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To:abb@eslawfirm.com, andybrwn@earthlink.net, cabaker@duke-energy.com,rescalante@riobravo-gm.com, rbw@mrwassoc.com, curtis_l_kebler@reliantenergy.com, dean.nistetter@dynegy.com, dkk@eslawfirm.com, gtbl@dynegy.com, smutny@iepa.com, jeff.dasovich@enron.c
Subject:IEP News: 6/3-6/4
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Date:Mon, 4 Jun 2001 02:39:00 -0700 (PDT)

Wall Street Journal, June 4, 2001, California Companies Combine, To Influence
Power Regulation, By ?????
???MITCHEL BENSON Staff Reporter of THE WALL STREET JOURNAL

Wall Street Journal, June 4, 2001, Energy Commission, California, Clash Over
Power-Grid Control
???By REBECCA SMITH Staff Reporter of THE WALL STREET JOURNAL

Business Wire, June 4, 2001, Monday, 09:11 AM Eastern Time, 307 words,
????Tired of Constantly Changing Energy Prices? NewPower Offers California
????Natural Gas Consumers A Two-Year, Locked-In Rate, PURCHASE, N.Y., June 4,
????2001

United Press International, June 4, 2001, Monday, 08:23 AM Eastern Time,
????GENERAL NEWS, 3236 words, What U.S. newspapers are saying

CNN, CNN SUNDAY 16:00, June 3, 2001; Sunday, 5:19 PM Eastern Time,
????Transcript # 01060307V36, INTERVIEW, News; Domestic, 816 words, Are Price
????Caps a Solution for California's Energy Woes?, Barbara Shook, Stephen
????Frazier

The Gazette (Montreal), June 4, 2001 Monday, 802 words, Dim policies in
????California, P.J. O'ROURKE

Los Angeles Times, June 4, 2001 Monday, Home Edition, Page 2, 1700 words,
????Los Angeles; ; An Illuminating Look Several Light-Years Back; Utility
????Players Bat Cleanup, PATT MORRISON, TIMES STAFF WRITER

The San Francisco Chronicle, JUNE 4, 2001, MONDAY,, FINAL EDITION, NEWS;,
????Pg. A1, 581 words, Electricity usage shrinks by 11%; ???State's consumers
????beat goal set by governor, Keay Davidson

The San Francisco Chronicle, JUNE 4, 2001, MONDAY,, FINAL EDITION, NEWS;,
????Pg. A1, 1092 words, Eliminating night games may seem like a bright idea,
but
????. . .; ???Baseball is balking, Erin Hallissy

The San Francisco Chronicle, JUNE 4, 2001, MONDAY,, FINAL EDITION,
????EDITORIAL;, Pg. A19;, 682 words, Gloom today, glut tomorrow, Carolyn
????Lochhead

The Washington Times, June 04, 2001, Monday, Final Edition, PART A;
????COMMENTARY; Pg. A14, 805 words, Shedding light on Bush's energy plan,
Charli
????Coon

The Associated Press State & Local Wire, June 4, 2001, Monday, BC cycle,
????12:09 AM Eastern Time, State and Regional, 745 words, Developments in
????California's energy crisis

The Associated Press State & Local Wire, June 3, 2001, Sunday, BC cycle,
????State and Regional, 839 words, Critics say FERC ignored California's
????deregulation flaws, FOLSOM, Calif.

The Charlotte Observer, June 3, 2001, Sunday, STATE AND REGIONAL NEWS,
????K1149, 1806 words, Duke Energy rates spike in emergency, By Stella M.
????Hopkins and Peter Wallsten

Contra Costa Times, June 3, 2001, Sunday, STATE AND REGIONAL NEWS, K1314,
????653 words, Judge refuses to override PUC over PG&E bankruptcy, By Matt
????Sebastian

Contra Costa Times, June 3, 2001, Sunday, STATE AND REGIONAL NEWS, K1316,
????731 words, Gloomy electricity supply forecast in June may have been
????optimistic, By Mike Taugher and Rick Jurgens

Los Angeles Times, June 3, 2001 Sunday, Home Edition, Page 3, 915 words,
????Los Angeles; ; Key Figures Trade Views of Energy Picture; Forum: Most of
the
????12 discussing crisis agree only on blaming federal regulators. They find
no
????consensus on a solution., JOE MOZINGO, TIMES STAFF WRITER

Los Angeles Times, June 3, 2001 Sunday, Home Edition, Page 1, 828 words,
????Thanks for Your Concern, Wall Street, PETER H. KING, SAN FRANCISCO

Los Angeles Times, June 3, 2001 Sunday, Home Edition, Page 1, 4230 words,
????The Nation; THE ENERGY CRISIS; Watchdogs Take a Hit in State's Power Ills;
????Energy: Ex-federal officials say oversight of California's deregulation
????suffered due to a push for free-market competition., JUDY PASTERNAK, ALAN
C.
????MILLER, TIMES STAFF WRITERS, WASHINGTON

The New York Times, June 3, 2001, Sunday, Late Edition - Final, Section 4;
????Page 18; Column 5; Week in Review Desk, 788 words, The Nation; Econ 101:
????It's Right and It's Wrong, By MICHAEL M. WEINSTEIN; Michael M. Weinstein
is
????a senior fellow at the Council on Foreign Relations.

The New York Times, June 3, 2001, Sunday, Late Edition - Final, Section 4;
????Page 17; Column 1; Editorial Desk, 739 words, Reckonings; Watt Price
????Ideology?, By PAUL KRUGMAN

The New York Times, June 3, 2001, Sunday, Late Edition - Final, Section 1;
????Page 37; Column 1; Metropolitan Desk, 1065 words, One Developer's Power
????Solution: Build a Plant at the Office, By CHARLES V. BAGLI

The Orange County Register, June 3, 2001, Sunday, DOMESTIC NEWS, K1495, 757
????words, California may have already spent energy money it plans to borrow,
By
????Hanh Kim Quach

Sacramento Bee, June 3, 2001, Sunday, Pg. A3;, 491 words, State heeds call
????to conserve energy Californians trimmed their use of electricity by 11
????percent in May., Emily Bazar Bee Capitol Bureau

Sacramento Bee, June 3, 2001, Sunday, Pg. L4;, 625 words, Lone shining
????light State power authority a future market tool

San Jose Mercury News, June 3, 2001, Sunday, DOMESTIC NEWS, K1534, 2242
????words, U.S. approved California's power-deregulation plan despite flaws,
By
????Eric Nalder and Mark Gladstone

The San Francisco Chronicle, JUNE 3, 2001, SUNDAY,, FINAL EDITION, NEWS;,
????Pg. A1, 2344 words, Cutting a deal on the environment; ???Activists
accused
????of favoring cash over mission at Moss Landing, Scott Winokur, Christian
????Berthelsen

The San Francisco Chronicle, JUNE 3, 2001, SUNDAY,, FINAL EDITION,
????EDITORIAL;, Pg. C6;, 554 words, Draw a line in the sand, Debra J. Saunders

The Seattle Times, June 3, 2001, Sunday, Sunday Edition, ROP ZONE; News;,
????Pg. A1, 1633 words, the energy crisis: ground zero In Stockton, Calif.,
????where a long, hot summer looms, keeping the power on seems an easy trade
for
????saving the salmon in the Northwest, Lynda V. Mapes; Seattle Times staff
????reporter, Stockton, Calif.

