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Enron Mail |
----- Forwarded by Jeff Dasovich/NA/Enron on 01/05/2001 04:12 PM -----
Cynthia Sandherr 01/05/2001 04:10 PM To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Tom Briggs/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Donna Fulton/Corp/Enron@ENRON, Susan J Mara/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron, Sandra McCubbin/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT cc: Subject: Barton Statement on CA Electricity Situation, 01/05/01 < Contact: Samantha Jordan < (202) 225-2002 < Date: Friday, January 5, 2001 < < Statement RE: Electricity Price Concerns in California < < "Electricity restructuring, in principle, did not cause the problems < California is experiencing -- it just exposed them more obviously to < consumers there. California did not deregulate properly, nor did it < ensure a sufficient power supply. < < The state framework in place in California created a situation < allowing for almost zero growth in generation and almost zero growth in < transmission at a time when the service region's population was growing < substantially. The strict process to obtain permits or new licenses < limits interest in constructing new power plants and transmission lines. < California's stringent environmental standards, the most rigid in the < nation, restrict the interest of new providers wishing to enter the < market. The California legislation was therefore enacted in an < environment in which consumers were not encouraged to limit usage, demand < continued to increase and the power reserves began to deplete. The < surrounding states, strapped by their own growth, have been unable to < provide additional power supplies to California at a reasonable cost. < < Unfortunately, the Clinton Administration and the California < government had an opportunity as early as last summer to foresee this < oversight and make changes that would have helped stave off this < situation, however they chose not to make the fundamental changes < necessary. The problems in the state's market were obvious months ago and < earlier action could have avoided a crisis. The actions now necessary did < not need to be this painful. < < Governor Davis should be looking for a practical, California-based < solution rather than name-calling, threatening and playing politics with < the pocketbooks of his consumers and stockholders. It is very important < to keep independent generators of power interested in selling to < California -- these crucial participants should not be scared away when < California needs power the most. < < When the 107th Congress convenes for business, it is my intention to < hold a series of hearings, focusing not only on the California situation, < but the overall energy situation in the United States. I have also < requested a meeting with Bush officials to discuss these issues, and < develop a plan of action to deal with them, as soon as the Administration < is formally in place." < < < -U.S. Representative Joe Barton (R-TX) < < As Chairman of the House Commerce Subcommittee on Energy & Power, Barton < was responsible for the first comprehensive electricity deregulation < package to pass a House Subcommittee. He is expected to be re-appointed < to this chairmanship in the 107th Congress, where he will have House < jurisdiction over all energy matters.
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