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Enron Q2 EPS 45 cents beats estimates; still sees FY EPS 1.80 usd
AFX News, 07/12/01 Enron Says 2nd-Qtr Net Income Rose 40% to $404 Mln (Update2) Bloomberg, 07/12/01 USA: UPDATE 1-Enron Q2 earnings rise, beat estimates. Reuters English News Service, 07/12/01 Enron contempt-of-court vote urged Houston Chronicle, 07/12/01 Energy Commission Divides Control of Eastern Power Grid The New York Times, 07/12/01 The State UC, Cal State Systems Settle Enron Lawsuit Los Angeles Times, 07/12/01 The State Enron Gets 2nd Chance to Turn Over Documents Energy: State Senate panel gives the electricity seller a way around a contempt citation. But the company balks. Los Angeles Times, 07/12/01 Texas-Based Power Company Resists Investigation of Price Gouging in California KRTBN Knight-Ridder Tribune Business News: San Jose Mercury News - California, 07/12/01 Power Company Enron to Extend Contracts with Two California Universities KRTBN Knight-Ridder Tribune Business News: San Jose Mercury News - California, 07/12/01 New Ads Illustrate Weakness of Campaign-Finance Reform --- Spots by Outside Group Run by Former Bush Aides Push White House Energy Plan The Wall Street Journal, 07/12/01 Coal futures to begin trading but analysts aren't sure it'll heat up energy markets Associated Press Newswires, 07/12/01 INDIA: India power trading firm may help end Enron row. Reuters English News Service, 07/12/01 India: Enron looks to Centre for early end to row Business Line (The Hindu), 07/12/01 INTERVIEW: Danish Vestas CEO Confident Of Mkt Leadership Dow Jones International News, 07/12/01 FERC Raises Uncertainty for Midwest Power Grid Operators Dow Jones Business News, 07/11/01 Two Calif Univ Sys In Tentative Deal For Cheaper Pwr Dow Jones Energy Service, 07/11/01 USA: UPDATE 1-Calif. pursues contempt proceeding against Enron. Reuters English News Service, 07/11/01 Enron Sues California Senate; Panel Urges Contempt (Update4) Bloomberg, 07/11/01 Enron Q2 EPS 45 cents beats estimates; still sees FY EPS 1.80 usd 07/12/2001 AFX News © 2001 by AFP-Extel News Ltd HOUSTON (AFX) - Enron Corp today reported diluted EPS for the second quarter ended June 30 of 45 cents, up 32 pct from 34 cents a year earlier and beating analysts estimates of 42 cents. The company said it is still confident of achieving full year EPS of 1.80 usd and sees full year 2002 EPS of 2.15 usd. Net income excluding non-recurring items was 404 mln usd, compared to 289 mln a year earlier, while sales were 50.06 bln usd, compared to 16.89 bln. "In contrast to our extremely strong energy results, this was a difficult quarter in our broadband business," said Jeff Skilling, Enron president and CEO. "However, our asset-light approach will allow us to adjust quickly to weak broadband industry conditions. We are significantly reducing our broadband cost structure to match the reduced revenue opportunities currently available," he added. The company said its global wholesale volumes rose 58 pct in the second quarter to 74 trln British thermal unit equivalents per day (TBtue/d). Total natural gas volumes rose 21 pct to 32.3 TBtu/d, while total power volumes jumped 108 pct to 285 mln megawatt hours. It added that in the second quarter, 7.2 bln usd of new contracts were completed by its retail energy services business, an 89 pct increase compared to a year ago. EPS for the first half ended June 30 was 92 cents, compared to 73 cents a year earlier. First half net income was 810 mln usd, up from 627 mln a year ago on sales of 100.19 bln usd, compared to 30.03 bln a year earlier. bam For more information and to contact AFX: www.afxnews.com and www.afxpress.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron Says 2nd-Qtr Net Income Rose 40% to $404 Mln (Update2) 2001-07-12 08:38 (New York) Enron Says 2nd-Qtr Net Income Rose 40% to $404 Mln (Update2) (Adds analyst's comment in eighth paragraph.) Houston, July 12 (Bloomberg) -- Enron Corp., the top energy trader, said second-quarter profit rose 40 percent as higher sales of electricity more than made up for a loss in its telecommunications business. Net income rose to $404 million, or 45 cents a share, from $289 million, or 34 cents, in the year-earlier period, Enron said. The Houston-based company was expected to make 42 cents a share, the average estimate of analysts polled by First Call/Thomson Financial. Energy traders such as Enron benefited from rising electricity prices in the U.S. West. Efforts to lower prices in California and other western states didn't succeed until late in the quarter. Revenue almost tripled to $50.1 billion from $16.9 billion in the quarter. Most of that came from Enron's Wholesale Services business, which includes electricity trading and development of energy projects such as power plants. Enron had first-half revenue of $100.2 billion, almost equal its revenue for all of last year. Chief Executive Jeffrey Skilling has predicted revenue will top $200 billion this year. Broadband Losses Enron's broadband business, which trades space on fiber-optic networks, had a loss before interest, minority interests and taxes of $102 million, compared to an $8 million loss in the year- earlier period. The company is firing broadband staff to reduce costs, spokeswoman Karen Denne said. She declined to say how many people would be fired or where the cuts would take place. Enron has broadband staff in Houston, London, Singapore and Portland, Oregon. Denne said Enron would try to find internal jobs for the broadband workers and only cut those employees it can't place. ``Overall results were impressive in light of the losses in broadband services,'' said First Albany analyst Bob Christensen, who rates Enron a ``strong buy.'' ``It looks like they have already begun to address the losses in broadband and I expect those will decline.'' Skilling has transformed a natural gas-pipeline company into the biggest competitor in the business of trading commodities such as gas and power. Enron also uses financial instruments such as futures contracts to help protect customers from swings in energy prices. In places including California, the company has a growing business in contracts that manage energy supply for big customers such as Owens-Illinois Inc. and Eli Lilly & Co. Contracts increased 89 percent to $7.2 billion in the quarter, Enron said. Earnings were released before the market opened. Shares of Enron fell 12 cents to $49.10 yesterday. They have fallen 41 percent this year. USA: UPDATE 1-Enron Q2 earnings rise, beat estimates. By C. Bryson Hull 07/12/2001 Reuters English News Service (C) Reuters Limited 2001. HOUSTON, July 12 (Reuters) - Energy marketing and trading powerhouse Enron Corp. said on Thursday its second-quarter income rose almost 40 percent, beating Wall Street estimates on robust growth in its core wholesale energy business. The Houston-based company, the No. 1 U.S. natural gas and electricity marketer, reported net income excluding non-recurring items of $404 million, or 45 cents a share, compared with $289 million, or 34 cents a share, in the same period a year ago. Analysts had expected earnings per share in the range of 40 to 44 cents, with an average of 42 cents, according to Thomson Financial/First Call. Enron also said it was confident it would reach its target of $1.80 of recurring earnings per diluted share for the full year 2001, while saying it expected to earn a slightly better-than-expected $2.15 per diluted share in 2002. Revenues rose to $50.06 billion versus $16.88 billion in the year-ago quarter. "Our wholesale and retail energy businesses continue to dramatically expand business activity and increase profitability," Enron President and Chief Executive Officer Jeff Skilling said in a statement. Energy volumes increased 58 percent to 74 trillion British thermal unit equivalents per day, the company said. Enron also reported an 89 percent year-over-year increase in new retail energy services contracts, moving to $7.2 billion. Skilling acknowledged that Enron's budding broadband business met with difficulty in the quarter, but said the company's agility and small asset position would enable it to quickly react to weakness in the broader telecommunications market. "We are significantly reducing our broadband cost structure to match the reduced revenue opportunities currently available," he said. That market's weakness, as well as the California power crisis and a struggling power project in India combined to pressure the energy giant's stock down 15.7 percent in the quarter. It underperformed the broader Standard & Poor's utility index, which was down 6.32 percent in the same period. Since the close of the quarter, the stock has been hovering near $49, roughly half an all-time high of $90.25 reached last August. It had traded at more than $81 in as recently as mid-February. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. July 12, 2001 Houston Chronicle Enron contempt-of-court vote urged Company sues to quash California subpoena seeking information Bloomberg Business News SACRAMENTO, Calif. -- Enron Corp., the world's largest energy trader, on Wednesday sued a California state Senate committee to quash a subpoena for documents and accused the panel of trying to blame the company for the state's power woes. The Senate Select Committee to Investigate Price Manipulation in the Wholesale Energy Market responded by voting for a second time to recommend the full state Senate hold Houston-based Enron in contempt. The company should face fines or other punishment if it refuses to turn over the documents. The vote was 6-0. Enron is fighting a committee subpoena issued last month demanding thousands of pages of documents relating to energy trading in California. The panel is probing whether generators manipulated the power market. Soaring wholesale prices last year left utilities unable to buy power, and the state began purchasing energy on their behalf. "It is exceedingly difficult to discern whether the committee's actions are designed to uncover the facts underlying the price spikes in California's wholesale market, or to create a convenient political scapegoat," Enron Executive Vice President Steven Kean wrote in a letter to the committee. The full Senate won't receive the committee's recommendation until next week, giving Enron time to turn over the documents, said Committee Chairman Sen. Joseph Dunn, a Democrat. The committee voted last month to hold Enron and Mirant Corp. in contempt after they refused to turn over documents the committee was seeking. The committee gave the companies until Wednesday to comply. Mirant has already turned over 160,000 pages of documents, said Larry Drivon, special counsel to the committee. The committee voted to nullify the contempt charge against Mirant. AES Corp., Duke Energy Corp., Dynegy, NRG Energy, Reliant Energy and Williams Cos. have complied with the subpoenas. California claims energy generators and traders overcharged the state by $8.9 billion. Talks ordered by the Federal Energy Regulatory Commission to settle those allegations broke down this week without an agreement. In another development Wednesday, an Indian state ordered an investigation into a power purchase deal with Enron, which has threatened to wind up its uncertainty-dogged $3 billion project, news reports said. A judge will investigate various aspects of the agreement between a subsidiary of Enron and the Maharashtra state power utility, Press Trust of India quoted state Chief Minister Vilasrao Deshmukh as saying. Hours earlier, Enron Corp. Chairman Kenneth Lay said he was hopeful of a solution to the dispute. Lay met India's finance and energy ministers Tuesday. Business/Financial Desk; Section C Energy Commission Divides Control of Eastern Power Grid By RICHARD A. OPPEL Jr. 07/12/2001 The New York Times Page 2, Column 1 c. 2001 New York Times Company The Federal Energy Regulatory Commission ordered yesterday that the electricity transmission grid for the eastern United States be put under control of two regional authorities. One group would oversee New England and the Middle Atlantic states, and the other would be responsible for the Southeast. The move, which reflects the influence of two new appointees by President Bush, was considered a victory for competitive energy suppliers like Enron and a setback for some utilities that had sought to keep more local control of transmission lines. Energy regulators also strongly signaled that they were considering a similar approach for both the Midwest and the West. With the deregulation of the nation's electricity business, federal regulators have been struggling to determine who should have control of transmission lines and how to ensure that the grid is operated in a way that allows all sellers of electricity fair access and guarantees that enough money is spent to keep things working properly. In 1999, the commission told transmission owners to form regional authorities that would oversee different parts of the country. Utilities and other owners had made numerous proposals, including more than a half-dozen just in the Eastern United States. But yesterday, the commission ordered those plans consolidated into two large authorities, a move the agency said was needed to ''establish efficient markets in the Northeast'' and to ''successfully encompass the natural market for bulk power in the Southeast.'' The commission ordered mediators to take charge of negotiations to create both authorities and report back in two months. Some industry officials said they hoped the commission's apparent desire to speed up the process would also ease concerns that badly needed transmission investments had been delayed while issues over control of the grid were sorted out. Competitive sellers of electricity have long sought a more centralized control of transmission. They say this would help eliminate efforts by utilities with longstanding monopoly territories to impede others from doing business in their home regions. Some utilities, however, like the Southern Company, based in Atlanta, have generally favored more localized control of transmission. Steve Kean, an executive vice president at Enron, which is based in Houston, said the ruling was a ''giant step'' that would help end ''rampant discrimination'' by transmission owners against companies that needed access to the grid to sell electricity. ''There is an awful lot of administrative bottlenecks and nonsense that goes on, not posting accurate numbers on available capacity, not scheduling transactions, a lot of bunk going on,'' Mr. Kean said. ''You're going to eliminate a lot of that.'' A spokeswoman for Southern declined comment, saying company officials needed time to digest the order. At that time, officials ''will need to evaluate our options,'' she said. A spokeswoman for New England's independent system operator, which had sought to form its own regional authority, said her agency was disappointed. A spokesman for the New York Independent System Operator, which had also sought to form its own authority, said it needed more time to study the order. While most of the five-member agency endorsed the plan, one commissioner, Linda Breathitt, said in an interview that the decision was a ''dramatic departure'' that turns a ''voluntary approach into almost a mandate.'' She cited the influence of the commission's two newest members, Patrick H. Wood III and Nora Brownell, who were appointed this year by President Bush. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. California; Metro Desk The State UC, Cal State Systems Settle Enron Lawsuit From a Times Staff Writer 07/12/2001 Los Angeles Times Home Edition B-10 Copyright 2001 / The Times Mirror Company The University of California and California State University systems have settled a lawsuit they brought against Enron Energy Services in March to keep the power company from halting their service and exposing them to higher energy costs. The agreement announced Wednesday will extend the universities' contract with Enron for two years--through March 2004--and return them to their previous status as direct-access customers of the Houston-based energy giant. Specifics of the contract extension have yet to be worked out. But university officials said the extension will mean considerable savings for the UC and Cal State systems because it will insulate them from fluctuating power prices. In 1998, the public universities signed a four-year contract with Enron, locking into discounted fixed rates for electricity. But in February, Enron notified the universities and other customers in California that their power would be supplied by Pacific Gas & Electric and Southern California Edison--a shift that saved the energy company money. The universities filed suit, fearing that the change could leave them with soaring energy bills. The settlement "means we're assured of a stable source of electricity for the remainder of the contract," UC spokesman Charles McFadden said. "And it means we're paying a non-spot-market rate for electricity. It's very good news." Terms of the settlement call for Enron and the universities to negotiate price and other aspects of the extension by Dec. 1. The UC and Cal State systems are among the state's biggest electricity consumers, paying more than $125 million a year for power. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. California; Metro Desk The State Enron Gets 2nd Chance to Turn Over Documents Energy: State Senate panel gives the electricity seller a way around a contempt citation. But the company balks. CARL INGRAM TIMES STAFF WRITER 07/12/2001 Los Angeles Times Home Edition B-10 Copyright 2001 / The Times Mirror Company SACRAMENTO -- Acting five hours after Enron Corp. sued to stop a legislative investigation of its business practices, a state Senate committee Wednesday gave the electricity wholesaler a second chance to turn over documents and rid itself of a contempt citation. But officials at Enron, a major player in the California power market, brushed aside the gesture, saying it fell far short of meeting the company's objections. "Our position has not changed. . . . The issues we had at the beginning of the hearing, we still had at the conclusion of the hearing," spokeswoman Karen Denne said. The Houston-based electricity wholesaler claimed in a letter to the Senate investigative committee that it was being singled out as a "political scapegoat" for the energy mistakes of California officials. In the suit, Enron charged that the committee's investigation went far outside the law, an allegation denied by Chairman Joe Dunn (D-Santa Ana). He also denied the scapegoat charge. The lawsuit was filed in Superior Court 62 minutes before the select committee investigating market manipulation was to finalize its earlier finding of contempt against Enron. Enron appears to be the last of eight power sellers to refuse to make documents available to the committee. Seven others also had held out, but in the last two weeks have said they will provide the records or are negotiating to do so. Dunn said the committee must examine the hundreds of thousands of documents, including what Enron called its "most closely guarded secrets," to determine whether price gouging occurred and whether remedial legislation is necessary. Gov. Gray Davis and other officials are convinced that the wholesalers overcharged the state $8.9 billion during the energy crisis. A federal mediator has said the overcharges are closer to $1 billion. But at Wednesday's hearing, an angry Sen. Steve Peace (D-El Cajon), a sponsor of California's flawed 1996 deregulation law, charged that by suing the committee, Enron was trying to "precipitate a constitutional crisis" between the judicial and legislative branches of state government. "You just went to war with the state of California and the people of California!" Peace shouted at Michael Kirby, a San Diego attorney representing Enron. "You are already at war economically. Now you are at war politically." Kirby replied that Enron was merely trying to defend its right to due process against what he called unlawful violations by the committee. He complained that Enron was held in contempt on June 28 but that the company had never been given a chance to present its objections. "An accused criminal has been given more opportunity to have a hearing on their objections than I have [in this committee]," Kirby told the lawmakers. Sen. Debra Bowen (D-Marina del Rey), also an attorney, told Kirby that legislative subpoenas are far different than those issued in the court system and are not subject to the same restrictions because lawmakers must deal with policy issues, not matters of guilt or innocence. In their suit and testimony to the committee, Enron representatives charged the committee had ventured far out of its jurisdiction and that only the Federal Energy Regulatory Commission could legally undertake a wholesale price investigation and impose sanctions. The committee asked for a vast array of documents, including those involving business decisions and transactions in other states. But Enron claimed that the committee had no authority to issue subpoenas outside California and that the subpoenas themselves were flawed. The company asked the court for an injunction against further investigation by the committee and proposed that a "neutral" arbitrator or judge try to fashion a compromise. Dunn suggested that the lawsuit was an effort to intimidate the committee. But he insisted it "will not impact our investigation." Under contempt procedures, last used in 1929, the committee can find an individual or entity in contempt. It then reports its recommendations to the full Senate, which must ratify the committee's action. The Senate also can impose sanctions, ranging from possible jail terms to heavy penalties. Dunn offered Enron what he called a "middle ground" that would give the company an opportunity to change its mind and comply with the subpoenas instead of facing an immediate report to the Senate. Under Dunn's recommendation, approved on a bipartisan 5-0 vote, the report of Enron's failure to comply would be compiled and written, but it would not be delivered to the full Senate until Monday at the earliest. If Enron were to reverse itself and agree to provide the records the committee wants, sign a confidentiality agreement and create a Sacramento repository for its records, the committee would hold the report back. If compliance continued, Dunn said, the committee's contempt finding would be purged. Dunn said he decided to give Enron a second chance because his "No. 1 priority is to get the documents. Contempt is the last resort." Denne, the Enron spokeswoman, noted that the company recently established a document repository in Sacramento for records of its California operations, but not the disputed documents involving business elsewhere. She contended that the confidentiality agreements proposed by the committee failed to "guarantee that these documents would remain confidential." Another wholesaler, Mirant, also had been held in contempt by the committee. But Dunn said that since its June 28 citation, Mirant had become cooperative. The committee agreed to review Mirant's citation in a month and possibly erase it. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Texas-Based Power Company Resists Investigation of Price Gouging in California Dion Nissenbaum 07/12/2001 KRTBN Knight-Ridder Tribune Business News: San Jose Mercury News - California Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World Reporter (TM) SACRAMENTO, Calif.