The Associated Press, June 2, 2001, Saturday, BC cycle, Washington Dateline
????, 249 words, Democrat calls on Bush to cap energy prices in radio address,
????WASHINGTON

June 4, 2001 ????

------------------------------------------------------------------------

California Companies Combine
To Influence Power Regulation


By MITCHEL BENSON

Staff Reporter of THE WALL STREET JOURNAL


SACRAMENTO, Calif. -- Some big hitters in California's business community,
angered by the pace and direction of the state government's efforts to solve
the energy crisis, are launching a massive coalition aimed at boosting their
influence on legislative and regulatory actions.

In fact, the new business group, tentatively named the Coalition for Energy
Action, is gearing up just as lawmakers here are desperately scrambling to
promote the latest in a series of so far unsuccessful plans to save the
financially crippled Southern California Edison Co. from bankruptcy. A
primary component of this latest proposal: big business -- large energy users
-- would pay nearly $3.1 billion of the utility's $3.5 billion in unpaid
wholesale electric bills.

That is just one reason why an unexpectedly large crowd of 60 representatives
of high-tech, agriculture, manufacturing, oil and natural-gas, construction
and most every other economic sector gathered here last week at the
headquarters of the California Chamber of Commerce for the coalition's first
organizational meeting. Chamber President Allan Zaremberg, who is leading the
effort, has in the past organized effective business coalitions to oppose
increased managed-health-care costs, restrictions on diesel fuel and efforts
to re-regulate the state's electricity market.

Mr. Zaremberg and others say their latest gambit is spurred by two main
concerns: Gov. Gray Davis, the legislature and the state Public Utilities
Commission are taking a worryingly scattershot approach to the state's energy
pricing and supply-and-demand problems, even as the state's economy continues
to deteriorate; and if and when policy makers do offer solutions, the
business community worries it will be left paying a disproportionate share of
the tab.

"I understand the politics here, I understand the worry," says Jack Stewart,
president of the 800-member California Manufacturers and Technology
Association and one of the meeting attendees. "But sometimes you have to look
a little bit beyond that, because the next step will be closing down plants,
laying off workers and moving production out of California."

While the coalition is just now getting off the ground, Mr. Zaremberg and
others already are working with a pair of political and public-relations
consulting firms. Those firms, in turn, recently conducted several focus
groups in Northern and Southern California, in preparation for the May 31
meeting. After a positive reception, the consultants are now discussing a
range of options for the coalition that could range from scheduling
one-on-one meetings between coalition members and public officials to
spending several hundred thousand dollars on a newspaper advertising campaign.

Consumer activists say they find it ironic that many of the business
interests who fought for the state's electricity deregulation plan in 1996
are now considering spending big bucks to seek protection from it.

"The big business lobbyists bought the politicians and propelled deregulation
through the legislature, and now they're upset because the politicians aren't
paying attention to them anymore," says Harvey Rosenfield, president of the
nonprofit Foundation for Taxpayer and Consumer Rights. "Because now, the
politicians are more worried about the voters."

Indeed, the business community feels it is being taken advantage of. As
evidence, Mr. Stewart and others point to the PUC's decision last month to
boost electricity rates for customers of the Pacific Gas & Electric Co. unit
of PG&E Corp. and the Southern California Edison unit of Edison
International. The PUC decision estimates that more than 60% of residential
customers -- those who are deemed low-income or who use relatively small
amounts of electricity -- will see no increase. Yet many small business and
industrial customers will face rate increases of 37% to 50%, while some
businesses could see their monthly bills jump by much more.

Just last week, lawmakers began circulating their latest proposal to rescue
Southern California Edison from possible bankruptcy, now that it appears an
agreement reached between the governor and the utility earlier this year has
gained no traction in the legislature, which must approve the pact. Among
other things, the latest approach calls on Southern California Edison's 3,600
largest electricity users to pay nearly $3.1 billion of the total $3.5
billion that the utility owes in unpaid wholesale-power purchases. The large
consumers would pay that debt off through a surcharge on their electric rates
over an estimated 20 years. Under the proposal, lawmakers say, large
consumers also will be permitted to buy directly from generators. As a
result, the lawmakers argue, the overall electricity costs to large consumers
actually will be less than under the new PUC rate increases.

But the business community remains skeptical. The Chamber's Mr. Zaremberg
says the approach "doesn't send conservation signals to the residential
community, and that should be paramount." Moreover, he is concerned that "the
attitude of public-policy officials [is] that business consumers have to
subsidize residential users."

Write to Mitchel Benson at mitchel.benson@wsj.com

??
June 4, 2001 ????

------------------------------------------------------------------------

Energy Commission, California
Clash Over Power-Grid Control


By REBECCA SMITH

Staff Reporter of THE WALL STREET JOURNAL


As California politicians wade deeper into the energy crisis, the state's
electric-grid operator appears headed toward a showdown with federal energy
regulators over whether its board is independent enough.

The California Independent System Operator Friday bowed to pressure from the
Federal Energy Regulatory Commission and submitted its qualifications to
continue as a federally sanctioned grid operator. But the tardy filing is
almost certain to be challenged by federal regulators and market participants
because the ISO's governance structure has strayed from a "bedrock
requirement" that it be "independent of control by any market participant."

The market participant casting the long shadow is the state of California.
Since January, when the state of California began buying huge sums of
electricity on behalf of its nearly broke utilities, the ISO has been under
pressure to give state officials preferential treatment and unique access to
market-sensitive information. Its chief operations officer, paid $245,000 a
year according to the most recent IRS filing, is on indefinite loan to the
governor's office where he is working as an energy adviser.

This politicization of the ISO is significant because the organization's
purpose is to run a market for power needed to keep the electric system in
balance and to give buyers and sellers impartial access to the power lines on
which they depend to move electricity. Unlike other commodities, electricity
can't be stored. Transactions, therefore, depend completely on instantaneous
access to the electric superhighway of high-voltage lines. The FERC worries
that a loss of political independence by the ISO will further degrade the
state's already dysfunctional energy market.

The FERC hasn't formally accused the ISO of acting improperly, but it is
clear that a wall between the state and the ISO that once was solid has
become permeable. Last month, the ISO notified the FERC that the state of
California had asserted "it must have access to the ISO control room floor"
and "nonpublic information" as a "necessary condition" of continuing to buy
power, even though such preferential access violates ISO rules. But without
the state to back power purchases -- it has spent nearly $8 billion on
electricity since January -- the ISO's market would collapse and blackouts
and chaos likely would ensue.

The governance issue, which may appear esoteric, actually cuts to the heart
of the power crisis in California. State officials feel they have ceded too
much control to the FERC, which they accuse of shirking its duty to protect
consumers. As a consequence, the state has forced its way into the inner
workings of the formerly arcane ISO, a public-benefit corporation formed
three years ago amid California's push to deregulate its electricity market.

