Enron Mail

From:karen.denne@enron.com
To:jkradin@marathon-com.com, syamane@marathon-com.com,rlichtenstein@marathon-com.com, janel.guerrero@enron.com, susan.mara@enron.com, jeff.dasovich@enron.com, james.steffes@enron.com
Subject:RE: PR Update for Direct Access Coalition
Cc:
Bcc:
Date:Tue, 10 Apr 2001 14:06:00 -0700 (PDT)

fyi, I asked Edelman to send me the direct access pitch they are using with
the media this week, and here it is....
---------------------- Forwarded by Karen Denne/Corp/Enron on 04/10/2001
08:56 PM ---------------------------


"Manuel, Erica" <Erica.Manuel@edelman.com< on 04/10/2001 11:38:44 AM
To: "'Karen.Denne@enron.com'" <Karen.Denne@enron.com<
cc:

Subject: RE: PR Update for Direct Access Coalition




Sure thing. Here's the pitch:

Looking for a new twist on the California energy story?? A conflict that's
not being covered?

Tension is at fever pitch between the state's business community and policy
makers/Davis Administration over the issue of direct access. Simply put,
many forces are trying to kill direct access, which allows businesses and
residential users to buy their energy from alternative energy providers
instead of their local utility.? Yet for businesses this summer, the option
to bypass their local utility if they can ink a better energy deal somewhere
else may provide the thin margin that keeps them in business.? And PG&E's
recent bankruptcy filing begs the question: why not let someone else provide
power?

As California business screams for relief, the Department of Water
Resources, legislature, utilities, some consumer groups and the PUC continue
to erect barriers against direct access-which has been in a state of
suspended animation since the passage of AB1x.? Each player has its own
reasons to push for the demise of direct access.??

A large coalition of business interests is fuming (see direct access
coalition list below).? Already rocked by record power prices and worried
about recession, they fear that if direct access is not resuscitated soon
through emergency legislation, it will be one more reason to raise prices,
lay off workers, or shut their doors.? And they wonder: why are our state's
policymakers killing direct access at the time businesses need it most as
they confront escalating power bills?? It is widely assumed that the
Department of Water Resources has not contracted for enough power this
summer to avoid paying high prices in the spot market.? Yet, the more power
DWR doesn't need to buy because large users have done it for themselves, the
less financial exposure the state incurs.?

Last week, for the first time, Governor Davis suggested that he may be
supportive of letting businesses shop for their own power, but it is unclear
at this time how solid his support may be.? Meanwhile, the Legislature
continues to run in circles and do everything it can to avoid meaningful
action on this issue.? Direct access was one issue at the center of the
fissure between Assembly Republicans when they replaced their leadership two
weeks ago.? Senator Bowen's much-awaited "clean-up" bill, SB 27x, has been
more than a disappointment-in fact it's perceived as ensuring there will be
no customer choice.

But don't take my word. Edelman can arrange interviews with the California
Chamber of Commerce, California Retailers Association, California
Manufacturers & Technology Association, Calpine and other organizations
fighting to preserve direct access as well as individual
businesses/organizations who have chosen to bypass their local utilities and
cut their own power deals in order to reap huge savings and/or gain
certainty about their energy budgets.? These companies include high tech,
hotel and grocery chains, school districts, and large retailers.?

This is a timely, controversial story that needs to be told-and it hasn't
truly been covered so far by the mainstream media.? Please contact Erica
Manuel or Stevan Allen at Edelman Public Relations Worldwide at (916)
442-2331 to arrange interviews or receive more information.

?Building Owners & Managers Association Of California
California Chamber Of Commerce
California Grocers Association
California Health Care Association
California Manufacturers & Technology Association
California Large Energy Consumers Association
California Retailers Association
California State University
California Healthcare Association
AES NewEnergy
Association Of Bay Area Governments Power
OCLI - A JDS Uniphase Company
Ralphs Grocery Company
Kaiser Permanente
Enron Corporation
Los Angeles Economic Development Corporation
Green Mountain Energy Company
Independent Energy Producers
The Alliance For Retail Energy Markets (AreM)
The New Power Company
University Of California
School Project For Utility Rate Reduction
California Utility Buyers JPA