Enron Mail

From:joseph.alamo@enron.com
To:miyung.buster@enron.com
Subject:"GOP officials in town for cash"
Cc:jeff.dasovich@enron.com
Bcc:jeff.dasovich@enron.com
Date:Thu, 3 May 2001 06:10:00 -0700 (PDT)

GOP officials in town for cash
Thursday, May 3, 2001
By Harrison Sheppard
Staff Writer

Republican governors from throughout the country descended on Los Angeles on
Wednesday to raise funds and take a few shots at Gov. Gray Davis' handling of
the power crisis.
While Davis already has a $25 million war chest for his re-election campaign
next year, members of the Republican Governors Association said the energy
crisis will make him vulnerable.
"This is very severe and significant and impacts every person in the state,"
said Gov. John Rowland of Connecticut, the group's vice chairman. "That's a
governor's worst nightmare."
The governors said they will not get involved in picking or supporting a GOP
gubernatorial candidate before the 2002 state primary, and will unite behind
the Republican chosen by state voters.
They also argued that it is up to California to work out its power problems,
rather than seeking a bailout from President George W. Bush.
"A federal government that can give you all that you want is capable of
taking everything you have," said Wyoming Gov. Jim Geringer, who specializes
in energy issues for the Western Governors Association.
Gov. Jane Dee Hull of Arizona added: "California has not come forward to
solve their own problems, and the federal government can only do so much."
Davis spokesman Steve Maviglio said the state wants the Federal Energy
Regulatory Commission to impose price caps but that FERC has taken only "baby
steps" in that direction. The Bush administration opposes price caps, saying
they provide no inducement for increasing the electricity generating capacity
in the state.
"They need to step up to the plate," Maviglio said. "What happens in
California has a ripple effect throughout the country in terms of our
economy."
Davis issued a statement noting that the energy crisis also affects the
states of some of the Republican governors at the conference.
"My fellow governors should look before they leap," Davis said. "Eighty-five
percent of the increased demand on the Western grid comes from states outside
of California.
"In California, I have approved 13 major power plants and signed into law
$800 million worth of incentives for electricity conservation. The Western
states would be well served if they worked as hard as California is in
building power plants and conserving energy."
Rowland, the GOP governors' vice chairman, said the group expected to raise
between $200,000 to $300,000 during the Los Angeles trip. Today, the group
will head to San Jose.
Secretary of State Bill Jones, a gubernatorial candidate and the only
Republican to hold statewide office, attended the convention to schmooze with
a group he hopes to join someday. He criticized Davis' attempt to acquire the
state's power transmission grid.
`'It doesn't provide to us additional energy. It consumes our resources and
it puts us in the energy business, which I oppose," Jones said in an
interview.
Maviglio, however, said state acquisition of the grid has several benefits,
including keeping Southern California Edison out of bankruptcy in exchange
for a valuable asset, and giving the state the power to unclog transmission
bottlenecks that delay the movement of electricity from Southern to Northern
California.