In January, the state legislature authorized the governor to eject a
FERC-approved board of directors and hand pick his own five-member ISO board.
The state attorney general ordered old board members to resign or face
personal fines of $5,000. Currently, one ISO board member is a former member
of the governor's staff, while another, on the governor's behalf, negotiated
the proposed purchase of utility transmission assets by the state, all the
while serving as chairman of the supposedly independent board.

The ISO's chairman says changes in the board structure have made the ISO more
answerable to the citizenry and "efficient." Michael Kahn, who is a San
Francisco attorney, added that the governance structure had to change to
reflect the fact that "we're in a state of emergency."

In its filing Friday, the ISO took the position that the tighter relationship
between the ISO's board and the state doesn't violate the FERC's requirement
that ISO boards be free of control by market participants. Even though the
state has been "required to provide financial support," the ISO asserts, this
"participation does not make ... the State a market participant." Many market
watchers scoff at that contention.

"Inevitably, this will lead to a showdown," said N. Beth Emery, former
general counsel of the ISO and now an energy attorney for Ballard, Spahr,
Andrews & Ingersoll in Washington, D.C. "Clearly, the ISO is in violation of
the independence requirement."

But the FERC doesn't have many tools for enforcing its vision of autonomy.
That may explain why it has failed to intervene. It can order the ISO to make
board changes, for instance. But if it refuses, there may not be much the
FERC can do except threaten to rescind the ISO's operating tariffs. That, of
course, is the opposite of what the FERC wants to do, which is encourage
creation of multistate grid organizations free of any political favoritism.

But California's angry isolationism appears to be growing. Gov. Gray Davis
said the ISO's filing ensured the state will "maintain control of our own
energy destiny and not be subject to the whims of federal regulators or the
interests of other states."

To date, the FERC has been steadfast in its resolve to make regional grid
operators independent organizations, free of control of utilities and power
marketers. It has rejected other grid-operator proposals because it felt
utilities that owned the power lines were attempting to retain too much
control. But Order 2000, the landmark decision issued in December 1999 that
promoted the creation of independent grid runners throughout the nation,
never contemplated a state government assuming such a huge role in a market
as has occurred in California.

If anything, that role is likely to increase. Not only is the state of
California the biggest power buyer in the nation now, but it has formed a
power authority that intends to build and operate generating plants. In
addition, Mr. Davis is promoting a plan to buy the transmission systems of
the state's investor-owned utilities. As such, a new vertically integrated
utility is forming that could be larger than any the nation has seen since
the "power trusts" of the 1930s were broken apart by Congress.

It is rife with conflicts of interest. The ISO's drift has created a fissure
in the solid support it enjoyed from the state's big utilities that
transferred control of their transmission systems to the ISO in 1998. PG&E
Corp.'s Pacific Gas & Electric Co. unit, which is in bankruptcy proceedings,
declined to join the ISO filing, which was supported by Edison
International's Southern California Edison unit and Sempra Energy's San Diego
Gas & Electric Co. unit. PG&E said in a separate grid-plan filing that it
would prefer the ISO join a multistate grid organization. It expressed
reservations about the independence of the current board.

Opposition to the state's influence is becoming more vocal. The Electric
Power Supply Association, a trade group representing power producers, warned
FERC last month that the ISO has become "a partisan advocate for the State of
California" and sought FERC intervention to defend the rights of all market
interests.

Write to Rebecca Smith at rebecca.smith@wsj.com.


Copyright 2001 Business Wire, Inc.
Business Wire

??????????????????June 4, 2001, Monday 09:11 AM Eastern Time

DISTRIBUTION: Business Editors

LENGTH: 307 words

HEADLINE: Tired of Constantly Changing Energy Prices? NewPower Offers
California
Natural Gas Consumers A Two-Year, Locked-In Rate

DATELINE: PURCHASE, N.Y., June 4, 2001

BODY:


??The New Power Company(TM), a subsidiary of NewPower Holdings, Inc.
(NYSE:NPW), the first national residential and small business energy provider,
today announced that it has begun offering consumers in northern California a
two-year, fixed-price natural gas contract. Consumers in Pacific Gas and
Electric Co.'s service territory can lock in a low fixed rate for the entire
two
years.

??"NewPower is enormously pleased to provide California consumers, who've been
buffeted by volatile energy prices, with a stable, gas contract," said H.
Eugene
Lockhart, The New Power Company's president and chief executive officer.
"Smart
energy shoppers in California will join the 600,000-plus customers we now
serve
in 19 markets."

??With today's announcement, natural gas from The New Power Company is
available in the following PG&E counties:

??Alameda, Amador, Butte, Calaveras, Colusa, Contra Costa, Fresno, Glenn,
Humboldt, Kern, Kings, Madera, Marin, Mendocino, Merced, Monterey, Napa,
Nevada,
Placer, Sacramento, San Benito, San Bernardino, San Francisco, San Joaquin,
San
Luis Obispo, San Mateo, Santa Clara, Santa Cruz, Shasta, Solano, Sonoma,
Stanislaus, Sutter, Tehama, Trinity, Yolo, Yuba

??Consumers who need additional information or who want to sign up with
NewPower can visit the Company's Web site at www.newpower.com or call
866/402-3949.

??About NewPower Holdings, Inc.

??NewPower Holdings, Inc. (NYSE:NPW), through its subsidiary, The New Power
Company, www.newpower.com, is the first national provider of electricity and
natural gas to residential and small commercial customers in the United
States.
The Company offers consumers in restructured retail energy markets competitive
energy prices, pricing choices, improved customer service and other innovative
products, services and incentives.

??SOURCE: The New Power Company

?

LOAD-DATE: June 4, 2001

??????????????????????????????2 of 143 DOCUMENTS

????????????????????????????Copyright 2001 U.P.I.

??????????????????????????United Press International

??????????????????June 4, 2001, Monday 08:23 AM Eastern Time

SECTION: GENERAL NEWS

LENGTH: 3236 words

HEADLINE: What U.S. newspapers are saying

BODY:

??Compiled by United Press International

??New York Times

??Faced with resistance from Moscow, objections among NATO allies and
opposition from Democrats about to assume control of the Senate, the Bush
administration needs to reassess its missile defense plans and scale them back
to a realistic level. The kinds of ambitious systems that Bush advisers have
described are not technologically or politically attainable today. Clinging to
these outsized concepts can only damage American diplomatic interests and
delay
the development of more modest and feasible missile defenses that could
enhance
the nation's security.

??Long-range missiles now being developed by North Korea, Iraq and Iran pose a
legitimate security concern. The Pentagon should target its missile defense
efforts on meeting that specific threat. There is a good chance that a system
designed to achieve that limited purpose could be made palatable to Russia and
America's European allies and, once tested and proved to be technologically
reliable, win funding from Congress.

??Russia's thousands of intercontinental ballistic missiles could easily
overwhelm any defensive shield the United States could build today. Moscow's
real concern is that if the restraints built into the 1972 Antiballistic
Missile
Treaty are abandoned, America might one day be able to develop more advanced
technologies that could blunt the effectiveness of Russia's strategic missile
force and leave it vulnerable to attack. It is unrealistic to expect Moscow to
agree to such open-ended development. But the Kremlin has signaled that it
might
be willing to contemplate a more limited defensive system bound by mutually
agreed restrictions.

