=20 Public Utilities Commission and the Legislature would move promptly to orde= r=20 Pacific Gas and Electric Co. and Southern California Edison to start paying= =20 those small energy producers for their electricity. Davis said the two=20 utilities will face considerable fines if they don't pay up.=20 But several of the producers known as qualifying facilities said they= =20 doubted Davis' plan would go far enough to get them back in operation. And = it=20 wasn't clear whether the plan would keep the increasingly impatient=20 alternative producers from hauling one or both of the big utilities into=20 bankruptcy court as some have threatened.=20 The shortage of power from the qualifying facilities -- plus a near-record= =20 heat wave (downtown Sacramento topped off at 83 degrees one degree short o= f=20 the 84 degree record set in 1960) a lack of hydropower and other problems = --=20 prompted the state's Independent System Operator to order a second day of= =20 blackouts starting mid-morning. But the blackouts hit only about half as ma= ny=20 Californians as Monday's with late afternoon conservation efforts helping= =20 balance supply with demand.=20 The blackouts usually about an hour long hit about 7600 Sacramento=20 Municipal Utility District customers in Elk Grove and south Sacramento=20 County. PG&E customers in suburban counties were affected as well.=20 The order darkened shops in San Francisco's Chinatown and was blamed for a= =20 crash that left two motorists seriously injured in the Los Angeles suburb o= f=20 South El Monte. A Sun Microsystems Inc. factory in Newark had to close for= =20 several hours.=20 Most Californians took the blackouts in stride though. Elk Grove High Scho= ol=20 students filed outside to play hacky sack. Coffee shop patrons in Davis=20 milled outdoors enjoying the unseasonably warm weather.=20 Yet the blackout order was met with outright defiance by one municipal=20 utility. The city of Lodi refused to cut power to its residents Monday or= =20 Tuesday saying it shouldn't have to suffer because of the financial crisis= =20 afflicting PG&E and Edison.=20 The outlook for today and the near future was brighter as several big powe= r=20 plants came back on line after repairs. ISO officials also praised=20 Californians' conservation efforts which had faltered in the morning but= =20 came on strong in the afternoon helping to prevent further blackouts. By= =20 evening the grid was in a relatively mild Stage 2 power alert.=20 But the second day of blackouts -- plus an increasing threat of utility=20 bankruptcy -- pushed Davis to the brink. The governor cobbled together a=20 payment plan to rescue the qualifying facilities -- some 600 wind farms=20 geothermal plants and other alternative-energy generators whose production= =20 has become increasingly vital in recent days.=20 Under Davis' plan the Legislature and the PUC would order PG&E and Edison = to=20 pay the qualifying facilities for power delivered after April 1. The=20 utilities are required to buy power from the qualifying facilities under a= =20 1978 federal law designed to bring cheaper and cleaner forms of electricity= =20 to market.=20 Davis said the PUC would release a proposed order late Tuesday that would= =20 require the utilities to pay the qualifying facilities $79 a megawatt hour= =20 for five-year contracts or $69 for 10-year contracts. The Legislature also= =20 would have to pass a law authorizing the PUC to issue such an order.=20 But the situation was far from resolved late Tuesday and PG&E and Edison= =20 were likely to oppose at least portions of Davis' plan.=20 Edison is willing only to make some kind of partial payments going forward= =20 said Thomas Higgins a senior vice president with parent company Edison=20 International. We have a limited amount of resources available to us in=20 rates ... and that's the constraining factor.=20 PG&E which has been making partial payments to the qualifying facilities= =20 said it could pay them in advance in full for future power deliveries.=20 But PG&E said such payments would eat up half the $400 million it has=20 available each month to buy power -- and unless it gets a rate hike there= =20 wouldn't be enough to pay the qualifying facilities and cover other expense= s=20 including the cost of reimbursing the state Department of Water Resources f= or=20 the power the agency is buying on behalf of the troubled utility.=20 PG&E's proposal could represent a challenge of sorts to state officials:=20 Accept less money for the water department or raise rates.=20 State officials need to resolve who they want to see paid PG&E spokesman= =20 John Nelson said. There is a limited pool of money.=20 For his part Davis insisted that the water department would be first in li= ne=20 to be paid and he said the PUC will issue a proposed order to that effect.= =20 We are getting paid before anybody else Davis said.=20 Hundreds of qualifying facilities are out of commission because PG&E and=20 Edison haven't paid them. The situation has robbed the state of several=20 thousand badly needed megawatts and is a key reason blackouts have been=20 ordered. In normal times the facilities produce more than 20 percent of=20 California's electricity.=20 Some of the qualifying facilities have been threatening to haul one or both= =20 of California's beleaguered utilities into bankruptcy court unless they get= =20 paid soon saying a bankruptcy filing might be the only way they can save= =20 their businesses.=20 You've got to take care of the QF problem or the whole thing blacks out= =20 said Jerry Bloom a lawyer representing one group of qualifying facilities.= =20 (State officials) are starting to understand.=20 One thing that was fairly certain about Davis' still-sketchy payment plan: = It=20 wouldn't cover PG&E and Edison's existing debt to the qualifying facilities= =20 estimated at more than $1.48 billion.=20 In their current financial state the utilities say they can't afford to pa= y=20 the existing debt. In addition paying the debt would create a major=20 complication: Other creditors including the big power generators would=20 surely haul Edison and PG&E into bankruptcy court on the grounds that they= =20 weren't being treated fairly.=20 You can't give preferential payment treatment to one class of creditors ov= er=20 another PG&E's Nelson said. You virtually assure that (the other=20 creditors) have to file an involuntary bankruptcy proceeding against you.= =20 But without full payment it wasn't clear how many of the qualifying=20 facilities would be able to restart.=20 Executives at several plants -- the ones that run on natural gas -- said=20 they're not sure their gas suppliers will deliver unless the existing debts= =20 are cleared up.=20 We need to convince a gas company to supply us said Ed Tomeo of UAE Ener= gy=20 Operations Corp. which had to shut off its 40-megawatt Kern County plant= =20 Tuesday. We're a company that already owes millions of dollars for gas=20 supplies. How do you coax them to sell you millions more?=20 It's wishful thinking ... that the gas suppliers are going to sell us gas= =20 Robert Swanson of Ridgewood Power said.=20 I>Bee Capitol Bureau Chief Amy Chance and staff writers Stuart Leavenworth= =20 Bill Lindelof Pamela Martineau and the Associated Press contributed to thi= s=20 report. --- --- Lodi still won't pull the plug By Carrie Peyton Bee Staff Writer=20 (Published March 21 2001) In a growing rebellion against blackouts the city of Lodi has twice refuse= d=20 to cut power to its residents despite an order from Pacific Gas and Electri= c=20 Co.=20 The small city-run electric system is among many disgruntled utilities=20 including the Sacramento Municipal Utility District that believe their=20 contractual pledges to cut back during emergencies were never meant for tim= es=20 like this.=20 It's been a philosophical debate up to this point. Now I guess we've drawn= a=20 line in the sand said Lodi utility director Alan Vallow.=20 PG&E said it is reviewing its interconnection contract the agreement that= =20 links Lodi to the grid through PG&E-owned high-voltage lines to determine= =20 what action it will take next.=20 It's unfortunate that while the city of Lodi has received the benefit of= =20 this agreement for years they are unwilling to bear the burden of this=20 statewide energy shortage said PG&E's Jon Tremayne.=20 One utility coalition the Northern California Power Agency believes that= =20 PG&E has already violated that agreement by not lining up enough power for= =20 customers.=20 The agency wrote PG&E on Friday saying that its members -- municipal=20 utilities and irrigation districts -- believe they aren't required to=20 participate in blackouts prompted by financial disputes.=20 And SMUD which has been considering dropping out of future blackouts will= =20 be watching the response to Lodi said SMUD board President Larry Carr.=20 Some SMUD directors say they're ready to go to court to force the issue. So= =20 is Lodi population 58000 said Vallow.=20 I've heard an Edison executive describe this as a natural disaster akin to= =20 an earthquake. That's crap. This is a man-made event he said.=20 Lodi said it will still help in genuine emergencies such as fires or toppl= ed=20 transmission lines. But it decided that on Monday and Tuesday that wasn't t= he=20 case.=20 You have 3000 megawatts of QFs (qualifying facilities) offline because=20 their bills haven't been paid. Well guess what? Somebody ought to pay thos= e=20 ... bills Vallow said. --- --- Blackouts hit for second day break seen Wednesday=20 By Audrey Cooper ASSOCIATED PRESS=20 March 20 2001=20 SACRAMENTO =01) Rolling blackouts hit California for a second straight day= =20 Tuesday closing souvenir shops in San Francisco's Chinatown snarling=20 traffic and plunging schools and offices around the state into darkness.=20 Roughly a half-million homes and businesses from San Diego to the Oregon=20 border faced outages blamed on the same factors that collided to force=20 blackouts Monday =01) unseasonably warm weather reduced electricity import= s=20 from the Pacific Northwest numerous power plants offline for repairs and= =20 less power provided by cash-strapped alternative-energy plants.=20 Five rounds of outages in San Diego affected about 74000 customers. State= =20 power grid officials expected to have enough electricity to avoid further= =20 outages through at least Wednesday although the supply remained tight.=20 State power regulators working on energy rescue=20 Federal regulators scored for not ordering more California refunds=20 ?=20 Gov. Gray Davis blamed the blackouts in part on the failure of Southern=20 California Edison and Pacific Gas and Electric Co. to pay millions of dolla= rs=20 they owe qualifying facilities power suppliers that use cogeneration =01= )=20 steam from manufacturing plus natural gas =01) or solar wind and other=20 renewable energy to generate electricity.=20 State power grid officials say California this week has lost about half the= =20 electricity QFs normally provide. Several cogeneration plants say they=20 haven't been paid by Edison and PG&E for weeks and can't afford to buy=20 natural gas to fuel their plants.=20 Davis said the utilities are taking in money from customers but still faili= ng=20 to pay the QFs. The state has been spending about $45 million a day since= =20 January to buy power for customers of Edison and PG&E which are so=20 credit-poor that suppliers refuse to sell to them.=20 It's wrong and irresponsible of the utilities to pocket this money and not= =20 pay the generators Davis said at a Capitol news conference Tuesday evenin= g.=20 They've acted irresponsibly and immorally and it has to stop.=20 Southern California Edison officials said in a written statement that the= =20 utility is intent on paying creditors and working with the PUC to pay QFs f= or=20 future power sales. PG&E representatives were out of the office late Tuesda= y=20 night and didn't immediately return calls from The Associated Press seeking= =20 comment.=20 John Harrison of the Northwest Power Planning Council a consortium that=20 monitors power use in several Western states said blackouts on the first d= ay=20 of spring are an ominous sign of what lies ahead this summer.=20 We're in trouble he said. We will likely be able to meet our needs this= =20 summer but there won't be much to send to California.=20 Tuesday's outages began at 9:30 a.m. PST and continued in 90-minute waves= =20 until about 2 p.m. when the Independent System Operator lifted its blackou= t=20 order.=20 Grid officials credited an influx of power from the Glen Canyon hydroelectr= ic=20 plant on the Utah-Arizona border.=20 The blackouts were blamed for at least one serious traffic accident.=20 Two cars collided at an intersection without traffic lights in the Los=20 Angeles suburb of South El Monte leaving two people with serious injuries= =20 California Highway Patrol Officer Nick Vite said.=20 Ventura Foods in Industry sent its employees out for an early lunch after= =20 blackouts shut down its phones and computers.=20 This is mild weather for this time of year. I don't know what's going to= =20 happen in the summer manager Frank Hynes said. This is going to have a= =20 serious impact on the state's economy. They can't just keep shutting people= =20 down.=20 Statewide demand was higher than expected because of warm spring weather.= =20 Temperatures reached record highs across California on Monday including th= e=20 80s and low 90s in Southern California. They were expected to be somewhat= =20 lower Tuesday but still in the 70s and 80s.=20 The ISO hoped demand would start to subside and conservation would kick in= =20 but that did not happen Tuesday morning.=20 We have not seen the kind of conservation we saw back in January when th= e=20 first blackouts hit ISO spokesman Patrick Dorinson said. If we don't have= =20 conservation efforts that just means that's more power we have to take off= =20 the grid.=20 In San Francisco's Chinatown souvenir shops normally bustling with visitor= s=20 were forced to shut down. Nearby irritated customers waited for a bank to= =20 reopen.=20 It's no good for anybody =01) stores or businesses or people said Yin Su= n=20 Chan among those in line.=20 PG&E the state's largest utility accounted for most of the customers=20 affected.=20 At least 438000 PG&E residential and business customers were affected as o= f=20 early afternoon spokesman Ron Low said.=20 Edison cut power to about 50000 customers. Edison was ordered to cut less= =20 power than PG&E and saved some due to conservation programs including one= =20 that lets the utility shut off air conditioning for 118500 residential and= =20 business customers when the power supply is tight.=20 About 73400 San Diego Gas & Electric customers were hit by the blackouts.= =20 Los Angeles whose municipal utility is not on the grid that serves most of= =20 California wasn't included in the blackout order.=20 More than 1 million homes and businesses statewide experienced outages=20 Monday.=20 California's power crisis is expected to get even worse this summer when= =20 temperatures soar and residents crank their air conditioning.=20 Natural gas supplies are tight water supplies are down and the state is=20 spending tens of millions of dollars each day to buy electricity for Edison= =20 and PG&E who say they are nearly bankrupt due to high wholesale power cost= s.=20 Edison and PG&E say they have lost more than $13 billion since last June to= =20 climbing wholesale electricity prices the state's 1996 deregulation law=20 prevents them from recouping from ratepayers.=20 Adding to the problems the state this week lost about 3100 megawatts from= =20 QFs. One megawatt is enough power to serve about 750 households.=20 The plants say they are owed about $1 billion for past sales to PG&E and=20 Edison.=20 PG&E said it is offering to prepay the QFs starting next month to get them= =20 back in operation. Negotiations were expected to continue Wednesday.=20 California Co-Generation Council attorney Jerry Bloom said he supports=20 proposals that will get the Qfs paid but the promise of future payments ma= y=20 not be enough.=20 PG&E and Bloom said the utility's prepayments hinge on an upcoming Public= =20 Utilities Commission decision on whether the utility's rates are sufficient= =20 to pay its bills and cover the state's power purchases on its behalf which= =20 amount to $4.2 billion since early January.=20 Davis said the PUC planned to issue a draft order late Tuesday directing th= e=20 utilities to pay their future QF bills.=20 It plans to take action on that order next Tuesday Davis said. The=20 Legislature plans to approve a bill in the meantime giving the PUC the=20 authority to issue such an order and fine the utilities if they fail to=20 comply he said.=20 Davis said he is confident the utilities and the state can pay their bills= =20 without further rate increases for Edison and PG&E customers.=20 --- --- State power regulators working on energy rescue=20 By Karen Gaudette ASSOCIATED PRESS=20 March 20 2001=20 SAN FRANCISCO =01) State power regulators continue to delay the release of= =20 guidelines that will determine a portion of the money the Department of Wat= er=20 Resources can recoup from financially troubled utilities for electricity it= =20 has bought on their customers' behalf.=20 These guidelines will help the water department determine whether it must= =20 raise consumer power rates to reimburse the state for the more than $3=20 billion it has committed to buying electricity.=20 Assemblyman Fred Keeley D-Boulder Creek said Tuesday that the Public=20 Utilities Commission would likely have to raise rates by 15 percent to cove= r=20 the state's costs and the utilities' bills.=20 The PUC guidelines were most recently delayed by a letter from DWR Director= =20 Thomas Hannigan asking that the water department receive a percentage of=20 ratepayer money collected by the utilities equal to the percentage of=20 electricity it provides to utilities.=20 The DWR currently buys around 40 percent of the power used by Pacific Gas a= nd=20 Electric Co. Southern California Edison Co. and San Diego Gas and Electric= .=20 Under the DWR's proposal the utilities would have to hand over 40 percent o= f=20 the money they continue to collect from ratepayers.=20 The DWR would then also receive whatever money remains after the utilities= =20 subtract their own generation and long-term contract costs the letter said= .=20 That amount would become the California Procurement Adjustment =01) an am= ount=20 that will help the state retrieve money spent on power purchases and help= =20 establish the size of state revenue bonds that are currently estimated to= =20 total $10 billion.=20 The state plans to issue the bonds in May to help pay off the more than $3= =20 billion Gov. Gray Davis' administration has committed to power purchases=20 since January to help the utilities climb out of debt.=20 Ron Low a spokesman with PG&E said the utility objects to paying the DWR= =20 such a large sum claiming it would interfere with efforts to pay its=20 qualifying facilities =01) power plants that use the sun wind biomass o= r=20 natural gas to generate about one third of the state's electricity.=20 The nearly bankrupt utilities owe the QFs more than $1 billion for=20 electricity they have produced since November said Jan Smutney-Jones=20 executive director of the Independent Energy Producers.=20 Hannigan also said in the letter the DWR intends to use its authority to=20 raise consumer electricity rates to recoup any money not reimbursed through= =20 the CPA and other means.=20 The Public Utilities Commission expected to release the guidelines last wee= k=20 but was delayed by debates over legislation that would slash the rates of= =20 environmentally friendly power plants under contract to provide electricity= =20 to the investor-owned utilities.=20 Without knowing how much ratepayer money the utilities need to pay these=20 qualifying facilities for future electricity it's unknown how much money= =20 they'll have on hand to pay the DWR.=20 In a written statement PUC Administrative Law Judge Joseph DeUlloa said th= at=20 he would issue a temporary decision on the CPA as soon as is practical.