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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Susan J Mara X-To: Mark Palmer, James D Steffes, Richard Shapiro, Karen Denne, Jeff Dasovich, Janel Guerrero, Robert Frank, Harry Kingerski, Robert C Williams, Vicki Sharp, Leslie Lawner, Paul Kaufman, sgovenar@govadv.com, hgovenar@govadv.com, bhansen@lhom.com, ken@kdscommunications.com, mday@gmssr.com X-cc: X-bcc: X-Folder: \Jeff_Dasovich_Oct2001\Notes Folders\Notes inbox X-Origin: DASOVICH-J X-FileName: jdasovic.nsf Some AReM members met with the SJ Mercury News Editorial Board and the editorial below is the result Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854 ----- Forwarded by Susan J Mara/NA/Enron on 06/27/2001 01:28 PM ----- "Fairchild, Tracy" <tracy.fairchild@edelman.com< 06/27/2001 12:27 PM To: "Allen, Stevan" <stevan.allen@edelman.com<, AReM <arem@electric.com<, "Douglas Oglesby (E-mail) (E-mail)" <doao@chevron.com<, "Erica Manuel (E-mail)" <erica.manuel@edelman.com<, "Fairchild, Tracy" <tracy.fairchild@edelman.com<, "Jeffrey Hanson (E-mail) (E-mail)" <jeff.hanson@phaser.com<, "Joseph Alamo (E-mail) (E-mail)" <jalamo@enron.com<, Megan Beiser <megan.beiser@edelman.com<, "'Robert Morgan' (E-mail)" <rmorgan@newenergy.com<, "Warner, Jami" <jami.warner@edelman.com< cc: "Warner, Jami" <jami.warner@edelman.com< Subject: Media Coverage of Direct Access News Conference Hello AReMers: Below you will find the list of media outlets that covered our news conference yesterday. In addition to media present at the conference, we also had 12 reporters listening in via teleconference (only six asked questions). I am attaching the stories that we have already found; we'll send more as they are published today and throughout the week. The SJ Merc editorial also ran today (it's excellent) and we're keeping an eye out for the Bee editorial and the possibility that Bill Stall of the LA Times may write on this issue. He was at the conference but has made only neutral comments about whether he'll write anything. Orange County Register--Kate Berry Wall Street Journal--Rebecca Smith, John Emshwiller and Mitchel Benson Associated Press--Karen Gaudette San Jose Mercury News--John Woolfork, Mike Bazeley North County Times--Dennis Devine San Diego Union Tribune--Ed Mendel San Francisco Chronicle--Greg Lucas, Bernadette Tansey (this story will probably run on Friday) Los Angeles Times--Bill Stall Bloomberg News--Daniel Taub California Energy Markets--JA Savage Electric Power Daily--Ethan Howland Restructuring Today--George Spencer Natural Gas Intelligence--Richard Nemec Capitol Public Radio (NPR) KFBK Radio--Mike Ward PacSat News Satellite <<NGI Daily 2001June27.pdf<< <<rt010627.pdf<< Even better than expected .... Published Wednesday, June 27, 2001, in the San Jose Mercury News EDITORIAL The opinion of the Mercury News PUC should keep consumers plugged in to power choices AT the beginning, the restructured California electricity market was supposed to include competition among sellers of electricity -- offering green power or cheaper power -- not just competition among generators. As things played out, retail competition was nearly smothered. Now, with the state buying electricity on behalf of utilities, it could take a further blow. State officials are leery of letting customers go to other suppliers now that the state will buy huge amounts of electricity over the next decade. The Public Utilities Commission Thursday might suspend ``direct access,'' the ability of consumers large and small to cut their own deals with electricity suppliers, instead of being forced to buy through the state/utilities. The PUC should leave it alone. Instead, the Legislature should continue discussing ways of revitalizing direct access without leaving the state with long-term contracts and not enough customers. Ultimately, the state should get out of the electricity business. Keeping retail competition alive is one avenue of escape. ******************************************************** There's a slightly negative zinger at the very end, but overall a balanced story. Published Wednesday, June 27, 2001, in the San Jose Mercury News CALIFORNIA'S ENERGY CRISIS PUC likely to call a halt to shopping for power BY MICHAEL BAZELEY <mailto:mbazeley@sjmercury.com< AND JOHN WOOLFOLK <mailto:jwoolfolk@sjmercury.com< Mercury News State regulators Thursday are expected to pull the plug on electricity deregulation's core feature: the ability of customers to shop around for alternative power. After July 1, residential and business customers would no longer be allowed to shop for a new electricity provider under a measure expected to be approved by the California Public Utilities Commission. State leaders fear that after stepping in and buying premium-priced power to avoid blackouts this year, big businesses will flee for a better deal, sticking small consumers with the government's energy bill. Those consumers would then face higher rates, causing even more to flee. ``You create a death spiral,'' said Sen. Debra Bowen, D-Redondo Beach. Business leaders, alternative energy providers and some state officials are desperately trying to head off the move, saying they've saved a bundle on energy through the ``direct access'' option of bypassing the major utilities. ``While we're coping with the rate increase, we think direct access is the best way for us to manage the cost of energy,'' said Dominic DiMare, legislative advocate of the California Chamber of Commerce. ``It leads to market discipline as well as innovation,'' DiMare said. Supporters argue the state, which approved a record $13.4 billion in bonds to cover power costs, can guarantee payment without killing off customer choice. They backed an alternative proposal Tuesday by utilities Commissioner Richard Bilas in which customers would pay a charge to cover the state's energy bonds, regardless of their electricity provider. Customers already pay similar charges to cover an array of costs from nuclear decommissioning to conservation programs. ``It still gives people the opportunity to buy energy that might not necessarily be cheaper, but that meets their needs more,'' said Rick Counihan, spokesman for Green Mountain Energy, which markets power from renewable sources such as solar and wind. But even Bilas gives his proposal long odds of approval, saying ``If I were a betting man'' he'd say his plan ``would go down.'' The ability to shop for power was the impetus for the state's 1996 deregulation bill. The architects of deregulation -- led by business groups -- believed that if customers could buy power directly from producers, it would promote competition and drive down prices. It never happened. Wholesale power costs soared, and that, along with a host of other issues, drove companies out of the state, forcing tens of thousands of consumers back into the arms of utilities. Now, though, with significantly higher electric rates going into effect this month, choice is looking more attractive than ever to big businesses. Joined by alternative power companies, they are trying to push a bill through the Legislature that would set up a framework for continued choice. ``Manufacturers live and die by the ability to cut costs,'' said Gino DiCaro, spokesman for the California Manufacturers and Technology Association. ``If they have an opportunity to save money, we don't feel there's any reason that should be taken away.'' That type of freedom raises a host of thorny issues. The state is now buying power on behalf of utilities and entering into dozens of long-term power contracts. If businesses and residential users flee the system, the state could be left with a surplus of costly power and fewer users to pay for it. That, in turn, could mean higher rates for the remaining users. Bowen is trying to address these issues in a bill that would make customers pay when they leave the system. Her bill also would allow users to go into the market only during annual enrollment periods, and it would limit the amount of power that could be bought on the open market. Business groups are fighting those provisions. Contact Michael Bazeley at mbazeley@sjmercury.com <mailto:mbazeley@sjmercury.com< or (415) 434-1018. Tracy Fairchild Senior Account Supervisor Edelman Public Relations Worldwide (916) 442-2331 tracy.fairchild@edelman.com - NGI Daily 2001June27.pdf - rt010627.pdf
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