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Enron Mail |
-----Original Message----- From: =09Jonathan Thomas <jthomas@saybrook.net<@ENRON =20 Sent:=09Monday, September 10, 2001 8:59 PM To:=09'EFeo@milbank.com'; awirum@pillsburywinthrop.com; fallon_annamarie@jp= morgan.com; alafaire@exchange.ml.com; arlene.gibbs@chase.com; byoung@llgm.c= om; bgreene2@mail.state.tn.us; bholman@whitecase.com; bkrakauer@sidley.com;= fishbcr@whitecase.com; ceklund@llgm.com; charles.wyman@pimco.com; clara.st= rand@bankofamerica.com; dan.faltermeier@dynegy.com; david.adante@davey.com;= david.behenna@pimco.com; dcussen@gibsondunn.com; dnelsen@gwfpower.com; eli= zabeth.h.baird@bankofamerica.com; erosenberg2@exchange.ml.com; lengel@brobe= ck.com; grant_kolling@city.palo-alto.ca.us; gbaer@pillsburywinthrop.com; jl= huemoe@llgm.com; jwhite@brobeck.com; jbloom@whitecase.com; jpiassick@kilpat= rickstockton.com; john.c.herbert@dynegy.com; jklauber@llgm.com; juhase_kath= leen@jpmorgan.com; kcoleman@gibsondunn.com; ksmith@deltapower.com; krussak@= pillsburywinthrop.com; Mellencamp, Lisa; Tribolet, Michael; mlurie@exchange= .ml.com; mahrens@smrh.com; mhindus@pillsburywinthrop.com; Phansalk@pimco.co= m; nmillard@whitecase.com; pete.joost@bankofamerica.com; pwarden@pillsburyw= inthrop.com; raymond.kennedy@pimco.com; rriecker@gibsondunn.com; robert_b._= lynch@chase.com; rblum@thelenreid.com; rkampfner@brobeck.com; srahman@delta= power.com; tponsford@smrh.com; tpatters@sidley.com; tmilne@mail.state.tn.us= ; wevanoff@sidley.com Cc:=09allison.m.young@us.pwcglobal.com; Dave Rodriguez; gerald.keenan@us.pw= cglobal.com; james.drzemiecki@us.pwcglobal.com; Jeff Wilson; Jon Schotz; Jo= nathan Rosenthal; Jonathan Thomas; Kristina Stanier; freddie.reiss@us.pwcgl= obal.com; margery.a.neis@us.pwcglobal.com; michael.hamilton@us.pwcglobal.co= m; rocky.ho@us.pwcglobal.com; tom.lumsden@us.pwcglobal.com; PAronzon@milban= k.com; DCain@milbank.com; DCreed@milbank.com; MDayen@milbank.com; SDemeo@mi= lbank.com; MDiamond@milbank.com; vfleming@milbank.com; ygonzales@milbank.co= m; CGooding@milbank.com; SKramer@milbank.com; TKreller@milbank.com; KLockri= dge@milbank.com; AMarks@milbank.com; KMcspadden@milbank.com; RMoore@milbank= .com; FNeufeld@milbank.com; LOliveira@milbank.com; BPassage@milbank.com; MS= orochinsky@milbank.com; CUrquhart@milbank.com; KValentine@milbank.com Subject:=09RE: Current Fate of SB 78xx Based on numerous discussions with members and staff in Sacramento, the be= st speculation on the status of the SCE bailout legislation is as follows.= The Senate is reviewing the amended SB 78xx approved by the Assembly las= t Thursday. They will not approve it as is. Instead, they will "hijack" = one of a number of Assembly bills on energy currently before the Senate fo= r concurrence. "Hijacking" means gutting a bill and substituting in langu= age on related but different matters. Hence, they would in this instance = keep the energy theme but change the bill in question to an SCE bailout bi= ll, one that largely resembles the Polanco-Sher bill approved by the Senat= e in July. The hijacked bill will deal with the bailout itself (DCR for n= on-generator creditors, etc.) and the conservation easements, but will str= ip out other elements that differ from the Polanco-Sher bill like direct a= ccess, renewables, lowering the rate payer base to 20 kwh, etc. The direc= t access and renewables elements might or might not be added on to some ot= her energy bills currently before the Senate. The rate payer threshold wi= ll be included in the hijacked bill and will likely be increased from 20 k= wh to 125 kwh (note that the latter would be a reduction from the original= 500 kwh level in the Polanco-Sher bill). =20 The Senate will send the hijacked bill back to the Assembly, probably on W= ednesday. The Assembly will have the choice of taking it or leaving it OR= calling for a conference committee to work it out before session ends mid= night on Friday. The latter is the likely alternative, setting up round t= he clock all nighters for the conferees through Friday. If the conference= committee reaches consensus, the resulting bill will have to be approved = by both houses before sending it to the Governor. If the conferees think = there's a deal there but they need more time, they can ask the Governor to= extend the session into next week. That scenario seems unlikely. The me= mbers want to either pass or reject the bill this week and get out of Do= dge. =20 If there is no hope of consensus this week, the bill will likely die at th= at point and the bailout will be history. The Governor can try to prolong= things to give him more time to persuade members to pass the bill by eith= er extending the session into next week or by adjourning the session and c= alling for a Third Extraordinary Session next week or at some later date. = The Senate and Assembly would be compelled to go into session, but just a= s with a normal session, individual members would not be compelled to atte= nd. If there were either (1) not enough members present for a quorum or (= 2) not enough "yes" votes present even if there is a quorum, the bill dies= . =20 I emphasize again that this is all conjecture at this point (albeit reason= ably informed) and that things could change dramatically at any time. I'l= l keep you posted as things play out day to day this week. Please feel fr= ee to give me a call with any questions. =20 JT
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