= =20 Pacific Gas and Electric Co. and Southern California Edison Co. say they ha= ve=20 lost more than $13 billion since last June to climbing wholesale electricit= y=20 prices that the state's 1996 deregulation law prevents them from recouping= =20 from ratepayers.=20 --- --- Federal regulators scored for not ordering more California refunds=20 By H. Josef Hebert ASSOCIATED PRESS=20 March 20 2001=20 WASHINGTON =01) House Democrats asked federal energy regulators Tuesday why= they=20 are not going more aggressively after alleged overcharges for wholesale=20 electricity in California and ordering more refunds.=20 The Federal Energy Regulatory Commission has asked suppliers to justify $12= 4=20 million in sales during the first two months of the year or refund the mone= y=20 but critics charge that thousands of additional questionable sales are not= =20 being challenged.=20 The three commissioners testifying at a hearing of the House Commerce=20 subcommittee on energy were asked why they limited their refund demands to= =20 only power sales that occurred during so-called Stage 3 alerts of acute pow= er=20 shortages in California.=20 It appears to me a price is unreasonable when it is unreasonable and not= =20 just during a power alert said Rep. Rick Boucher of Virginia the panels'= =20 ranking Democrat.=20 The commission last week ordered six power generators to justify some 1000= =20 transactions during February in the California market whenever the price wa= s=20 above $430 per megawatt hour and occurred during a Stage 3 emergency alert.= =20 But the lawmakers were told Tuesday that 56 percent of another 14168=20 transactions occurring outside a Stage 3 emergency also exceeded the $430= =20 trigger but are not being questioned.=20 The line was drawn to limit the scope of the refund said agency=20 commissioner William Massey a Democrat who strongly opposed the refund=20 actions because he said they were too limited.=20 Chairman Curtis Hebert a Republican defended the way the commission decid= e=20 on what transactions to challenge saying that it sought to replicate market= =20 conditions as they existed at the time of the sales.=20 We deserve a better explanation retorted Boucher.=20 Massey said that agency's investigation of overcharges for January also=20 failed to consider thousands of transactions that exceeded the refund trigg= er=20 because they did not occur during Stage 3 supply emergencies.=20 Managers of California's electricity grid state regulators and utilities= =20 have accused the agency of refusing to aggressively investigate price gougi= ng=20 by wholesalers who have charged from $150 to $565 per megawatt hour as muc= h=20 as 20 times what prices were in 1999.=20 While Hebert and commissioner Linda Breathitt defended the commissioners=20 attempt to investigate whole electricity prices Massey has been highly=20 critical.=20 What message does the agency's scrutiny of prices send to the power=20 companies? he was asked.=20 It makes clear FERC is going to be looking for the wallet under the lamp= =20 post with the lights shining =01) and nowhere else replied Massey.=20 Meanwhile Massey and his two fellow commissioners also disagreed sharply = on=20 whether the energy agency should impose temporary price controls on the=20 wholesale power market in the West to dampen further expected price increas= es=20 this summer.=20 Massey said he fears a disasters in the making if some price restraints a= re=20 not imposed by FERC which regulates wholesale electricity sales. We need = a=20 temporary time out he said.=20 But Massey is in the minority on the commission. Both Hebert and Breathitt= =20 are against price caps arguing they will have long-term detrimental impact= =20 on power supply.=20 The Bush administration has made its opposition to interfering in the=20 wholesale markets well known for weeks. Vice President Dick Cheney's task= =20 force is to unveil an energy plan in about a month that is expected to lean= =20 heavily on energy production.=20 --- --- Second Day of Blackouts Disrupts 500000 Homes and Businesses=20 Power: Grid operators say the shortage should ease in the next few days bu= t=20 officials see a grim summer.=20 By MITCHELL LANDSBERG and ERIC BAILEY Times Staff Writers=20 A traffic signal that stopped working during Tuesday's rolling blackouts le= d=20 to this collision be tween a car and a truck at an intersection in El Monte= .=20 The outages ran from 9:30 a.m. to 2 p.m. AP ?????Electricity blackouts rolled through California for a second straight= =20 day Tuesday disrupting business in one of the world's most technologically= =20 advanced economies and leaving schoolchildren groping in the dark. ?????Jinxed by a combination of bad luck and bad decisions utilities were= =20 forced to cut off power to more than half a million homes and businesses fr= om=20 San Diego to the Oregon border. ?????By day's end there was some good news from the operators of the=20 statewide power grid who said the situation had eased and appeared likely = to=20 improve for the next few days. And Gov. Gray Davis announced a proposed=20 solution to one vexing problem: the utilities' failure to pay the state's= =20 small alternative power generators many of whom have stopped producing=20 power as a result. ?????Davis called the utilities shameful for failing to pay and praised= =20 the alternative power generators which include solar wind and geothermal= =20 energy producers as good corporate citizens who produced power although= =20 they weren't being paid. ?????We are anxious to pay the [small producers] who are dropping like=20 flies Davis said. ?????Despite the progress it was hard for some people to look on the brigh= t=20 side after enduring outages that took place when the state's hunger for pow= er=20 was almost 50% less than at its summer peak. ?????This is a taste almost like an appetizer of a really unpalatable me= al=20 that's going to be served up this summer said Michael Shames of the Utili= ty=20 Consumers' Action Network in San Diego himself a victim of a rolling=20 blackout that hit his office in San Diego early Tuesday. ?????Power officials have warned that this could be a grim summer in=20 California since demand for electricity sharply rises when people turn on= =20 air conditioners. The state has been struggling to meet its power needs in= =20 recent months because of rising prices and a flawed deregulation plan that= =20 has left the two biggest private utilities on the brink of bankruptcy. Stat= e=20 leaders have so far failed to agree on a comprehensive plan to solve the=20 problems. Wally Quirk teaches a business class in a borrowed classroom Tuesday at=20 Sonoma State after the state's rolling blackouts cut the power to his usual= =20 classroom which does not have any windows. SCOTT MANCHESTER / The Press Democrat ?????The latest round of blackouts began about 9:30 a.m. Tuesday when the= =20 California Independent System Operator which runs the statewide grid=20 determined that the demand for electricity was 500 megawatts more than the= =20 supply--an imbalance that meant the state was short on the power needed to= =20 supply electricity to about 375000 homes. ?????Grid operators blamed a confluence of events including warmer weather= =20 outages at several major power plants including one unit of the San Onofre= =20 nuclear power station a reduction in imports from the Pacific Northwest a= nd=20 the shutdown of many alternative energy producers. Similar blackouts Monday= =20 were the first since January. ?????The situation improved somewhat by late Tuesday morning with some=20 supplies restored and Californians conserving energy and Cal-ISO was able = to=20 halt the rolling blackouts at 2 p.m. ?????Once again customers of the Los Angeles Department of Water and Power= =20 were spared although the municipally owned utility said its electrical=20 surplus was smaller than usual. The DWP like Southern California Edison w= as=20 affected by an outage at the huge Mohave power plant in Nevada as well as = by=20 planned outages at several of its facilities. ?????As in the past by far the biggest impact was felt by customers served= =20 by Pacific Gas & Electric the state's largest utility which cut power to= =20 438000 homes and businesses. ?????Edison cut power to 47462 customers in about 40 cities but eventuall= y=20 was able to avoid blackouts by shutting off the air conditioners of some of= =20 the 118500 customers who participate in a voluntary cutoff program. ?????San Diego Gas & Electric cut power to 73400 customers. ?????Innovative Ways of Coping ?????As on Monday most people took the outages in stride as an annoying b= ut=20 ultimately unavoidable inconvenience. ?????In Palmdale four schools lost power during one of the hourlong=20 blackouts but teachers and students pressed on in the sunlight pouring=20 through windows and skylights. At Barrel Springs Elementary Principal Cruz= =20 Earls said the biggest problem came when students had to go to the bathroom= :=20 Hand in hand they made their way through darkened hallways with flashlight= s. ?????All in all it wasn't a terrible experience. Then again the weather= =20 wasn't that hot Tuesday with a high of 79 in Palmdale so the shutdown of= =20 air conditioners wasn't much of a hardship. I don't want to think about th= e=20 conditions this could create in May or June Earls said. ?????Businesses of all kinds complained about the lack of warning for the= =20 outages--and sometimes found innovative ways to get around the problem. ?????Rattled by news reports of Monday's rolling blackouts El Burrito=20 Mexican Food Products in the city of Industry started its Tuesday shift at = 2=20 a.m. to beat the clock in the event of an outage. That hunch paid off.=20 Workers had just finished cooking and packaging the last batches of salsa a= nd=20 masa when the lights went out at 10:20 a.m. ?????Company owner Mark Roth said the firm will continue working odd hours = to=20 avoid further outages. But he isn't buying the line from the utilities that= =20 they can't provide advance warning because of concerns about looting and=20 rioting. ?????We're ready to do whatever it takes to get through this thing he=20 said. But they've got to give us some notification. ?????At Big O Tires in Elk Grove just south of Sacramento owner Daniel Cr= um=20 had his 14 workers take an early lunch break or head to the warehouse to=20 reorganize the goods. Without electricity they couldn't repair brakes or= =20 align front ends. ?????I'd never let them be idle said Crum. ?????At least two minor traffic accidents were blamed on the outages. ?????The blackouts resulted from a convergence of factors. ?????Demand was slightly higher than expected probably because of=20 unseasonably warm weather. Supplies were tighter than usual in part becaus= e=20 of several outages including that at the Mohave plant half of which was= =20 brought back on line by the end of the day. ?????The San Onofre Nuclear Generating Station was still limping along=20 without power from one of its two 1100-megawatt units which was shut down= =20 Feb. 3 after a half-hour fire in a nonnuclear part of the plant. Edison=20 which operates San Onofre initially estimated the unit would be out for=20 several weeks but recently said extensive damage to parts of the turbine= =20 will keep the unit out of commission until mid-June. ?????Shipments from the drought-stricken Pacific Northwest which generates= =20 most of its electricity from large dams were also down. ?????Each time we take a measurement we're closer to the all-time record= =20 for the driest year said Dulcy Mahar spokeswoman for the Bonneville Powe= r=20 Administration the network of federal dams that provides the region with= =20 much of its electricity. We've been doing what we can but we simply don't= =20 have power to sell. ?????Finally there was the problem of the small and alternative energy=20 producers which have shut down plants because they haven't been paid by th= e=20 private utilities since November. Those outages have cost the state about= =20 3000 megawatts of electricity enough for about 2.3 million homes. ?????You're seeing the system freeze up said David Sokol chairman and C= EO=20 of MidAmerican Energy Holdings Co. which runs eight geothermal plants in t= he=20 Imperial Valley through its subsidiary CalEnergy. His company hasn't shut= =20 down yet but Sokol said smaller companies couldn't continue to sell their= =20 energy to utilities for free. ?????Why should we fund Edison? he asked. That's just ridiculous. ?????A Choice of 2 Rate Plans ?????Davis joined lawmakers in the Capitol on Tuesday to outline his plan t= o=20 get the producers running again. He said utilities have had no right to=20 collect money from ratepayers and then not use the funds to repay the small= =20 producers. The state has spent billions to buy power from large conventiona= l=20 producers on behalf of the utilities but has refused to pick up the tab for= =20 alternative energy. ?????The utilities acted in a shameful manner by putting money in their=20 pockets that was designed to pay the [small producers] Davis said. ?????The plan outlined by Davis would allow the generators to choose betwee= n=20 two rate plans. They could decide to be paid 7.9 cents per kilowatt-hour ov= er=20 five years or 6.9 cents a kilowatt-hour over 10 years. ?????The utilities must begin paying the generators the new rates beginning= =20 April 1 or face fines Davis said. ?????The question of how the companies will get paid the about $1.5 billion= =20 they are owed remains unresolved. That issue will be decided in coming week= s=20 as Davis' negotiators continue to work on rescue plans for the state's=20 financially hobbled private utilities. ?????PG&E spokesman Ron Low said the state's largest utility did not take= =20 kindly to Davis' criticism and noted that the governor's plan is similar t= o=20 a proposal that PG&E made last week to producers. ?????Jan Smutny-Jones executive director of a trade group that includes so= me=20 of the small generators described the plan as a positive step. ?????The governor got it right in that it's not acceptable for small power= =20 producers to continue to generate and not be paid Smutny-Jones said. But= =20 we'll need to see what the order says the devil will truly be in the=20 details. ?????Grid operators said the state's overall energy situation eased by midd= ay=20 Tuesday because of repairs at the Mohave plant and another large plant at= =20 Ormond Beach and because the Western Area Power Administration came up wit= h=20 300 megawatts of electricity from Glen Canyon Dam. ?????Also grid spokesman Patrick Dorinson said conservation savings spiked= =20 upward after earlier complaints that Californians weren't conserving. ?????We saw the people of California probably conserve 900 megawatts today= =20 he said. That was probably the difference. ---=20 ?????Times staff writers Andrew Blankstein Jose Cardenas Marla Dickerson= =20 Noaki Schwartz Nicholas Riccardi Doug Smith Rebecca Trounson and Richard= =20 Winton in Los Angeles Miguel Bustillo and Julie Tamaki in Sacramento Mari= a=20 La Ganga in San Francisco Stanley Allison Matt Ebnet Scott Martelle=20 Dennis McLellan Monte Morin Jason Song Mai Tran and Nancy Wride in Orang= e=20 County and Richard Simon in Washington contributed to this story. --- --- Fragile Supply Network Apt to Fail=20 By JENIFER WARREN and ERIC BAILEY Times Staff Writers=20 ?????A lot of people were caught off guard by the blackouts that swept over= =20 California this week. Debra Bowen wasn't one of them. ?????As chairwoman of the state Senate Energy Committee she is=20 intimately--and painfully--familiar with the state's energy supply. And she= =20 is willing to share a secret: It's a fragile system capable of collapse at= =20 any time. ?????That knowledge keeps Bowen awake at night particularly with the=20 approach of summer when power demand surges as Californians get reacquaint= ed=20 with their air conditioners. ?????I sound a bit less like Chicken Little today don't I? Bowen said=20 Tuesday as chunks of the state once again were forcibly darkened. I know = a=20 lot of people don't feel we have a problem. But we have a very very big=20 problem. ?????With the recent slowdown in Stage 3 emergencies a sense of calm had= =20 settled over the energy debate and even some legislators were speaking wit= h=20 guarded optimism about the hot months ahead. ?????On Tuesday however a creeping sense of doom was almost palpable amon= g=20 energy watchers and previous supply forecasts--which predict that the stat= e=20 may yet escape summer blackouts--were being given a second look. ?????The outages of the last two days are something that Californians are= =20 going to have to get used to for July and August said Michael Zenker=20 California director of Cambridge Energy Research Associates. The=20 Massachusetts consulting firm is predicting about 20 hours of blackouts thi= s=20 summer. ?????At the California Independent System Operator which manages 75% of th= e=20 statewide power grid officials said the energy cushion the state had in=20 recent weeks was in some ways a phantom caused by heavy imports of power. ?????Cal-ISO spokesman Patrick Dorinson said people may have been deluded= =20 into a false state of comfort: Maybe there is a tendency to think things= =20 have improved he said. In fact they haven't. ?????More than anything this week's events illustrate the delicate balance= =20 of factors that keep California illuminated from the multitude of supply= =20 sources to the weather. ?????Temperatures were higher than usual. Alternative-energy suppliers--who= =20 haven't been paid in months by the cash-strapped utilities--cut their outpu= t.=20 Suppliers in the Northwest--which faces a drought--slashed exports. Equipme= nt=20 breakdowns and maintenance at power plants--much of it unanticipated--took= =20 13000 megawatts offline. A utility-run program that gives businesses=20 discounts in exchange for cutting power during emergencies is all but dead. ?????The fragility of the system is such that a small perturbation can tur= n=20 everything upside down very easily said Gary Ackerman executive director= =20 of the Western Power Trading Forum a group of electricity generators and= =20 traders. ?????One factor receiving particular attention is the dip in supply caused = by=20 unscheduled maintenance. To help officials predict available supply=20 generators provide an annual maintenance plan that is updated regularly. ?????In addition however facilities sometimes shut down for unexpected=20 reasons: leaking tubes burnt-out transformers cracked turbines and faulty= =20 feed pumps. At one point Tuesday about 8200 megawatts were unavailable=20 because of unscheduled shutdowns. That's enough to supply about 6 million= =20 households and up from 5700 megawatts a week ago. ?????The huge 1400-megawatt Mohave power plant near Laughlin Nev. which= =20 supplies Southern California Edison and the Los Angeles Department of Water= =20 and Power was felled Monday by a transformer problem. That was enough to= =20 push the state into blackouts. ?????A growing number of skeptics however question whether those reasons= =20 are always valid accusing generators of withholding power to shrink supply= =20 and drive up prices. ?????There's no way to verify it so you've got to take their word for it= =20 said Frank Wolak a Stanford University economist who studies California's= =20 electricity market. And given that it's very profitable for these things t= o=20 occur you start to wonder if they're creating an artificial scarcity. ?????Tom Williams of Duke Energy said the Houston-based company is working= =20 hard to keep its California power plants which are capable of producing=20 3351 megawatts of electricity in operation after months of near-continuou= s=20 operation. ?????It's like riding a moped across the country he said. They're just= =20 not meant to run this hard. ?????Last week the state Senate formed a committee to investigate charges = of=20 market manipulation by power suppliers. The chairman state Sen. Joe Dunn= =20 (D-Santa Ana) says the issue of unscheduled plant shutdowns is on his agen= da. ?????The problem is: How does one prove that a particular outage was part = of=20 a deliberate strategy to deprive the state of kilowatts rather than a resu= lt=20 of normal business operations? Dunn said. ---=20 ?????Times staff writer Nancy Rivera Brooks contributed to this story. --- --- Elevator Anxiety Is Riding High=20 Emergencies: Workers in skyscrapers worry about blackouts trapping them in= =20 their buildings. Some take the risk in stride others make plans to take th= e=20 stairs.