|
|
Enron Mail |
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Dasovich, Jeff </O=ENRON/OU=NA/CN=RECIPIENTS/CN=JDASOVIC< X-To: Mike Florio <mflorio@turn.org< X-cc: X-bcc: X-Folder: \JDASOVIC (Non-Privileged)\Sent Items X-Origin: Shankman-J X-FileName: JSHANKM (Non-Privileged).pst So I'm assuming that you support the plan? Best, Jeff -----Original Message----- From: Mike Florio Sent: Mon 9/24/2001 11:13 PM To: Dasovich, Jeff Cc: Subject: Re: Dissent from Commissioners Bilas and Duque Opposing Suspension of DA I have a new description of PG&E's reorg plan-- it is the ultimate expression of their longstanding affliction with Enron-envy. Now that they're cutting loose the UDC/LDC, they can fall flat on their faces with no safety net (except the hydro, of course). MIKE At 04:43 PM 9/24/2001 -0500, you wrote: < < Commissioners Henry M. Duque and Richard A. Bilas, dissenting: < < < < One could say that this order is consistent with the Administration's < < present third world country mentality. We are punishing the very < < consumers and providers who made a commitment to ensuring electric < < restructuring did work by adding a demand retail component to cure the < < dysfunctions in the wholesale market. < < < < We are not convinced that the Department of Water Resources (DWR) bond < < ratings depend on killing direct access. This notion is a scare < < tactic and a smoke screen. Direct access comprises such a small < < percentage of overall demand that it cannot reasonably be seen to be a < < threat to the sale of the bonds. Direct Access should be seen as a < < benefit to DWR. It would decrease the amount of the utilities net < < short obligations and relieve DWR from its power purchasing < < responsibilities sooner. < < < < Something else is going on here. We think that the DWR does not want < < direct access because if the public is presented with alternatives, it < < will make DWR's purchasing mistakes abundantly clear. The Commission < < should be holding hearings to test the assertions being made by DWR, < < Finance and the Treasurer. Instead, the Commission is making an ill < < informed, panicked decision to act now and study the repercussions < < later. < < < < DWR and the bonds should not be threatened by direct access if < < DWR is making prudent energy purchases. Only if DWR's contracts are < < too expensive, relative to market, will customers seek shelter in < < lower direct access prices. Indeed, retaining direct access as a way < < to send price signals to consumers may be the only way to place < < pressure on DWR to make more prudent purchases. This is a very < < important consideration since AB 1X prevents us from engaging in any < < prudency review of the DWR costs to be passed through to ratepayers in < < order to repay the bonds. If there is no yardstick, how can anyone < < measure DWR performance? The answer is, one can't, unless SB 18xx is < < signed into law. < < < < We think that additional review of these issues, before < < suspending direct access, would have produced a more sound decision in < < the long run. < < < < For these reasons we must respectfully dissent. < < < < < < < < < < /s/ HENRY M. DUQUE /s/ RICHARD A. BILAS < < Henry M. Duque < < Richard A. Bilas < < Commissioner Commissioner < < < < September 20, 2001 < < < < <********************************************************************** <This e-mail is the property of Enron Corp. and/or its relevant affiliate <and may contain confidential and privileged material for the sole use of <the intended recipient (s). Any review, use, distribution or disclosure by <others is strictly prohibited. If you are not the intended recipient (or <authorized to receive for the recipient), please contact the sender or <reply to Enron Corp. at enron.messaging.administration@enron.com and <delete all copies of the message. This e-mail (and any attachments hereto) <are not intended to be an offer (or an acceptance) and do not create or <evidence a binding and enforceable contract between Enron Corp. (or any of <its affiliates) and the intended recipient or any other party, and may not <be relied on by anyone as the basis of a contract by estoppel or <otherwise. Thank you. <**********************************************************************
|