Enron Mail

From:gus.perez@enron.com
To:ann.schmidt@enron.com, bryan.seyfried@enron.com, elizabeth.linnell@enron.com,filuntz@aol.com, james.steffes@enron.com, janet.butler@enron.com, jeannie.mandelker@enron.com, jeff.dasovich@enron.com, joe.hartsoe@enron.com, john.neslage@enron.com, john.
Subject:Energy Issues - Fri
Cc:
Bcc:
Date:Fri, 25 May 2001 04:38:00 -0700 (PDT)

Please see the following articles:

Sac Bee, Fri, 5/25: More outage notice ordered: Davis tells utilities to gi=
ve=20
added warning of possible blackouts.

Sac Bee, Fri, 5/25: For seniors, the heat can kill, doctors warn

Sac Bee, Fri, 5/25: House panel debates energy price controls

SD Union, Fri, 5/25: Exec reacts hotly to California claim

SD Union, Fri, 5/25: State power regulators aim to keep more power on grid

SD Union, Fri, 5/25: Slater asks Sempra to purchase generators=20

SD Union, Fri, 5/25: President will find Californians upset at his energy=
=20
stance

SD Union, Fri, 5/25: POLL: Californians dissatisfied with government handli=
ng=20
of energy crisis

SD Union, Fri, 5/25: California PUC to earmark more electricity for grid

SD Union, Fri, 5/25: Davis proposal for more diesel power draws environment=
al=20
criticism

LA Times, Fri, 5/25: Davis Orders 3-Tiered Warnings of Blackouts

LA Times, Fri, 5/25: PUC to Reassess Rate Hikes

LA Times, Fri, 5/25: We Aren't That Desperate (Editorial)

LA Times, Fri, 5/25: Energy Crisis as Political Payback (Editorial)

LA Times, Fri, 5/25: Energy Antics: Oh, Behave! (Editorial)

SF Chron, Fri, 5/25: An air of discontent over diesel backups=20
Emissions rules ignore emergency generators

SF Chron, Fri, 5/25: Early-warning system for summer blackouts=20
Media alerts, Web sites would give information=20

SF Chron , Fri, 5/25: Energy crisis to cast long shadow=20
A look at what energy crisis means to future=20

Mercury News, Fri, 5/25: Governor vulnerable, poll shows=20

Mercury News, Fri, 5/25: California power regulators aim to keep more power=
=20
on grid=20

Mercury News, Fri, 5/25: PUC reviews baseline formula for setting rates=20

Mercury News, Fri, 5/25: Regulators: Companies pushed up price of power=20

Mercury News, Fri, 5/25: California power regulators aim to keep more power=
=20
on grid=20

OC Register, Fri, 5/25: Long Beach obtains lien on Edison's assets=20

Energy Insight, Fri, 5/25: Reliant pushes regional 'negawatt' plan


Individual.com, Fri, 5/25: Reliant Energy to lower Calif. peaking unit powe=
r=20
prices

Individual.com, Fri, 5/25: Shaklee Corporation Headquarters Model for Energ=
y=20
Efficiency and Ecology Efforts; Bay Area Company Wins State Award CEO Adds=
=20
Hybrid Gas-Electric Vehicles to Fleet

NY Times, Fri, 5/25: Power Trader Tied to Bush Finds Washington All Ears=20

LA Times, Fri., 5/25: THE ENERGY CRISIS Davis Orders 3-Tiered Warnings of=
=20
Blackouts=20

SF., The Examiner, Fri., 5/25: Legislature hangs Davis out to dry=20
By Nick Driver
Of The Examiner Staff=20
Democratic and Republican legislators are vying to scuttle Gov. Gray Davis'=
=20
plan to buy transmission lines from electric utilities and replace it with=
=20
one of their own.=20
The confusion in Sacramento sidelines what was an imminent deal for a San=
=20
Diego-area utility, and throws further in doubt any future deal to purchase=
=20
PG&E lines through bankruptcy proceedings.=20
And all this is happening before President Bush arrives Tuesday to tout his=
=20
own transmission line deal.=20
A week ago, Davis finally found a term-limited senator, Richard Polanco,=20
D-Los Angeles, to sponsor legislation to purchase Southern California Ediso=
n=20
lines. Now, the governor's office admits that talks will not proceed until=
=20
the Legislature agrees on how to finance the buyout of SoCal Edison's lines=
.=20
Some Assembly Democrats have proposed an innovative alternative to the Davi=
s=20
plan, giving the state a five-year option to purchase all power lines for=
=20
$1.2 billion. While a much lower price, the bill would also lower Edison's=
=20
debt by forcing power marketers to accept 75 percent of the $3.5 billion ow=
ed=20
them.=20
Under the terms of that proposal, the state would still have to loan Edison=
=20
money -- around $1 billion -- and would guarantee SoCal Edison's sale of a=
=20
further $2 billion in bonds. The state would also receive a conservation=20
easement on 21,000 acres of Sierra Nevada watershed land.=20
As in the Davis bill, SoCal Edison would sell the state relatively low-cost=
=20
electricity for 10 years from one of its power plants, and force parent=20
company Edison International to repay $400 million in transfers.=20
A Republican plan labeled "Plan R" now making its way through the halls of=
=20
the legislature is similar to its Democratic sister, except it allows the=
=20
state to take stock in all new plants SoCal Edison is forced to build.=20
The Democratic bill's sponsors, Assemblymen John Dutra, D-Fremont; Joe=20
Nation, D-San Rafael; and Joe Canciamilla, D-Pittsburg; believe they can=20
persuade Edison's board of directors to approve their deal, even though it =
is=20
not as attractive as the governor's offer. Edison refused to comment on the=
=20
plan.=20
Republicans led by Assemblyman Keith Richman, R-Northridge, were trying a=
=20
different strategy Wednesday. The minority party's "Plan R" has not been=20
introduced as official legislation, but instead floated among Republicans a=
nd=20
Democrats alike to get momentum before introduction.=20
Both groups say their bills represent SoCal Edison's only real alternative =
to=20
bankruptcy, and that the beleaguered utility may soon join its northern=20
neighbor, PG&E, in bankruptcy.=20
So far, Edison has been able to renegotiate debts with power generators=20
charging high wholesale prices. PG&E declared bankruptcy April 6.=20
A governor's office staffer said the legislative impasse had diverted all=
=20
attention away from any deal-making, but that the two sides continued to me=
et=20
frequently.=20
Another adviser, Joe Fichera, said "there are lots of moving parts" to the=
=20
deal to purchase all of San Diego Gas and Electric's transmission lines, bu=
t=20
that he continued to meet with company representatives, including an all-da=
y=20
meeting Monday. In San Diego, a spokesman for SDG&E referred all calls to t=
he=20
governor's office.=20
But the sponsor of the Davis bill, Polanco, is not one of the legislature's=
=20
power brokers, and most lawmakers said the $2.76 billion memorandum of=20
understanding is now in serious jeopardy.=20
A bankruptcy could lead to even greater chaos, including the threat of an=
=20
increase in blackouts. The governor and business leaders have said the=20
economy would suffer as the likelihood of blackouts and service outages=20
rises.=20
Legislators, policy wonks and consumer groups continue to argue over the ne=
ed=20
and desirability of the state owning the aging lines that snake across the=
=20
state, especially if the bulk of them -- now owned by Pacific Gas and=20
Electric Co. -- are still not for sale.=20
Critics such as Senate President John Burton, D-San Francisco, one of the=
=20
bill's strongest proponents three months ago, now say the state should not =
be=20
in the business of replacing or upgrading dilapidated lines at a cost of=20
upwards of $1 billion.=20
Others see the state as the best candidate for improving a system long=20
neglected by utilities.=20
"State ownership of the transmission grid would be a better way to help gri=
d=20
problems such as connecting wind generators," said Joe Ito, an energy analy=
st=20
at Lawrence Berkeley Laboratories. "It has been extremely difficult to buil=
d=20
new transmission capacity over the last 10 years, especially into bottlenec=
ks=20
like San Francisco."=20
Bush unveiled his Energy Plan last week, including a key plank that would=
=20
allow the federal government to use eminent domain to purchase private land=
=20
and build more transmission lines. Bush arrives Tuesday for talks with Davi=
s=20
on this and other solutions to the energy crisis.=20
The Foundation for Taxpayer and Consumer Rights derides both presidential a=
nd=20
legislative attempts to create more consumer-friendly deals, labeling them=
=20
"Bailout Lite."=20
"The sponsors want to try and trim away some of the fat," said Doug Heller,=
a=20
spokesman for the group. "But it's all fat."
Legislature hangs Davis out to dry=20