=20 By JOHN M. GLIONNA and JOE MOZINGO Times Staff Writers=20 ?????SAN FRANCISCO--In Susan Clifton's highly placed opinion sunny Tuesday= =20 would have been a picture-perfect day to work atop one of the tallest=20 buildings in San Francisco a scenic city littered with soaring skyscrapers= . ?????But Clifton--like many other high-rise office dwellers in blackout-pro= ne=20 parts of California--couldn't help but feel some high anxiety at the prospe= ct=20 of being stranded by electrical outages that were sweeping across the state= =20 for a second day. ?????I think about it all the time said Clifton a 21-year-old=20 receptionist at Deutsche Bank's offices on the 48th floor of a tower in the= =20 city's financial district who recently moved from rural Virginia. The way = I=20 see it Californians take a lot of things on faith working atop tall=20 buildings with all these earthquakes and power outages. ?????For Long Beach office worker Dave Suhada the anxiety has taken the fo= rm=20 of elevator phobia: a fear of getting stuck on an 80-degree day crammed in = a=20 pod of sweating heavy-breathing humans with no way out. ?????I'm just eyeing the buttons to see which one I could push as fast as = I=20 can if the power goes out he said.=20 ?????For 20-year-old Lisa Riley it means entering the elevator each day in= =20 her Long Beach office building with a prayer. I just could not get stuck f= or=20 an hour and a half she said nodding nervously. Often she now opts for th= e=20 stairs. ?????In San Francisco emergency services officials say that most of the=20 city's office buildings are equipped with backup generators to run elevator= s=20 and security equipment in the event of a blackout. ?????Fire Department spokesman Pete House said the city has 19 trucks with= =20 experts trained to extricate people trapped in elevators. Firefighters=20 handling blackout-related emergencies rescued a person trapped in a downtow= n=20 building Tuesday and handled five elevator mishaps Monday. ?????Christopher Stafford didn't get caught inside an elevator Monday but= =20 suffered the next-worst thing: being stranded in his 15th-floor apartment= =20 after the power failed when he went home for lunch. ?????So the 41-year-old real estate worker trooped down the stairs to the= =20 lobby and even made some new friends along the way helping a few elderly= =20 women who were struggling down the stairs. ?????It was a pain he acknowledged. But I have to tell you: I really li= ke=20 my panoramic view so it's worth the hassle. ?????Nowadays Sherrie Tellier makes sure her cellular phone is in hand whe= n=20 she gets in the elevator. She got trapped once before and the emergency=20 phone didn't work. It's amazing she said how small an elevator seems when= =20 you can't get out. It's like a broom closet.Now there's a sigh of relief= =20 every time the door opens. ?????Some high-rise office workers said Tuesday that they preferred not to= =20 think about the perils of going without power and being vulnerable and=20 isolated so high up. ?????But on the 42nd floor of San Francisco's Transamerica Tower Sasha=20 Monpere wasn't fazed by the chance that during a blackout her building's= =20 backup generators wouldn't kick in. ?????Hey I'm young and I'm healthy. I can always walk down the stairs= =20 said the 29-year-old receptionist. I've done the Statue of Liberty. It can= 't=20 be any worse than that. And walking down 42 flights is a lot easier than=20 walking up all those stairs. ?????Likewise with Phil Ip who works on the 52nd--and top--floor of San=20 Francisco's tallest skyscraper. The 25-year restaurant veteran says he has= =20 the utmost faith in modern technology. ?????We're safe even up here said Ip assistant general manager of the= =20 Carnelian Room a restaurant atop the Bank of America building. You should= =20 see the engineer's room in this building. It's like a big steamship. They'r= e=20 equipped for anything that could happen. ?????One floor below Cheryl Martin hears every day about people's fear of= =20 heights. In the year since she began answering phones in a law office she= =20 has often escorted clients afraid of express elevators that shudder and ris= e=20 so fast that passengers' ears pop from the altitude gain. ?????Everybody and I mean everybody asks 'So what happens during a pow= er=20 outage?' she said. ?????Rory Thompson said he believes in karma and is sure that if the rollin= g=20 blackouts come calling his office will be spared. In July 1993 Thompson's= =20 building was the site of an incident known as the 101 California St.=20 massacre in which gunman Gian Luigi Ferri killed eight people and wounded= =20 six before killing himself. ?????This building has already had its bad day he said. They say that t= he=20 day after a crash is the safest day to ride an airline. So I'll take my=20 chances with the rolling blackouts. --- State Says It's Accelerating Plan to Buy Power Utilities' Grid=20 Government: Talks with Edison are reported near completion but agreement= =20 with heavily indebted PG&E has a way to go.=20 By RONE TEMPEST and DAN MORAIN Times Staff Writers=20 ?????SACRAMENTO--As blackouts hit California for a second day Tuesday a ke= y=20 consultant to Gov. Gray Davis said negotiations to buy the power grid owned= =20 by the state's largest utilities are proceeding at an accelerated pace. ?????Wall Street consultant Joseph Fichera said talks with Southern=20 California Edison could be wrapped up within days although those with PG&E= =20 are much less advanced.=20 ?????The administration and PG&E have not reached even an agreement in=20 principle he said. PG&E which has more debt than Edison says its=20 transmission lines are more extensive than those of its Southern California= =20 counterpart. ?????The state wants to buy the utilities' transmission lines and other=20 assets for about $7 billion to provide cash to the utilities help stabiliz= e=20 the electricity supply and ease the power crunch that has plagued Californi= a=20 for months. To research the grid purchase Fichera said the state has had = to=20 pore over 80000 documents just to assess the utilities' liabilities. ?????We are working at a good pace said Fichera chief executive of the= =20 New York firm Saber Partners. . . . If we get to a deal-breaker it might= =20 be longer. ?????By making Fichera who is also a consultant to the Texas Public=20 Utilities Commission available to reporters Tuesday the Davis=20 administration was clearly trying to reassure the public that progress is= =20 being made on the governor's plan to pull the state out of the crisis. ?????Since mid-January when the big utilities' credit failed and suppliers= =20 stopped selling to them the state has spent nearly $3 billion buying=20 electricity from a handful of large suppliers in Texas Oklahoma Georgia a= nd=20 North Carolina. Not a cent has gone to the hundreds of alternative energy= =20 suppliers in California who provide about a quarter of the state's=20 electricity. ?????The Monday and Tuesday blackouts occurred partly because many of the= =20 cash-strapped alternative suppliers including solar biomass and wind powe= r=20 units cut their normal supply to the system in half. They say Edison and= =20 PG&E have not paid them since November the utilities say they are out of= =20 cash. ?????Assemblyman Fred Keeley (D-Boulder Creek) said the plight of the=20 alternative suppliers has dragged on because of the complexity of dealing= =20 with almost 700 individual contractors. ?????Another delaying factor said Keeley who with state Sen. Jim Battin= =20 (R-La Quinta) worked for almost three months to come up with a legislative= =20 plan to lower the small producers' prices was the huge enmity . . .=20 manifested between the utilities and the qualifying facilities. These peopl= e=20 just don't like each other. ?????This week's blackouts provided two painful lessons for the Davis=20 administration: ?????* When it comes to electricity size doesn't matter--every kilowatt=20 counts. During peak use a small wind power facility in Riverside County ca= n=20 make the difference between full power and blackouts. ?????* There is no such thing as a partial solution. Unless the whole energ= y=20 equation is balanced the parts don't work. ?????For the Davis plan to work several key elements need to come together= =20 or utility customers will almost certainly face rate increases above the 19= %=20 already set in motion: ?????* The cost of power purchased by the state must be reduced through=20 long-term contracts with the big out-of-state producers. ?????These contracts the details of which the Davis administration has kep= t=20 confidential are still being negotiated by Davis consultant Vikram Budhraj= a=20 of the Pasadena firm Electric Power Group. The administration says it has= =20 concluded 40 contracts with generators about half of which have been signe= d. ?????According to the most recent statistics released by the Department of= =20 Water Resources which buys power for the state current prices are still= =20 well above the rate state Treasurer Phil Angelides says is necessary for a= =20 planned $10-billion bond offering to succeed. ?????The bonds set for sale in May will be used to reimburse the state fo= r=20 the money it will have spent by that time to buy electricity. The state is= =20 currently spending at a rate of $58 million a day to buy power. If prices= =20 stay high the $10 billion in bonds will not cover the state's power=20 purchases by the end of the summer. ?????Angelides says he cannot proceed with bridge financing for the bonds= =20 until the Public Utilities Commission devises a formula to guarantee that a= =20 portion of utility bills will be dedicated to bond repayment. Angelides has= =20 estimated that under the January law that put the state in the power buyin= g=20 business the state must be reimbursed $2.5 billion annually and that $1.3= =20 billion is needed to service the debt. ?????PUC Administrative Law Judge Joseph R. DeUlloa is expected to announce= =20 his ruling on the reimbursement rate later this week leading to a PUC vote= =20 on the matter as early as next week. ?????* The rates charged for electricity by the alternative producers know= n=20 as qualifying facilities must be cut at least in half down from an averag= e=20 of more than 17 cents per kilowatt-hour. In his news conference Tuesday=20 Davis said he will ask the PUC to set QF rates at 6.9 cents for 10-year=20 contracts and 7.5 cents for five-year contracts. ?????Meanwhile PUC Chairman Loretta Lynch a Davis appointee said Tuesday= =20 that the commission will vote next week on a proposed order requiring=20 Southern California Edison and Pacific Gas & Electric to pay the QFs for=20 electricity in the future. Lynch said a recent PUC assessment showed that t= he=20 utilities have enough cash on hand for that. ?????We are trying to make sure the folks providing the power get paid= =20 Lynch said. The qualified facilities have demonstrated that they haven't= =20 been paid and that it is impairing their ability to provide power. ?????The utilities contend that if they pay the small providers what they o= we=20 them there will not be enough money left to pay other creditors. ?????There is not enough money in the current rate structure to pay the=20 [alternative producers] pay the [Department of Water Resources] and pay th= e=20 utilities for their generation said John Nelson a spokesman for PG&E. ?????* The utilities must sell to the state the power they produce=20 themselves mainly from hydro and nuclear sources at a rate only slightly= =20 above the cost of producing it. This is tied to the ongoing negotiations=20 between the Davis administration and the utilities to restore the=20 near-bankrupt utilities to solvency. ---=20 ?????Times staff writers Julie Tamaki Miguel Bustillo and Tim Reiterman=20 contributed to this report. --- L.A. Long Beach File Suits Over Gas Companies' Prices=20 Energy: Separate actions allege a conspiracy and gouging. Suppliers blame= =20 rising demand and a fluctuating market.=20 By TINA DAUNT and DAN WEIKEL Times Staff Writers=20 ?????Seeking damages that could reach into the billions of dollars the= =20 cities of Los Angeles and Long Beach on Tuesday filed separate lawsuits=20 alleging that a coalition of gas companies illegally conspired to eliminate= =20 competition drive up natural gas prices and discourage the construction of= =20 electricity generating plants in California. ?????Officials from the two cities alleged that Southern California Gas Co.= =20 San Diego Gas & Electric and El Paso Natural Gas Co. violated the state's= =20 antitrust law and engaged in unfair and fraudulent business practices that= =20 caused gas prices to skyrocket. ?????The cities are the first California municipalities to take action=20 against the gas companies. A number of similar lawsuits filed by antitrust= =20 attorneys state regulators and private citizens are pending elsewhere. ?????The energy companies deny any impropriety. They contend that Californi= a=20 is the victim of its own soaring electricity demand and overreliance on=20 fluctuating spot markets for natural gas. ?????The conspiracy theories that have been promoted have no basis in=20 reality said Denise King spokeswoman for Southern California Gas' parent= =20 company Sempra Energy which also was named in the suits. Southern=20 California Gas continues to look out for the best interest of its customers= . ?????The lawsuits filed in Los Angeles County Superior Court accuse the=20 companies of conspiring to manipulate the price of natural gas by agreeing = to=20 kill pipeline projects that would have brought ample supplies of cheaper=20 natural gas to Southern California. ?????They allege that executives for the energy companies made the pact=20 during a meeting in a Phoenix hotel room five years ago to discuss=20 opportunities arising from the state's newly deregulated electricity mark= et. ?????The fulfillment of the illicit plan has had devastating effects on=20 Southern California gas consumers according to Los Angeles' suit. Gas=20 prices in the Southern California market have skyrocketed and the Southern= =20 California gas consumers are paying the highest prices in the nation. ?????In recent months natural gas prices have tripled across the nation fo= r=20 a number of reasons including a shortage of supplies to meet demands for= =20 home heating. Prices have increased far more in California where natural g= as=20 is a central factor in the state's energy crisis. The state relies on the= =20 clean-burning fuel to generate half its electrical power. ?????This not only led to price-gouging of all natural gas consumers from= =20 homeowners to government to industry but it contributed to the current=20 electrical power crisis in California said City Atty. James K. Hahn a=20 mayoral candidate who urged the City Council to pursue the case. ?????Chris Garner Long Beach's utility director said that since November= =20 the average residential bill for gas in Long Beach has more than doubled t= o=20 $175 a month. Some customers he said have seen rate increases of 500%. ?????The people of Long Beach are being gouged by energy conglomerates who= =20 are artificially manipulating the supply of natural gas and reaping excess= =20 profits at the expense of the public said City Attorney Robert Shannon. ?????Holding a special meeting the Los Angeles City Council voted 12 to 0= =20 Tuesday to file the suit. ?????If the allegations are true they are extremely serious said=20 Councilman Mike Feuer who is a candidate to succeed Hahn as city attorney.= =20 And there appears to be some important evidence that substantiates the=20 allegations in the complaint which means that this lawsuit is I think mo= re=20 than a viable lawsuit. ?????Councilman Mark Ridley-Thomas added: We cannot tolerate this and we= =20 must use the full weight of the law to try to correct it. ?????A growing number of lawsuits around the state are targeting California= 's=20 natural gas suppliers. El Paso Corp. which owns the main pipeline=20 transporting out-of-state gas to Southern California has been targeted=20 repeatedly by utility companies state regulators and antitrust attorneys.= =20 ?????Some of the first antitrust lawsuits were filed against Sempra Energy = in=20 December. They were brought by Continental Forge Co. a Compton-based=20 aluminum forging business and Andrew and Andrea Berg who own a business i= n=20 San Diego. ?????The cities' lawsuits request that the defendant companies be barred fr= om=20 such conduct in the future and they seek civil penalties and damages. ?????Shannon estimates that Long Beach could collect more than $100 million= =20 in damages including triple penalties for antitrust violations. ?????We are filing this for our citizens Shannon said. They include the= =20 poor the elderly people living on fixed incomes and small business owners= . ?????The Los Angeles suit was filed on behalf of all Californians. Official= s=20 place damage estimates in the billions.=20 ?????Hahn however warned council members that it could take the city a ye= ar=20 or more to resolve the suit. ?????Lawsuits take time Hahn said. We are hopeful we can enter into=20 meaningful discovery to disclose what's been going on. --- Davis OKs Subsidy of Pollution Fees=20 Smog: As part of secret deal to get long-term energy contracts state would= =20 pay for some of the credits that allow excess power plant emissions. Critic= s=20 renew call for full disclosure.