??The Bush administration seems to recognize that an agreement with Russia on
missile defenses would help dispel European and Congressional misgivings. In
recent weeks, Washington has made constructive proposals for cooperation with
Moscow on related issues like early-warning radar and tactical missile
defenses.
But the administration has not yet addressed Russia's core concerns.

??There is ample time to pursue further diplomacy with Moscow before any
defensive system is built. Carl Levin, the Michigan Democrat who is soon to
become chairman of the Senate Armed Services Committee, has rightly stated
that
whatever technology the Pentagon decides on must be thoroughly tested and
shown
to be reliable before funds are appropriated for construction. But some
increased financing would be justified over the next few years for expanded
research and testing.

??That would allow the Pentagon to explore sea-based systems designed to shoot
down missiles soon after they are launched, as well as refining the land-based
approach pursued by the Clinton administration that is designed to intercept
enemy warheads in mid-flight. Both technologies hold some promise of
successful
development. But neither is yet far enough advanced to justify construction
of a
system within the next several years, a step that would breach the ABM treaty.
Space-based interceptors are a bad idea. As the country most dependent on
satellites for reconnaissance and communications, America has the most to lose
if space becomes a potential battlefield.

??The time needed for further testing and research should be used to try to
negotiate a deal with Moscow. The administration also ought to consult further
with its NATO allies and begin serious discussions with China. Beijing
understandably worries that an American missile shield could undermine the
credibility of its small force of long- range missiles and require it to build
many more.

??A narrowly targeted, technologically reliable missile defense is desirable
and may be possible to develop. To produce such a system, the Bush
administration must set aside its exaggerated expectations and commit itself
to
a program of careful testing and patient diplomacy.

??0-

??Christian Science Monitor

??Living as he does among many wolves of war, the kind who would send a
suicide
bomber to a Tel Aviv night club to kill young Israelis, Palestine leader
Yasser
Arafat made a bold gesture on Saturday. He ordered a cease-fire.

??Such an order -- unusual for him -- assumes a lot. It assumes the chairman
of
the Palestine Authority has the power to carry it out. It assumes Mr. Arafat
spoke from the heart rather than from international pressure or a fear that he
might be the next Palestinian official assassinated by Israel. (Israel holds
him
"responsible" for Friday's bombing that killed 20 people and injured 90.)

??Maybe, though, one could assume Arafat has finally seen the futility of
eight
months of an increasingly violent uprising that's spinning toward wider war,
with no conceivable endgame.

??And on that slim hope -- that maybe Arafat is finally sticking his neck out
-- many nations have gone into diplomatic overdrive to push Israel and Arafat
to
again engage each other in making trade-offs needed for peace.

??Arafat's order included resuming patrols by Palestinian security forces at
points of friction, such as Israeli checkpoints. But so far he has not ordered
the arrests of known militants that he freed from jail when the current
intifada
began last fall. Without that, an Israeli military reprisal is assumed, only
re-escalating the conflict.

??For a decade, the peace process has hung on an assumption that this one man
is willing to make sacrifices and has the power to do so. Both have been in
doubt recently.

??If Arafat isn't able to end attacks on Israelis, then it may be time to try
other ways of bringing about peace without him. Perhaps the United States and
Europe can broaden their approach and reach the Palestinian people directly.

??The days when one man could deliver peace - Anwar Sadat, Yitzhak Rabin, King
Hussein - may be over in the Middle East. Flows of information, money, and
weapons now spread so far and so fast that those seeking peace must deal more
with public opinion. Encircling the wolves with hearts of peace may be the
only
way.

??0-

??Washington Post

??The recently approved tax bill, among other goodies, grants a tax break to
savings that can be used to send children to private elementary and secondary
schools. It's an expansion of what was formerly a college savings program and
allows contributions of as much as $2,000 a year to education accounts whose
earnings accumulate tax free. Some school-choice proponents hail the provision
as a first step toward vouchers. If so, it's an odd first step, because it
does
little to help the families who most need financial help. Where Congress
should
be going on vouchers is toward a pilot program that would focus on helping
poor
children stuck in failing schools.

??The House generously granted the middle and upper-middle class tuition tax
break as part of the tax bill but rejected vouchers when it passed its version
of an education reform bill. Now the Senate is expected to take up the issue
when it returns to work this week. One proposed amendment, offered by GOP Sen.
John McCain, would create a four-year test voucher program for low-income
students in the worst-performing D.C. schools. District officials weren't
consulted and are uniformly opposed to vouchers. Staffers say Sen. McCain is
reacting to persistent low achievement by D.C. students. That's a valid
concern,
but singling out the District in this fashion is an affront to home rule.

??Sen. Judd Gregg, R-N.H., has a better idea. He would create a pilot program
for which interested systems -- as many as 10 cities and three states -- could
apply. It would make vouchers available to low-income children in schools that
have been failing for three years. It allows participating districts to set
the
vouchers' value, holding out the chance that some students might get enough
money to actually meet the cost of private tuition. It provides for an outside
evaluation of students' performance and the effect on the public schools
involved. This experiment might help some individual students trapped in
failing
public schools while also providing useful data to inform the long-running
debate about vouchers' potential effects.

??Opponents argue that any available federal money should be spent on the
public system. It's true that the president's proposed budget falls short of
what will be needed to carry out the initiatives in the education bill.
Offering
vouchers does not take away the obligation to improve troubled public schools.
But it's also true that too many students pay dearly, and for the rest of
their
lives, because they have no alternative to a failing public school. Congress
should be willing to explore what might come of giving more choices to some of
those low-income students. D.C. officials, given the chance to make their own
decision, should be willing to explore that option as well.

??0-

??Omaha World-Herald

??Homosexuals in Nebraska could be forgiven for wondering if there's an agenda
by some in the state to marginalize them.

??Last year, a statewide referendum added to the state constitution a
prohibition against state recognition of civil unions or domestic
partnerships,
although there was no known move afoot to allow such formalizing of
relationships.

??Now a legislatively sustained veto by Gov. Mike Johanns has choked off an
attempt to provide them legal protection against discrimination in renting or
buying homes.

??Housing bias against gays in Nebraska is, as far as we can tell, rare. Yet
that's not exactly the point. Johanns said he opposes creating "a special
classification" based on sexual orientation. Yet the stroke of his pen
effectively did just that. Today, anyone who follows the legislature knows
that
the state had an opportunity to ban such discrimination. It had the
opportunity
and refused.

??Of course the legal situation is unchanged. But a subtext exists that did
not
exist before. Defeat of the legislation called attention to the fact that some
types of discrimination in housing are not prohibited by state law -
discrimination not only on the basis of sexual orientation but also on the
basis
of religion, sex, family status and disability (although federal law, in some
cases, applies). State law prohibits discrimination based upon race, color,
national origin or ethnic group.

??This is one of those cases in which refusing to take action makes a
statement
all its own. And the statement for gays and lesbians is extremely negative.

??Actually, Johanns didn't exactly refer to sexual orientation. He offered as
accepted fact what in reality is a hotly disputed contention: that
homosexuality
is about "sexual choices." There's a substantial body of scientific evidence
that says sexual orientation is, in fact, inborn -- not, perhaps, up there
with
eye color, but nonetheless a strong predisposition rooted in people's genetic
coding.