___________________________________________________________________________=
___
__________________________



More outage notice ordered: Davis tells utilities to give added warning of=
=20
possible blackouts.
By John Hill
Bee Capitol Bureau
(Published May 25, 2001)=20
Gov. Gray Davis, invoking his emergency powers, ordered California's=20
utilities Thursday to give customers more warning of rolling blackouts.=20
Davis' plan calls for a 48-hour notice that power blackouts are likely to=
=20
occur, a 24-hour notice that certain neighborhoods will probably be hit and=
a=20
one-hour notice to those neighborhoods that the lights are about to go off.=
=20
But the plan was short on details and left many questions unanswered. Among=
=20
them: how customers will be notified, whether forecasts made a day or more =
in=20
advance will lead to false alarms, and how much the governor's proposal wil=
l=20
improve on what utilities already are doing.=20
"If blackouts are going to occur, there's no reason to keep the public in t=
he=20
dark," Davis said at a news conference, flanked by law enforcement official=
s=20
who bolstered his contention that notice will make the streets safer.=20
The Democratic governor said his plan is meant to improve on the current=20
system, in which notification has been haphazard. Utilities recently were=
=20
given two minutes' notice by the California Independent System Operator,=20
which manages the power grid, that blackouts were needed to avoid a=20
systemwide collapse.=20
"A two-minute warning may work for the National Football League, but it won=
't=20
work for California consumers and the businesses of this state," Davis said=
.=20
Davis called on the utilities, the state Public Utilities Commission, the=
=20
Office of Emergency Services and others to come up with a plan for the=20
warnings in the next few weeks.=20
The board of the California Independent System Operator, which had been=20
scheduled to approve a more modest blackout plan Thursday, scrapped that=20
scheme in favor of the governor's. The board told its staff to report back =
by=20
June 11.=20
"We are committed to putting as much information out there as possible and=
=20
letting people use it as they see fit," ISO spokesman Gregg Fishman said.=
=20
ISO board members cited a report last week that power blackouts could cost=
=20
the state's economy $21.8 billion and 135,000 jobs. Some types of businesse=
s,=20
such as high-technology companies and Central Valley food processors, have=
=20
been clamoring for more warning to avoid losses.=20
Although some have raised concerns about criminals taking advantage of powe=
r=20
blackouts, Davis said warnings would help police make the streets safer by=
=20
setting up stop signs or beefing up patrols of the darkened neighborhoods. =
He=20
said there have been 60 to 70 traffic accidents during blackouts in=20
Sacramento alone.=20
"The so-called bad guys are not sitting there waiting for a blackout," Davi=
s=20
said.=20
The utilities already give some warnings to customers, but say they have be=
en=20
hamstrung by a lack of notice from the Independent System Operator. The ISO=
,=20
in turn, is at the mercy of an electrical supply and demand balance sheet=
=20
that changes by the second.=20
"The ISO is managing a very dynamic system where things can change in a=20
matter of seconds," said a spokesman for Pacific Gas and Electric Co., Ron=
=20
Low. "They could find additional power to bring into California or they cou=
ld=20
find they lost a resource."=20
Grid operators also cautioned that the predictions will be rough guesses, n=
ot=20
guarantees.=20
"We can tell you Monday what we know the facts are for Wednesday, but in th=
e=20
intervening two days the facts might be different," Fishman said.=20
Davis said that even if one-hour warnings have been given, the blackout wil=
l=20
be called off if the ISO can find last-minute power. "Obviously, if we can=
=20
avoid a blackout, we want to," he said.=20
But the longer the warning, the more room for error.=20
"To the extent that you increase the notification, you lower the=20
probability," said John DiStasio, assistant general manager of customer=20
services at Sacramento Municipal Utility District.=20
There are also questions about the best way to let people know.=20
PG&E officials told the ISO board Thursday that customers want more notice,=
=20
but have different ideas of how best to get it. Some said e-mail notice=20
wouldn't work because they're not on their computers all day. If the blacko=
ut=20
is about to occur, many customers would rather be notified by pager or an=
=20
automated phone call. Many customers would like to get notification through=
=20
the mass media, much like they get weather news, but are uncertain where to=
=20
go.=20
PG&E now notifies large businesses and customers with medical conditions wi=
th=20
automated phone calls, Low said, but the system takes 15 to 20 minutes. For=
=20
the utility to start giving these customers an hour's notice, he said, it=
=20
would have to get a warning from ISO well before an hour.=20
"The more time in advance we receive the notice, the more customers we will=
=20
be able to reach," he said.=20
SMUD is already telling customers on its Web page whether they are next in=
=20
line for a blackout, DiStasio said. To comply with Davis' directive, the=20
utility could use the Web site to notify these customers that a blackout wa=
s=20
expected within 24 hours.=20
The utility also is notifying about 900 customers by pager, he said.=20
But the best hope for notifying large numbers of people at the last minute,=
=20
he said, is probably television and radio.=20

The Bee's John Hill can be reached at (916) 326-5543 or jhill@sacbee.com.