=20 By DAN MORAIN Times Staff Writer=20 ?????SACRAMENTO--As part of his closed-door negotiations to buy electricity= =20 Gov. Gray Davis has agreed to relieve some generators from having to pay=20 potentially millions of dollars in fees for emitting pollutants into the ai= r=20 Davis said Tuesday. ?????Davis announced two weeks ago that his negotiators had reached deals= =20 with 20 generators to supply $43 billion worth of power during the next 10= =20 years. ?????However the Democratic governor has refused to release any of the=20 contracts or detail various terms contending that release of such=20 information would hamper the state's ability to negotiate deals with other= =20 generators and therefore ultimately would raise prices Californians pay for= =20 electricity. ?????Sources familiar with the negotiations speaking on condition of=20 anonymity said the agreement reached with Dynegy Inc. a power company bas= ed=20 in Houston is one that includes language requiring that the state pay the= =20 cost of credits that allow emissions. Dynegy spokesman Steve Stengel declin= ed=20 to discuss the company's deal with the state. ?????We couldn't get them to sign contracts it was a sticking point Dav= is=20 said of the decision to pay the fees of some generators. We had to lock do= wn=20 some power so we were not totally dependent on the spot market. ?????The fees in question are part of an emission trading system known as= =20 RECLAIM. Under the system companies are allotted a certain amount of=20 allowable pollution. If their operations pollute more companies are requir= ed=20 to purchase credits on an open market. Currently the credits cost about $45= =20 per pound of pollution--an amount that can lead to a bill of well over $10= =20 million a year for a power plant. ?????The South Coast Air Quality Management District which regulates=20 pollution in the Los Angeles Basin is considering steps to significantly= =20 lower the cost of the system--a step that could considerably cut the state'= s=20 potential cost Davis said. ?????Senate Energy Committee Chairwoman Debra Bowen (D-Marina del Rey)=20 defended the decision to cover the power company's costs. ?????It is a question of whether it brings down the price of power she= =20 said. If it brings down the price of power I don't have a problem with it= . ?????Nevertheless word that the contracts could bind the state to pay=20 pollution fees caused some critics of Davis' policy to renew calls for Davi= s=20 to reconsider the secrecy surrounding the power negotiations. The payment= =20 provision underscores the fact that the contracts involve more than merely= =20 the prices the state will pay for its megawatts the critics note. ?????The Legislature should have known about it said Senate President Pr= o=20 Tem John Burton (D-San Francisco). It is going to cost taxpayers money. It= =20 makes you wonder. . . . This was a policy issue that was never discussed wi= th=20 the Legislature. ?????V. John White a lobbyist for the Sierra Club who also represents=20 alternative energy producers called the contract proposal a horrible=20 precedent. ?????Until we know exactly what the state has agreed to and how much of a= =20 subsidy this represents we can't determine how serious the breach of=20 principle this is White said. ?????Another critic of the secrecy of the negotiations Terry Francke=20 general counsel for the California First Amendment Coalition said the=20 provision in question raises the possibility that there are other=20 [concessions] that have not yet come to light. ?????In the summer when demand for power is highest some generators=20 probably will exceed pollution limits set by regional air quality managemen= t=20 districts. ?????To avert blackouts state officials might ask the companies to keep=20 plants running. In such cases some sources familiar with aspects of the=20 contracts said the contract language could be interpreted to suggest that= =20 the state would cover any fines--although Davis said Tuesday the state will= =20 not cover the cost of fines. ?????A recent Dynegy filing with the Securities and Exchange Commission=20 underscores the rising cost of pollution-related measures. The company whi= ch=20 is partners with NRG Energy in three California plants in El Segundo Long= =20 Beach and Carlsbad in San Diego County said its aggregate expenditures fo= r=20 compliance with laws related to the regulation of discharge of materials in= to=20 the environment rose to $14.3 million in 2000 from $3.6 million in 1999. ?????A South Coast Air Quality Management spokesman said Dynegy's facilitie= s=20 appear to be fairly clean--although Sierra Club lobbyist White said Dynegy= =20 has been seeking a permit at one of its plants to burn fuel oil which is= =20 dirtier than natural gas. ?????Davis said he intends to make this information public but he added= =20 that we do not want to put the public's interest in jeopardy by asking the= m=20 to pay higher prices. ?????Nobody likes the notion that [the administration is] not being fully= =20 forthcoming Davis said. But I also have a corollary responsibility that = I=20 don't stick these generators with a higher rate. --- As Losses Mount Companies Work Around Outages=20 By MARLA DICKERSONJERRY HIRSCH and NANCY CLEELAND Times Staff Writers=20 ?????As blackouts moved from theory to reality many Southern California=20 businesses spent Day 2 assessing their losses and digging in for what they= =20 expect to be a long hot summer. ?????An hour without electricity may be an inconvenience for most residents= .=20 But for manufacturers and many other businesses even a brief loss of power= =20 can generate tens of thousands in losses. ?????Whether shaping metal or making salsa businesses of all kinds=20 complained Tuesday about the lack of warning of impending outages even as= =20 they sought sometimes creative ways to work around the loss of power. ?????Rattled by news reports of Monday's rolling blackouts Industry-based = El=20 Burrito Mexican Food Products started its Tuesday shift at 2 a.m. Workers h= ad=20 just finished cooking and packaging the last batches of salsa and masa when= =20 the lights went out at 10:20 a.m. ?????We dodged a bullet said El Burrito founder Mark Roth. Losing a day= 's=20 production of salsa would have cost me $15000 to $20000. ?????But other companies weren't so fortunate. ?????Long Beach-based Delco Machine & Gear was still totaling up its losses= =20 from Monday's blackout which amounted to at least $30000 in lost wages an= d=20 production said Nick Campanelli vice president of manufacturing. The=20 company a division of Florida-based B/E Aerospace Inc. makes parts for th= e=20 aerospace industry. The sudden loss of power caused its sophisticated metal= =20 cutting and grinding machines to crash ruining precision parts in producti= on. ?????But the losses don't end there. He said employees will need to spend= =20 hours resetting the equipment. Campanelli is particularly irked that the=20 company received no warning. ?????Five minutes' notice he fumed. That's all I needed. ?????Although businesses such as Campanelli's typically receive no warning= =20 that they are about to lose power insurance companies count the rolling=20 blackouts as planned events a determination that in most cases=20 disqualifies a business from making a claim. ?????I know it must be frustrating for businesses who have the power go of= f=20 suddenly but these outages are planned by the grid operators said Pete= =20 Moraga of the Insurance Information Network of California. That means it= =20 would not be a covered peril in a traditional business insurance policy. ?????Typically business insurance covers loss of profit and damage from=20 unforeseen events such as fires or windstorms. The component of the policy= =20 that covers interruptions in business kicks in after a given amount of time= =20 elapses usually 24 to 48 hours. ?????Business polices can be written to include unusual coverages Moraga= =20 said but he has never heard of a policy that covers losses from a rolling= =20 blackout. ?????Some companies are taking measures not to get caught in a situation=20 where a blackout can hurt them. ?????The region's largest steel supplier shut down for two hours Monday aft= er=20 Southern California Edison called to warn of tight supplies. ?????We just can't take a chance said Lourenco Goncalvez president of= =20 California Steel Industries Inc. in San Bernardino County. We have a lot o= f=20 safety issues. People could get hurt. ?????Goncalvez said the plant has multiple 20-ton and 25-ton overhead crane= s=20 that operate with electromagnetic devices which would fail if they lost=20 power suddenly. Falling materials could injure workers below he said. We= =20 have been asking to be exempt from rolling blackouts he said. ?????Goncalvez said he couldn't put a price on the lost production at the= =20 24-hour plant and said he worried more about the long term. ?????Two hours is nothing he said. My concern is this thing will start = to=20 happen almost every day. If it will be like this all summer you can be sur= e=20 it will have dramatic consequences for the entire economy. . . . We're goin= g=20 to have a shortage of steel products in California. Maybe the government do= es=20 not consider this is serious. We'll see. ?????At Sport Chalet a La Canada Flintridge-based chain of 22 sporting goo= ds=20 stores in Southern California an administrative assistant monitors the sta= te=20 power situation hoping to warn any stores that are in danger of losing=20 power said Craig Levra the company's chief executive. ?????Levra said the assistant was assigned the monitoring duties last year= =20 when rolling blackouts were still only a threat. ?????The chain put in place an emergency plan--similar to what it would do = in=20 a major earthquake. Backup power will kick on emergency lights and allow th= e=20 cash registers to complete transactions. Employees are instructed to escort= =20 customers from the building safely Levra said. ?????Other businesses however have plans to remain open during the 60- to= =20 90-minute blackouts. ?????When power went out at two Cheesecake Factory restaurants in Orange=20 County on Monday afternoon the eateries switched to serving cold dishes su= ch=20 as sandwiches and salads said Howard Gordon senior vice president of the= =20 Calabasas Hills-based chain. ?????The restaurants had enough backup power to operate emergency lights an= d=20 cash registers. Large windows provided the rest of the light Gordon said. ?????So far the 99 Cents Only Stores chain has missed the shotgun pattern = of=20 the blackouts. But with nearly 100 stores in California company President= =20 Eric Schiffer believes it is only a matter of time before the lights go out= =20 at one of its outlets. ?????Though the stores have some backup power the chain has systems in pla= ce=20 to operate without it. Its cash registers can open mechanically Schiffer= =20 said. Because an item sells for a multiple of 99 cents sales clerks are=20 equipped with blackout sheets that calculate a customer's tab including= =20 tax. All the clerk has to do is count the number of items in the shopping= =20 cart and check the tables on the sheet. ?????This week's power crunch has been exacerbated by the fact that so-call= ed=20 interruptible electricity customers no longer face large penalties if they= =20 decline to shut down their operations when supplies get critically low. ?????The Public Utilities Commission suspended the fines in January to ease= =20 the burden on about 1400 businesses that found themselves bearing the brun= t=20 of the crisis to prevent rolling blackouts in the rest of the state. ?????According to Edison about 10% of its interruptible customers are=20 complying with requests to curtail electricity usage during crunch time. Bu= t=20 Scott Keller isn't among them. ?????The owner of Chino-based STC Plastics Inc. said he was forced to shut= =20 down more than 20 times since September costing him as much as $10000 in= =20 lost production per day. He ignored requests Monday and Tuesday to curtail= =20 usage and said he doesn't feel a twinge of remorse. ?????If I'm shut down I can't pay my workers he said. I'd feel more=20 guilty about that. ?????But this is one area where insurance eventually might help. Moraga sai= d=20 some carriers are developing plans that would cover penalties for continuin= g=20 to use power after they have been asked by a utility to cut back. --- Wednesday March 21 2001=20 A Blackout on Answers=20 Davis needs to do a better job in communicating to Californians about the= =20 electricity crisis. In the absence of that cynicism grows.=20 ?????The oil shocks of the 1970s from the Arab oil embargo to the Iran-Ira= q=20 war were dead simple compared with the California power shortage. Then th= e=20 problem was a lack of imported oil and the chief symptom was long lines and= =20 high prices at gas stations. Politicians urged conservation: Turn down the= =20 heat drive fewer miles buy more efficient cars. People understood the cau= se=20 of the crisis and the benefit of their actions. Today it's a different stor= y=20 and a damnably complicated one that gives consumers no place--or actually= =20 too many places--to focus their anger.=20 ?????The last two days of rolling blackouts including previously exempt=20 Southern California have not reduced power demand or at least not enough.= =20 Consumers are suspicious: Are out-of-state power companies holding back=20 production? Did utilities really not have enough money to pay alternative= =20 energy producers--the little guys who combined could produce enough power= =20 to prevent the blackouts? And what happened to long-term power contracts t= he=20 state-bargained deal that was supposed to stabilize the crisis?=20 ?????The frustrations are vast and there are too many gaps in the story. I= f=20 it's just a pack of thieves creating an artificial shortage as even some= =20 consumer organizations charge why should anyone sacrifice to conserve? Tha= t=20 in a nutshell is the problem that Gov. Gray Davis the state Legislature a= nd=20 the Public Utilities Commission face.=20 ?????Davis for one has to level with the public and stop acting as if he= =20 can fix the crisis. He has proved he can't at least not without reductions= =20 in usage and most likely rate increases. If Davis who is notoriously=20 averse to delivering bad news had leveled with the public about the=20 fragility of the current system the last two days of blackouts statewide= =20 (except in places with full municipal power like Los Angeles) might not ha= ve=20 come as such a shock.=20 ?????The Legislature tried and failed earlier to solve the alternative ener= gy=20 producers' nonpayment problems with a very complicated bill. Tuesday night= =20 Davis and legislators announced a simpler plan that would set lower more= =20 flexible rates for alternative power but also force the utilities to pay fo= r=20 future purchases.=20 ?????Which leads to the utilities themselves. With the state shelling out= =20 billions for power from the major generators how could Southern California= =20 Edison and Pacific Gas & Electric still not have the cash flow to pay the= =20 alternative producers? That motley collection of biomass solar wind and= =20 cogeneration companies has been shutting down for nonpayment--some of them= =20 because natural gas suppliers have cut them off. PG&E has made some payment= s=20 but SCE has paid zilch though a spokesman says it hopes to strike a deal t= o=20 start paying this week.=20 ?????Without enough honest information conspiracy scenarios fill the holes= .=20 Bad news is better than no news something Davis seems not to quite realize= .=20 By today or Thursday the weather will cool and some plants taken down for= =20 repair will come back online. The blackouts may cease but the crisis will b= e=20 just as deep as it was Monday and Tuesday. It is up to Davis to do a better= =20 job of persuasively explaining why. Otherwise the cynicism grows.=20 --- Wednesday March 21 2001=20 Rolling Blackouts: Blatant Extortion=20 ?????* Re Rolling Blackouts Hit Southland for First Time as Production=20 Falls March 20:=20 ?????So here we are 22 years after the notorious gas shortage having=20 another gun held to our head by an opportunistic energy consortium. Back in= =20 1979 we all had to wait in long lines just to pay more for gasoline. Now = we=20 have to face food in our freezers thawing and simmering in our homes during= =20 hot summer days just to earn the honor of paying more for electricity.=20 ?????Of course as soon as the rates are up and the environmental concerns= =20 are shoved aside watch how plentiful power will be. When is somebody in=20 government going to stand up for the consumer and stop this blatant form of= =20 extortion?=20 ?????JOHN JOHNSON=20 ?????Agoura Hills=20 * * * ?????So customers of PG&E and Edison are shielded from soaring wholesale= =20 prices? Some shield: turning off all our power without so much as a moment= 's=20 notice endangering lives and disrupting businesses just to keep our=20 electricity prices unreasonably low. Let's lift the rate caps to get the=20 lights back on. And if I need to be shielded from soaring prices I'll turn= =20 my own lights off.=20 ?????ANDREW LOWD=20 ?????Claremont=20 * * * ?????This state needs adequate reliable electricity to run a diverse=20 economy. Both political parties and business interests are at fault. This= =20 crisis demands top priority aimed at lasting solutions.=20 ?????The most immediate solution is fast-tracking of added generating=20 capacity. Freeway bridges were rebuilt in record time after the Northridge= =20 quake so we know it can be done. That is the type of effort that is needed= =20 immediately.=20 ?????Since Democrats hold the governorship and control both state legislati= ve=20 houses they are in the driver's seat. If the lights go out the Democrats = go=20 out. If this state government can't solve the problem we need a new=20 government that can.=20 ?????STEVE ANDERSON=20 ?????Huntington Beach=20 * * * ?????The alleged energy crisis in California is entirely contrived to relax= =20 environmental pollution standards and to raise energy rates. It's curious= =20 that the L.A. Department of Water and Power which was not deregulated is= =20 not currently experiencing an energy crisis. PG&E and Edison are both part = of=20 national and multinational corporations. Why should utility customers have = to=20 pay for their economic problems or gross mismanagement?=20 ?????Several power plants were taken off-line for routine maintenance=20 which may not have been so routine. Energy is a vital necessity if these= =20 companies can't provide it at a reasonable affordable rate then they shoul= d=20 be replaced by companies that can be taken over by the government or=20 de-deregulated. There is an abundance of solar energy in California of whi= ch=20 only a small fraction is being utilized. There is no shortage of energy in= =20 California only a shortage of intelligence will and honest politicians.= =20 ?????CHARLES B. EDELMAN=20 ?????Los Angeles=20 --- Utilities' Demand Blocks Bailout=20 NEGOTIATIONS HIT SNAG: PG&E Edison want end to price freeze if they sell= =20 transmission lines to state David Lazarus Chronicle Staff Writer Wednesday March 21 2001=20 2001 San Francisco Chronicle=20 URL:=20 /21/M N114450.DTL=20 California's near-bankrupt utilities are demanding that higher electric rat= es=20 be a part of any deal to sell the state their power lines The Chronicle ha= s=20 learned.=20 A rate increase -- perhaps of more than 50 percent according to earlier=20 industry estimates -- would certainly draw a firestorm of protest from=20 consumer groups and force Gov. Gray Davis to backtrack from earlier pledges= =20 that rates would remain unchanged.=20 Nevertheless sources close to negotiations on the deal said Pacific Gas an= d=20 Electric Co. and Southern California Edison are attempting to make higher= =20 rates a condition for agreeing to a bailout scheme in which they would sell= =20 the state their transmission systems and some land.=20 The sources said the talks hit a new snag this week when state officials=20 realized that fine print sought by the companies could require the Public= =20 Utilities Commission to pass along all of the utilities' costs to ratepayer= s.=20 The sources said this would end a rate freeze that shields consumers from= =20 runaway wholesale electricity prices.=20 The inclusion of potential rate increases in the talks reflects the growing= =20 complexity of a deal originally intended by Davis to stabilize the finances= =20 of PG&E and Edison so banks would resume loans to the cash-strapped=20 utilities.=20 The negotiations subsequently have expanded to involve a state purchase of= =20 the utilities' transmission networks and acquisition of utility-owned land= =20 including spectacular coastal property near PG&E's Diablo Canyon nuclear=20 power plant.=20 Now they also have embraced further deregulation of California's=20 dysfunctional electricity market.=20 Clearly one of the terms being discussed is the regulatory environment= =20 said Joseph Fichera head of Saber Partners a New York investment bank tha= t=20 is advising Davis in the talks.=20 The past situation has not worked well he added. The utilities want som= e=20 certainty about their future.=20 TENTATIVE DEAL WITH EDISON To date the governor has announced a tentative agreement with Edison for t= he=20 state to buy the utility's power lines for almost $3 billion. Discussions= =20 with PG&E for a similar accord have dragged on for weeks.=20 An Edison official asking that his name be withheld acknowledged yesterda= y=20 that an end to the rate freeze is an expected result of the power- line sal= e.=20 Once the details of the pact are complete dominoes will fall the offici= al=20 said. One of the dominoes is the rate freeze.=20 A PG&E spokesman declined to comment.=20 In fact both Edison and PG&E have been aggressively seeking an end to the= =20 rate freeze for months.=20 The two utilities have a lawsuit pending in federal court demanding that th= e=20 PUC immediately raise rates so the utilities can recover almost $13 billion= =20 in debt accrued as a result of the freeze.=20 They have been trying a lot of things to get the rate freeze ended in=20 various forms said Carl Wood who sits on the PUC. Adding it to the=20 present talks is consistent with past behavior.=20 Wall Street has taken note that the negotiations no longer appear to be=20 making progress.=20 Paul Patterson an energy industry analyst at Credit Suisse First Boston= =20 told clients on Monday that the discussions may have lost some momentum in= =20 recent days. He did not give a reason.=20 For his part the governor sounded unusually cautious about the course of t= he=20 talks when asked late last week if a breakthrough was imminent.=20 SECRET STICKING POINTS We are going to take the transmission systems and the land that's deeded= =20 and we will work out an agreement Davis said at an appearance in San Jose= .