--A Texas-based power company moved to thwart an investigation of alleged price gouging in the electric industry by taking its case Wednesday from the Capitol to the courthouse. The legal action prompted angry lawmakers to accused Enron Corp. of escalating its dispute with the state. "You just went to war with the state of California," a seething state Sen. Steve Peace, D-Chula Vista, told Enron's attorney at a hearing. Enron's lawsuit forced the legislative investigation of alleged price gouging into uncertain territory with some legal experts predicting that the issue might have to be settled by the U.S. Supreme Court. The lawsuit was the latest salvo in an ongoing political and economic battle over billions of dollars companies such as Enron have made during the energy crisis. Enron filed its lawsuit in Sacramento Superior Court an hour before its attorney was scheduled to appear before a Senate committee that two weeks ago declared them in contempt for refusing to turn over thousands of pages of documents. The power company argued in its lawsuit that the committee had no authority to subpoena out-of-state records or examine highly confidential trade secrets. Lawyers also argued that the Legislature was treading on federal oversight powers. In a letter to committee chairman Joe Dunn, an Enron executive suggested the probe had unfairly singled out his company for villification. "It is exceedingly difficult to discern whether the committee's actions are designed to uncover the facts underlying the price spikes in California's wholesale electric power market, or to create a convenient political scapegoat to shoulder the blame for California's policy mistakes," wrote Steven J. Kean, Enron's executive vice president. Dunn, D-Santa Ana, suggested Enron was trying to undermine his investigation and spark a constitutional crisis by asking the courts to overrule the Legislature. "This first step into the litigation arena may be the first of many in an effort to intimidate us out of completing the investigation," said Dunn. "This raises the stakes dramatically." A few hours after Enron filed the suit, Dunn and his committee unanimously reaffirmed a contempt finding and voted to send a report to the full Senate next week. At that point, the Senate would have broad authority to decide how to penalize Enron. It could vote to throw company executives in jail, as the Senate did in 1929 during a price fixing investigation of the cement industry. It could vote to fine Enron for failing to turn over papers. Or it could decide on some other penalty. But Dunn and the other lawmakers gave Enron another chance to rethink their position and turn over the kinds of documents other companies have given to the committee. So far, a half dozen other companies have managed to avoid similar threats by turning over, or agreeing to turn over, thousands of pages of confidential papers. On Wednesday, the committee withdrew a contempt finding against Mirant, which turned over more than 100,000 documents. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Power Company Enron to Extend Contracts with Two California Universities Becky Bartindale 07/12/2001 KRTBN Knight-Ridder Tribune Business News: San Jose Mercury News - California Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World Reporter (TM) Power supplier Enron Corp. tentatively has agreed to extend for two years its direct-purchase contracts with the University of California and California State University to settle a lawsuit the two systems filed earlier this year. The schools sued in March after Enron's energy services unit dumped UC and CSU back on local utility power, which is more expensive. The schools characterized Enron's move as a grab for windfall profits because the company could command much higher prices on the open market. Extending the contracts would save taxpayers at least $12 million a month at UC alone, said UC spokesman Charles McFadden. That is the amount Enron estimates it would cost California to buy power needed for the UC system if most of the campuses had to rely on PG&E and Southern California Edison for power. The settlement means the universities can continue to buy power at the old contract rate until the agreements expire March 31, 2002. To extend the contracts for two years more, the universities and Enron must successfully negotiate terms for new contracts by Dec. 1. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Politics & Policy New Ads Illustrate Weakness of Campaign-Finance Reform --- Spots by Outside Group Run by Former Bush Aides Push White House Energy Plan By Jim VandeHei Staff Reporter of The Wall Street Journal 07/12/2001 The Wall Street Journal A18 (Copyright © 2001, Dow Jones & Company, Inc.) WASHINGTON -- Tune into television news shows this week and you may catch a commercial from something called the 21st Century Energy Project, promoting President Bush's energy policies. The ad is new -- but if it looks and sounds familiar, it should. The peppy background music and footage of beaming faces have been lifted directly from Mr. Bush's presidential-campaign films. Former Bush campaign aides raised the money for the project, wrote the commercials and booked the ads on CNN and affiliates of ABC and Fox News. Many of the conservative donors behind the ads talk regularly with the president's top political adviser, Karl Rove. To advocates of campaign-finance reform, the ad is the latest example of what they see as an outrage to be stamped out: A supposedly independent group seems to be doing a politician's bidding -- in this case, the president's -- despite laws intended to prohibit such coordination. Yet both campaign-finance measures being considered by the House likely will lead to a proliferation of similar ads, which are much harder to regulate and to identify their sponsors under current laws than are traditional politician- and party-sponsored ads. The House will vote today on the Shays-Meehan legislation, companion to the Senate-passed McCain-Feingold bill. It would drastically limit the now-unlimited "soft money" contributions to political parties that are among the largest sources of funding for political ads, and try to strengthen the separation between politicians and interest groups. Though Mr. Bush doesn't favor the House or Senate bill, he is widely expected to sign into law whatever legislation Congress agrees on, given the political momentum behind the issue. Jan Baran, a former Republican Party lawyer who opposes campaign-finance reform, argues that the half-billion dollars in soft money that flooded the system during the 2000 election cycle won't simply vanish from future campaigns. Instead, he says, much of it will reappear in special-interest groups' campaigns such as the 21st Century Energy Project, which are much harder, if not impossible, to control. "There's an undeniable truth: There will be more money spent in the next election than the last election," says Mr. Baran, who represents the U.S. Chamber of Commerce and several other interest groups. But, he adds, "In the future, the money will be diverted around the regulatory system." In that way, parties could steer donors to supportive outside groups, who in turn would run the same political ads that the parties or their candidates might have run, had they been able to raise the money legally. "You will see more of these ads," says Larry Noble, a former general counsel to the Federal Election Commission who is executive director of the campaign-finance watchdog group Center of Responsive Politics. "But the total extent is not clear." To be sure, some contributions will dry up; some Fortune 500 companies, for example, are likely to happily withhold the big checks they feel compelled to write to grab politicians' attention. Many reform advocates say they will be satisfied to flush some of the money out of the system, even if some lesser portion is funneled back through other, outside conduits. "There's bound to be some movement of money if you block off one channel," says Thomas Mann, a political scholar at the Brookings Institution. But he adds, "I think it's a great myth" that all of the soft money will trickle to outside organizations. The McCain-Feingold bill tries to weaken the quasi-independent groups by restricting their