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Date: Fri, 18 May 2001 08:12:38 -0500 From: "Tracey Bradley" <tbradley@bracepatt.com< To: "Justin Long" <jlong@bracepatt.com<, "Paul Fox" <pfox@bracepatt.com< Cc: "Ronald Carroll" <rcarroll@bracepatt.com< Subject: Reliant's Reaction To Being Singled Out By Governor Davis Mime-Version: 1.0 Content-Type: text/plain; charset="us-ascii" Content-Disposition: inline May 17, 7:52 pm Eastern Time Press Release Reliant Energy Urges Governor Davis to Trade Political Fingerpointing for Solutions HOUSTON--(BUSINESS WIRE)--May 17, 2001--Reliant Energy strongly disagrees with California Governor Gray Davis' recent characterization of the company as being ``obstructionist'' and opposing court orders. Reliant Energy believes that these accusations are politically motivated attempts to demonize Reliant Energy as an outsider responsible for causing the state's energy crisis. The accusations are simply not based on fact. More importantly, the governor's attacks have done nothing to increase the state's supply of electricity or prevent the blackouts expected this summer. If anything, the comments have fostered an atmosphere of distrust and uncertainty that have further destabilized the market. ``Reliant hopes the governor and others will stop these baseless accusations and focus on true solutions to California's energy shortage,'' said Joe Bob Perkins, president and chief operating officer, Reliant Energy Wholesale Group. ``We are now being singled out because we believe in an open market, not government control of power generation, and we have offered solutions that do not jibe with the governor's political agenda. Contrary to the perception Governor Davis is attempting to promote, we have been focused on providing solutions that are fair to all parties in California since the outset of this crisis. In fact, earlier this week we provided the governor's office with an outline of a series of emergency measures that, if pursued quickly, could help mitigate the power crisis this summer. We are still waiting on a response.'' Perkins pointed out many of the steps Reliant Energy has taken to keep the lights on in California, disputing the accusation of being ``obstructionist'': Reliant Energy has run its 30-to-50-year-old plants at the highest levels since their purchase in 1998. In 2000, Reliant nearly doubled the output from these plants to meet the needs of Californians -- running them at levels far exceeding the prior owner, Southern California Edison. Reliant Energy invested $80 million dollars in 2000 alone to upgrade plants to make sure the most power possible is available during peak times. In addition, the company improved emissions levels to clean up the environment and keep costs for emission credits to a minimum. For the last two years, Reliant has encouraged the Investor Owned Utilities and the state to invest in long-term contracts to stabilize rates instead of relying on the spot market. In particular, Reliant Energy offered to sell power at two cents per kilowatt-hour if the buyer would purchase the natural gas required to generate the power, ensuring a transparent cost of power. Reliant Energy has never shut down generation despite the prevalent concerns that continue to exist over credit issues. In contrast, just last week a major out-of-state supplier refused to continue to sell to California unless payment was forthcoming. Reliant Energy has created an aggressive curtailment plan to encourage businesses to ``sell back'' power voluntarily to add more power to the Western power grid. The company has met with many leaders in Western states to introduce the program, yet California officials will not even engage in a dialogue on the program. ``We welcome the opportunity to discuss these issues one-on-one with the governor,'' Perkins said. ``Unfortunately, he has repeatedly refused this request over the past year. Last week's meeting with generators was the first time the group was allowed to speak with him directly, and obviously the purpose of that meeting was political grandstanding.'' Perkins added that the governor's accusations of opposing court orders are unfounded. ``We have always worked within the law and are proud of our commitment to keeping the lights on. We have followed all court orders and worked closely with the FERC and others to cooperate fully with all investigations. When necessary, we have filed court challenges to orders that we believe violate our rights -- hardly an illegal action.'' To participate in a telephone press conference tomorrow, Friday May 18 at 11 a.m. PDT, contact Maxine Enciso at 310/444-1303 or Richard Wheatley at 713/207-5881. ------------------------------------------------------------------------------ -- Contact: For Reliant Energy Los Angeles: Maxine Enciso, 310/444-1303 Media: Richard Wheatley, 713/207-5881
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