=20 But there are a number of sticking points in the talks with PG&E that I'm= =20 not going to reveal.=20 One of those sticking points apparently is an insistence that the sale of= =20 utility assets include a long-sought lifting of the rate freeze.=20 Sources said lawyers from both PG&E and Edison had inserted the related ter= ms=20 into draft accords affecting each utility and that the full impact of the= =20 additions was not realized by state officials until this week.=20 One source said the language was just convoluted enough to slip beneath the= =20 radar screen of state negotiators. But the upshot once the words had been= =20 parsed was that the PUC effectively would lose control over power rates.= =20 CREDITWORTHINESS ON THE TABLE In Edison's case the terms of the tentative deal include the governor aski= ng=20 the PUC to support the creditworthiness of the utility.=20 This would ensure that future investments in both utility distribution and= =20 utility generation plants are provided fair returns of and on capital=20 consistent with current authorized returns and capital structure provisions= =20 it says.=20 Sources said the provision could be interpreted as a guarantee from the sta= te=20 that Edison would be permitted to recoup all outstanding costs from=20 ratepayers.=20 There may be some assumptions about this language that the rate freeze end= s=20 if it is adopted the Edison official said adding that he saw no reason t= o=20 disagree with such assumptions.=20 But Fichera Davis' adviser in the talks insisted that nothing is set in= =20 stone and that the negotiations are proceeding without a hitch.=20 This is a very complex transaction he said. God and the devil are in th= e=20 details.=20 E-mail David Lazarus at [email protected].=20 2001 San Francisco Chronicle ? Page?A - 1=20 --- --- Utilities' Demand Blocks Bailout=20 BLACKOUTS ROLL ON: Weather increased consumption blamed=20 David Lazarus Chronicle Staff Writer Wednesday March 21 2001=20 2001 San Francisco Chronicle=20 URL:=20 /21/M N156508.DTL=20 Hundreds of thousands of Californians went without electricity for a second= =20 day yesterday as unusually warm weather and a high number of idle power=20 plants prompted blackouts throughout the state.=20 State officials said electricity usage rose yesterday even though condition= s=20 were largely unchanged from a day before. They surmised that fewer=20 Californians were conserving power.=20 We need people to really focus on that implored Patrick Dorinson a=20 spokesman for the Independent System Operator manager of the state's power= =20 grid. The more people can do the better it will be.=20 Rolling blackouts were ordered by the ISO about 9:30 a.m. and were suspende= d=20 at 2 p.m. after several plants that had been down for repairs returned to= =20 service. Additional power also was obtained from a plant in Arizona.=20 Utilities estimated that about 560000 customers were affected yesterday= =20 compared with more than 1 million a day earlier.=20 This week's blackouts marked the first time that people in Los Angeles shar= ed=20 the pain with those in San Francisco. Blackouts in January were confined to= =20 the northern part of the state.=20 FEWER AFFECTED IN SOUTH However Southern California Edison's burden was considerably lighter=20 yesterday than that of Pacific Gas and Electric Co.=20 Karen Shepard-Grimes a spokeswoman for the Southern California utility sa= id=20 only about 50000 customers went without power compared with nearly 440 0= 00=20 for PG&E.=20 Affected areas in the south included Palm Springs Santa Monica Long Beach= =20 and Pomona.=20 We're not in the business of turning customers' lights off Shepard- Grim= es=20 said. We're in the business of keeping lights on.=20 In PG&E's case things were tougher because low rainfall means that less=20 power is currently available from dams throughout the Pacific Northwest.=20 Ron Low a spokesman for the utility said blackouts were experienced by PG= &E=20 customers from Eureka to Bakersfield.=20 Our goal was to carry out the ISO's order with minimal impact on customers= =20 he said.=20 For its part San Diego Gas & Electric said about 75000 customers were=20 darkened.=20 Yesterday's blackouts began with PG&E customers in Block 12 and halted midw= ay=20 through Block 14. Customers in each block -- defined by power circuits rath= er=20 than geography -- typically will lose power for about 90 minutes before the= =20 service interruption rolls elsewhere.=20 Some cutoffs can last more than two hours however because of technical=20 problems switching individual blocks on and off.=20 NEXT UP: BLOCK 14 If additional blackouts are ordered today they will commence with the=20 remaining portion of Block 14 customers. (PG&E customers can determine thei= r=20 block by looking at the bottom left-hand corner of their monthly bill.)=20 The ISO's Dorinson said it is hoped that cooler weather and increased=20 generation will help avert further cutoffs this week.=20 Units are coming back into service that have been out he said. That wil= l=20 help a great deal.=20 Roughly 15000 megawatts of generating capacity was offline yesterday=20 including half of the alternative-energy plants which are unable to afford= =20 natural gas to run their turbines.=20 Many of the plant owners say they have not been paid by PG&E and Edison sin= ce=20 November. They are asking federal regulators for permission to sell their= =20 electricity elsewhere.=20 At the same time one of two units at the Mohave Generating Station in Neva= da=20 damaged in a fire Monday returned to service yesterday easing the load on= =20 California's grid.=20 The plant partly owned by Edison is not expected to return to full output= =20 until tomorrow.=20 PROBING SHUTDOWNS Nearly a third of California's generating capacity is currently down for=20 scheduled or unexpected maintenance. State regulators are investigating=20 whether some plant owners might be deliberately shutting down to drive pric= es=20 higher or reduce operating costs.=20 Loretta Lynch president of the Public Utilities Commission on Monday call= ed=20 the number of idle plants highly suspicious.=20 Dorinson at the ISO said that about 12000 megawatts of mainstream capacity= =20 was offline yesterday compared with roughly 10000 megawatts last year at= =20 this time.=20 --=20 Tell Us What You Think=20 Can you save 20 percent on your energy usage? Gov. Gray Davis is offering= =20 rebates for Californians who save on power starting in June and if you've= =20 got a strategy for conserving The Chronicle wants to hear it. We'll be=20 writing about the hardest-working energy savers in a future story. To get= =20 involved Write to the Energy Desk San Francisco Chronicle 901 Mission St= .=20 San Francisco 94103 or e-mail --=20 THE ENERGY CRUNCH -- Blackouts: About 560000 Californians including 440000 in Northern=20 California lost electricity yesterday for 90 minutes at a time.=20 -- Areas affected: Blackouts hit parts of blocks 12 and 14 and all of block= =20 13 yesterday. In the event of further blackouts the remainer of block 14= =20 would be next followed by block 1.=20 -- Outlook: Officials say blackouts are less likely today as temperatures a= re=20 expected to cool and power plants that have been offline for maintenance=20 resume generating electricity.=20 E-mail David Lazarus at [email protected].=20 2001 San Francisco Chronicle ? Page?A - 1=20 --- --- Manners Go Out the Window=20 Pedestrians in peril as drivers turn darkened S.F. streets into free-for-al= l=20 Steve Rubenstein Chronicle Staff Writer Wednesday March 21 2001=20 2001 San Francisco Chronicle=20 URL:=20 /21/M N173178.DTL=20 Nobody got plowed into yesterday at Fifth and Howard streets in San=20 Francisco. Many came close.=20 The power outage that darkened the traffic lights at the frenetic South of= =20 Market intersection for more than an hour also darkened the souls of untold= =20 numbers of drivers sending motoring manners into the toilet.=20 The law says motorists are supposed to treat an intersection with=20 nonfunctioning traffic lights as a four-way stop. That means everyone stops= =20 then takes turns -- one by one -- creeping through the intersection.=20 Tell that to the two people in motorized wheelchairs who were nearly creame= d=20 by two eastbound SUVs.=20 Or to the young Swedish couple who had traveled halfway around the globe= =20 only to scamper through the intersection barely ahead of an office supply= =20 truck.=20 Or to the New Jersey tourist who proclaimed that California drivers during= =20 power outages were proof positive that the Chaos Theory lives and breathes.= =20 Some motorists stopped and took turns but many didn't. Some sped into the= =20 intersection immediately behind the vehicle in front without themselves=20 stopping at the white line. Some sailed through with a rolling stop and a= =20 warning honk. Some blasted through without stopping or honking.=20 I'm scared to death said Brian Walters of Dorchester N.J. after making= =20 it across Howard Street. This is organized madness. I subscribe to the Cha= os=20 Theory and this is what it looks like.=20 Sydney Freedman a tourist from Sydney walked briskly across the darkened= =20 crossroads smiling grimly.=20 I'll chance it he said.=20 He looked back and saw a woman in a motorized wheelchair nearly get squishe= d=20 by a westbound Chevy.=20 You have to be authoritative in this town when you cross the street he= =20 said. Especially that lady.=20 Therese Anderson and Andreas Sandstrom from Sweden raced across as quickl= y=20 as their backpacks would allow.=20 In this country everyone is in such a hurry said Anderson.=20 Everybody drives like a madman added Sandstrom. They say 'I want to be= =20 home right now and I don't care what happens to anyone else.' =20 The couple paused to gaze in wonder at the intersection learning more abou= t=20 America in five minutes than a pile of guidebooks could tell them.=20 This intersection said Sandstrom reminds you not to take life for=20 granted.=20 A few minutes later Parking Control Officer Tom Butz arrived in his meter= =20 minder wagon and pulled his orange vest and whistle from the saddlebag. He= =20 strode brave and true into the center of the bullring planted himself=20 between the whizzing cars and began waving his arms as if conducting The= =20 Rite of Spring.=20 I'm all by myself he said. I know it's a little risky. I'd better keep = my=20 angels with me.=20 At that moment the angels were on duty in Menlo Park where a blacked-out= =20 intersection at El Camino Real and Santa Cruz Avenue backed up traffic so f= ar=20 that it stretched into neighboring Atherton.=20 It's a large intersection and traffic is slow anyway but now it is severe= ly=20 impacted said Police Sgt. Terri Molakides. We don't get any warning=20 either. When the power is out the power is out. It's not like we can make= =20 any plans.=20 In general motorists seemed more likely to obey the four-way-stop rule on= =20 the Peninsula and in the East Bay than in San Francisco.=20 In San Mateo County some police departments have stopped trying to make=20 advance plans to cover darkened intersections. San Mateo Police Sgt. Kevin= =20 Rafaelli said putting up signs and posting officers sometimes caused proble= ms=20 rather than solving them.=20 If people just follow the law (and) stop at the intersection they can=20 handle it better than we do if we're out there he said. People are sort = of=20 getting used to it and are dealing with it.=20 In Berkeley and Emeryville motorists stopped one at a time at temporary st= op=20 signs with no apparent problems. At University Avenue and Sacramento Stree= t=20 in Berkeley Officer Matt Meredith said motorists were behaving themselves.= =20 That wasn't the case a while back when a driver who didn't stop at an=20 intersection during a blackout was broadsided by someone who did Meredith= =20 said.=20 The thing to remember is to stop and look he said.=20 TRAFFIC TIPS To avoid a collisions during blackouts the California Highway Patrol offer= s=20 this advice to motorists:=20 -- Treat any intersection with inoperative traffic lights as a four-way sto= p.=20 Each vehicle must stop when arriving at the white limit line then proceed= =20 only when safe taking turns.=20 -- If two vehicles arrive at the intersection at the same time the motoris= t=20 on the left must yield to the motorist on the right.=20 -- Never insist on taking the right of way even if you are entitled to it.= =20 -- Follow the directions of a police officer or traffic control officer=20 whose directions take precedence over lights or signs.=20 Chronicle staff writers Henry K. Lee and Matthew B. Stannard contributed to= =20 this report. / E-mail Steve Rubenstein at 2001 San Francisco Chronicle ? Page?A - 8=20 --- --- Historic Blackouts in State=20 Bay Area learns to cope=20 Jonathan Curiel George Raine Justino Aguila and Matthew B. St Tuesday March 20 2001=20 2001 San Francisco Chronicle=20 URL:=20 /20/M N219412.DTL=20 Today's rolling blackouts caused concern throughout the Bay Area including= =20 Colma where the sudden lack of power apparently caused a fire.=20 A light fixture at the Home Depot store in Colma caught fire around 10:45 a= .=20 m. 15 minutes after Pacific Gas and Electric Co. ordered blackouts for the= =20 area. No one was hurt.=20 I was in the back of the store when the power outage started said Dave= =20 Cole a consultant from Pacifica who was shopping for bolts and screws. We= =20 lost maybe 90 percent of the lights then maybe 10 percent of the lights ca= me=20 up. Then I heard a guy saying 'Get a ladder get a ladder!'=20 One of the lights on the ceiling had caught on fire and a couple of peopl= e=20 were getting ladders and fire extinguishers.=20 Store managers whisked everyone out of the store and Colma firefighters=20 arrived to make sure the blaze was extinguished.=20 At 11 a.m. Cole was waiting to get back into the store which was still=20 closed.=20 I need my bolts he said.=20 Elsewhere the San Francisco Fire Department had to rescue people stuck in = an=20 elevator at 2001 Embarcadero North said fire department spokesman Pete=20 Howes.=20 Scores of residents and businesses near the Embarcadero including the Levi= =20 Strauss & Co. headquarters were affected by the blackout.=20 At Levi Strauss this morning Phil Marineau the president and chief=20 executive officer led his 1300 employees by example using only minimal= =20 lighting for a meeting in his office at 10 a.m.=20 Employees were sent e-mails minutes after PG&E's 9:30 a.m. notification tha= t=20 a blackout was possible. The e-mails said workers should frequently save wo= rk=20 on their computers and that they should remain in the building and stand b= y=20 for further instructions.=20 Emergency lighting in hallways and stairwells were operated by generators.= =20 All elevators descended to the ground floor but one remained operating=20 through a generator.=20 Worked nicely said Jeff Beckman a company spokesman.=20 Yesterday -- the first day that rolling blackouts returned -- Shannon=20 Cashman's home in Walnut Creek was a difficult place to be.=20 Cashman's 4-year-old daughter Madison suffers from a brain defect that=20 stops her from breathing during sleep. The girl depends on a ventilator tha= t=20 runs on electricity.=20 Recently hospitalized and with a weakened immune system Madison badly need= ed=20 a nap yesterday afternoon. But when the Cashmans' power went out about noon= =20 it meant reading and coloring instead of rest for the girl and a little mor= e=20 anxiety than normal for her mother.=20 If this was a major earthquake or something like that and we couldn't use= =20 the ventilator we'd take her to the hospital said the 33-year-old Cashma= n.=20 Otherwise we'll just wait for the power to come back on.=20 In a stroke of irony yesterday the lights went out and computer screens we= nt=20 dark at the San Francisco offices of the state Public Utilities Commission= =20 the agency some people blame for the energy crisis and others look to for t= he=20 solution.=20 At a Petco animal store in Redwood City nocturnal leopard geckos that=20 weren't familiar with the state's power woes thought it was night and awoke= =20 from their routine daytime slumber.=20 The geckos clung to the glass of their cages as manager Sally Daine and her= =20 employees misted lizards and watched frozen mealworms melt.=20 The worst thing is some of the reptiles need heat but it's so hot I don'= t=20 think it will matter she said.=20 At Auto Pride Car Wash a few blocks away Dan Giudici watched as the team o= f=20 employees he supervised washed cars the old-fashioned way -- with buckets a= nd=20 hoses. The company's big mechanical car wash went unused.=20 Customers didn't seem to mind the manual wash said Giudici who was chargi= ng=20 half-price. But he was running out of towels.=20 Even those who hoped they were immune to power problems were affected.=20 Palo Alto runs its own utility but the electricity began winking out about= =20 12:30 p.m.=20 The city depends on a distribution line of the state grid so it is=20 vulnerable to blackouts said Linda Clerkson public relations manager for= =20 Palo Alto Utilities. In addition the city relies on PG&E for some of its= =20 power she said.=20 Businesses were caught by surprise.=20 Well at least it happened in a better time than the morning said Nick= =20 Badiee owner of the Lytton Roasting Co. coffee house. My toaster went out= =20 and the coffee began getting cold so I lost three or four people who walke= d=20 out the door. I'm not angry yet but I would say I am concerned.=20 For one Milwaukee woman visiting San Francisco the blackout was an=20 unexpected lesson in the problems of electricity deregulation.=20 Cindy Wilburth a financial consultant who advises Wisconsin utilities cam= e=20 to the Bay Area for vacation but left yesterday with important research for= =20 her job.=20 This has been a huge learning lesson for Wisconsin Wilburth said as she= =20 waited for a bus outside the powerless Comfort Inn by the Bay in Cow Hollow= .=20 Wilburth said her state and others that once eyed deregulation are now=20 backing off.=20 It just makes me realize how we've gotten ourselves in a pinch in a free= =20 economy she said.=20 As she mused about the predicament in which the state has found itself her= =20 friend was just thankful to get out of here.=20 I love the cold compared to this said Cindy Stuckey of Milwaukee. At= =20 least I know I can stay in my home secure and warm.=20 Across the street at the Travelodge By the Bay Rolando Gutierrez had=20 already lost three guests just an hour into the blackout.=20 This is the richest state and this is a rich city -- plenty of people want= =20 to come here he said. We shouldn't be suffering these blackouts.=20 Chronicle staff writers Jaxon Van Derbeken Mark Martin Henry K. Lee=20 Michael McCabe Bernadette Tansey and Marshall Wilson contributed to this= =20 report.=20 2001 San Francisco Chronicle ? Page?A - 1=20 --- --- Bay Area residents learning to roll with blackouts=20 Posted at 9:58 p.m. PST Tuesday March 20 2001=20 JOHN=20 WOOLFOLK=20 AND STEVE=20 JOHNSON=20 Mercury News=20 As rolling blackouts swept the state for a second straight day Tuesday=20 Californians already seasoned by droughts and earthquakes were learning to= =20 live with yet another upheaval: periodic power outages.=20 Blackouts are still a novelty in Southern California -- hit for the second= =20 time Tuesday -- but they're almost routine for Bay Area residents who have= =20 seen four days of outages this year and now expect many more as temperature= s=20 rise. Toting flashlights avoiding certain roads and even shutting off thei= r=20 coveted hot tubs they're adjusting to life in California's new Dark Age.= =20 ? ? Karen T. Borchers--Mercury News When the lights went out at Grant Elementary School in San Jose on Tuesday= =20 morning teacher Renee Johnson took her second-grade students out to the la= wn=20 to read to them. Marjorie Meagher now looks at her clock before taking the elevator she need= s=20 to get around her two-story San Jose home fearing she'll get stuck during= =20 rolling blackouts.=20 ``They tend to happen on the hour or half-hour so I try not to use it=20 then'' said Meagher 74 who is disabled. ``I'm very careful. My own=20 personal fear is getting stranded in the elevator.''