political activities in the final days of primary and general-election campaigns. It also would instruct the FEC to better define what constitutes illegal coordination between politicians and outside groups, as a way to prevent politicians from surreptitiously working hand in hand with special interests. House GOP leaders are promoting an alternative measure that would require such groups to report their existence and the identity of their treasurer, but not the identity of their donors. Even if the McCain-Feingold bill becomes law, corporations, labor unions and wealthy individuals still will be free to contribute unlimited soft money to outside groups, and secretly. Under a more-limited law enacted last year, some outside groups are required to report their big-dollar donors periodically. Clever election-law experts already have been counseling their clients among lobbying groups to create quasipolitical organizations or for-profit corporations if they want to hide the identity of their financiers. The 21st Century Energy Project is a perfect illustration of how outside groups can run ads to boost politicians and their agendas, yet stay within federal election laws that prohibit explicit coordination. Mr. Bush mostly has shied away from taking swipes at Democrats on energy issues. Mindful of the polls, he is talking more about energy conservation, which Americans favor, than his proposals for increasing energy production, which are more controversial. Instead of speaking with a backdrop of, say, an idle oil rig, he is talking about dimming the lights in the Oval Office. But, he still wants to sell the country on his market-based, pro-production energy plan. So Republicans, led by GOP lobbyist and former Bush campaign strategist Ed Gillespie, have enlisted energy companies and a Who's Who of the conservative movement to bankroll a campaign of public support for increasing production to avoid an energy shortfall. The image they want to conjure? Think former President Carter's energy crisis, and a return to the '70s-era lines at the local gas pump. As a former communications adviser to Mr. Bush, Mr. Gillespie knows as well as anyone what kind of message the administration would find helpful. Yet he says the White House has played no role in his campaign. "I told some people over there what I was up to, as a courtesy, because I did not want to blindside them with the ads," he says. "The entire debate has been driven from the left. There needs to be a conservative counterpoint." Mr. Gillespie paid $75,000 for this week's ads, and hopes to pull together about $500,000 more for future spots. Contributors include conservative groups such as Citizens for Sound Economy, the American Conservative Union and Americans for Tax Reform. The group isn't required to disclose its financiers and declined to identify others. As a lobbyist, Mr. Gillespie represents energy concern Enron Corp., but he insists the Houston company had nothing to do with the commercials. The ads were written and placed by media strategist Russ Schriefer, who also worked on Mr. Bush's campaign ads. Mr. Schriefer says the president and his staff had no input, though he did use the Bush campaign's footage. "I like the shot," he says. Democrats don't see things so benignly. "It's ventriloquism. They use groups like these to deliver a negative message they don't want the White House to deliver," says Jenny Backus, a spokeswoman for congressional Democrats. "Instead of changing the tone in Washington, they are throwing their voices." Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Coal futures to begin trading but analysts aren't sure it'll heat up energy markets By BRAD FOSS AP Business Writer 07/12/2001 Associated Press Newswires Copyright 2001. The Associated Press. All Rights Reserved. NEW YORK (AP) - While the New York Mercantile Exchange believes it can stoke interest in coal futures trading, analysts say this fossil fuel won't necessarily take off like wildfire on commodities markets. "It's gonna be real wait and see," said David Khani, a coal analyst for Friedman, Billings, Ramsey Group Inc. of Arlington, Va. Futures exchanges exist to transfer the risk of price volatility from people who don't want it - in this case, power producers or steel manufacturers - to speculators who are willing to take a gamble on making profits from this uncertainty. One of the main reasons for doubts about coal as a commodity is that it has little history of wide price fluctuations, a key ingredient in bringing together buyers and sellers. And of the roughly 1 billion tons of coal burned in the United States annually, 80 percent is bought through long-term contracts, not on the daily spot market. Skeptics also contend that the exchange is overestimating the industry's need for coal futures, arguing that power producers are protected from price swings by passing along higher costs to consumers. But those assumptions were under assault as Nymex's Central Appalachian futures contracts were to begin trading on Thursday. The price of coal per ton doubled in a matter of weeks last winter in some parts of the country, boosting the stock prices of coal companies just as quickly. Also, as more and more states deregulate electricity markets, power providers like Mirant Corp., American Electric Power Company Inc. and Dynegy Inc., won't be able to hide behind laws allowing them to pass on higher costs to consumers. Instead, they will be forced to become more competitive with one another, said Andy Ozley, manager of fossil fuels for Atlanta-based Mirant. "Welcome to the free market," he said. "The pace of deregulation will encourage more and more activity on the exchange. At least that's the hope." The swapping of coal contracts is not entirely new. Energy traders, including Mirant, Enron Corp. and Aquila Inc., helped build an international over-the-counter exchange on which some 1 million tons of coal can switch hands on any given day. Some days, not a single transaction takes place. Just how much daily volume Nymex coal futures will add to the mix is anybody's guess. Nymex Executive Vice President Neal Wolkoff said, "If it starts in the low hundreds and builds to maybe 5,000 contracts a day I think that would be viewed as a successful marketplace. "We don't expect this to approach anywhere near the size of natural gas and crude oil," for which hundreds of thousands of contracts are swapped each day, Wolkoff said. At the very least, Wolkoff said, the Nymex coal futures will benefit the industry by making a "transparent price reference" available to buyers and sellers of both long- and short-term contracts. But critics believe Nymex's coal futures will suffer the same low trading volume that the exchange's electricity futures have since 1996. "There will be a flurry of trading when it starts, though I'm not so sure it's going to be a long-term success," said Howard Simons, a finance professor at the Illinois Institute of Technology and a former commodities trader. The run-up in coal prices last winter occurred as demand outstripped supply. Coal companies curtailed production and even closed some mines after a mild winter in 2000 at a time when power producers sought a less expensive alternative to natural gas, which had quadrupled in price. --- On the Net: http://www.nymex.