More outage notice ordered: Davis tells utilities to give added warning of=
=20
possible blackouts.
By John Hill
Bee Capitol Bureau
(Published May 25, 2001)=20
Gov. Gray Davis, invoking his emergency powers, ordered California's=20
utilities Thursday to give customers more warning of rolling blackouts.=20
Davis' plan calls for a 48-hour notice that power blackouts are likely to=
=20
occur, a 24-hour notice that certain neighborhoods will probably be hit and=
a=20
one-hour notice to those neighborhoods that the lights are about to go off.=
=20
But the plan was short on details and left many questions unanswered. Among=
=20
them: how customers will be notified, whether forecasts made a day or more =
in=20
advance will lead to false alarms, and how much the governor's proposal wil=
l=20
improve on what utilities already are doing.=20
"If blackouts are going to occur, there's no reason to keep the public in t=
he=20
dark," Davis said at a news conference, flanked by law enforcement official=
s=20
who bolstered his contention that notice will make the streets safer.=20
The Democratic governor said his plan is meant to improve on the current=20
system, in which notification has been haphazard. Utilities recently were=
=20
given two minutes' notice by the California Independent System Operator,=20
which manages the power grid, that blackouts were needed to avoid a=20
systemwide collapse.=20
"A two-minute warning may work for the National Football League, but it won=
't=20
work for California consumers and the businesses of this state," Davis said=
.=20
Davis called on the utilities, the state Public Utilities Commission, the=
=20
Office of Emergency Services and others to come up with a plan for the=20
warnings in the next few weeks.=20
The board of the California Independent System Operator, which had been=20
scheduled to approve a more modest blackout plan Thursday, scrapped that=20
scheme in favor of the governor's. The board told its staff to report back =
by=20
June 11.=20
"We are committed to putting as much information out there as possible and=
=20
letting people use it as they see fit," ISO spokesman Gregg Fishman said.=
=20
ISO board members cited a report last week that power blackouts could cost=
=20
the state's economy $21.8 billion and 135,000 jobs. Some types of businesse=
s,=20
such as high-technology companies and Central Valley food processors, have=
=20
been clamoring for more warning to avoid losses.=20
Although some have raised concerns about criminals taking advantage of powe=
r=20
blackouts, Davis said warnings would help police make the streets safer by=
=20
setting up stop signs or beefing up patrols of the darkened neighborhoods. =
He=20
said there have been 60 to 70 traffic accidents during blackouts in=20
Sacramento alone.=20
"The so-called bad guys are not sitting there waiting for a blackout," Davi=
s=20
said.=20
The utilities already give some warnings to customers, but say they have be=
en=20
hamstrung by a lack of notice from the Independent System Operator. The ISO=
,=20
in turn, is at the mercy of an electrical supply and demand balance sheet=
=20
that changes by the second.=20
"The ISO is managing a very dynamic system where things can change in a=20
matter of seconds," said a spokesman for Pacific Gas and Electric Co., Ron=
=20
Low. "They could find additional power to bring into California or they cou=
ld=20
find they lost a resource."=20
Grid operators also cautioned that the predictions will be rough guesses, n=
ot=20
guarantees.=20
"We can tell you Monday what we know the facts are for Wednesday, but in th=
e=20
intervening two days the facts might be different," Fishman said.=20
Davis said that even if one-hour warnings have been given, the blackout wil=
l=20
be called off if the ISO can find last-minute power. "Obviously, if we can=
=20
avoid a blackout, we want to," he said.=20
But the longer the warning, the more room for error.=20
"To the extent that you increase the notification, you lower the=20
probability," said John DiStasio, assistant general manager of customer=20
services at Sacramento Municipal Utility District.=20
There are also questions about the best way to let people know.=20
PG&E officials told the ISO board Thursday that customers want more notice,=
=20
but have different ideas of how best to get it. Some said e-mail notice=20
wouldn't work because they're not on their computers all day. If the blacko=
ut=20
is about to occur, many customers would rather be notified by pager or an=
=20
automated phone call. Many customers would like to get notification through=
=20
the mass media, much like they get weather news, but are uncertain where to=
=20
go.=20
PG&E now notifies large businesses and customers with medical conditions wi=
th=20
automated phone calls, Low said, but the system takes 15 to 20 minutes. For=
=20
the utility to start giving these customers an hour's notice, he said, it=
=20
would have to get a warning from ISO well before an hour.=20
"The more time in advance we receive the notice, the more customers we will=
=20
be able to reach," he said.=20
SMUD is already telling customers on its Web page whether they are next in=
=20
line for a blackout, DiStasio said. To comply with Davis' directive, the=20
utility could use the Web site to notify these customers that a blackout wa=
s=20
expected within 24 hours.=20
The utility also is notifying about 900 customers by pager, he said.=20
But the best hope for notifying large numbers of people at the last minute,=
=20
he said, is probably television and radio.=20

The Bee's John Hill can be reached at (916) 326-5543 or jhill@sacbee.com.








For seniors, the heat can kill, doctors warn
By Carrie Peyton and Nancy Weaver Teichert
Bee Staff Writers
(Published May 25, 2001)=20
As summer slouches toward Sacramento amid a drumbeat of calls to conserve=
=20
electricity, doctors and advocates for the elderly are sounding a=20
counter-theme.=20
Heat can kill. And most often, it kills seniors.=20
Year after year, heat waves around the United States are deadlier than=20
hurricanes or floods, tornadoes or earthquakes, according to the National=
=20
Oceanic and Atmospheric Administration.=20
In California, a single Los Angeles heat wave killed more than twice as man=
y=20
people as the 1906 San Francisco quake, according to research assembled by=
=20
the state Energy Commission.=20
And national weather disaster statistics show that more than two-thirds of=
=20
those felled by the heat in recent years were age 60 or older.=20
"Heat and the elderly are not a good combination," said Dr. Cheryl Phillips=
,=20
a Sutter Medical Group geriatrician. "It's a real concern this year."=20
As people age, their bodies begin to lose the ability to sense when they ar=
e=20
thirsty or to bounce back quickly from dehydration, she said.=20
The very people who are most vulnerable to heat also often have a tradition=
=20
of thrift and public spiritedness that might lead them to use less=20
electricity than is safe, doctors and energy officials fear.=20
"Their conservation ethic was from the '40s and '50s, when we didn't have a=
ir=20
conditioning as prevalent as we do now, and they were much younger. So they=
=20
probably feel like, 'I can do this, this is important,' and they're not=20
recognizing the change in their body," said Claudia Chandler of the Energy=
=20
Commission.=20
The California Department of Aging is concerned enough that it will soon=20
begin a special outreach to warn seniors about the dangers of hot=20
temperatures, especially when air conditioning may be low or turned off=20
because of high utility bills.=20
In a public education campaign aimed at the 3.6 million Californians who ar=
e=20
65 or older, officials will preach conservation, preparedness for outages a=
nd=20
the need for drinking eight glasses of water each day.=20
Relatively simple steps can keep people safe -- if they are alert to the=20
danger.=20
Some are as obvious as staying out of the sun and moving less on the hottes=
t=20
days.=20
Others are more arcane. People of all ages need to be aware that certain=20
medications, including some anti-depressants and diuretics, can increase=20
their sensitivity to heat. So can too much alcohol, too much weight, heart=
=20
disease and other illnesses.=20
Allergies and heart problems underscore Margueritte Ranney's juggling act. =
At=20
72, she has already had to refinance her house to keep up with rising bills=
=20
on a fixed income. She does her laundry with cold water, shuts off unneeded=
=20
appliances and opens the door each morning to cool her home.=20
But when the day's heat builds, Ranney faces a stark choice. It's "very, ve=
ry=20
rough," she said -- but she puts her health first. She closes up her=20
two-bedroom home and turns on her evaporative cooler.=20
"If I had to turn off my cooler it would be pretty bad," she said. "If I ha=
ve=20
to turn it off I have problems."=20
People who want to cut back on air conditioning while still protecting thei=
r=20
health should use portable fans at home, spray themselves with small mister=
s,=20
and take "cool breaks" to an air conditioned movie theater or store.=20
And seniors, especially, should "drink lots of water. Don't wait until you'=
re=20
thirsty. Drink constantly on hot days," said Phillips.=20
Two heat-moderating mechanisms weaken with age, she said, and doctors still=
=20
don't understand precisely why.=20
In some ways, the human body is like a glass of salty water. Sweat makes th=
e=20
water level drop and the salt level rise, and in young people two hormones =
--=20
aldosterone and angiotensin -- kick in to restore the balance.=20
Those hormones are "the ones that signal to the brain, 'dang I'm thirsty,' =
"=20
said Phillips. They also tell the kidneys to hold onto water.=20
But as people age, their sensitivity to both hormones declines, making it=
=20
easier for seniors to get seriously dehydrated.=20
Then things can get even more dangerous, because older bodies don't recover=
=20
as quickly from dehydration. The dizziness and confusion that come in later=
=20
stages of overheating can trigger bone-breaking falls in a person who is=20
already frail.=20
The good news is, there isn't much danger of getting overheated during=20
rolling blackouts or by setting a thermostat at 78 degrees instead of 72,=
=20
said Phillips.=20
"I'm really not so worried about the power outages. For an hour and a half,=
=20
people will do fine," the doctor said. "I'm worried about the power bills.=
=20
Elders on fixed incomes who have to decide between food and the power bill,=
=20
will say 'heck, I'm turning the air conditioner off.' "=20
It's a serious worry, according to Gloria Jackson of Sacramento County's=20
Department of Health and Human Services.=20
About three or four seniors contact her each week because they are facing a=
=20
cutoff of their utilities for unpaid bills, said Jackson, the county's=20
liaison to the Sacramento Municipal Utility District.=20
Struggling to pay high energy bills on Social Security or other fixed=20
incomes, the seniors end up owing from $100 to $370 in overdue bills, she=
=20
said. A few have voluntarily had their PG&E gas service disconnected so the=
y=20
will have enough to pay SMUD for electricity.=20
With incomes of about $700 a month, seniors may pay rent of $400 to $500 an=
d=20
then have to figure out how to pay for utilities, prescriptions and food.=
=20
"Some of them are borrowing money to pay their utilities," Jackson said.=20
Others have pawned jewelry.=20
"I'm very worried," about the coming summer, Jackson said.=20
Barbara Gillogly, coordinator of gerontology programs at American River=20
College, encouraged neighbors and relatives to check regularly on older=20
people who are living alone, especially when temperatures are high.=20
And relatives need to be alert to the illnesses and medications that can ma=
ke=20
seniors especially vulnerable to heat.=20
Chandler, who cared for her aging father while he had Alzheimer's and was=
=20
taking medications, including an anti-depressant, still remembers the summe=
r=20
day nearly a decade ago that brought that lesson home to her.=20
"I came home, and he was in an incredibly stressed state," she recalled. "H=
e=20
was beet red, his skin was fiery to touch and his eyes had started to glaze=
=20
over."=20
The temperature of about 100 degrees had been enough to nearly overcome her=
=20
father, and Chandler had to help him into a wading pool to bring his body=
=20
temperature down.=20
"It was really scary. I almost lost my dad that day," she said.=20