??Johanns is not obliged to accept such research as fact, but somewhere in the
discussion he ought to be candid enough to admit that honest minds have
disagreed and do disagree on the matter. (Food for thought: Given the amount
of
grief society often gives gays, if homosexuality is a choice, why does anyone
choose it?)

??Interestingly, the two groups that presumably could be most affected by such
legislation were for it, or at least neutral. The Nebraska Real Estate
Commission and Nebraska Board of Realtors said they had no objection to the
amendment, since they basically don't engage in such bias. And their
observation
just underscores common sense: Realtors are in business to sell property, not
shoo people away from it. (The amendment wouldn't have affected landlords or
other non-license-holders who may rent or sell property.)

??The real agenda seems to be that Johanns and other opponents of this measure
are content to let gays (whose sexual relationships are not prohibited in
Nebraska) get the cold shoulder in certain aspects of day-to-day life. Foes of
the just-vetoed measure, notably including Family First and the Nebraska
Family
Council, say they'll continue to fight against other legislation that contains
protections or concessions for homosexuals.

??Our interpretation is that gays and lesbians want to be quietly left alone
like everybody else. They seek no special privileges. They just want to be
accepted for what they are. But on such points, Governor Johanns becomes
Governor No. A pity.

??0-

??Sacramento Bee

??Years from now, when California looks back on this expensive failure of
electricity competition, one bright light will shine from this dark moment in
history. That was the decision by the California Legislature and Gov. Gray
Davis
to create a California public power authority.

??Recycling the rhetoric of decades past, when utility monopolies and holding
companies fought the creation of municipal utilities, critics today see public
power as an unwelcome, inefficient intruder into the free market system.

??But public power's role isn't to replace that market. It is to make sure
that
it behaves. Californians can adjust to price gyrations for things such as
airline tickets and cherries. Electricity, however, is too vital a commodity,
and without regulation and competitive policy, the electricity market, as
Californians have so painfully learned, is too easily gamed.

??There is now a brief window to contemplate how this state public power
authority can stay one step ahead of market manipulation. The governor has
signed the authorizing legislation, but the authority won't officially exist
for
another two months. Once in operation, its potential is enormous.

??As financial capital, the Legislature has authorized it to sell up to $5
billion worth of bonds to build new power plants to create electricity to be
sold at cost. As human capital, the governor will likely tap the wisest old
owl
in the public power trade, David Freeman. Having already run the public power
agencies of the Tennessee Valley, the state of New York, Sacramento and Los
Angeles, Freeman brings experience that likely will never be duplicated.

??Freeman's strategy is to ensure that California races to turn a shortage of
electricity into a surplus of about 15 percent. Private generators are busy
building new plants and applying to build others. Yet at some point these
companies may conclude it is not in their interests to compete so vigorously
against each other. They feast on shortage and volatility. That's where a
vigilant public authority can provide supply to keep the market balanced.

??An ideal partner in generating ventures would be the existing cities that
run
their own power authorities. The Sacramento Municipal Utility District, for
example, is looking to build a generating plant fired by natural gas at the
site
of the former nuclear plant, Rancho Seco. By partnering with the state
authority, SMUD could build a larger plant. The state could sell the surplus
at
cost. SMUD could get even more reliable power.

??With its surplus, the state may wish to direct some to new municipal
districts. Customers in several communities are mulling whether to create
their
own municipal power agencies as a way to avoid the volatility of the
deregulated
world. Davis, San Francisco, Fresno and other communities are in various
stages
of this exploration. This very threat of competition keeps down the charges of
both the private utilities and the generators.

??The cheapest power of all is that which California doesn't have to buy. The
power authority's greatest contribution to California may end up being on the
demand side of the electricity equation. It is ideally suited to lead future
conservation and efficiency initiatives. Lowering demand lowers the price for
the power that Californians do have to buy, whether their utility is public or
private.

??"We will be masters of our own destiny," says Freeman. The history of public
power's vital role in the market place suggests that Freeman is right about
the
future.

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??????????Content and programming copyright 2001 Cable News Network
?????????????Transcribed under license by Federal Document Clearing
?????????????House, Inc. Formatting copyright 2001 Federal Document
??????????Clearing House, Inc. All rights reserved. No quotes from the
??????????materials contained herein may be used in any media without
???????????attribution to Cable News Network. This transcript may not
???????????????????????be copied or resold in any media.

?????????????????????????????????????CNN

????????????????????????????SHOW: CNN SUNDAY 16:00

??????????????????June 3, 2001; Sunday 5:19 PM Eastern Time

???????????????????????????Transcript # 01060307V36

SHOW-TYPE: INTERVIEW

SECTION: News; Domestic

LENGTH: 816 words

HEADLINE: ?Are Price Caps a Solution for California's Energy Woes?

GUESTS: ?Barbara Shook

BYLINE: ?Stephen Frazier

HIGHLIGHT: ?As the U.S. deals with energy woes, there has been heated rhetoric
over price controls for power. ?But could they, in fact, make a difference.

BODY:


??THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE
UPDATED.

??STEPHEN FRAZIER, CNN ANCHOR: As the U.S. deals with energy woes, there has
been heated rhetoric over price controls for power. ?But could they, in fact,
make a difference. ?Barbara Shook joins us now from Houston to help answer
that
question. ?Mrs. Shook is the Houston bureau chief for the Energy Intelligence
Group.

??Mrs. Shook, welcome, thanks for joining us.

??BARBARA SHOOK, ENERGY INTELLIGENCE GROUP: Thank you, Stephen. It's good to
be
working with you again.

??FRAZIER: Let's talk a little bit about what happened the last time we tried
price controls, remember, in '79 or so when we had an energy crisis stretching
on. ?What do you think happened then to the price of energy?

??SHOOK: The price of energy was held artificially low in that period of time.
They actually started during 1971 under the Nixon administration, and price
caps
sent false signals to consumers, and they don't encourage consumers to
conserve
or to find alternative sources of energy.

??FRAZIER: So, historically, we had just what the president said in comments
in
week that they didn't improve -- they didn't reduce demand and they didn't
increase supply, in his words.

??SHOOK: Very true. ?I would have to agree with the president on that.

??FRAZIER: So, there's a historic precedent for that which proves it. ?Why,
then, such a call for price caps? ?Even now, Governor Gray Davis in California
saying he's going to sue the federal government for those caps.

??SHOOK: I don't understand where the governor's reasoning is on this issue
because price caps, as we have already pointed out, have not worked in the
past.
What the people are doing is trying to avoid paying the cost that they have
tried to avoid for all these years but not building additional plants. ?If
they
had had the additional facilities in place, it might have cost them a little
bit
more in the short run, but now it's going to cost them a whole lot more.

??FRAZIER: Of course, in your experience, the resistance to building new
plants
is more sort of a not in my backyard process kind of in California, isn't that
it?

??SHOOK: Well, in California, it's gone beyond the not in my backyard, or
NIMBY, syndrome. ?You can describe Californians' attitude as either BANANAS,
for
build absolutely nothing here anybody, or NOPE, not on planet Earth.