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. INDIA: India power trading firm may help end Enron row. By Sriram Ramakrishnan 07/12/2001 Reuters English News Service (C) Reuters Limited 2001. BOMBAY, July 12 (Reuters) - India's Power Trading Corporation (PTC), a federal agency, has raised hopes of a solution to a row over U.S. energy giant Enron Corp's Dabhol project by indicating it is willing to become the project's main customer, an industry source said on Thursday. But PTC has stipulated as a condition that the power plant's tariffs should be lowered, the source told Reuters. PTC wants Dabhol to slash its tariffs to 2.5-2.7 rupees per unit from over 7.0 rupees, he added. PTC was set up two years ago to trade in surplus power. As Dabhol's customer, PTC would gain access to a large capacity of electricity for distribution to India's power-deficient states. Dabhol would be relieved as it would get a customer who is backed by the federal government, instead of a cash-strapped local utility that has defaulted on payments. Dabhol and India's Maharashtra State Electricity Board (MSEB), which had agreed in 1995 to buy its entire output, are locked in a bitter row over payment defaults and high tariffs. MSEB has reneged on its commitment to buy the output of 1,444 MW from Dabhol's second-phase, citing high rates and has served a notice to terminate its contract with the company. It also owes Dabhol $48 million in unpaid electricity bills. The fight between Dabhol and MSEB has become a test case for foreign direct investment in India. The $2.9 billion plant is the biggest foreign direct investment in the country and the row has affected India's image among foreign investors. SOLUTION NEEDED Dabhol's first phase of 740 MW is up and running, and the second phase of 1,444 MW is 97 percent complete. Analysts said finding a replacement for MSEB is important as Dabhol would not be able to operate the plant otherwise. Dabhol, which is 65 percent owned by Houston-based Enron, has defended its tariff structure and issued its own preliminary notice to terminate the power purchase agreement. Enron Corp's chairman Dr Kenneth Lay, who visited India this week to discuss the controversy, impressed upon the government the need to solve the problem quickly. "I think it is in everybody's best interest - the government of India, the government of the U.S., the investors, the government of Japan - we have many government financial entities involved in this project," he told reporters in New Delhi. The industry source said PTC's move is part of the federal government's efforts to find a quick solution to the problem. "They are afraid of the effect it (the controversy) may have on foreign direct investment," the source added. THE OFFER PTC's offer was made during recent informal discussions with Dabhol and federal government officials and is not a formal proposal. A Dabhol spokesman in Bombay said: "While a number of potential solutions were considered, it would be inappropriate to discuss any specific proposals." PTC officials in New Delhi were not available for comment. But Dabhol is believed to be discussing with lenders ways by which rates can be lowered without hurting the interests of equity shareholders. The tariff of Dabhol's project is structured to include both the interest cost being borne by the company and the assured return on equity that the government guarantees to founders of power projects. The federal government is also exploring options of finding a buyer for Enron 's stake in Dabhol if the U.S. company decides to call it quits. Though Enron has publicly denied any such move, media reports have speculated in recent days that the Houston-based major will soon walk out of the project. The Business Standard newspaper said on Wednesday that the government is exploring the possibility of the state-owned National Thermal Power Corporation (NTPC) buying out Enron's stake. ($1 = 47.15 Indian rupees). Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. India: Enron looks to Centre for early end to row 07/12/2001 Business Line (The Hindu) Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) - Asia Intelligence Wire MUMBAI, July 11. THE Chairman of Enron Corporation, Mr Kenneth Lay, had little to say today on where matters were headed, even after the chain of meetings he had with Government officials, politicians and lenders to the Dabhol power project in the past couple of days. After meeting the Shiv Sena chief, Mr Bal Thackeray, at his residence here on the last leg of his visit to India, Mr Lay told newspersons that he had "productive" discussions with Ministers and Government officials, both at the Centre and the State levels. "I met many people and the response has been positive. It is clear that Maharashtra and the country cannot do without Dabhol power," Mr Lay said. All parties "want to settle the dispute quickly and amicably. In my discussions with the Chief Minister of the State and other officials, it was felt that the Centre has to play a constructive role for the resolution of the problem", he added. The Enron chief also met the IDBI Chairman, Mr S.K. Chakrabarti, today morning. He said the discussion had been "very positive". "IDBI is the largest lender to Dabhol Power Company (DPC). Everyone is keen to complete the project," he said. "It is to be understood that it is not just Enron, but a host of other parties are involved with the project. There are about 40 banks, besides other contractors and co-promoters, GE and Bechtel. It is the single-largest foreign direct investor in India. This country needs the project and the power produced by DPC," he said. To a question on whether the LNG facility would be bifurcated from the power project, Mr Lay said that any way it "would not affect the economics of the project". Mr Lay, however, hinted that it could be a possibility and said LNG is very important for the country. He also stated that the "key" role in resolving the disputes has to be played by the Union Government. About his meeting with Mr Thackeray, Mr Lay said the Shiv Sena chief has always had good ties with Enron. "He offered several insights. He has been involved (with the project) when his party's Government was in power in the State," he said. Mr Thackeray said that the issue should not be politicised. "I would request all parties to keep off Enron. It should be solved amicably," he said. "Enron will provide the power and we will provide them energy," Mr Thackeray added. Our Bureau Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. INTERVIEW: Danish Vestas CEO Confident Of Mkt Leadership By Frances Schwartzkopff Of DOW JONES NEWSWIRES 07/12/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) COPENHAGEN -(Dow Jones)- Vestas Wind Systems A/S (K.VWS), the world's largest producer of wind turbines, is gearing up to meet rising world demand for clean energy. Chief executive officer Johannes Poulsen told Dow Jones Newswires this weekthat worldwide demand for turbines will outstrip the company's present capacity in 2003. As a result, Vestas is poised to expand production. It plans to do this organically through the construction of new plants and the expansion of existing ones, rather than through acquisitions, he said. "We need more capacity as far as we can see with our forecasts," he said. "We feel it's easier to grow organically than by acquisitions and probably also a more natural solution, when the growth is caused by industry growth." In line with earlier predications, Vestas estimates that sales for 2003 will be around 14 billion kroner ($1=DKK8.7126), more than double the DKK6.5 billion the company pulled in last year. "We need to increase capacity for that," Poulsen said. "But we have not decided where it will be." The U.S. is a near-certain target. Poulsen said Vestas is planning to build production facilities there. The company currently has a sales and service force of about 120 for importing turbines in the U.S., but no manufacturing capability there. "We are preparing ourselves for production investments in the U.S.," Poulsen said, declining to give details. "The extension of the tax credits will be the trigger." The U.S. production tax credit for power from renewable sources is set to expire at year's end, but President George W. Bush has asked Congress to renew it. That is expected to happen later this year. Confident Of Maintaining Market Share Getting production to meet demand is tough, particularly when demand increases between 30% to 35% annually, according to the European Wind Energy Association. NEG Micon A/S (K.NEG), Vestas' chief Danish rival and the world's second largest maker