The Bee's Carrie Peyton can be reached at (916) 321-1086 or=20
cpeyton@sacbee.com.=20







House panel debates energy price controls
By Les Blumenthal
Bee Washington Bureau
(Published May 25, 2001)=20
WASHINGTON -- The House Energy and Commerce Committee delayed consideration=
=20
of a major energy bill Thursday as Republicans and Democrats met privately =
to=20
explore a possible compromise placing price controls on soaring wholesale=
=20
electric rates on the West Coast.=20
The negotiations hinted at a possible watershed change in the Republicans'=
=20
staunch opposition to price controls. An earlier effort to include such=20
controls in the bill turned contentious and was defeated on a mostly partis=
an=20
vote in subcommittee.=20
But Republicans sought a compromise after President Bush announced he would=
=20
meet with California Gov. Gray Davis during a trip to the state next week.=
=20
Davis has advocated price controls and has been outspoken in criticizing th=
e=20
Bush administration and the Federal Energy Regulatory Commission for opposi=
ng=20
them.=20
The committee talks also came as the possibility of Senate passage of price=
=20
controls brightened considerably with the decision of Sen. James Jeffords o=
f=20
Vermont to bolt the Republican Party. Jeffords' move handed the chairmanshi=
p=20
of the Senate Energy and Natural Resources Committee to Sen. Jeff Bingaman,=
=20
D-N.M., who has already included price controls in his version of an energy=
=20
bill.=20
Republicans on the House Energy Committee were optimistic a deal could be=
=20
struck, but Democrats said the talks were in the very early stages. GOP=20
members from California and other Western states were facing increased=20
political pressure to negotiate.=20
"We may be on the verge of a very solid, bipartisan agreement," said Rep.=
=20
Billy Tauzin, R-La., the committee chairman.=20
But Rep. Anna Eshoo, D-Atherton, said of a deal: "It's in its infancy, a=20
premature baby at best. It's been a good give-and-take. Was a deal struck?=
=20
No."=20
Neither side would discuss the details of a potential compromise, though=20
there were some indications it might involve imposing a so-called cost-base=
d=20
rate structure on up to 80 percent of the wholesale electricity power=20
marketers sell, allowing the remaining 20 percent to be sold at competitive=
=20
market rates.=20
William Massey, one of two Democrat commissioners at the FERC, said tempora=
ry=20
federal price controls are legally justified and necessary to avert "an=20
impending energy-driven economic disaster on the West Coast."=20
Massey has so far been overruled in his efforts to impose temporary price=
=20
controls, but two new commissioners whose nominations are on the Senate flo=
or=20
could change the equation.=20
"The question is should we ignore a tool that is in our toolbox and has bee=
n=20
in our toolbox for years that we can use on a temporary basis -- let's say=
=20
for the next 18 months -- to get prices under control," he said Wednesday.=
=20

The Bee's Les Blumenthal can be reached at (202) 383-0008 or=20
lblumenthal@mcclatchydc.com.







Exec reacts hotly to California claim
By Joe Cantlupe=20
COPLEY NEWS SERVICE=20
May 24, 2001=20
WASHINGTON -- A top El Paso Corp. executive strongly denounced as "inaccura=
te=20
and implausible" allegations by California officials that the Houston-based=
=20
company willfully withheld supplying natural gas through its pipeline to=20
bolster profits.=20
The company official testified yesterday before a Federal Energy Regulatory=
=20
Commission administrative law judge examining charges that the Houston-base=
d=20
conglomerate cost California billions of dollars.=20
The company "did not have a financial incentive to withhold pipeline capaci=
ty=20
in order to increase natural gas prices in California," said Ralph Eads,=20
president of El Paso Merchant Energy, which markets natural gas on pipeline=
s=20
from Texas and New Mexico into California.=20
Merchant is a division of El Paso Corp., which operates a key pipeline that=
=20
supplies about one-sixth of California's natural gas. Eads is a corporate=
=20
executive vice president.=20
He said that although Merchant earned more than $180 million in pre-tax=20
profits in selling natural gas in the past year, the company lost potential=
ly=20
hundreds of millions of dollars more by entering into long-term contracts=
=20
under what is known as a "hedging" strategy.=20
During afternoon testimony yesterday, Eads repeatedly denied suggestions by=
=20
an attorney for the California Public Utilities Commission that the company=
=20
kept gas capacity "out of the hands of other marketers" to drive up profits=
=20
between November and March.=20
The California PUC lawyer, Harvey Morris, suggested that Merchant failed to=
=20
aggressively market its natural gas and knew that it would only use 50=20
percent of capacity.=20
Not so, said Eads.=20
"We bought capacity to use it," he testified.=20
In testimony filed with FERC, Eads said: "The allegations made against=20
Merchant by the (California Public Utilities Commission) and supporter=20
interveners are not only inaccurate, they are also implausible."=20
California officials have accused El Paso Corp. and its gas marketing compa=
ny=20
of using its marketing muscle to drive up the price of gas sold in Californ=
ia=20
by more than $3.7 billion. Two financially troubled state utilities --=20
Pacific Gas and Electric Co. and Southern California Edison -- have joined =
in=20
the state's case against El Paso.=20
Testimony before Judge Curtis L. Wagner Jr. is expected to continue into ne=
xt=20
week. Wagner plans to make a recommendation to FERC this summer.=20