=20 From 750000 to about 1 million customers lost power for an hour or so in= =20 stages Tuesday as a rash of power plant outages and record temperatures in= =20 San Jose and elsewhere triggered a critical shortage.=20 As was the case Monday when 1.2 million to 1.8 million customers were=20 affected Tuesday's outages were split between the northern and southern=20 parts of the state. Blackouts began at 9:30 a.m. and lasted until 2 p.m. wh= en=20 authorities obtained extra power from other Western states. Outages were=20 considered less likely today.=20 But people are preparing anyway. Like low-flow toilets and earthquake kits= =20 flashlights and generators may be emerging as another fact of life in the= =20 Golden State.=20 In San Francisco's Inner Sunset district Han Yong Park had the satisfied= =20 smile of a well-prepared man having bought a portage generator for his Park= 's=20 Farmers Market five months ago.=20 Tuesday morning the generator churned loudly on the sidewalk positioned= =20 between the tomatoes and green beans. Inside clerks tallied purchases on= =20 electric cash registers.=20 Park motioned down the street where neon signs were dark and some=20 restaurants closed. ``No one else in the area has a generator'' he said.= =20 Energy officials say such equipment will come in handy this summer. Power= =20 supplies are expected to be so strained that Californians should expect man= y=20 more rolling blackouts.=20 ``I don't want to kid anybody'' said Patrick Dorinson spokesman for the= =20 California Independent System Operator which manages the power grid for mo= st=20 of the state. ``Supplies are very very tight. When you look at such a big= =20 state and such a large shortfall I think we have to prepare ourselves. It'= s=20 very possible that going into this spring and summer we're going to see som= e=20 very difficult days.''=20 Combination of factors=20 The multiple causes that conspired to darken California on Tuesday=20 underscored the difficulty officials face in keeping the lights on.=20 The thermometer shot to record-breaking levels at some locations in the Bay= =20 Area driving up power demand. San Jose hit 83 compared with an average 66= =20 degrees for March 20 and breaking the record high of 80 set in 1960.=20 What's more 12000 megawatts of power were unavailable because plants had= =20 shut down for maintenance or because cash-strapped utilities haven't paid= =20 them.=20 And consumer conservation has been spotty. While state energy officials say= =20 conservation rose from 5 percent in January to 8 percent in February grid= =20 managers said this week Californians weren't saving enough energy. They eve= n=20 revised their estimate of how much homes a megawatt can power down from=20 1000 homes to 750 to reflect greater consumption.=20 Improved conservation later in the day helped stave off a second wave of=20 outages they said.=20 Many shrug off the threat of rolling blackouts.=20 ``I think I've gotten used to it'' said Mary Carlson 58 of San Jose who= =20 took her granddaughter for a walk and read the paper during blackouts in=20 January. ``I just go with the flow. I'm not going to get too excited about= =20 it. If they turn the power off it's no big thing.''=20 Erica Finn secretary at Acacia Glass in San Francisco said she wasn't too= =20 upset when blackouts shut down the credit card machines electric sanders a= nd=20 phones. She bought coffee pulled a chair into the sun and popped Madonna= =20 into her portable CD player.=20 ``I have to brush up on my tan and get paid for it'' she said.=20 But for others the consequences are potentially serious.=20 At a Palo Alto dental office the blackouts interrupted root canals for thr= ee=20 patients. Dentists Darrell Dang Robert McWilliams and Kurtis Finley insert= ed=20 temporary fillings by hand rescheduled the procedures and went to lunch.= =20 The receptionist used a cell phone to cancel the afternoon's appointments= =20 frustrated that there's no way to prevent a repeat of Tuesday's fiasco if t= he=20 blackouts continue.=20 A new routine=20 Others have taken everyday steps to cope with the threat of losing power.= =20 Stephen O'Reilly a 34-year-old San Jose engineer who often drives to see= =20 clients said he avoids side streets because blackouts could darken signal= =20 lights and tie up intersections.=20 ``I used to take back roads to avoid traffic but I'm trying to use the=20 freeways more because there are no lights'' said O'Reilly adding that he'= s=20 shut down his electric hot tub to help conserve power.=20 At Pasta Primavera in San Mateo manager Chris Harris has stocked up on=20 candles and has plans to buy a generator for his restaurant. When blackouts= =20 arrived just before the lunch crowd Tuesday and cut power to ventilation=20 fans he even considered revising his menu replacing smoke-producing chick= en=20 and shrimp with simple marinaras and alfredos.=20 ``I don't know if you'd want to dine with the smell of smoke'' Harris said= =20 as customers trickled into his darkened restaurant on Fourth Avenue. ``If= =20 this is going to continue through the summer it's going to affect our=20 pockets.''=20 San Francisco International Airport which agreed months ago to shut down i= ts=20 massive air conditioners to save power during shortages is now routinely= =20 stuffy.=20 On Tuesday the temperature reached a steamy 85 degrees inside the airport's= =20 North Terminal which serves most of United Airlines' flights.=20 ``It's become uncomfortable if not intolerable'' said Ron Wilson airport= =20 spokesman. ``It's like getting in a car that's been left in the sun all day= .=20 It's much hotter inside. .?.?. We've turned on the fans but they're just=20 moving the hot air.''=20 Hospitals cut off=20 Several hospitals complained they lost power Tuesday saying they thought= =20 they were exempt. PG&E said hospitals with sufficient backup generation to= =20 power themselves can be turned off. But state regulators said they could no= t=20 confirm that statement and hospital officials scoffed at the suggestion.= =20 ``Every hospital has backup power generation but it only covers 30 to 40= =20 percent of the hospital'' said Roger Richter a senior vice president with= =20 the Hospital Council.=20 Nonetheless hospitals are coping with the situation.=20 ``Our patients are concerned for sure'' said Jackie Floyd head nurse at= =20 the Satellite Dialysis Center South in San Jose which lost power. ``But=20 while it's a pain we can handle the blackouts. We're kind of getting the= =20 idea here that this a problem and we have to adjust.''=20 But while Californians may be adjusting they're not at all pleased.=20 ``I'm frustrated with this power thing'' said Ana Rivera who manages the= =20 Wash Club in San Francisco where washers and dryers had stopped mid-cycle.= =20 ``Who do you blame? No one wants to accept blame.'' Sara Neufeld Ann Marimow Kim Vo Frank Sweeney Barbara Feder Aaron Davi= s=20 Gil Duran and Dave Beck contributed to this report.=20 --- --- Powerless again=20 Outages were lighter after generators came back online and conservation=20 efforts kicked in. Blackouts may be averted today.=20 March 21 2001=20 By TONY SAAVEDRA JOHN HOWARD CHRIS KNAP and JEFF COLLINS The Orange County Register=20 The Ridgewood Power methane-burning plant at the Olinda Alpha landfill in= =20 Brea is producing 3.3 megawatts down from five because Edison owes it $1.= 5=20 million and cranking up to full power is no longer a priority Photo: H. Lorren Au Jr. / The Register ? ? A second day of statewide blackouts ratcheted up the frustration level=20 Tuesday on the streets of Orange County and in Sacramento as consumers=20 demanded solutions from politicians unable to give them.=20 There was a bit of good news though: Blackouts may be averted for the rest= =20 of the week after temperatures moderated two stalled generators came back= =20 online and conservation efforts kicked into gear.=20 ?=20 Some Orange County residents took the blackouts in stride. In Mission Viejo= =20 above the West Coast Football Club's under-16 boys team scrimmages under= =20 gas-powered lights Tuesday. The club has been running to conserve energy=20 Photo: Kevin Sullivan / The Register ? ? Consumers were able to save 900 megawatts - enough to light about 675000= =20 homes - by cutting power usage said Patrick Dorinson spokesman for the=20 Independent System Operator which oversees 75 percent of the state's=20 electricity grid. That helped the ISO halt the blackouts Tuesday afternoon.= =20 Californians are back on the conservation trail and we appreciate it=20 Dorinson said.=20 Power regulators Tuesday morning predicted there would be twice as many=20 outages as Monday when more than 1 million consumers statewide lost power = in=20 one-hour to 90-minute increments.=20 Luis Pagan an assistant at the Santa Ana Animal Shelter waits out the=20 blackout Tuesday with one of the shelter's dogs up for adoption Photo: Paul E. Rodriguez / The Register ? ? Beginning at 9:30 a.m. Tuesday blackouts tangled intersections in Costa=20 Mesa forced Huntington Beach students to study by flashlight and stilled= =20 cash registers in Santa Ana. About a half-million homes and businesses were= =20 unplugged statewide before 2 p.m. Power was restored to most of Southern=20 California by 11:30 a.m. Outages affected more than 9200 consumers in Oran= ge=20 County.=20 The ISO had expected more severe outages to hit at the peak hour of 7 p.m.= =20 but was able to keep the lights on as downed power plants came back online= =20 and imports from other states increased.=20 While outages were lighter than Monday the blackouts aggravated consumers= =20 who doubted that Gov. Gray Davis lawmakers and electricity officials are= =20 doing enough to keep the power flowing in California.=20 ?=20 Zulema Avarez left and Erica Ramirez said they were caught off-guard when= =20 the power went out so they closed the fashion store in Santa Ana where the= y=20 work Photo: Paul E. Rodriguez / The Register ? ? I think this is insane said Charlee Lang 63 of Costa Mesa. Gray Davis= =20 didn't do his job for a long time he didn't get serious until November. We= =20 need to demand immediate action be taken.=20 Bill Brannick 65 of Costa Mesa added: There's a lot of complicity here= =20 and we're just innocent victims.=20 Davis in a Sacramento news conference said he inherited California's fail= ed=20 experiment with electricity deregulation enacted in 1996 under former Gov.= =20 Pete Wilson.=20 I think a fair assessment of this situation is that we were dealt a pretty= =20 bad hand here Davis said. No (new power) plant was approved in the 12=20 years prior to my being governor.=20 With summer peak demand expected to be 16000 megawatts higher than Monday= =20 and Tuesday more days of blackouts are forecast for coming months. Though= =20 Davis has signed long-term contracts to provide California with reliable=20 energy the deals haven't yet taken effect. Some suppliers won't start=20 providing electricity until the state reaches a so-far elusive agreement to= =20 help the utilities pay off billions in debt by buying their transmission=20 lines.=20 Assembly Republican Leader Bill Campbell R-Villa Park said that the effor= t=20 to resolve the state's energy crisis was floundering in the midst of unpai= d=20 bills stalled negotiations and rolling blackouts.=20 Tuesday began with 29 percent of California's power supply off line mostly= =20 from generating plants suddenly down for unscheduled maintenance. About 30= 00=20 megawatts was missing from so-called qualifying facilities or small power= =20 producers who have not been paid $1.8 billion by cash-strapped utilities an= d=20 say they can't afford to operate. Davis said he would ask the PUC to order= =20 utilities to begin paying the qualifying facilities for any energy supplied= =20 beginning April 1 but the payments would not apply to the outstanding debt= .=20 Some smaller producers threatened to force Edison into involuntary bankrupt= cy=20 if they are not paid soon.=20 Blackouts began Tuesday two hours earlier than on Monday as the ISO called= =20 on utilities to dump 500 megawatts. It was only the second day of blackouts= =20 for Southern California but the fourth for Northern California since=20 January.=20 The Disney Resort which includes Disneyland and the new California=20 Adventure voluntarily cut back one megawatt of electricity on Monday and= =20 again Tuesday said Anaheim Public Utilities.=20 All of the reductions were in backstage areas not seen by guests said Disn= ey=20 spokeswoman Chela Castano-Lenahan.=20 In other workplaces people tried to make do.=20 Flashlight beams bobbed in aisles at a Target in Santa Ana where the power= =20 stopped at 10:30 a.m. Workers escorted customers who continued shopping an= d=20 made their purchases at battery-powered cash registers. Customers were=20 eventually asked to leave when the batteries ran low.=20 Oh well no soda no sunglasses said one woman as she headed back to her= =20 car.=20 The Metro Pointe shopping center in Costa Mesa also went dark.=20 I was in the middle of making a reservation when everything went out sai= d=20 Peggy Thomas a sales executive for Travel of America along South Coast=20 Drive. All of us here went 'Oh no it's happened to us.' =20 Said one Costa Mesa police officer as he headed for his motorcycle and a= =20 blackout-related fender bender: You can thank the governor for that one.= =20 At Hawes Elementary School in Huntington Beach Principal Marie Smith was= =20 demonstrating to her third-grade class what would happen in a blackout. But= =20 before she could flip off the light switch the power died.=20 The kids thought she was joking.=20 Register staff writers Tiffany Montgomery Sarah Tully Tapia Nancy Luna J= im=20 Radcliffe Binh Ha Hong Theresa Salinas Eric Johnson and Danielle Herubin= =20 and the Associated Press contributed to this report.=20 --- --- The iceman shunneth effects of hourlong blackout=20 March 21 2001=20 By JIM RADCLIFFE The Orange County Register=20 Ken Ackerman owner of ABC Ice House in Laguna Niguel checks on his frozen= =20 inventory during Tuesday morning's rolling blackout. The ice managed to=20 endure the hourlong power outage Photo: Jebb Harris / The Register ? ? Ken Ackerman didn't sweat much when a blackout struck his Laguna Niguel ice= =20 business at 10:30 a.m. Tuesday.=20 The walk-in freezer at ABC Ice House held 8 tons of ice. And for an hour t= he=20 temperature in there rose from 20 degrees to 45 degrees.=20 But very little melted.=20 Ackerman said most refrigerators can handle blackouts as long as outages ar= e=20 less than two hours.=20 I think people are going to get used to one-hour blackouts and realize it'= s=20 not a problem'' Ackerman said.=20 The blackouts actually were profitable for Ackerman.=20 An Irvine laboratory struck by a power outage bought 100 pounds of dry ice = to=20 preserve human tissue.=20 More blackouts through the summer could be a boon for the ice business - or= a=20 bust.=20 It could mean more ice sales -- or that his supplier has trouble filling hi= s=20 orders.=20 It's going to be an interesting summer'' Ackerman said.=20 I have no idea if we'll make more or less.''=20 Traffic will be the biggest problem if blackouts continue Ackerman said.= =20 On Monday a nearby Costco that had lost power ordered 200 pounds of ice to= =20 keep its refrigerated goods cold.=20 But dead traffic lights and congested roads made it impossible to deliver t= he=20 ice before the outage ended. Costco canceled the sale.=20 We pride ourselves on getting our deliveries made in an hour Ackerman=20 said.=20 --- --- Traffic officials are seeing red over blackouts=20 Battery backups are planned by several cities to aid confused drivers.=20 March 21 2001=20 By HEATHER LOURIE The Orange County Register=20 Traffic backs up Tuesday at Crown Valley Parkway at Forbes Road in Laguna= =20 Niguel as drivers had to navigate their own way Photo: Jebb Harris / The Register ? ? Toby Tran approached an Aliso Viejo intersection and wasn't sure what to do= .=20 Ahead of him the traffic signal was dark a casualty of the rolling=20 blackouts that struck Orange County on Monday and Tuesday.=20 So Tran kept driving smacking into an oncoming car at the corner of Aliso= =20 Creek and Enterprise.=20 It just happened a shaken Tran 29 said from his Aliso Viejo home. I= =20 tried to stop and I couldn't. There was no light. Nothing.=20 Tran's accident Monday afternoon and several others like it underscore on= e=20 of the most significant dangers looming in the threat of future blackouts.= =20 Traffic signals that fade to black when the power goes out instead of=20 converting to flashing red make wrecks far more likely because drivers=20 become confused and frustrated traffic engineers and experts said Tuesday.= =20 I didn't know what to do said Tran who was on his way to a high school= =20 jogging track. Luckily I'm alive but I'm very scared.=20 On Day 2 of Southern California's power outages worried city officials=20 across Orange County hunted for ways to respond to paralyzed intersections= =20 when state regulators pull the plug.=20 We need to be ready said Hamid Bahadori traffic engineer in the city of= =20 Orange. This thing is only going to get worse in July and August.=20 One popular idea: installing emergency battery-backup units at traffic=20 signals to keep lights flashing red during blackouts. Several Orange County= =20 cities including Irvine Laguna Niguel and Orange are already moving to= =20 install the devices as early as this summer.=20 In our minds (a flashing light) is a vast improvement over a blacked-out= =20 signal said Dave Rogers Laguna Niguel traffic engineer. On Tuesday night= =20 his city was expected to approve the purchase of the battery packs for all = 74=20 of its traffic signals.=20 Timing in this case seems to be everything Rogers said. A lot of citi= es=20 had contemplated it. We just took it that extra step.=20 John Thai an Anaheim traffic engineer cautioned that cities need to do=20 adequate research and testing before they launch into such projects.=20 There is nothing that is foolproof Thai said. All this is new territory= .=20 Some cities are also considering rolling out temporary stop signs and sendi= ng=20 police officers to more intersections.=20 Although the state's vehicle code requires motorists to treat dead traffic= =20 signals like a four-way stop motorists often blow through the intersection= s=20 police said.=20 It's dangerous said Tustin police Lt. Mike Shanahan after several=20 near-wrecks in his city during Monday's outages. People are not very good = at=20 reacting to changes in their conditions.=20 Flashing red is something that catches your eye. It's a warning that=20 something is amiss but the absence of all lights is worse.=20 RELATED STORIES=20 =01=07 How to contact your Representatives =01=07 'Current' events =01=07 The iceman shunneth effects of hourlong blackout =01=07 Powerless again =01=07 Alternative power producers cut back or shut down as payments from b= ig=20 utilities lag =01=07 O.C. saves its energy -- for blaming others =01=07 Blackout readiness on agenda --- --- Alternative power producers cut back or shut down as payments from big=20 utilities lag=20 That is a factor in blackouts=20 March 21 2001=20 By HANH KIM QUACH The Orange County Register=20 Every megawatt of electricity counts in this deregulated energy market -=20 including the five megawatts generated from the Olinda Alpha landfill in=20 Brea.=20 The methane-burning plant is producing only 3.3 megawatts now because=20 Southern California Edison owes it $1.5 million and cranking up to full pow= er=20 is no longer a priority said Martin Quinn executive vice president of=20 Ridgewood Power which runs the plant.=20 We're doing maintenance now when we ordinarily wouldn't do it. Because we'= re=20 not being paid it was a good time to cut back'' Quinn said.=20 That scenario has been playing out across the state in the past two weeks a= nd=20 was a major factor in Monday's and Tuesday's blackouts.=20 Those who provide electricity through alternative means - burning methane o= r=20 wood chips or using cleaner-burning technology with traditional fossil fue= ls=20 - are not being paid for what they sell to the big utilities. So they eithe= r=20 can't afford to produce energy or see little incentive to do so.