of turbines, nearly went under a couple of years ago, when the pressure to produce was exacerbated by problems with its gear box. But Vestas has proven it's more than just a weather vane blown about by gusts of demand. It's built up a reputation as a company able to deliver a quality product on demand. That performance has sent its stock price rocketing more than tenfold since it's initial public offering. At 1125 GMT, the share was trading at DKK380, compared with a mere DKK29.80 where it closed on its first day of trading Nov. 5, 1998. Despite the sector's furious growth rate, the Danish company is confident it can hold onto its 32% share of the world wind turbine market, which includes the market share of Spain's Gamesa Energia, of which Vestas holds 40%. "We expect to be able to maintain our market share in this fascinating, growing industry by being in the markets where things are happening and being able to expand our capacity when needed," Poulsen said. Already the company has taken big steps to meet the rising demand in Europe, which will require 60,000 megawatts of capacity by 2010 if the growth rate continues at its present level, the EWEA estimates. Last month, Vestas said it would set up fully owned production facilities in Scotland, while in May it said it would build a blade plant in Germany. "Those are capacity expansions in countries where the market is supposed to be," and will carry the company through 2002, Poulsen said. Helping fuel demand is the European Parliament's directive on renewable energy, approved earlier this month, that allows member countries to proceed with their incentive schemes for encouraging wind power and requires grid operators to accept power from wind producers. Industry experts say the directive will reassure investors that wind energy isn't a speculative venture of long-haired environmentalists but a long-term energy solution. Already there's a "decent framework" in place in Denmark, Germany, France, Spain and Italy, said Poulsen, who predicts the wind turbine manufacturing industry will be dominated by four to six producers. "The existing players have the capacity to maintain their positions in the industry," he said. According to the EWEA, the top suppliers are Vestas and Gamesa, Micon, Germany's Enercon and Nordex AG (G.NDX), the U.S.'s Enron Wind Corp. and Denmark-based Bonus A/S. Company Web Site: http://www.vestas.dk -By Frances Schwartzkopff; Dow Jones Newswires; +45 3311 1524; frances.schwartzkopff@dowjones.com 12/07/01 11-31G Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. FERC Raises Uncertainty for Midwest Power Grid Operators By Jon Kamp 07/11/2001 Dow Jones Business News (Copyright © 2001, Dow Jones & Company, Inc.) Dow Jones Newswires CHICAGO -- The Federal Energy Regulatory Commission's apparent plans for the future of the country's power grid throw into question a recent settlement regarding control of the grid in the Midwest. Although the commission didn't order any changes in the Midwest, its indication Wednesday that it wants a single independent operator to run the grid in each of four regions appears to contradict arrangements in the country's midsection, where two grid operators plan to share control. "Our main concern right now is the uncertainty that is going to pervade things," said a senior Washington industry official familiar with the situation. The Midwest Independent Transmission System Operator Inc. and the Alliance RTO -- which together would control the flow of power from the Great Plains to Virginia -- this spring struck a deal under which they would offer a single transmission rate to members of either group. The Midwest ISO said it doesn't expect major changes to arrangement as a result of FERC's actions. FERC itself in May approved the grid operators' joint-operating settlement, and the commission indicated Wednesday the settlement still had its unanimous support, Midwest ISO spokeswoman Mary Lynn Webster said. "Yes, there are two [operators] in the Midwest, but they act as one," she said. "We have no reason to believe that the FERC is asking us to do anything in the Midwest." In draft orders Wednesday, FERC said transmission owners in the Northeast and Southeast need to form one large grid operator for each region. FERC also said it would consider ordering parties in the Midwest and West to enter talks to move in a similar direction. The steps were a big move for FERC, which has been criticized by some for moving too slowly to put the country's power grids in independent hands. Recently seated Bush-administration appointees have shifted the balance of power on the commission to favor supporters of more aggressive action. "We're moving ahead sharply," said Commissioner William Massey, backed by new arrivals Pat Wood of Texas and Nora Brownell of Pennsylvania. Mr. Massey lauded the commission's "new resolve" to forge a handful of large grid operators nationally. Power marketing companies like Enron Corp. (ENE) and Mirant Corp. (MIR), which have long pressed FERC to take a more active role to reduce utility control over transmission access and trim back multiple transmission charges, immediately voiced strong support for FERC's moves. Steve Kean, an executive vice president at Enron, said the company would like to see FERC's plan for single regional transmission organizations extend beyond the Northeast and Southeast to areas like the Midwest. "I hope the commission is going to extend this process to the rest of the country," Mr. Kean said. The Washington official, however, said the new FERC orders could threaten the commission's Dec. 15 deadline for having regional transmission organizations in place. Parties involved in the grid operators were slow to gauge the impact of FERC's Wednesday moves, saying they need time to analyze the orders. It's unlikely they saw move coming. Just this spring, Dynegy Inc.'s (DYN) Illinois Power Co., Ameren Corp. (AEE) and Exelon Corp.'s (EXC) Commonwealth Edison Co. -- three defectors from the Midwest ISO to the Alliance -- agreed to pay the Midwest ISO a collective $60 million to keep the grid operator afloat as an independent entity. The nonprofit Midwest ISO and the for-profit Alliance RTO both plan to start operating as regional transmission organizations by Dec. 15. Kristen McNamara in New York contributed to this article. Write to Jon Kamp at jon.kamp@dowjones.com Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Two Calif Univ Sys In Tentative Deal For Cheaper Pwr 07/11/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) LONG BEACH, Calif. (AP)--California's two public university systems have reached a tentative settlement allowing them to continue to buy cheaper power. Enron Energy Systems Inc. had asked to be released from the last year of a four-year contract with the universities, saying it was losing $12 million a month on the deal because of spiraling wholesale power costs. The state refused, and in April a federal judge ordered Enron to abide by the contract. Enron appealed to the 9th U.S. Circuit Court of Appeals. Under the tentative settlement, Enron has agreed to extend its contract with California State University and the University of California for two years, Chancellor Charles B. Reed told CSU's board of trustees Wednesday. The university systems are continuing to negotiate price and other terms of the extension; the agreement is expected to be finalized by December. "The agreement means considerable savings for the universities," said Richard West, Cal State's executive vice chancellor and chief financial officer. In a statement, Houston-based Enron, which buys power from producers and sells it on the wholesale market, confirmed the tentative agreement. The University of California's annual electric bill is about $87 million and its natural gas bill is about $26 million. Cal State annually pays about $40 million for electricity and $20 million for natural gas. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. USA: UPDATE 1-Calif. pursues contempt proceeding against Enron. 07/11/2001 Reuters English News Service (C) Reuters Limited 2001. SACRAMENTO, Calif., July 11 (Reuters) - A California legislative committee voted on Wednesday to ask the full state Senate to determine whether Enron Corp. should be held in contempt for failing to supply confidential documents as required by subpoena. The Senate Select Committee to Investigate Market Manipulation, which is probing allegations of price gouging in California's power crisis, voted 6-0 to move against the Houston-based energy giant after an angry hearing in which Enron representatives repeatedly questioned the committee's authority. If passed by the full Senate, the contempt citation would be the first imposed by California's state senate since 1929. While deciding to move against Enron, the committee voted to terminate contempt proceedings against generator Mirant Corp. , saying that company was now cooperating with its investigation. According to state law, California's senators must now decide whether to slap sanctions on Enron. They also have the option of fining or imprisoning the company's senior officers. To make sure things don't go that far, Enron just a few hours earlier launched a preemptive strike, filing a lawsuit in Sacramento Superior Court challenging the investigative committee's authority to subpoena company documents. "Today Enron has filed suit against the Select Committee seeking to have an impartial neutral court determine Enron's rights and obligations under the Select Committee subpoena," Enron said in a statement. While agreeing to provide "certain information and documents sought in the Committee's subpoena", the Houston-based company again refused to hand over confidential business documents. JURISDICTIONAL DOGFIGHT Enron argued the committee has no legal jurisdiction over wholesale electricity prices, which are regulated by the Federal Energy Regulatory Committee (FERC), and that the committee's proceedings violate the company's legal rights. The company also questioned whether the committee's actions "are designed to uncover the facts underlying the price spikes in California's ... power market, or to create a convenient political scapegoat to shoulder the blame for California's policy mistakes and changes in market fundamentals." State senator Steve Peace, one of the architects of the law deregulating California's electric industry, lashed out at Enron at today's hearing, accusing the company of trying to "drive a wedge" between the judicial and legislative branches of California government by challenging the process in court. "You have declared war on the state of California ... You are very smart people, I'll give you that. Nefarious and smart," he said, staring at Enron's legal team. In addition to Enron and Mirant, state officials have accused Reliant Energy Inc. , Duke Energy Corp. , Williams Cos. , and Dynegy Inc. of overcharging California power agencies and utilities some $8.9 billion for wholesale electricity over the past 14 months. Power prices in the state soared tenfold over the past year, prompting warnings from California Governor Gray Davis that the state is on track to spend $46 billion for electricity this year compared with $7 billion in 1999. Davis has blasted FERC commissioners for failing to ensure just and reasonable power prices in California and threatened to take the matter to federal court unless it is awarded refunds for the full $8.9 billion at stake. Independent energy merchants have blamed the price spike on the state's poorly designed electricity deregulation law and a failure to build enough power plants to meet the growing needs of its 34 million residents and its industries. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron Sues California Senate; Panel Urges Contempt (Update4) 2001-07-11 19:58 (New York) Enron Sues California Senate; Panel Urges Contempt (Update4) (Adds Enron's document repository in sixth paragraph.) Sacramento, California, July 11 (Bloomberg) -- Enron Corp., the world's largest energy trader, sued a California state Senate committee to quash a subpoena for documents and accused the panel of trying to scapegoat the company for the state's power woes. The Senate Select Committee to Investigate Price Manipulation in the Wholesale Energy Market responded by voting for a second time to recommend the full state Senate hold Enron in contempt. The company may face fines or other punishment if it refuses to turn over the documents. The vote was 6-0. Enron is fighting a committee subpoena issued last month demanding thousands of pages of documents relating to energy trading in California. The panel is probing whether generators manipulated the power market. Soaring wholesale prices last year left utilities unable to buy power, and the state began purchasing energy on their behalf. ``It is exceedingly difficult to discern whether the committee's actions are designed to uncover the facts underlying the price spikes in California's wholesale market, or to create a convenient political scapegoat,'' Enron Executive Vice President Steven Kean wrote in a letter to the committee. The full Senate won't receive the committee's recommendation until next week, giving Enron time to turn over the documents, said Committee Chairman Senator Joseph Dunn, a Democrat. ``The next move is now up to Enron,'' Dunn said. Enron has rented a document repository in Sacramento, and is assembling documents to turn over, said Michael Kirby, an attorney who represented Enron during today's hearing. The company and Dunn's committee first must come to an agreement on confidentiality, he said. Houston-based Enron has offered about 25,000 pages of documents, Special Counsel to the Committee Larry Drivon said. The Lawsuit Enron's suit, filed in Sacramento Superior Court, claims that federal regulators have sole jurisdiction over wholesale-energy trading and that the Senate subpoena is too broad, according to a copy of the suit released by Enron. Enron also accused the committee of singling it out for blame when dozens of companies sold power to the state. The committee has subpoenaed almost 20 companies and agencies, including generators and the state's largest investor- owned and municipal utilities. The subpoenas were originally blocked by a separate state Senate committee, which criticized them for being overly broad. The subpoenas were altered and then approved. They ask for more than 70 separate items, including documents tracking all power sales in California, e-mails, phone logs, records of any ``trading strategies'' and financial records. The committee voted last month to hold Enron and Mirant Corp. in contempt if they failed to turn over the documents. The committee referred that contempt vote against Enron to the full Senate today. Others Comply Mirant has already turned over about 160,000 pages of documents, Drivon said. The committee voted to nullify the contempt charge against Mirant. AES Corp. Duke Energy Corp., Dynegy Inc., NRG Energy Inc., Reliant Energy Inc. and Williams Cos. have begun to comply with the subpoenas, Dunn said. During today's hearing, members of the Senate select committee said Enron has been less forthcoming with information than the other companies, and its tone has been more combative. ``We have gotten no indication that Enron ever intends to comply with the subpoena, and that's why we're here,'' said Democratic Senator Debra Bowen, a member of the committee and chairwoman of the Senate's utilities committee. `Never Had Hearings' Enron's attorney said the company complied with the subpoena by detailing its objections to the document requests in a June 28 letter. Enron is being held in contempt without due process, Kirby said. ``We have made objections and we have never had hearings on the objections,'' Kirby told the committee. California claims energy generators and traders overcharged t
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