State power regulators aim to keep more power on grid


By Karen Gaudette
ASSOCIATED PRESS=20
May 24, 2001=20
SAN FRANCISCO =01) California's biggest power users, from factories to farm=
s,=20
now can sign up for even more programs that offer cheaper electricity in=20
exchange for less power use =01) potentially cutting the state's energy-buy=
ing=20
costs by lowering demand.=20
The state Public Utilities Commission also decided Thursday to begin=20
re-examining the calculation that determines which residential customers of=
=20
the state's two largest utilities will see their bills rise under a recent=
=20
record rate increase.=20
Last year, voluntary blackouts by so-called interruptible customers kept as=
=20
much as 3,000 megawatts on the state's power grid, enough electricity to=20
power more than 2 million homes.=20
By being first in line for blackouts or cutting use, these customers also=
=20
help managers of the state's power grid leave more power to residents and=
=20
services necessary for public health and safety, such as fire stations,=20
hospitals and military bases.=20
The PUC hopes even more customers will participate this year, meaning less=
=20
high-priced electricity the state would have to buy to keep homes and=20
businesses humming.=20
"'Negawatts' are our cheapest source of power," said PUC Commissioner Richa=
rd=20
Bilas. The state already has paid $6 billion to buy electricity for the=20
customers of the state's three largest utilities.=20
The PUC will allow big customers to sign up for more than one program to=20
stretch the state's meager supply of electricity. One program promises not =
to=20
subject the customers to rolling blackouts if they slash their power use by=
=20
up to 15 percent while blackouts are rolling through the rest of the state.=
=20
Another program offers customers 10 cents for every kilowatt hour they don'=
t=20
use during one of a trio of four-hour blocks between 8 a.m. and 8 p.m.=20
The PUC also will re-examine how it determines baseline, a varying level of=
=20
residential power use upon which recent record rate hikes are allocated, to=
=20
determine if it is still accurate and fair since its last update nearly a=
=20
decade ago.=20
"It is time to conduct that review," said Commissioner Jeff Brown, adding=
=20
that a new calculation for baseline would not be available until winter at=
=20
earliest, long after customers begin paying the biggest rate hike in=20
California history.=20
Baseline is 50 percent to 60 percent of the average amount of electricity=
=20
used by residential customers in the same climatic and geographical area. I=
t=20
provides a certain amount of electricity at the lowest price utilities=20
charge. Customers are now charged progressively more when their electric us=
e=20
rises above 30 percent of their baseline.=20
Ratepayers throughout the state say baselines are unfair, since they don't=
=20
take household size or the growing number of electronic gadgets into accoun=
t.=20
However, while changing the baseline may spare more customers, it would als=
o=20
make remaining customers pay even more.





Slater asks Sempra to purchase generators=20


May 24, 2001=20
San Diego County Supervisor Pam Slater is asking Sempra Energy to provide $=
15=20
million for the purchase of portable generators to be used during rolling=
=20
blackouts this summer.=20
Slater's request was made in a letter sent yesterday to Sempra President=20
Steven Baum and comes one day after the Board of Supervisors turned down a=
=20
similar request.=20
A coalition of businesses asked supervisors Tuesday to pay for the=20
generators, but supervisors rejected the request, saying the county cannot=
=20
legally spend taxpayers' dollars on energy generation.=20
Slater's letter to Baum said that Sempra does not face that restriction. Sh=
e=20
added: "It is incumbent upon Sempra Energy to supply enough energy for the=
=20
San Diego region to reduce the possibility of rolling blackouts."=20
A Sempra official said the company will not pay for the generators and said=
=20
it already is spending $2 billion on power plants and natural gas pipelines=
=20
on the West Coast to address the energy crisis





President will find Californians upset at his energy stance



By John Marelius=20
UNION-TRIBUNE STAFF WRITER=20
May 24, 2001=20
When George W. Bush arrives in California next week for the first time as=
=20
president, he will find a solid majority of residents who believe he is doi=
ng=20
a bad job of dealing with the state's mounting energy woes.=20
A new Field Poll also finds that Californians who were once willing to give=
=20
Gov. Gray Davis the benefit of the doubt now disapprove of the way he is=20
handling the crisis as well.=20
The nonpartisan, statewide public opinion survey asked Californians to rate=
=20
how 11 individuals or entities are doing on the energy front.=20
The strongly negative appraisal of Bush ranks up there with out-of-state=20
electricity generators, public utilities and regulatory agencies that have=
=20
long been portrayed as the villains in the crisis.=20
"It's incredible to me that Bush is rated in that league," said Mark=20
DiCamillo, associate director of the Field Poll. "I think that's an ominous=
=20
sign of the mood Californians are in vis-a-vis the federal government=20
dragging its feet on providing any short-term relief."=20
He said the numbers seem to signal that the Democratic portrayal of Bush as=
a=20
captive of "big oil" and more sympathetic to corporate energy interests tha=
n=20
consumers is taking hold with the public.=20
"It's starting to stick," he said. "It does seem to be an issue that the=20
Republican administration is vulnerable on."=20
The Field Poll conducted telephone interviews with a representative sample =
of=20
1,015 adult Californians between May 11 and Sunday. Statistically, such a=
=20
poll is considered accurate 95 percent of the time within a margin of error=
=20
of 3.2 percentage points.=20
The poll found Californians are pessimistic about the prospects of a reliab=
le=20
supply of electricity being guaranteed anytime soon. On the average, they=
=20
said they expected the crisis to last 18 more months, which would take it=
=20
beyond November 2002, when Davis faces a re-election bid.=20
"That's obviously something the Davis administration hopes would not play=
=20
out," said DiCamillo.=20
In January, the Field Poll showed Davis' energy efforts were favorably=20
regarded by Californians. At the time, 41 percent said Davis was doing a go=
od=20
job managing the energy situation, while 31 percent critiqued his performan=
ce=20
as fair and 22 percent as poor.=20
Now, only 27 percent regard the governor's handling of the situation=20
favorably, compared with 32 percent who rate it as fair and 38 percent as=
=20
poor.=20
Californians' appraisal of Bush's performance on the energy front is=20
considerably more harsh, with 54 percent saying he is doing a poor job and=
=20
only 22 percent saying he is doing a good job. (Bush had not yet taken offi=
ce=20
when the January poll was conducted.)=20
Other entities ranked in order of their negative rating: Private electric=
=20
utilities, 57 percent; out-of-state energy providers, 55 percent; Federal=
=20
Energy Regulatory Commission, 52 percent; California Public Utilities=20
Commission, 52 percent; Vice President Dick Cheney, 43 percent; state=20
Legislature, 41 percent; Secretary of Energy Spencer Abraham, 37 percent;=
=20
industrial and business energy consumers, 34 percent.=20
The only entity Californians regard positively for dealing with the=20
electricity problems turns out to be Californians themselves.=20
Residential energy consumers were rated as doing a good job, 39 percent, to=
=20
33 percent fair and 22 percent poor. That is almost the reverse of January=
=20
when residential users were rated only 26 percent good, 36 percent fair and=
=20
32 percent poor.=20
"It's conservation," said DiCamillo. "The public has changed its habits sin=
ce=20
January. They think they're doing as good a job as can be expected, but all=
=20
the others are just not up to it."=20