=20 On Monday their absence from the statewide electricity grid created a=20 1300-megawatt shortfall -- enough to power 1.3 million homes.=20 Taking that much power offline meant that any burp in the system would put= =20 the state under the minimum amount of electricity needed to avoid blackouts= .=20 When one conventional Southern California plant went down because of a=20 transformer fire Monday the blackouts began.=20 If all of California's (alternative) generators were operating yesterday a= nd=20 today rolling blackouts would have been avoided'' Quinn said Tuesday.=20 Within the next couple of weeks as the weather warms and alternative energ= y=20 producers continue to try and operate without money California could see= =20 twice as many of those producers go offline further increasing the potenti= al=20 for blackouts said Jan Smutny-Jones executive director of Independent=20 Energy Producers.=20 The alternative energy producers which provide about a third of the state'= s=20 energy are deemed so crucial that Gov. Gray Davis wants the Public Utiliti= es=20 Commission to order the utilities to pay them. As drafted though the orde= r=20 would only include payment on future sales it doesn't address existing deb= t.=20 The Legislature has been working since January to halve the rates that=20 alternative producers charge utilities and to require utilities to pay for= =20 November's energy by April 1. But that bill is still moving through the=20 Legislature.=20 Small plants threaten Edison with bankruptcy=20 Smutny-Jones said that if the small generators are not paid promptly sever= al=20 will attempt to force Edison into bankruptcy probably within a week.=20 Unlike the large natural-gas generators that have been paid by the state=20 Department of Water Resources alternative energy producers are locked into= =20 contracts with utilities. Collectively Pacific Gas & Electric and Edison o= we=20 alternative energy producers about $1 billion.=20 PG&E has paid about 15 cents for each dollar it owes.=20 Obviously they're a source of generation and looking at how much load ou= r=20 customers need they're a source that has provided energy'' said Jon=20 Tremayne Pacific Gas & Electric spokesman. We've been trying in good=20 faith to make payments on energy.''=20 But Edison has not paid any money. Edison's alternative energy director La= rs=20 Bergmann said the company will not pay until larger reforms are made in ho= w=20 the producers' rates are calculated.=20 But the company recognizes that its nonpayment is causing problems.=20 To the extent that there are hundreds of megawatts that are idled here it= =20 just exacerbates the (energy) problem. ... They're facing similar problems = to=20 what we faced - they don't have sufficient (income) coming in the door''= =20 Bergmann said.=20 Plants go into mothball mode=20 Millenium Energy in Kern County is owed $40 million total by PG&E and Ediso= n.=20 On March 1 the company shut down both of its coal and petroleum coke-burni= ng=20 plants and doesn't plan to bring them back up until it is paid.=20 Millenium's plants which use a special technology to reduce emissions=20 generate 150 megawatts of energy.=20 We've gone into mothball mode our machinery just sits there on cold=20 standby'' said President Mike Hawkins. We've been delivering free electro= ns=20 to the system in the hope that the system would resolve itself. But we can'= t=20 do that anymore.=20 One biomass plant in Lassen County has scaled back from 31 megawatts to=20 eight. Burney Forest Power burns wood chips to produce energy and has only = a=20 couple weeks' supply of chips left.=20 When you don't even know what you'll get paid it's hard to say 'Let's go= =20 out and get a bunch of fuel''' said Milt Schultz the plant's general=20 manager.=20 The sad thing is (the state) really can't afford to lose us.''=20 --- --- O.C. saves its energy -- for blaming others=20 March 21 2001=20 By RICHARD CHANG The Orange County Register=20 Darkened stores were forced to turn away customers as stock manager=20 Bridgette Kelly left does here at a Linens 'n Things in Costa Mesa. The= =20 store closed for 45 minutes Tuesday morning Photo: Michael Kitada / The Orange County Register ? ? Orange County residents are making efforts large and small to conserve=20 electricity as they face rolling blackouts and surging energy bills.=20 Reactions to the early spring crisis - with blackouts throughout the state= =20 Monday and Tuesday - are ranging from confusion to rage.=20 Many residents have taken practical steps such as turning off lights they'= re=20 not using waiting until off-peak hours to do their laundry and opening=20 windows instead of using air conditioning.=20 My house is full of Philips energy-saving light bulbs said Ray Rutledge= =20 48 of Buena Park. Our light bill has dropped 7 1/2 percent. We use=20 low-voltage outdoor lighting. We've got an energy-saving thermostat. It's s= et=20 back to 65 (degrees) in the wintertime.=20 Kim Wilson who lives in an unincorporated area of Orange County near Santa= =20 Ana and Tustin said he has cut down on lighting in his house and has reduc= ed=20 by half the time his pool cleaner runs. Still his energy bill remains abou= t=20 $400 a month.=20 I don't know what ... to do Wilson 57 said. We've cut back.=20 Wilson added that he is not pleased with the way government or the energy= =20 companies have handled the crisis.=20 I think it's disgusting. It's such political garbage. Who was it that made= =20 these decisions? Who got us into it?=20 'TRYING TO CONSERVE'=20 Jenny Hann 60 of Costa Mesa said her workplace has devised an emergency= =20 plan for conservation and future blackouts.=20 We're definitely trying to conserve as much as we can the bank=20 administrator said. Hann expressed frustration with the energy companies.= =20 When you see these executives that have been running the show and the mone= y=20 they're making it's bothersome she said.=20 Jennifer Souto 27 of Tustin said even though she's a stay-at-home mother= =20 she keeps the lights off all day. She doesn't use her air conditioning=20 either.=20 Souto said she was locked out of her house for 90 minutes Monday because a= =20 blackout cut power to her garage door. She says she's not sure who to blame= .=20 Paul Finch 38 of Westminster blames Edison and Gov. Gray Davis.=20 I don't believe info I get from Edison or from our illustrious governor= =20 Finch said. There's more to it than how they've represented it.=20 --- --- Blackout readiness on agenda=20 O.C. companies braced for outages Tuesday in different ways. Not all were= =20 struck but they felt the effects.=20 March 21 2001=20 By TAMARA CHUANG The Orange County Register=20 In case of a power failure Tuesday the Fluor Corp. in Aliso Viejo stocked= =20 elevators with homemade blackout kits filled with cookies flashlights and= =20 bottles of water.=20 They're in the elevators although we've been told not to use the=20 elevators said Lori Serrato a company spokeswoman. We're using the=20 stairwells waiting for our time of darkness.=20 Tales of anxious preparation were more common than actual blackouts for=20 Orange County businesses Tuesday.=20 Edison told some companies as special power users who've agreed to cut bac= k=20 when asked to expect to do so. Conexant Systems Inc. got a warning from=20 Edison and immediately shut down air conditioning and equipment not in use= =20 and stopped production. The blackout never came.=20 Kingston Technology Co. when notified by Edison on Tuesday morning=20 broadcast the warning on the company intercom. The company also e-mailed=20 employees a guide explaining the blackout.=20 It's already affected productivity. We've been busy getting all our e-mail= s=20 out before it happens said Heather Jardin a spokeswoman for the Fountain= =20 Valley computer memory maker.=20 Kingston still had power by day's end but in an emergency the company's= =20 manufacturing plants revert to Kingston's own power generators Jardin said= .=20 Heart valve maker Edwards Lifesciences turned on its backup generators=20 Tuesday morning because of the potential for there to be a blackout in ou= r=20 area said company spokesman Scott Nelson. But (as of 3:30 p.m.) the=20 blackout didn't materialize Nelson said.=20 At the regional office in Irvine Verizon Wireless implemented conservation= =20 efforts such as motion sensors that shut off lights after 30 minutes of=20 inactivity and separate heating and air conditioning units on all floors.= =20 Some of the company's cell sites in Orange County and Los Angeles did lose= =20 power Monday and Tuesday but they automatically switched to backup battery= =20 sources.=20 Other companies - PacifiCare ICN Pharmaceuticals Beckman Coulter and=20 Allergan - said they took precautions turning out some hallway lights and= =20 communicating safety procedures to employees.=20 Disneyland Ingram Micro in Santa Ana and Western Digital Corp. in Lake=20 Forest all were prepared.=20 But none reported blackouts by day's end.=20 Some county businesses did get hit.=20 Businesses along the 900 block of South Coast Drive - including 14 stores a= t=20 the Metro Point shopping center in Costa Mesa - went dark about 10:20 a.m.= =20 All of a sudden it was dark said Henry Gonzalez manager of Boudin Baker= y.=20 We ran out of coffee. We couldn't bake anything. We tried to accommodate a= s=20 best as we can.=20 Other stores simply closed during the blackout frustrating shoppers.=20 We walked over to (Marshalls) and it was dark and there was a sign on the= =20 door that said 'Due to the blackout we're closed' said shopper Roberta= =20 Allison a West Virginia tourist. Don't they warn people here? Do they jus= t=20 whack the power off?=20 Marshalls employees escorted customers out of the store when the power went= =20 out. Other stores including Nordstrom Rack and Best Buy were not affected= .=20 Across the street from the center employees spilled out of office building= s=20 cheering and waving their hands in victory as power outages forced them to= =20 halt work.=20 Lots of people just walked out of the office to run errands said Amy=20 Bateman a loan officer at Capital Funding Group in Costa Mesa.=20 She said her office building at 940 South Coast Drive went dark for about= =20 70 minutes. Like dozens of others in the building she was working at her= =20 desk when the computers and lights went dark.=20 We've just been sitting around. We can't do anything said Bateman.=20 The blackout hit other businesses on Monday.=20 Buy.com employees spent their hour without power using their wireless=20 Blackberry pagers to answer and send e-mail.=20 The Crazy Horse Steakhouse in Irvine lost power after the lunch rush said= =20 Donna Mulkey the restaurant's manager. Since the broilers remained hot th= e=20 cooks kept cooking and the customers kept eating. When they finished waite= rs=20 calculated the bills by hand.=20 At Broadcom Corp. in Irvine the power went out just before Rep. Christophe= r=20 Cox was to tour the facility.=20 It struck me as particularly ironic Cox told members of the House=20 subcommittee on energy and air quality Tuesday that Broadcom's co-founder= =20 Henry Samueli spent the hour before the meeting using a letter opener to= =20 open his paper mail and sitting by the window so he could get some sunlight= =20 to read.=20 Cox R-Newport Beach told the panel which was holding a hearing on=20 California's electricity crisis that the entire company could not functio= n=20 during this period of time and the same was true for more than a million=20 people he said. It's a Third World experience in California.=20 Register reporters Chris Farnsworth Dena Bunis Bernard Wolfson Nancy Lun= a=20 Eric Johnson Elizabeth Aguilera and Jennifer Hieger contributed to this=20 story.=20 --- --- Calif To Order Utils To Pay Small Generators Up Front-Gov 03/21/2001=20 Dow Jones Energy Service=20 (Copyright (c) 2001 Dow Jones & Company Inc.)=20 SACRAMENTO Calif. (AP)-- California regulators will order the state's two= =20 largest utilities to pay small independent power generators in advance a= =20 move Gov. Gray Davis hopes will bring a quick end to the blackouts that=20 darkened California this week.=20 Davis accused PG&E Corp. (PCG) unit Pacific Gas & Electric Co. and Edison= =20 International (EIX) unit Southern California Edison of taking in money from= =20 customers while failing to pay the generators known as qualifying=20 facilities which produce up to one-third of the state's power. As a result= =20 he said the utilities are partly responsible for this week's blackouts.=20 It's wrong and irresponsible of the utilities to pocket this money and not= =20 pay the generators the governor said at a Capitol news conference Tuesday= =20 evening. They've acted irresponsibly and immorally and it has to stop.=20 The state lost about 3100 megawatts or enough electricity to power 3.1=20 million homes on Tuesday from alternative energy plants that say they can'= t=20 afford to keep operating because the utilities haven't paid their bills in= =20 weeks. The utilities which are near bankruptcy owe the QFs about $1=20 billion. Pacific Gas & Electric has made partial payments.=20 As reported by Dow Jones Newswires Southern California Edison met with=20 representatives of the governor Tuesday to discuss plans to begin making=20 partial payments to the QFs. Pacific Gas & Electric which called Davis'= =20 statements inappropriate and unjustified said it has informed the QFs an= d=20 the governor's office that it plans to begin paying the QFs in full going= =20 forward.=20 Davis said the PUC planned to issue an order next week directing the=20 utilities to prepay future bills to the QFs.=20 Edison and PG&E say they have lost more than $13 billion since last June to= =20 climbing wholesale electricity prices which the state's 1996 deregulation= =20 law prevents them from passing on to ratepayers. California has been spendi= ng=20 about $45 million a day since January to buy power for the utilities'=20 customers but hasn't included QF-generated power in its purchases.=20 Keepers of the state's power grid were cautiously optimistic that Californi= a=20 might get through Wednesday without another day of rolling blackouts after= =20 two idle plants were returned to service. A Stage 1 power alert the mildes= t=20 of three forms of alerts was called around 6 a.m. Wednesday as power=20 reserves fell to around 7 percent.=20 About a half-million customers were hit by Tuesday's blackouts which snarl= ed=20 traffic and plunged schools and businesses into darkness from San Diego to= =20 the Oregon border. Tuesday's outages began at 9:30 a.m. and continued in=20 90-minute waves until about 2 p.m. when the ISO lifted its blackout order.= =20 They were blamed for at least one serious traffic accident.=20 The blackouts were caused by a combination of problems including=20 unseasonably warm weather reduced electricity imports from the Pacific=20 Northwest numerous power plants being shut down for repairs and the loss o= f=20 power from QFs.=20 Meanwhile a leading lawmaker on energy issues said the PUC may soon have t= o=20 raise rates by about 15% to cover the state's costs and its utilities' bill= s.=20 My sense is that people will appreciate having some certainty and being ab= le=20 to plan for it said Assemblyman Fred Keeley. They don't have to like it= =20 but I think they'll appreciate it.=20 Davis has said he is confident the utilities and the state can pay their=20 bills without further rate increases.=20 --- --- PG&E Says It Is Negotiating With Qualifying Facilities 03/21/2001=20 Dow Jones Energy Service=20 (Copyright (c) 2001 Dow Jones & Company Inc.)=20 (This article was originally published Tuesday)=20 =20 LOS ANGELES -(Dow Jones)- PG&E Corp. (PCG) unit Pacific Gas and Electric Co= .=20 said Tuesday it is offering small generators or qualifying facilities= =20 prepayment of $200 million per month so they will have the funds to return = to=20 the state power grid.=20 But high level sources at the qualifying facilities who are involved in the= =20 negotiations said PG&E's proposal is incomplete and doesn't address the iss= ue=20 of past due payments.=20 The sources said PG&E had discussions with some qualifying facility operato= rs=20 last week regarding the plan and it wasn't accepted at that time.=20 About 3000 megawatts of power from qualifying facilities or QFs have bee= n=20 off the state's grid since Monday because the generators weren't being paid= =20 by utilities and couldn't afford to continue operating. The QFs unavailable= =20 power was partly responsible for Monday and Tuesday's statewide rolling=20 blackouts.=20 Also Tuesday California Gov. Gray Davis will hold a press conference to=20 discuss progress made in negotiations with the QFs to revise their contract= s=20 with the state's two nearly-bankrupt utilities so that the utilities pay le= ss=20 for power.=20 Edison International (EIX) unit Southern California Edison also said Tuesda= y=20 it intends to make partial payments on an ongoing basis to some QFs.=20 Edison executives met with Gov. Gray Davis' negotiating team Tuesday to=20 discuss how and when SoCal Ed can begin to make payments and a spokesman= =20 said they hope to have a plan in a matter of days.=20 Pacific Gas & Electric Co. has made partial payments of about $51 million t= o=20 the QFs it contracts with but owes much more. Edison owes the QFs hundreds= =20 of millions of dollars and hasn't paid the QFs since November. Together th= e=20 two utilities owe QFs about $1 billion.=20 PG&E said it has been collecting about $400 million per month from ratepaye= rs=20 to pay QFs and other generators with which it has bilateral contracts the= =20 state grid operator for spot power purchases and costs of its own=20 generation.=20 The average combined bill for those costs exceeds $1.4 billion per month= =20 PG&E said.=20 This mismatch between revenues and costs requires tough choices. Since the= re=20 isn't enough money in rates to cover all these costs the Public Utilities= =20 Commission decision on how this $400 million will be allocated going forwar= d=20 will determine our ability to make advance payments to QFs said Gordon R.= =20 Smith the utility's president and CEO.=20 The PUC is responsible for implementing the legislation which allows the=20 state to buy power and will decide how much of utilities' ratepayer revenue= =20 will go to the state for power purchases and how much will go to the=20 utilities.=20 For several weeks a number of QFs have taken their generating units offlin= e=20 because they can no longer afford to buy fuel needed to run their units.=20 QFs supply California with one-third of its total power supply.=20 PG&E and SoCal Ed have almost $13 billion in purchased power undercollectio= ns=20 because they cannot collect full costs from customers protected by a=20 state-mandated rate freeze.=20 -By Jessica Berthold Dow Jones Newswires 323-658-3872=20 -(Jason Leopold contributed to this article.)=20 --- -------------------- Wednesday March 21 2001=20 By Dave Todd=20 [email protected]=20 U.S. Energy Secretary Spencer Abraham declared this week that the Big Apple= =20 is on the verge of being bitten hard by power cuts and rising energy prices= . Delivering the keynote address at the U.S. Chamber of Commerce's national= =20 energy summit in Washington Monday Abraham said California is not the on= ly=20 state facing a mismatch between supply and demand what with electricity= =20 shortages predicted for New York City and Long Island this summer and low= =20 capacity margins threatening electricity reliability elsewhere across the= =20 country. But how likely is it that New Yorkers will face blackouts of the= =20 sort confronting Californians?=20 Not very says energy trade specialist Edward Krapels managing director of= =20 Boston-based METIS Trading Advisors. Krapels a consultant helping major=20 Northeastern utilities such as Consolidated Edison design market-hedging= =20 programs adamantly decried what he said are facile comparisons between=20 conditions in New York and California there being more differences than= =20 there are similarities between those two industrial cornerstones of the=20 country's economy in respect to energy security management.