|
|
Enron Mail |
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Susan J Mara X-To: Karen Denne, Jeff Dasovich, Richard Shapiro, James D Steffes, Mark Palmer, Ray Alvarez, Alan Comnes, Robert Frank, Linda Robertson, Sarah Novosel X-cc: X-bcc: X-Folder: \Jeff_Dasovich_Oct2001\Notes Folders\Notes inbox X-Origin: DASOVICH-J X-FileName: jdasovic.nsf Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854 ----- Forwarded by Susan J Mara/NA/Enron on 06/28/2001 11:27 AM ----- "Beiser, Megan" <Megan.Beiser@edelman.com< 06/28/2001 08:54 AM To: "'arem@electric.com'" <arem@electric.com<, "Allen, Stevan" <stevan.allen@edelman.com<, arm@phaser.com, Bob_Anderson@apses.com, "brbarkovich@earthlink.net" <bbarkovich@earthlink.net<, cra@calretailers.com, dennis.flatt@kp.org, dhunter@s-k-w.com, Dian Grueneich <dgrueneich@gralegal.com<, djsmith@s-k-w.com, Dominic.DiMare@calchamber.com, drothrock@cmta.net, "Fairchild, Tracy" <tracy.fairchild@edelman.com<, gdoar@newpower.com, gharrison@calstate.edu, hgovenar@govadv.com, jackson_gualco@gualcogroup.com, James Simonelli <ccma@foundryccma.org<, "jerryl@abag.ca.gov" <jerryl@abag.ca<, .gov@mailman.enron.com, johnlatimer@capitoladvocacy.com, ken_pietrelli@ocli.com, kgough@calpine.com, kmccrea@sablaw.com, kmills@cfbf.com, lhastings@cagrocers.com, "Manuel, Erica" <Erica.Manuel@edelman.com<, mday@gmssr.com, mmoretti@calhealth.org, nplotkin@tfglobby.com, randy_britt@robinsonsmay.com, richard.seguin@kp.org, RochmanM@spurr.org, rrichter@calhealth.org, sgovenar@govadv.com, smccubbi@enron.com, spahnn@hnks.com, sschleimer@calpine.com, theo@ppallc.com, vincent.stewart@ucop.edu, vjw@ceert.org, "Warner, Jami" <jami.warner@edelman.com<, wbooth@booth-law.com, wbrown@lhom.com, wlarson@calstate.edu cc: Subject: Front Page San Francisco Chronicle: Bush appointee warns state PU C on 'direct access' Here's a direct access article that appeared on the front page of today's San Francisco Chronicle. This article gives Pat Wood of FERC's position supporting direct access in California. Edelman worked with Bernadette Tansey on this article and provided her with information on AReM and the DA coalition's goals, as well as background on direct access. We are also currently working with the Chronicle's Editorial board to secure an editorial **************************************** Bush appointee warns state PUC on 'direct access' FERC panelist wants consumers to retain choice of energy firms Zachary Coile, Bernadette Tansey, Chronicle Staff Writers Thursday, June 28, 2001 ,2001 San Francisco Chronicle URL: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2001/06/28/MN207167.DTL Washington -- President Bush's key federal energy regulator warned California that it may hurt consumers if the state approves a proposal to bar power users from shopping around for the best prices for electricity. Patrick Wood, a member of the Federal Energy Regulatory Commission and Bush's liaison to the state on energy issues, criticized a plan before the California Public Utilities Commission to suspend a major element of the state's 1996 deregulation plan. Called "direct access," the program allows businesses to cut deals with private power suppliers and permits consumers to choose among competing electricity providers, including firms that market renewable sources of energy. Members of the state PUC, which had been set to consider the issue today, said yesterday that they will delay the vote on direct access until Tuesday at the urging of Assembly Speaker Bob Hertzberg, D-Sherman Oaks. Wood, who met with state PUC chairwoman Loretta Lynch during a two-day trip to California earlier this week, said he fears that ending direct access will lock consumers into higher energy prices. "I do worry about the future of retail competition," he said yesterday in Washington. "I think a lot of things they're trying to do to resolve today's problem may really push off the benefits of direct access for quite a few years. I'm really concerned about that." At the same time, Wood stressed that the federal regulators would not try to override the commission's and Legislature's decision. "It's their call. It's a state prerogative," he said. The state PUC is expected to suspend direct access Tuesday because the state needs all energy users -- especially big industrial consumers -- to stay on as utility customers and help pay off the $8 billion the state has already spent on energy, and $43 billion more worth of power bought through long-term contracts. Lynch said the PUC must act soon because state Treasurer Phil Angelides has warned that allowing direct access to continue without restrictions would threaten the state's ability to sell $12.5 billion in bonds to pay for the power purchases. If some customers are allowed to desert the utilities and buy power from competitors, fewer ratepayers would be left to pay off the bonds. And the remaining utility customers would be stuck covering the huge costs racked up during the energy crisis. "We need to be sure the bonds are issued," Lynch said. Even though direct access has been allowed since 1996, few businesses or householders actually did it. At its peak, the program drew about 224,000 households -- about 2.5 percent of the customer base of California's major utilities. About 13 percent of the industrial market contracted for their own power. When the state took over buying power for the cash-strapped utilities in January, the Legislature directed the PUC to suspend the direct access program. LAST CHANCE FOR DIRECT ACCESS Still, Hertzberg asked Lynch to delay the PUC's vote on direct access until next week so legislators who back the program can try to save it in a deal that would still provide a steady stream of revenue for the bonds. "We're looking at options as a last-ditch effort," Hertzberg said. "If the PUC had made the decision to suspend direct access, that would have had a chilling effect on anything we want to do." Wood, a champion of energy deregulation, said he believes that California should not abandon its effort to increase competition by allowing customers more choices about where they get their power. "Deregulation always benefits people," he said. "If it doesn't, you've got to rework it until it does." WARNING FROM CHAIRMAN-TO-BE Wood, a soft-spoken Texan who is expected to become the regulatory commission chairman this fall, praised California leaders for their efforts to address the crisis, including getting new plants built quickly. But in meetings this week, he cautioned Gov. Gray Davis and other state leaders against trying to punish the generators for alleged past wrongs. "I think the rhetoric is still pretty hot out there," he said. "If I were a generator looking at 50 states, talking about a windfall profits tax and expropriation of property. . . . it's not a great climate" for investing in new plants. Zachary Coile reported from the Chronicle's Washington bureau, with Bernadette Tansey in San Francisco. Sacramento Bureau Chief Greg Lucas also contributed from Sacramento. / E-mail the writers at zcoile@sfchronicle.com and btansey@sfchronicle.com. ,2001 San Francisco Chronicle Page A - 1
|