POLL: Californians dissatisfied with government handling of energy crisis


May 24, 2001=20
SAN FRANCISCO =01) Over the past four months, Californians have developed=
=20
increasingly negative feelings toward state and federal officials and=20
agencies involved in California's energy crisis, according to a Field Poll=
=20
released Thursday.=20
A large number of those surveyed are also fearful that Pacific Gas &=20
Electric's bankruptcy filing will make it more difficult for the company to=
=20
provide service to its customers.=20
Fifty-seven percent of those questioned in May by the Field Institute, a Sa=
n=20
Francisco-based nonpartisan polling organization, gave California's private=
=20
electric utilities a poor rating. That's more than the 40 percent of=20
respondents who rated the utilities performance as poor in January.=20
The same negative feelings held true for out-of-state energy providers.=20
Fifty-five percent of respondents this month rated their performance as poo=
r,=20
a noticeable increase from the 44 percent of respondents who gave them a po=
or=20
rating in January.=20
Specifically, those surveyed were asked to rate the job being done by=20
officials and groups working to improve the energy situation in the state.=
=20
The poll found that:=20
=01) The percentage of those surveyed who gave the state Public Utilities=
=20
Commission a poor rating rose from 42 percent in January to 52 percent in=
=20
May.=20
=01) 41 percent of those surveyed gave the state legislature a poor rating =
in=20
May, as opposed 36 percent in January.=20
=01) 38 percent gave Gov. Gray Davis a poor rating in May for his handling =
of=20
the state's energy woes, a sharp increase from 22 percent who gave him a po=
or=20
rating in January.=20
The Federal Energy Regulatory Commission also drew negative ratings from=20
respondents. In May, 52 percent said FERC was doing a poor job, as opposed =
to=20
40 percent who gave the commission a rating of poor in January.=20
Those surveyed were also asked if PG&E's bankruptcy would make it more=20
difficult for the company to supply electricity to customers, and 49 percen=
t=20
said they thought it would.=20
The poll, which questioned 1,015 California adults between May 11 and May 2=
0,=20
has a margin of error of plus or minus 3.2 percentage points, the institute=
=20
said.





California PUC to earmark more electricity for grid


By Karen Gaudette
ASSOCIATED PRESS=20
May 24, 2001=20
SAN FRANCISCO =01) State power regulators are considering expanding the men=
u of=20
programs that offer cheaper energy to customers who voluntarily cut their=
=20
power use. It's part of an effort to muddle through an energy-strapped summ=
er=20
in California with a meager supply of megawatts.=20
The state Public Utilities Commission could also begin looking into whether=
=20
baseline, a level of residential power use upon which recent record rate=20
hikes are allocated, is accurate and fair.=20
In March, the PUC released a package of so-called interruptible load=20
programs, which offer discounted electric bills to factories, schools and=
=20
other big users if they agree to be first in line for rolling blackouts.=20
By cutting their use, these customers help managers of the state's power gr=
id=20
leave more power to residents and services necessary for public health and=
=20
safety, such as fire stations, hospitals and military bases.=20
Loretta Lynch, PUC president, said the commission hopes to boost=20
participation by allowing customers who participated in interruptible=20
programs earlier in the year to also join new programs.=20
Under one such program, businesses could avoid surprise blackouts by opting=
=20
for dimmed lights and reduced power during the duration of outages througho=
ut=20
the state.=20
The PUC is also considering funding interruptible programs for the state's=
=20
three largest investor-owned utilities as they go into effect, rather than=
=20
forcing utilities to wait for retroactive funding a year later.=20
The commission also plans to examine whether the PUC should change how=20
residential customers' baselines are calculated to better reflect household=
=20
size and a spike in electronic gadgets.=20
Baseline is a certain amount of electricity guaranteed at the lowest price=
=20
utilities charge. Customers who exceed their baselines by more than 30=20
percent are subject to rate hikes.=20
"I think it's clear that baselines were set too low and didn't reflect actu=
al=20
electricity usage," Lynch said.=20
Mindy Spatt, spokeswoman for The Utility Reform Network, warned that=20
potentially changing baseline would simply push the rate hikes onto differe=
nt=20
customers.=20
"If you think about the rate increase as sort of a balloon, if you push on =
it=20
someplace it's going to pop out somewhere else," Spatt said.=20
Lynch said the commission would likely postpone many orders affecting vario=
us=20
aspects of the natural gas industry in favor of meshing them together in a=
=20
"comprehensive gas strategy."=20
"I don't think they anticipate any problems with natural gas this summer or=
=20
winter," Lynch said.=20
A PUC investigation into whether natural gas and electricity generators and=
=20
sellers illegally drove up prices by withholding energy during times of=20
highest demands continues.=20
"What we saw was a pattern of individual behavior which all tracked around=
=20
the same time which I believe contributed to the high prices," Lynch said.=
=20





Davis proposal for more diesel power draws environmental criticism


ASSOCIATED PRESS=20
May 24, 2001=20
LOS ANGELES =01) California would get a little power and a lot of pollution=
from=20
a proposal being considered by Gov. Gray Davis that would pay owners of=20
backup generators to produce electricity.=20
The proposal, one of several options the governor is considering, would pay=
=20
for diesel power =01) which at its dirtiest is 500 times more polluting tha=
n the=20
cleanest natural gas power plants =01) when electricity supplies are stretc=
hed.=20
"If backup generators were to be used, it would only be as a last resort to=
=20
avoid blackouts," said Davis spokesman Roger Salazar. "Unfortunately, we ar=
e=20
in an emergency situation. Everything is on the table."=20
California's persistent power shortage has led to rolling blackouts around=
=20
the state several times this year, with more anticipated when hot summer=20
weather prompts people to use air conditioning.=20
If all of the state's backup generators ran full time, they would produce=
=20
about 425 tons of nitrogen dioxide per day. That's more than nine times the=
=20
pollution power plants produced on an average day in 1999, according to sta=
te=20
Air Resources Board data.=20
And the state would get only about 550 megawatts of electricity =01) barely=
1=20
percent of the state's peak power needs =01) from the backup generators. Th=
at=20
would be enough to power about 550,000 homes.=20
"They could have a huge negative effect on air quality," said Ellen Garvey,=
=20
executive officer for the Bay Area Air Quality Management Agency. "It's one=
=20
thing to run these generators during blackouts and emergency conditions, bu=
t=20
using them for other purposes could be devastating."=20
Business groups that support the proposal include the League of Food=20
Processors, the California Manufacturers and Technology Association and San=
=20
Diego Gas & Electric.=20
"These generators could go a long way to taking some demand off the electri=
c=20
grid and putting some supply back into the power system," said Gino DiCaro,=
=20
spokesman for the manufacturers and technology association.=20
Most of the state's 17,200 backup generators are small units that run on=20
diesel fuel and lack pollution controls. Some are rentals, and others can b=
e=20
found at hospitals, office buildings, sewage treatment plants and universit=
y=20
labs.=20
Unlike backup generators intended for home use, which are not regulated,=20
industrial-sized units are limited in the number of hours they can operate.=
=20
But since the state's power crunch began, regional air-quality regulators=
=20
have issued emergency rules allowing them to run more frequently.=20
Diesel engines produce carcinogenic soot and oxides of nitrogen =01) a buil=
ding=20
block of asthma-inducing smog.=20






