Enron Mail

From:howard.fromer@enron.com
To:richard.shapiro@enron.com, james.steffes@enron.com, janel.guerrero@enron.com,steve.montovano@enron.com, kathleen.sullivan@enron.com, mark.palmer@enron.com
Subject:Summary of IPPNY Spring Conference
Cc:
Bcc:
Date:Tue, 15 May 2001 08:13:00 -0700 (PDT)

Attached is a summary of the recently held IPPNY Spring Conference, at whic=
h=20
Governor Pataki's newly appointed Senior Policy Advisor, Kevin Cahill, was=
=20
the keynote speaker. Cahill, who previously served in the Pataki=20
administration as the Commissioner of Environmental Conservation, emphasize=
d=20
the Governor's committment to speeding up the State's siting process. He al=
so=20
noted that the Pataki administration wants renewed emphasis on increased=20
transmission capacity, and will push demand reduction. As noted in IPPNY's=
=20
summary, Cahill emphasized that these measures are necessary to make sure t=
he=20
market works and stave off cries from politicians who want to reregulate th=
e=20
energy system. I wonder whether those politicians include his own Public=20
Service Commission!
----- Forwarded by Howard Fromer/NA/Enron on 05/15/2001 02:57 PM -----

=09Mary Williams <mary@ippny.org<
=0905/14/2001 05:03 PM
=09=09=20
=09=09 To: Mailing List 3 <mary@ippny.org<
=09=09 cc: <Mail@ippny.org<
=09=09 Subject: Member Alert #25-2001

Member Alert 25-2001 =20

SPRING CONFERENCE IS MAJOR SUCCESS

From the 250 people who attended the Tuesday night reception, to=20
statewide and national newspaper, radio and television coverage IPPNY=01,s=
15th=20
Annual Legislative Spring Conference was a rousing success, IPPNY Executi=
ve=20
Director Gavin J. Donohue declared.
=20
The conference, whose theme was =01&The Heat is On: Preparing for Summer 20=
01=018,=20
featured an address from Gov. George E. Pataki=01,s senior policy advisor J=
ohn=20
P. Cahill, as well as remarks from Senate Energy Committee Chairman James W=
.=20
Wright.=20

Speakers from the Department of Public Service, the New York Independent=20
System Operator, the New York Energy Research and Development Authority, an=
d=20
representatives of the coal, oil and natural gas industries gave the 130=20
conference attendees valuable insights into the energy and fuel supply=20
picture for the summer.

In his lunchtime remarks, Cahill emphasized Gov. Pataki=01,s commitment to=
=20
speeding up the process of siting generating capacity in New York. The=20
administration, he said, wants the Article X siting process to be effective=
.
=20
=01&We will redouble our efforts to make sure the staff at each agency is =
as=20
prompt and responsive as they can be under the circumstances,=018 Cahill sa=
id.=20
=01&I will also be asking each agency involved in the Article X process to=
=20
review its current staffing allocations to determine whether an additional=
=20
reallocation for Article X project review is necessary.=018
=20
The Pataki administration wants to hear from IPPNY members on changes that=
=20
should be made in the Article X law, Cahill said. He invited members to use=
=20
IPPNY as their conduit for ideas.

The Pataki administration also wants renewed emphasis on increased=20
transmission capacity, and will push demand reduction, Cahill said. These=
=20
measures are necessary to make sure the market works and stave off cries fr=
om=20
politicians who want to reregulate the energy system, Cahill said.

He also emphasized Gov. Pataki=01,s commitment to environmental protection,=
=20
while promising to be =018sensitive to the issues of service, reliability a=
nd=20
the state=01,s need for additional power generation.=018
=20
=01&Sound energy policy also means sound environmental policy,=018 Cahill =
said.

Wright emphasized that the state Senate is focusing on tax cuts as a way to=
=20
help energy companies compete in the marketplace. The Senate=01,s goal is =
to=20
keep the Legislature out of the energy regulation business, he said.The wor=
st=20
thing that could happen to the energy marketplace is for state lawmakers to=
=20
=01&try to legislatively micromanage that process.=018
=20
The state is responding to the need for additional capacity, Wright said. T=
he=20
average time to permit new generating projects in New York has gone from an=
=20
average of 361 days for the first projects going through the Article X=20
process to 254 days for the most recent projects, he pointed out.=20

Assembly Energy Committee Chairman Paul Tonko had looked forward to=20
addressing conference attendees, but was kept away by unavoidable legislati=
ve=20
business.

Steven McClary, principal partner in MRW & Associates, a California=20
energy-consulting firm, gave IPPNY members a rundown on that state=01,s ene=
rgy=20
mishaps. A key piece of California=01,s new energy policy is a requirement =
that=20
he fully charge up his laptop computer in New York before he=01,s allowed b=
ack=20
home, McClary joked.

California did everything it shouldn=01,t have, McClary told the conference=
.=20
Artificially low rates put Pacific Gas and Electric into bankruptcy, and a=
=20
three -cent per kilowatt hour price increase allowed by state regulators ha=
sn=01,
t yet been implemented. Only a state offer to buy Southern California Ediso=
n=01,
s transmission lines, which the legislature appears unlikely to approve, is=
=20
keeping that utility from declaring bankruptcy, he said.

Meanwhile, California electric rates have gone up very little, providing no=
=20
incentive for customers to use less power, McClary said. The high utility=
=20
prices Californians complain about on the TV news are natural gas rates, he=
=20
said.

Peter Smith, vice president of programs for NYSERDA, outlined demand=20
reduction measures being advanced by the agency, and emphasized the need fo=
r=20
more natural gas supply in the state.

=01&The reliability of the electric system hinges on the reliability of th=
e=20
natural gas system,=01,=01, Smith said.

Paul Powers, director of the Department of Public Service=01,s Office of=20
Electricity and the Environment outlined the work his agency has done in=20
scooping out the state=01,s electricity needs . NYISO marketing services vi=
ce=20
president Charles King spelled out the need for increased capacity to avoid=
a=20
=01&California meltdown.=018

Michael Trunzo, chief executive officer of the Empire State Petroleum=20
Association, Gary Edwards, an expert on coal supplies with AES Somerset=20
Support Team, and, Richard T. =01&Rick=018 Thatcher, vice president of the=
=20
Wholesale Power Group of Dominion Generation, talked about natural gas=20
supplies.

Sam Laniado and David Johnson, IPPNY counsels, updated attendees on the=20
latest developments at the Federal Energy Regulatory Commission, the Publi=
c=20
Service Commission and the NYISO.

The Tuesday reception, held on the observation deck of the Empire State Pla=
za=01,
s Corning Tower, was well attended by lawmakers, IPPNY members, and=20
administration officials.

Extensive media coverage of the IPPNY conference highlights the key role=
=20
IPPNY plays in New York=01,s energy marketplace, Donohue said.

The conference was covered by the Associated Press, Ottoway News Service,=
=20
Albany Times Union, the Daily Gazette in Schenectady, Gannet, Bloomberg, Do=
w=20
Jones, Johnson Newspapers, public television=01,s Inside Albany show, three=
=20
Albany-area television stations, and radio stations in Albany and across th=
e=20
state.=20

Interest was so intense, in fact, a Bloomberg online news service reporter=
=20
seeking a taped interview outlining IPPNY=01,s energy views, called IPPNY=
=20
President Roger Kelley at 6:30 a.m. the day after the conference.
###