SBX 27 - DA - FAILED PASSAGE

SBX 27 (Bowen), regarding direct access, failed passage on the Senate floor
on a vote of 23-11 (the bill has an urgency clause and requires 27 votes).
Senator Peace was the only Democrat to vote against the bill. Senator Peace
spoke against the bill for five minutes during which time he, in a very
emotional state, blamed Enron for the energy crisis, claimed Enron's version
of direct access means only small customers pay for lines and other similar
charges, is trying to ruin the Japanese energy market, is running the
proceedings in Washington where it has already admitted its guilt, and is
looking for another opportunity to steal from California consumers. Two
Republicans spoke against the bill but their comments more or less focused
on DWR's contracts. One Republican tried to insert a hostile amendment in
the bill to establish a version of the windfall profits tax on municipal
utilities. The amendment failed passage on a party-line vote with the
exception of a vote in support from Senator Peace.

In her close, Senator Bowen indicated that the viability of direct access
would be tied to amount of power purchased by DWR. She characterized DWR's
contracts as outrageous, but expected, given that they were purchased in
duress out of sheer necessity. Senator Bowen did request reconsideration of
the measure.