??FRAZIER: So, as result, then, they have kind of a patchwork of half
deregulation and half forces that are not market forces at all, and it's
something of their own doing, as the federal government likes to point out.

??SHOOK: Yes, it is. ?The plan that is in place right now was formulated in
1996 by a coalition of Republicans and Democrats. ?You had a Democratic state
assembly, you had a Republican executive branch under Governor Wilson. ?So,
it's
-- you can't make this a partisan issue. ?Both sides are at fault.

??FRAZIER: Now, you have spoken earlier this week with a newly- appointed
member of the Federal Energy Resource Commission, Pat Wood. What were his
thoughts on what's going to happen, how to resolve this crisis?

??SHOOK: Commissioner Wood has chaired the Texas Public Utilities Commission,
and done a very successful job. ?What he said to me that he was going to
recommend to California was first, discuss the number of plants that will be
coming on in the near future. ?They will have additional plants that start up
this summer, and then more in 2002.

??That will bring the price down just because of the expectation of additional
supply. ?It will certainly mitigate more price spikes and it should bring the
price down. ?He also recommended that the state do whatever possible to
improve
the creditworthiness of all the electricity buyers out there.

??In California, the consumers are being charged a penalty, if you will, in
the
cost of their electricity because of the credit problems, just as somebody who
has a bad credit rating pays a higher interest rate on a home or car.

??And finally, Commissioner Wood recommended that the folks in California just
turn down the rhetoric and start addressing the issues as adults, and stop
making this just a finger-pointing game.

??FRAZIER: Right, in 25 words or less, because we're running out of time, did
he think they are doing anything right there?

??SHOOK: He thinks that the fact they are building plants and expediting
process and are expanding their gas pipelines and are going to expand some of
their electricity transmission systems are steps in the right direction.

??FRAZIER: Right, that new Path 15. ?Well, Barbara Shook from the Energy
Intelligence Group, once again, we're grateful for your insights. ?Thanks for
joining us on a Sunday night.

??SHOOK: Thanks for having me. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE
CALL
800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com



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?????????????????????????Copyright 2001 Southam Inc.

????????????????????????????The Gazette (Montreal)

??????????????????????June 4, 2001 Monday FINAL EDITION

SECTION: EDITORIAL / OP-ED, Pg. B3

LENGTH: 802 words

HEADLINE: Dim policies in California

BYLINE: P.J. O'ROURKE

SOURCE: Knight Ridder

BODY:

??California is in the midst of an enormous stupidity crisis. Californians
have
been sitting in the dark because they didn't turn the lights on.

??They say they're short of electricity. Yes, they are. Between 1988 and 1998,
California's electricity consumption increased by 15 per cent. Meanwhile,
California's capacity to generate electricity shrank by 5 per cent, even as
the
state hesitated to build new power lines to tap into neighbouring states'
power
supplies.

??Californians didn't want dams across their rivers, derricks on their ocean,
power lines across their borders or fossil-fuel smoke in their sky. These
might
interfere with all the smart things Californians do, such as hang-gliding.
California was going to rely on so-called negawatts: dramatic power
conservation. (But California regulators put price controls on electricity
that
lowered prices, and even Californians weren't dumb enough to skip a bargain.)
And California was going to rely on alternative-power generation. With all the
puffery from Silicon Valley dot.com start-ups, wind farms wouldn't be a
problem.
But it turns out that alternative power generation is an alternative, mostly,
to
generating power.

??U.S. President George W. Bush was wrong to extend executive orders requiring
out-of-state utilities to supply power to California. And everyone is wrong to
listen to Californians whine about electricity deregulation.

??Never Deregulated

??There never was any deregulation. The California Public Utilities Commission
merely changed its regulations, which apparently weren't stupid enough to meet
Golden State standards. Under California's 1996 reregulation plan, electric
companies sold their generating plants and became distributors. They were
required to buy their power on the wholesale spot market and forbidden to
enter
into any long-term power-supply contracts. Retail electricity prices were
lowered by 10 per cent and frozen at the new rate until March 2002.

??This is like requiring A&P to sell you porterhouse at $2 a pound, no matter
what the price of beef on the hoof. Imagine how many steaks there would be,
and
how many supermarkets.

??La-la Land, however, is a state of mind as well as a state of the Union. The
world is full of mental Californians who, despite a century of socialist
catastrophes, are willing to blame the free market for things like the
California energy crisis.

??The critics of economic liberty are right: the free market did cause
California's energy crisis. Hooray. Capitalism is doing its job. The critics
are
right without knowing what they're talking about. The free market isn't a
means
"to provide for people's basic needs." It doesn't come in or out of political
fashion. The free market is a precise measurement of voluntary price settings.

??Free Market Was Ignored

??Californians devised a system of electricity sales that ignored every
dimension of the free market. (Interesting that the Information Economy is
centred in a place that's immune to information.) The free market is a
yardstick, and Californians got smacked with it. Mideast oil jitters, cold
weather, natural-gas price spikes and the plain unpredictable freedom of the
free market caused wholesale electricity costs to rise and California
utilities
to go $12 billion into the red.

??California Governor Gray Davis responded with the full force of bikini-beach
brain. In a Jan. 8 speech to the state legislature, Davis proposed creating a
state agency to buy generating plants and build new ones. He threatened to
expropriate power generators and transmission grids. He called for laws to
allow
criminal prosecution of wholesale suppliers that withheld electricity from
California markets. And he said the state's universities and community
colleges
would build co-generating plants and become energy independent. (With gas
produced by the cafeteria food?) Davis sounded like Joseph Stalin with the IQ
of
Keanu Reeves. "Everyone should understand that there are other, more drastic
measures that I am prepared to take if I have to," Davis declaimed.

??"Take" is the key word. Grabby Californians tried to regulate themselves
into
some cheap electricity. Hoggish California power companies went along because
the state-imposed retail-price ceiling was also a retail-price floor.
According
to the Los Angeles Times, during the first 28 months of the scheme, Pacific
Gas
and Electric and California Edison made $20 billion from the legally required
mark-up between wholesale and retail electric prices.

??It would be wrong to call Californians stupid. They're sleazy, too.

??- P.J. O'Rourke is H.L. Mencken Research Fellow at the Cato Institute and
foreign-affairs desk chief for Rolling Stone. This op-ed is adapted from an
article published in the latest edition of the Cato magazine Regulation.

TYPE: Business

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??????????????????????Copyright 2001 / Los Angeles Times

??????????????????????????????Los Angeles Times

??????????????????????June 4, 2001 Monday ?Home Edition

SECTION: California; Part 2; Page 2; Metro Desk

LENGTH: 1700 words

HEADLINE: Los Angeles;
;
An Illuminating Look Several Light-Years Back;
Utility Players Bat Cleanup

BYLINE: PATT MORRISON, TIMES STAFF WRITER

BODY:

??In the years between 1994 and 2000, California's three little pigs--its
investor-owned utilities and/or their parent companies--spent $51.6 million on
political campaigns. Most of it, about $39 million, was spent beating back
Proposition 9, which if you don't remember (and who can?) would have thrown
deregulation into reverse.

