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Enron Mail |
To follow up on my previous notes:
A copy of the press release from the Controller's office is attached. The release clarifies the charts I mentioned. The point was that less than 1% of all payments for energy purchases to date have gone toward long-term contract deals. The governor's plan calls for 11% of all purchases made between January 1 and June 1 of this year to be from long-term contracts. Connell's point was that 30% of all future purchases would have to be under long-term contracts to meet that goal, which she apparently believes is unlikely. ----- Original Message ----- From: "Scott Govenar" <sgovenar@govadv.com< To: "Hedy Govenar" <hgovenar@govadv.com<; "Mike Day" <MDay@GMSSR.com<; "Bev Hansen" <bhansen@lhom.com<; "Jeff Dasovich" <jdasovic@enron.com<; "Susan J Mara" <smara@enron.com<; "Paul Kaufman" <paul.kaufman@enron.com<; "Michael McDonald" <Michael.McDonald@enron.com<; "Sandra McCubbin" <Sandra.McCubbin@enron.com<; "Rick Shapiro" <rshapiro@enron.com<; "Jim Steffes" <james.d.steffes@enron.com<; "Alan Comnes" <acomnes@enron.com<; "Steven Kean" <Steven.J.Kean@enron.com<; "Karen Denne" <kdenne@enron.com<; <Harry.Kingerski@enron.com<; "Leslie Lawner" <Leslie.Lawner@enron.com<; "Robert Frank" <rfrank@enron.com<; "Ken Smith" <ken@kdscommunications.com<; "Janel Guerrero" <Janel.Guerrero@enron.com<; "Miyung Buster" <Miyung.Buster@enron.com<; "Jennifer Thome" <Jennifer.Thome@enron.com<; "Eric Letke" <eletke@enron.com<; "Mary Schoen" <Mary.Schoen@enron.com<; "David Leboe" <David.Leboe@ENRON.com<; "Ban Sharma" <ban.sharma@enron.com< Sent: Monday, May 21, 2001 2:31 PM Subject: Kathleen Connell < The following notes are from Ken Smith from State Controller Kathleen < Connell's press conference today: < < California State Controller Kathleen Connell held a press conference < today. Although the Dow Newswire said it would be to disclose long-term < contracts, the event focused on what she believes will be an additional < need for borrowing beyond the energy bonds. < < She anticipates an additional $4 billion in borrowing will be needed in < February to meet expected costs. The borrowing should, she said, be < done as Revenue Anticipation Notes (RANs), short-term notes at a lower < interest rates (about 4%) that must be paid back by the end of the year, < rather than as additional energy bonds. She categorized the current < budget situation as "the same kind of environment as a bad budget year," < and said California should maintain at least a 3% reserve. < < She did not comment on individual contracts except to say there are 17 < different contracts. < < Charts her office had prepared showed that $5.136 billion had been spent < on energy purchases through 5/17/01; about 99% of that went to spot < market purchases. There was also a chart that showed projected < expenditures under the Governor's plan to be $8.349 billion for the < period January 1-June 1, 2001, with about 89% of that going to spot < market purchases. How these numbers work together was confusing - I < checked with a reporter, who said he was also unclear. I'll try to get < this cleared up this afternoon. < < An easel held a large photocopy of a $533 million check to Mirant, which < is the largest energy check written to date. More has been paid to < Reliant - she put it at about 25% of total expenditures - but "we have < never written a check to Reliant over $500 million" because of the way < they invoice. < < She said the Governor's financial assumptions for power "do not fit into < the most likely scenario" and that summer conditions will greatly affect < the actual spending needs. She noted that DWR estimates it will spend < $9.2 billion through June 30, 2002, although the PUC has only authorized < $7.5 billion. < < The other significant announcement was that she plans to use her < authority with the Board of Equalization to hold hearings to determine < whether power plants sold by utilities have been properly assessed for < property taxes. Apparently, they are still on the tax rolls at previous < rates, but she believes the profits recorded by some generators means < the plants may be more valuable than their current assessments. < < A press release was not distributed at the event, although there may be < one issued later today. < < < - Connell release.pdf
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