Davis Orders 3-Tiered Warnings of Blackouts=20


By DAN MORAIN and NANCY VOGEL, Times Staff Writers=20

?????SACRAMENTO--In a significant policy change aimed at minimizing busines=
s=20
and consumer disruptions, Gov. Gray Davis ordered state officials Thursday =
to=20
enact a three-tier blackout warning system.
?????Forecasts of blackouts will be issued 48 hours beforehand, Davis said.=
=20
General areas will be identified in warnings issued 24 hours before likely=
=20
outages. Precise locations will be announced an hour before the power is cu=
t,=20
he said.=20
?????Business executives, police and consumers have complained that the=20
current warning system--in which blackouts can come with less than 10=20
minutes' warning--does not give them sufficient time to save information on=
=20
computers, shut down assembly lines, safeguard traffic intersections and=20
otherwise prevent financial loss and mayhem when the power goes out.
?????In the past, state grid operators only gave short notice because they=
=20
often found enough power at the last minute to avert blackouts. They said=
=20
they did not want to repeatedly alarm people. Utility officials have said=
=20
they feared that advance warning would leave neighborhoods vulnerable to=20
looters and burglars.
?????But crime has not been a problem during California's six days of=20
blackouts so far this year. And with experts predicting dozens of days of=
=20
forced outages this summer, state and utility leaders say Californians are=
=20
better off prepared.
?????"If blackouts are going to occur," Davis said, "there is no reason to=
=20
keep the public in the dark. We all deserve as much advance notice as=20
possible."
?????Utility customers will be notified through company Web sites and radio=
=20
and television announcements. Starting with June utility bills, Southern=20
California Edison customers will be given "block" numbers that allow them t=
o=20
learn through the Edison Web site, www.sce.com, if they are scheduled for=
=20
rotating blackouts on days of short supply.
?????Under the governor's order, Edison spokesman Brian Bennett said,=20
consumers can expect 24-hour warnings about general areas--Santa Monica or=
=20
Santa Ana, for example--that might be targeted for hourlong blackouts.
?????At 60 minutes before a blackout is triggered, Bennett said, the warnin=
gs=20
delivered through radio, television and the Internet will get much more=20
precise. "For example," he said, "One hour before, we'll say Main Street in=
=20
Santa Monica . . . will be affected."
?????Leaders of the agency responsible for deciding when blackouts must be=
=20
triggered said Thursday they intend to launch the governor's order by June=
=20
15. And if Californians redouble their conservation efforts when they hear =
of=20
blackout warnings, they said, the governor's order will ultimately help the=
=20
state avoid blackouts.
?????"I think we're going to save power, potentially lives; we're going to=
=20
help save jobs and California's economy," said Carl Guardino, a member of t=
he=20
board that oversees the California Independent System Operator, which manag=
es=20
75% of the state's transmission system.
?????Davis announced his order at a news conference attended by law=20
enforcement officials, including Los Angeles County Sheriff Lee Baca, who=
=20
said he intends to unveil a more detailed plan for the county today.=20
?????For some, the decision to give warning was an acknowledgment that the=
=20
state is failing to solve the energy crisis.
?????"It obviously says we're surrendering to the electricity crisis," said=
=20
Sen. Tom McClintock (R-Northridge. "Here we've arrived in the 21st century,=
=20
with all the electronics, and we don't have the power to run them."
?????Utility spokesmen lauded the plan, but said that much of the=20
responsibility rests with Cal-ISO, which is the only entity that has the=20
ability to track supplies.
?????"If the ISO only gives us 60-minutes warning, our customers will get=
=20
something less than 60-minutes notice," said John Nelson, spokesman for=20
Pacific Gas & Electric.
?????As it works now, Cal-ISO informs utilities of pending blackouts. The=
=20
utility, in turn, informs county offices of emergency services. Using=20
computerized calling, e-mail and manual dialing, the utilities also inform=
=20
law enforcement, major industrial users, people on life support and other=
=20
consumers for whom electricity is vital, Nelson said.
?????Californians at large are expected to learn of the warnings through th=
e=20
media and the Cal-ISO Web site, www.caiso.com.
?????Also on Thursday, Davis met with officials of California's publicly=20
owned utility districts and came away, he said, with promises that they wou=
ld=20
sell excess power to the state at prices significantly lower than on the sp=
ot=20
market.

Copyright 2001 Los Angeles Times







PUC to Reassess Rate Hikes=20
Energy: State regulators vote to reexamine baselines used to determine how=
=20
much customers will pay for power. Consumers say allotments are too low.=20

By TIM REITERMAN, Times Staff Writer=20

?????SAN FRANCISCO--Nine days after structuring the largest electricity rat=
e=20
increase in California history, state regulators on Thursday launched a=20
reexamination of the unpopular baselines used to determine how much each=20
residential customer will pay.
?????If the indicators are revised upward, as most expect, that would grant=
=20
some customers relief from the rate hike but could necessitate future ones =
to=20
generate enough revenue for power purchases.
?????The energy crisis put the esoteric term "baseline" on the minds of=20
millions of utility customers. During recent hearings on a $5.7-billion rat=
e=20
increase, the California Public Utilities Commission heard a chorus of=20
complaints from consumers who said their baseline was unrealistically low,=
=20
exposing them unfairly to the rate hike.
?????"The most visible and controversial issue, other than the overall=20
increase ordered, was the methodology used to spread the increased revenue=
=20
requirement to residential customers," the PUC said in voting unanimously t=
o=20
reassess baselines.
?????On March 27, the PUC approved rate increases for Southern California=
=20
Edison and Pacific Gas & Electric Co. but exempted people in a low-income=
=20
program and customers consuming less than 130% of their baseline, which is=
=20
50% to 60% of average residential usage, with allowances for climate and=20
season. But other customers will pay more, depending on how much their=20
consumption exceeds the baseline.
?????Reassessment of the baselines, commissioners said, will not be complet=
ed=20
for the summer, when new rate hikes go into full swing, but it could be don=
e=20
by winter. Public hearings are scheduled for July.
?????Several commissioners acknowledged that an upward adjustment in=20
baselines would bring in less money from utility customers and could create=
a=20
funding shortfall for future power purchases.
?????"There is no question [the baseline] is out of whack," Commissioner=20
Richard Bilas said later. "But if the revenue base falls, where do you get=
=20
the money? Another rate increase. This is the problem."
?????Thousands of consumers contacted the PUC about the last rate increase=
=20
and hundreds complained about difficulty in achieving their baseline=20
allotments, even when they worked hard to conserve.
?????Baselines have been used to chart utility bills for the past=20
quarter-century, and they are periodically updated.
?????The levels vary by area and utility. They are not adjusted by househol=
d=20
size. And, critics say, they do not accurately reflect power needs of homes=
=20
with computers, VCRs and microwaves.
?????"We heard lots of customers complain it's not fair," said Mindy Spatt,=
=20
spokeswoman for Toward Utility Rate Reform. "For example, if you have lots =
of=20
children who do not contribute income but use electricity, you could be at =
a=20
disadvantage."
?????Living below baseline may not be easy for many. Spatt, whose baseline=
=20
for her San Francisco home is 258 kilowatt hours, goes so far as to dry her=
=20
laundry on a clothesline, but was slightly above 130% of baseline in March.
?????Bilas' home in Mendocino County has a baseline of about 280 kilowatt=
=20
hours and he says he consumes more than 500. "I don't know how anyone can=
=20
live on the baseline," he said. But he added, "I have a hot tub I can turn=
=20
off."