??An additional $18.6 million was shelled out for six years of lobbying the
governor, the Legislature and state agencies. The point-six part of that was
spent by Pacific Gas & Electric .tin the first quarter of this year, even as
PG&E was prepping itself to file for bankruptcy protection and make a bid for
a
bailout.

??The study by the nonprofit Center for Public Integrity found that way over
half a million went to the campaigns of three leading politicians, all of whom
have said the dough did not influence them: $171,000 to then-Gov. Pete Wilson,
who signed deregulation into law; $212,186 to state Sen. Jim Brulte, the
Rancho
Cucamonga Republican whose name topped the author list on the deregulation
law;
and $268,135 to the campaign causes of state Sen. Steve Peace, the El Cajon
Democrat held up as the Frank Lloyd Wright of deregulation (Wright's houses
always looked fabulous but didn't always function ideally).

??The utilities are, of course, PG&E, Southern California Edison and San Diego
Gas and Electric: the one that's filed for bankruptcy protection, the one that
may want to, and the one that's still carrying a torch, a lighted one.

??All Moneyed Up and Nowhere to Go

??OK, everybody: s-l-o-w-l-y take one step back.

??Now that it looks like Newport Beach Republican Chris Cox won't be taking
off
his congressional neckties in exchange for a black robe on a federal bench,
anyone who had been angling to run for his seat had better make other plans.

??This means you, Mark C. Johnson.

??With Cox staying put--his odds of surviving confirmation in a newly
Democratic Senate were shriveling anyway--Johnson has the million and a half
for
a campaign, and nothing to spend it on.

??Johnson is co-founder of Republicans for a New Majority, a bunch of people
with a bunch of money to spend on moderate GOP candidates. He won't run
against
Fullerton Republican Rep. Ed Royce, or against Orange County's solitary
congressional Democrat, Loretta Sanchez. But reapportionment might open up a
new
congressional district, or rejigger the one that now belongs to surfin' Rep.
Dana Rohrabacher, who expected to collect big at his $1,000-per Arnold
Schwarzenegger fund-raiser over the weekend.

??Think the Balkans are complicated? Look behind the Orange Curtain. "Things,"
said Johnson circumspectly, "may turn out to be a lot more convoluted than any
of us are expecting."

??Walt Yes, Al No

??Disney plus Navy equals "Pearl Harbor" the movie. The U.S. Navy gave Disney
unprecedented access, and Disney made script changes per the Navy.

??But actor Ben Affleck, aboard the carrier Constellation off San Diego on
Sept. 13, filming scenes involving Gen. Jimmy Doolittle's raid on Tokyo, took
a
break from films for . . . politics. Surrounded by sailors, he began making a
commercial on behalf of Vice President Al Gore's presidential campaign. Cut!
Cut! Military property is off limits for political purposes, sailor! A Navy
lieutenant stuck a hand in front of the camera--and it wasn't a salute.

??Biting the Hand That . . .

??Barely a month ago, the Congressional Hispanic Caucus gave a pass to Rep.
Maxine Waters, saying it wants to elect more Latino politicians but not at the
expense of simpatico non-Latinos like Waters, whose South-Central Los Angeles
district has a huge Latino population.

??But in comments last week about Antonio Villaraigosa, the man running to be
Los Angeles' first Latino mayor in more than a century, the African American
member of Congress (who endorsed Villaraigosa's opponent, Jim Hahn), demanded,
"Who is Antonio Villaraigosa? Where did he really come from? How much time has
he spent in public service? . . . We need to know these things."

??For the record, Villaraigosa has spent six years not exactly hiding in the
Legislature, including nearly two years as Assembly speaker, and years more
as a
community activist. He comes from L.A. Waters was born in St. Louis.

??The Man in Tartan Returns?

??It's the question all of Sacramento is asking: With state Sen. Tom
McClintock
considering another run at the state controller's job, will "Cousin Angus" be
back?

??In ads for his 1994 campaign, which he lost to Kathleen Connell, the
Thousand
Oaks Republican tapped his Scottish roots to conjure the kilted cousin, who
bragged in an accent as dense as highland heather that Cousin Tom is a true
skinflint Scot, "tighter than a bullfrog's behind." Has anyone called the
Scottish Anti-Defamation League?

??But Cousin Angus, says McClintock, "is so angry about the energy situation
he
may be running himself--for governor."

??A Little Rice, A Lot of Oil

??The few, the proud, the California Republicans are desperately trying to
flush some big-name candidates out of the undergrowth, and the latest quail to
emerge is Condoleezza Rice, President Bush's national security advisor and a
former Stanford provost.

??The Capitol Hill newspaper Roll Call says state party Chairman Shawn Steele
is talking her up to run against Sen. Barbara Boxer: "There's a long list of
quality, top-flight Republicans emerging to run against Boxer [pregame big
talk,
there], and Rice would be among those ideal candidates."

??Besides saying "Condi loves" California, Rice's office demurred, with the
usual "no plans" quote that always leaves some running room.

??With gas above $2 a gallon in the state, maybe now is not the right moment
for Rice, who sat on the Chevron board and has a 150,000-ton oil tanker named
after her.

??Quick Hits

??At an Irvine fund-raiser, former GOP Assembly Speaker Curt Pringle drummed
up
$15,000 for a Democratic former colleague, L.A. mayoral candidate Antonio
Villaraigosa, whom Pringle called "an honorable guy." . . . Amid the talk of
outgoing L.A. Mayor Richard Riordan running for governor on the Republican
side,
records show Riordan donated $12,500 to Davis' campaign on March 2, 2000,
which
his wife matched a day later. . . . Two dogs, each kitted out in Hahn or
Villaraigosa political trinkets, met nose to nose in Venice to urge the
candidates to support a canine beach in Los Angeles, which has none.

??Word Perfect

??"What do you want from me, a quote that I'm going to raise taxes? That will
kill me when I run for president in New Hampshire."

??State Senate President Pro Tem John Burton, to reporters asking whether he'd
raise taxes to plug the holes left in the budget by the energy crisis.

??Columnist Patt Morrison's e-mail address is patt.morrison@latimes.com. This
week's contributors include Nick Anderson, Mark Z. Barabak, Dan Morain, Jean
O.
Pasco, Tony Perry, Margaret Talev and Jenifer Warren.

GRAPHIC: PHOTO: Numbers Game: Mayor Richard Riordan welcomed President Bush to
the World Affairs Council luncheon in Los Angeles last week by noting that he
arrived "during stressful times" . . . meaning the NBA playoffs. (The mayor
has
been working on his comedic timing with his pals at the Friars Club.) He
presented Bush with a pair of Shaquille O'Neal's shoes that could seat four,
and
a Lakers jersey, he said proudly, bearing the number 43 (it's right next to
Bush's right hand), as in the 43rd president--except the jersey bore the
number
34. Cut--propman! Was that a Bush-dyslexia joke or just a slip of the mayor's
alphanumeric tongue? PHOTOGRAPHER: BRIAN WALSKI / Los Angeles Times

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?????????????????Copyright 2001 The Chronicle Publishing Co.

