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FYI
Credit Suisse First Boston <Paul_Patterson@xmr3.com< 01/25/2001 07:33 AM To: chip.schneider@enron.com cc: Subject: Governor Gives Limited Information on Auction Credit Suisse First Boston Paul Patterson Good morning, Here are some of the recent developments in the California power crisis: ? Yesterday evening, Governor Davis revealed preliminary results of the DWR's auction for long-term forward power contracts. 39 bidders participated, with an average weighted bid of $0.069 per kWh excluding "Super Peak" periods. ? However, the governor did not discuss the quantity of power actually bid, the breakdown between offers for base-load, peak, and off-peak power, or provisions for ancillary services. In our opinion, these are exceedingly important issues that need to be known to adequately determine the "success" of any auction. ? Republican Assembly leader Bill Campbell is reportedly working on an alternative bill to Speaker Hertzberg's proposed bill. Reportedly Campbell's bill would call for the state to arrange long-term contracts for the utilities, in exchange for the option to purchase ownership stakes. ? We believe that the actual results of the long-term contract auctions should be a key point of focus for investors and may help determine what headroom, if any, the utilities could have. We believe that investors should remain aware of the high risk still associated with shares of PCG ($9.94, Hold) and EIX ($9.63, Hold). Paul Patterson, 212-325-5876 Neil Stein, 212-325-4217 Wen-Wen Chen, 212-538-0223 Emily Lao Chua, 212-325-1982 ---------------------------------------------- If you would prefer not to receive further messages from this sender, please click on the following e-mail link and send a message with or without any text: Mailto:K-8-62573-297576-2-410-US2-34108E44@xmr3.com You will receive one additional e-mail message confirming your removal - ppp012501.pdf
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