=20 First of all New York has a more varied portfolio of energy generation=20 sources than California he said. California has hydro nuclear and gas b= ut=20 when it lost a lot of hydro the state needed gas to pick up the slack and= =20 the capacity just wasn't there. In New York's case the state has oil and= =20 coal still in the mix and its overall dependence on gas is much lower than= =20 California's Krapels added.=20 New York avoids making same mistakes Portfolio diversity is one pillar of any effective plan to help New York=20 avoid the same errors made in redesigning California's marketplace. New=20 York's Independent System Operator (ISO) in a new report warning that the= =20 state is at an energy crossroads in terms of its capacity adequacy in the= =20 immediate future argues that a concerted effort is required to arrest=20 declining in-state generation capacity reserve margins and a strategy must= =20 be put in place whether or not new generation comes on-line in accordance= =20 with current anticipated scenarios.=20 A measure of New York's essential difficulty is that between 1995 and 2000= =20 statewide demand for electricity grew 2700 MW while generating capacity= =20 expanded by only 1060 MW. With no major new generating plants in downstate= =20 New York fully approved the gap is expected to continue to widen. To avoid= =20 a replication of California's market meltdown the New York ISO calculates= =20 the state's daily generating capacity needs to grow by 8600 MW by 2005 wi= th=20 more than half of that located in New York City and on Long Island.=20 Expressing concern this may be too big a burden for the current bureaucrati= c=20 process to bear the ISO wants to see a state-appointed ombudsman named to= =20 help would-be merchant power plant investors plow through red tape.=20 Increasing New York's generating capacity will also lessen the state's=20 escalating and risky reliance on out-of-state sources of electricity the= =20 ISO added. Since 1999 New York State has been unable to cover its reserve= =20 requirements from in-state sources.=20 Not everyone agrees with that analysis insofar as it argues for circling t= he=20 wagons inward. Some analysts believe the ultimate solution lies not in tyin= g=20 in more inwardly dedicated power but in expanding the marketplace by=20 breaking down inter-jurisdictional barriers. In any case New York energy= =20 regulatory authorities and those responsible elsewhere in the U.S. Northeas= t=20 such as PJM (Pennsylvania-New Jersey-Maryland) Interconnection and the New= =20 England Power Pool are in vastly better shape in terms of cross-border= =20 cooperation than California and its neighbors in that efforts are being mad= e=20 among various authorities toward developing an integrated regional=20 electricity market. In California by contrast the state's focus=01*for=20 example in the case of new gas-fired power plant development=01*has been t= o=20 ensure dedicated supply to the California market alone rather than on a=20 regional marketplace.=20 The New York ISO's new broad-based analysis of market-restructuring needs= =20 argues that the relatively stronger health of its reformed environment is= =20 due in large part to the ability of New York's utilities to enter into=20 long-term power contracts.=20 What needs to be done most it says is to move aggressively to build some = of=20 the more than 29000 MW of proposed new generation in the siting pipeline.= =20 In the meantime the 30200 MW of electricity New Yorkers used on a peak da= y=20 last summer shouldn't be eclipsed on too many days this coming summer (give= n=20 early long-range weather forecasts). Demand however is expected to increa= se=20 at an annual average rate of up to 1.4%.=20 So while New York City the rest of the state and adjacent parts might=20 breathe easy this year it could be a brief rest from the fray. Meanwhile = a=20 4% shortfall is still being planned for this summer that is not yet provide= d=20 for as authorities hurriedly seek to arrange new generation plants around= =20 Manhattan on Long Island and even on barges offshore.=20 One way or another whether it is the weather or the politics of siting new= =20 energy facilities it's going to be a hot time in the city.=20 Long-term solutions hit brick wall Meanwhile attempts at longer-term solutions continue to run into trouble.= =20 Last week Connecticut state regulators came out against a proposal to run = a=20 new underwater cable under Long Island Sound that Hydro-Quebec subsidiary= =20 TransEnergie U.S. Ltd. wants to build to pump more juice into Long Island= =20 Power Authority's load pocket. Despite strong promises from TransEnergie to= =20 be diligent in avoiding damage to oyster beds in Long Island Sound the=20 proposal failed to convince authorities who were persuaded the pipeline=20 project could lead to diversion of electricity from Connecticut.=20 In similar fashion private companies wanting to build 10 small independent= =20 power plants and temporary generators offshore New York City are running in= to=20 intense opposition from environmental groups and citizen organizations=01*s= ome=20 of whom have taken their cases to the state assembly in Albany.=20 The David vs. Goliath nature of such controversies has further alerted ener= gy=20 companies to the difficulties of addressing complex energy supply issues th= at=20 may ultimately devolve to people not wanting things in their backyard=20 regardless of what the alternative might mean to their fellow citizens or t= he=20 greater public good.=20 But suddenly in New York California's troubles=01*while still distant in = their=20 intensity=01* may not be so far away. By some estimates this summer's bill= s for=20 Consolidated Edison customers could be up as much as one third or more over= =20 last year's charges.=20 Letting the time slip when it comes to building new infrastructure isn't=20 going to make the pain go away.=20 =20
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Subject:: <<Concur Expense Document>> - JS5/8/2001
Body:: -----------------
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Subject:: California Power Crisis Update (No. 10)
Body:: We have been pulling together these weekly(sometimes more often) summaries for internal purposes. Would you find it helpful to be on the distribution list? Hope you are doing well. Look forward to touching base soon.
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Subject:: Re: BLM/Forest Service Right-of-Way Update
Body:: Preliminary congratulations!. Looks like a good plan. Keep me posted. Stephen D Burns@ENRON 07/19/2000 01:47 AM To: Richard Shapiro/HOU/EES@EES James D Steffes/HOU/EES@EES cc: Scott Bolton/Enron Communications@Enron Communications Joe Hillings/Corp/Enron@ENRON Chris Long/Corp/Enron@ENRON (bcc: Steven J Kean/HOU/EES) Subject: BLM/Forest Service Right-of-Way Update The Senate voted on the Interior Appropriations Bill late yesterday. Our amendment passed which prevents either BLM or the Forest Service from enacting new fiber optic federal lands rights-of-way policies. The BLM made a last ditch effort to defeat this in the Senate but we had reached key Senators and staff and they got nowhere. Action now moves to Conference which for us means a focus on the House Conference members. Scott and I will spend the next 2 days meeting with the key Republicans in the House. We've already recruited the important Democrats. Interior Approps Subcommittee Chairman Regula remains opposed at least publicly but we think we can get other Members to swing him. We trust he'll come up with a sensible face saving compromise on his own eg formally beginning a review process with his Subcommittee having oversight -- at this point our language literally forbids BLM or Forest Service from even meeting to discuss the issue. We continue though on several other fronts: 1. We have the New Dems writing OMB on the issue and several Senators and Congressmen writing BLM and USFS 2. We've increased the pressure on the White House and are letting them know through very senior back door channels that in our opinion BLM/Forest Service have not gotten the message. Our position is that we'll be satisfied that they've changed their evil ways when the new assessment on the Mt. Hood EBS build is retracted. 3. We're preparing both Senate and House authorizing Committees for the longer-term issue next session. We have no trouble finding champtions eager to own the issue 4. We're engaging the Western Caucus for same 5. Our adhoc coalition continues to grow in numbers and clout with over 20 companies and associations now actively engaged. Enron chairs this initiative with a tangible side benefit being much increased visibility and stature as a serious communications player. 6. Scott is successfully engaging state and local officials to weigh in from the end-user perspective BLM is on the retreat and has asked for a meeting which we've refused. We don't think they've given up though and it's likely an issue of pride at this point. So until the Approps process concludes we're continuing with the full court press. Steve
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Subject:: Hold for EES budget meeting.
Body:: You speak at 1:10 Central time.
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Subject:: Re: Merger on FERCs Agenda
Body:: Wow! Was this expected? Sarah Novosel@ENRON 07/19/2000 03:52 PM To: Fullenweider Keith <[email protected]> cc: J Mark Metts/HOU/ECT@ECT Mitchell Taylor/Corp/Enron@ENRON Ann Ballard/Corp/Enron@ENRON Steven J Kean/HOU/EES@EES '[email protected]' <[email protected]> Joe Hartsoe/Corp/Enron@ENRON Tim Belden/HOU/ECT@ECT Mary Hain/HOU/ECT@ECT Paul Kaufman/PDX/ECT@ECT Adam <[email protected]> [email protected] '[email protected]' <[email protected]> '[email protected]' <[email protected]> '[email protected]' <[email protected]> JAY DUDLEY/ENRON Pamela Lesh/ENRON Subject: Merger on FERC's Agenda The Sierra/PGE merger is on FERC's agenda for FERC's July 26 meeting. Please call me if you have any questions. We'll keep you posted. Sarah Fullenweider Keith <[email protected]> on 11/29/99 06:12:51 PM To: J Mark Metts/HOU/ECT@ECT Mitchell Taylor/Corp/Enron@ENRON Ann Ballard/Corp/Enron@ENRON Steven J Kean/HOU/EES@EES '[email protected]' <[email protected]> Sarah Novosel/Corp/Enron@ENRON Joe Hartsoe/Corp/Enron@ENRON Tim Belden/HOU/ECT@ECT cc: Paul Kaufman/PDX/ECT@ECT McWilliams Douglas E. <[email protected]> Wenner Adam <[email protected]> Bruner Becky <[email protected]> Decker John <[email protected]> '[email protected]' <[email protected]> '[email protected]' <[email protected]> '[email protected]' <[email protected]> '[email protected]' <[email protected]> '[email protected]' <[email protected]> Subject: FW: Granite Update Attached is an update memo from Paul Kaufman on state issues.
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Subject:: RE: ENE Officer Elections
Body:: No. We have reallocated some of the responsibilities but Cindy has a significant part of the HR organization and continues to manage Community Relations so her title is accurate. Thanks From: Kelly Johnson/ENRON@enronXgate on 07/19/2001 01:06 PM To: Steven J Kean/NA/Enron@Enron cc: Subject: RE: ENE Officer Elections Thanks Steve. Do we need to change Cindy Olson's title? Let me know.
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Subject:: RE: Technical Corner for today
Body:: Sam We can use a piece written by Rakesh on liquidity. I shall ask him to send it to you. Vince
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Subject:: RE: Luntz Focus Groups (1 of 4)
Body:: We don't have revised versions yet. when we do we will probably only want to put some (not all) of the documents on the intranet. Gavin Dillingham@ENRON_DEVELOPMENT 08/24/2000 02:06 PM To: Steven J Kean/NA/Enron@Enron cc: Subject: RE: Luntz Focus Groups (1 of 4) Have we received the newly revised principles facts and statements for the Luntz Focus Groups? I was hoping to place these on the California power issue database. Thanks Gavin -----------------
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Subject:: Re: FW: Draft of Organizational Announcement
Body:: I'm not sure yet. I think we are going to be sending two memos -- one that I am working on and on that Andy is working on. It looks to me like the message below fits better into Andy's memo. I don't think they will be combined into one but I'll know more tomorrow. From: Sherri Sera/ENRON@enronXgate on 06/11/2001 04:51 PM To: Steven J Kean/NA/Enron@Enron cc: Subject: FW: Draft of Organizational Announcement Steve Kevin Garland sent this to me hoping to get Jeff's approval to send it out from the office of the chairman. Would it make sense to incorporate it into the memo you're working on? Please advise. Thanks SRS
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Subject:: thank you
Body:: fyi
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Subject:: Re: AGA
Body:: What have they done for us? Terence H Thorn@ENRON_DEVELOPMENT 10/03/2000 08:30 AM To: Steven J Kean/NA/Enron@Enron cc: Subject: AGA Steve I need your help. Twice in the last three months I have run into the Chairman of AGA who has taken my head off for Enron not renewing its AGA dues. I understand that the dues had been paid by Stan Horton who had decided that the pipeline group with INGAA representing it had no need for and received no benefit from the membership. I guess a few years back when AGA kicked the pipelines out they renegotiated the dues into some type of sub membership for around 85K. AGA approached the gas marketing team and talked to Mike Roberts about renewing the membership and maintaining relations with his customers and later to Jeff Shankman who passed them off to some other person and never got back to them as promised. This is a heads up to tell you that Bob Catell of Brooklyn Union fame- one of Enron's oldest customers and friends will be calling Lay. It seems to me that pro rating the dues among ENA and EGM and maybe GPG might be a solution. Anyhow I promised to pass on the complaint. Thanks.
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Subject:: Re: Our Will
Body:: no objection Robert Kean <[email protected]> on 04/30/2001 10:00:52 AM Please respond to <[email protected]> To: Phil Kean \(E-mail\) <[email protected]> Doug & Karen Reiman \(E-mail\) <[email protected]> Kathy Wedig \(E-mail\) <[email protected]> Steve & Melissa Kean \(E-mail\) <[email protected]> cc: Diane Kean \(E-mail 3\) <[email protected]> Subject: Our Will Phil Karen Kathy Steve Diane and I are finally getting a will written. I would like to ask all of you if you have any objections to being named in the will as executors OR executing an Advanced Health Care Directive. An AHCD is document inwhich Diane and I will state what our wishes are regarding life support. I have attached a sample copy for review. If anyone objects please reply to me in the next 10-14 days. We will be meeting with the lawyer sometime around the 15th or 16th. Rob - Advance Health Care Directive.pdf
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3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Sandy Fain
Body:: Randy Rich in town
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Re: DRAFT - AA PRC MEMO
Body:: Looks fine to me. I have not cross checked the lists but I assume you have included everyone who was designated to serve on the PRCs per the original memo (in addition to the new bus unit additions) Billy Lemmons 04/30/2001 06:41 PM To: Steven J Kean/NA/Enron@Enron John Sherriff/LON/ECT@ECT cc: Ted C Bland/Enron@EnronXGate Teresa Bosien/Enron@EnronXGate Subject: DRAFT - AA PRC MEMO Attached is a draft memo (including attachments) outlining the modifications we discussed last week. We can communicate changes by email or I'll be happy to arrange a short conference call. If possible I would like to distribute this by Wednesday or Thursday of this week. After the four of us reach consensus I suggest we preview Cindy (and maybe the HR heads) prior to distributing. You will note that based on conversations I had with Skilling last week (where he emphasized his desire that we have one program rather than a fractured program by business unit) I have added a review of the business unit distributions to the final meeting where we discuss the top perfomers. I've also added Janet Dietrich (tent.) and another EES person (tbd) to the AA Committee since they have a large group of AAs and no representation on the committee. Please let me know if you have any questions or comments and thanks for your help. Ted and Terry did all the hard work. Regards Billy Click Print Preview or print a hard copy - it's easier to read. We do not have the Europe groups included. Should probably include or note in the memo itself that info is forthcoming.
What should this email be categorized as?
[/INST] Document editing/checking/collaboration <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Digital Power Demand: JP Morgan Report
Body:: Please post the JP MOrgan doc. on our site
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Town Hall Los Angeles
Body:: mo - calendar Rob - fyi upcoming speech -----------------
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: RESUME
Body:: -----------------
What should this email be categorized as?
[/INST] Employment arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: AW: Houston-Frankfurt
Body:: Another bit of background re Frankfurt (see below). I would be a little bi= t=20 more insistent on German Consulate support than Herr Sturm suggests=20 (otherwise this could become a black hole for your time). -----------------
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Rice Team Mtg.
Body:: -----------------
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Confidential Contact data and RFI
Body:: Kevin I just got the attached e-mail returned with your new address. Let me know if this one makes it thru Fred Confidential Kevin I know you are quite busy but I wonder if you could get your lead trader to look the following forecast for NEEPOOL. This may result in you getting the lead for a large block of the power so be conservative but have enough in there so it is a win win if you know what I mean. Have him fill in what he can. The client will be looking long 10 year with maybe a series of 2 and 5 year deals. Should be putting out around 500 to 700 Mwe. Do not disclose the plant eh ? Call me at 864-370-0217 or 864-235-5607 or mobile 864-275-3193 Thanks Fred
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Regulatory Roundtable, in 49C2
Body:: PFI -- Clement TVA 2024672778 Christa Donahue Cong BURR NC 202 383 2260 Maya Weber Mcgraw Hill Martin Wenzel
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: RE: INVITATION
Body:: Molly Thanks. I shall join you. I assume it's Ninfa's on West Dallas. Vince
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: RE: CONFIDENTIAL - Disclosure Schedules
Body:: Attached please find a draft of the financial schedules prepared by Enron Corp. Please call or email me if you have questions. Mike McGown <<Draft Financial Reps and Warranties>> - Summer financials sent to V&E 8_2_00.doc
What should this email be categorized as?
[/INST] Company Business/Strategy <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: In Washington DC - Breakfast with Jim Bayless at 8:00 in Willard
Coffee Shop, then 3 interviews set up by Carolyn, approx. one hour each.
Body:: Lunch with Joe Hartsoe at 12:00 Return to Houston on 5:20 flight.
What should this email be categorized as?
[/INST] Logistic Arrangements <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: nan
Body:: I have opened a new Lotus file California - working group where I am keeping the contact information but I am assuming you have picked everybody up already. If in doubt check out the file. thanks
What should this email be categorized as?
[/INST] Personal but in professional context <s> |
<s>[INST] <<SYS>> You are reviewing an email using its subject and body. Based on the text in its subject and body, please categorize this email into one of the following categories:
1. 'Company Business/Strategy'
2. 'Purely Personal'
3. 'Personal but in a professional context'
4. 'Logistic Arrangements'
5. 'Employment arrangements'
6. 'Document editing/checking/collaboration'
7. 'Empty message (due to missing attachment)'
8. 'Empty message'
Please provide only one category (e.g., 'Purely Personal'). <</SYS>>
Subject:: Confidential - Job Description
Body:: FYI...I'll keep you informed. dave -----------------
What should this email be categorized as?
[/INST] Employment arrangements <s> |