?????????????????????????The San Francisco Chronicle

?????????????????????JUNE 4, 2001, MONDAY, FINAL EDITION

SECTION: NEWS; Pg. A1

LENGTH: 581 words

HEADLINE: Electricity usage shrinks by 11%;

State's consumers beat goal set by governor

SOURCE: Chronicle Staff Writer

BYLINE: Keay Davidson

BODY:
By turning off lamps, turning up thermostats and buying energy-efficient light
bulbs, the people of California helped reduce the state's electricity
consumption last month 11 percent below the May 2000 level, more than was
expected, Davis administration officials said yesterday.

???The "fairly remarkable" response to the governor's appeal for energy
conservation came not only from business but from ordinary electric customers:
"If you go into any hardware store, people are buying new lighting
facilities. .
. . It's truly a tribute to the people of California who are doing this," said
Steve Larson, executive director of the California Energy Commission, in a
conference call with news reporters.

???In May, the state consumed 18,616,485 megawatt hours of electricity, a drop
of 2,289,362 megawatt hours or 11 percent from May 2000, said Gov. Davis'
press
secretary, Steve Maviglio.

???The governor called for a 10 percent reduction in May, whereas his energy
advisers forecast that only 7 would be achieved, Maviglio noted.

???In the news conference, officials also said:

???-- The state signed nine new contracts in May with out-of-state power
sources to boost Caliornia's available megawattage by 900 megawatts.
Presently,
that makes a total of 36 contracts with out-of-state energy sources.

???-- The price of electric power in May was 45 percent below the January
amount, thanks to market fluctuations.

???Prices "are much more stable today -- things are really coming together,"
said Ray Hart of the Department of Water Resources.

???-- An unknown number of rolling blackouts are ahead as the state enters
energy-hungry summertime. "Who knows?" Larson replied when asked by a reporter
to forecast the likely number of blackouts.

???"It's the job of the state to look under every rock for every megawatt
possible," Larson said. "During the month of May, we did a pretty good job."

???All in all, Maviglio concurred, it's "very good news for this month."

???"Californians exceeded the governor's expectations," Maviglio added in a
post-conference interview with The Chronicle, "and it's critical to note all
this (energy conservation) was voluntary. . . . If this is a harbinger of the
summer, it's good news."

???During the news conference, a reporter from another publication asked for
comment on Chronicle reports that certain energy providers deliberately
throttled their available supply early in the crisis.

???While declining to discuss the newspaper's charge in detail, Hart replied:
"What we do know -- I do not have specific information -- (is) the amount of
forced outages were more than double the norm, and that's never happened
(before). And (the forced outages were) up to four times (normal) some days.
That is extraordinary, in itself, (and) that really makes you wonder whether
there was (power) idling that was intentional."

???Officials also discussed the Davis administration's push to negotiate power
purchases at reasonable prices from municipal utilities. They vaguely hinted
at
legal action if the state doesn't get what it wants, namely reasonably priced
power from such sources.

???Negotiations with the utilities are continuing, said Dick Sklar, energy
adviser to the governor. "I think the first step is to see if we can get
people
(at the municipalities) to act in a reasonable way before (we start) talking
about punitive action. . . . The state has weapons I hope we never have to go
(toward using)."E-mail Keay Davidson at kdavidson@sfchronicle.com

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?????????????????Copyright 2001 The Chronicle Publishing Co.

?????????????????????????The San Francisco Chronicle

?????????????????????JUNE 4, 2001, MONDAY, FINAL EDITION

SECTION: NEWS; Pg. A1

LENGTH: 1092 words

HEADLINE: Eliminating night games may seem like a bright idea, but . . .;

Baseball is balking

SOURCE: Chronicle Staff Writer

BYLINE: Erin Hallissy

BODY:
It's the way baseball was meant to be played, some say: under a summer sun
instead of huge banks of lights.

???Now, some power misers are joining baseball purists by complaining about
all
those games played at night, saying they're as wasteful as leaving the air
conditioning running when no one's home.

???From the small minor-league parks in places like Vacaville to games played
in the state's five major-league ballparks, all those light banks could be
shut
down, all those power-using concession stands and scoreboards and illuminated
billboards could be turned off.

???"It is my contention that we had better start seeing all five major league
baseball teams, and many of the other sports activities at all levels of
competition, being rescheduled to the daytime," said Blaine Nicol, who wrote
to
The Chronicle advocating the change.

???"It can be done," said Ed Moose, owner of Moose's restaurant in San
Francisco and a fan of day baseball games. "It only takes a fiat by the
president of the United States or the governor or the Legislature to say that
this is what we have to do to get through a crisis. A lot depends on how
important we say this is. Is it more important that we start a ballgame at
7:15
p.m. than at 12:30?"

???MOST LIKE SCHEDULE AS IS

???But energy crisis or no, don't look for baseball to move its night games to
daytime. The leagues don't want it, the teams don't want it, the players don't
want it and many of the fans don't want it, either.

???"Baseball during the day -- it's fabulous," Hillary Lassetter said before
an
Oakland A's night game last week. "But I can't get there."

???Like thousands of other fans, the 31-year-old Los Gatos woman works during
the day. Lassetter, who has been going to games with her father since she was
in
first grade, works at a San Jose construction office, and her job isn't
flexible
enough to let her go out for an afternoon of baseball.

???Teams at all levels of baseball say they can't change the schedule this
late
in the season. It isn't just that many fans who have already bought tickets
wouldn't be able to go to day games -- television contracts, player contracts
and stadium leases wouldn't allow it. In some cases, even the weather wouldn't
allow it.

???"On a promotional basis, once in a while, yeah, a day game is maybe fine,"
said Joe Gagliardi, president of the California League, which has 10 Class A
(low minor league) teams affiliated with major-league clubs. "But if we had to
switch to all day games, it would put at least 60 percent of our ballclubs out
of business."

???That's because some of those teams play in the high desert Southern
California towns of Lancaster and Adelanto and Central Valley cities like
Stockton and Modesto, where summertime temperatures often soar well over 100
degrees.

???Teams without hot-weather problems won't be changing their schedules,
either.

???GIANTS LIMITED TO 13 DAY GAMES

???The San Francisco Giants have a lease with the city limiting them to 13
weekday games a year because of the disruption to nearby businesses and
commuters, said Giants executive vice president Larry Baer. The team is
playing
nine weekday games this year.

???"The schedules are put out a year in advance," Baer said. "I think it's
unrealistic that we'd change after the season started."

???Fans who couldn't get to the park for day games wouldn't be the only ones
who would be upset.

???Through yesterday's game, Giants second baseman Jeff Kent was hitting .343
during the day and .230 at night. But improving his overall numbers isn't
worth
giving up his free time with his three young children.

???"I'd hate to play day games every day," Kent said last week. "I'm a big
family man, and if you play day games, your day is just burned. With all due
respect to people who work 9 to 5 -- I guess that's what people in the real
world do -- that would make it really hard to spend time with my children."

???State Sen. John Burton, D-San Francisco, toyed with the idea of introducing
a resolution calling for more day games before deciding he had to review the
legal ramifications of player and TV contracts along with season ticket sales.

???Roger Salazar, a spokesman for Gov. Gray Davis, said Davis has wanted to
minimize disruptions to businesses.

???One of the things to consider, Salazar said, is whether the power saved by
playing in the daytime "outweighs the fact that many of those people aren't at
home (using energy)."

???ECONOMI