Copyright 2001 Los Angeles Times=20






We Aren't That Desperate=20

?????Who hasn't stood at a street corner and recoiled from the noxious, hot=
,=20
sooty, exhaust spewing from a diesel bus or truck? As bad as that is, the=
=20
exhaust of standby diesel-fueled electric power generators is worse. These=
=20
smelly, noisy machines are typically used by large businesses as emergency=
=20
power backups--in earthquakes, for instance. They have virtually no polluti=
on=20
controls and pose a health risk.=20
?????Under normal circumstances these generators might almost never be used=
.=20
But Gov. Gray Davis is considering issuing an executive order to pay owners=
=20
of these backup generators to run them constantly during Stage 3 power=20
alerts, the highest alert before rolling blackouts. This is an agonizing=20
choice, but the health risk--these generators pour out nitrogen dioxide, a=
=20
chief smog ingredient--tips the balance against them. A Davis spokesman say=
s=20
the generators, an estimated 17,200 of them statewide, would be run only as=
a=20
last resort. But if the aim was to avert blackouts, they could be running f=
or=20
hours at a time. As The Times' Gary Polakovic reported Thursday, the=20
generators are concentrated in areas, including Los Angeles, that already=
=20
have severe air quality problems.=20
?????Environmentalists are protesting, saying it would be better and more=
=20
practical to pay companies to conserve power. The governor also has a plan =
to=20
cut 20% from the bills of homeowners and businesses that reduce power use b=
y=20
20%. That program, if pursued aggressively and in combination with other=20
incentives now being offered, would probably save as much power as the dies=
el=20
generators could make. To use these units in an attempt to stave off=20
blackouts is too desperate and could cause more harm than it prevents.=20
Copyright 2001 Los Angeles Times=20








Energy Crisis as Political Payback=20

?????Re "All We Need Fear Is Bush's Tale of Doom," May 23: Arianna=20
Huffington's analysis is perfect and, coupled with Paul Conrad's cartoon=20
("OPEC oil production executive Cheney"), addresses the so-called energy=20
crisis for what it really is: political payback, greed and obscene profits =
in=20
spite of the massive windfalls the energy and oil companies continue to rea=
p.=20
?????Dan Pellow=20
????? Los Angeles=20

????? *=20
?????The California Public Utilities Commission is releasing information it=
=20
has known for many months about the well-orchestrated manipulation of=20
California's electricity market ("PUC Allegations Detailed," May 19). To PU=
C=20
President Loretta Lynch: You knew about this collusion months ago, so why d=
id=20
you wait so long to divulge it? To Gov. Gray Davis: Your indecisiveness in=
=20
this matter has just about bankrupted the state; you should have used your=
=20
eminent domain authority to take back the power plants months ago, but now=
=20
you've run out of money (ours). To President Bush: Your loyalty to the Exxo=
ns=20
and Enrons of the world will subject California's and the nation's economie=
s=20
to a great setback. The real culprit is greed. When you let the fox in the=
=20
henhouse, do you really expect him to eat only a few chickens?=20
?????Barry C. Olsan=20
????? Ontario=20

????? *=20
?????Davis' declaration of "war" against the companies that supply our ener=
gy=20
is unconscionable. What supplier would want to risk capital serving a marke=
t=20
that treats him as an enemy?=20
* * *
?????Beatrice W. Forbes=20
????? Palos Verdes Estates=20

????? *=20
?????Funny that Republicans blame Bush's predecessor, Bill Clinton, for the=
=20
nation's energy problems but not Davis' predecessor, Pete Wilson, for=20
California's.=20
?????Saul Davis=20
????? Studio City=20

????? *=20
?????Gas prices are over $2 a gallon. Electricity prices are out of control=
.=20
Natural gas is low, and the threat of rolling blackouts lurks around every=
=20
corner, with no end in sight. Geez. I miss Bill Clinton.=20
?????Brian Frieson=20
????? Gardena=20

????? *=20
?????There is much to disagree with in the Bush energy plan, but it's hard =
to=20
fault the concept of integrating the various transmission grids under feder=
al=20
control to more efficiently distribute power. What's troublesome, however, =
is=20
the seemingly deliberate manner in which renewable energy sources and=20
conservation are being marginalized. If the feds control a national grid,=
=20
might they not find ways to make it most difficult for alternative power=20
generators to access it?=20
?????Phillip Cutler=20
????? Costa Mesa=20

????? *=20
?????Re "Lockyer Fires Earthy Attack at Energy Exec," May 23: Rape is a=20
heinous crime; it is not a legally sanctioned form of punishment. This=20
distinction seems to have eluded California Atty. Gen. Bill Lockyer when he=
=20
suggested that Enron Corp. Chairman Kenneth Lay deserved to be locked in a=
=20
jail cell with an amorous inmate. Lockyer's comment reflects an=20
all-too-common belief that people who are incarcerated deserve to be raped =
as=20
part of their punishment. California deserves an attorney general who=20
understands the difference between legal incarceration and state-sanctioned=
=20
torture. Lockyer should resign.=20
?????Robert Shannon=20
????? South Pasadena=20

????? *=20
?????Lockyer's comment to the energy robber barons, "If we catch them,=20
they're going to be prosecuted," is nothing but an empty threat. Despite al=
l=20
the evidence that the energy moguls are guilty, we all know what will happe=
n.=20
Essentially, nothing. Or at most, they'll admit to no wrongdoing, pay a sma=
ll=20
fine and make some innocuous statement about putting this all behind us.=20
?????Trent D. Sanders=20
????? La Canada=20

????? *=20
?????Peter H. King writes about an energy problem in 1948 (May 20). On June=
=20
27, 1924, my mother wrote in her diary: "Electricity and service cut by 25%=
=20
due to shortage."=20
?????Sarah M. Duncan=20
????? San Gabriel=20

?????=20
Copyright 2001 Los Angeles Times=20






Energy Antics: Oh, Behave!=20

?????Admit it: The only comic relief in this energy crisis has been watchin=
g=20
our leaders go at suppliers and each other like pro wrestlers or Jerry=20
Springer guests.=20
?????In his State of the State address last January, Gov. Gray Davis accuse=
d=20
the big private electric power generators of legalized highway robbery and=
=20
threatened to seize their plants if necessary. Then he really got angry,=20
calling them "the biggest snakes in the world." This past week, Atty. Gen.=
=20
Bill Lockyer boosted the rhetoric a notch by declaring he would like