Weekly Report of 3/8/02

California:

CPUC - Gov. Gray Davis has appointed Michael Peevey, former President of Southern California Edison as Commissioner at the CPUC to replace Com. Bilas who resigned last week. Gov. Davis' appointment of Mr. Peevey was met with protests from consumer groups who see him as someone advocating deregulation and having a record of pushing for higher rates for small businesses and residential consumers. Mr. Peevey's appointment is subject to Senate approval.

I99-07-003 SoCal Unbundling. Reviewed the Comprehensive Settlement Agreement, Lorenz testimony in the System Adequacy proceeding and the Dec. 11th Unbundling Decision as to the treatment of receipt point capacity especially as related to the 50MM/d increase at Needles. As discussed, the Lorenz testimony provides the best basis for allocating the 50MM/d to TW until the CSA provisions are implemented on Nov. 1, 2002.

A01-10-011 PG&E Gas Accord II. The ALJ in this case, John Wong, issued a ruling on which issues will be addressed and an initial schedule for the proceeding. Issues to be addressed include: Determining restriction requirements on bidders of relinquished and expansion capacity; How to handle relinquished storage capacity (i.e. open season); How contracts will be handled to match up with PG&E's proposed GTrans' capacity in its POR; and open season procedures for relinquished and expansion capacity. Direct testimony is due July 15, 2002 and Evidentary Hearings are set to begin August 5, 2002.

A01-09-024 SoCalGas BCAP. On Monday, SoCal filed an amended BCAP filing to reflect the impact of unbundling the system. Copies have been requested but not yet received for review.

Election Results - In an upset, LA businessman Bill Simon won the Republican nomination by winning 49% of the vote compared to 30% of the voters favoring former LA Mayor Richard Riordan and 17% of the vote which went to Secretary of State, Bill Jones. Simon will run against Gov. Davis in the fall elections for Governor. Congressman Gary Condit was beaten by his former aide, Assemblyman Dennis Cardoza.

New Mexico:

Legislative - As promised, Republican Gov. Gary Johnson vetoed this week the Legislatures latest budget proposal and vowed to keep the state running by using the previous year budget. Democratic leaders of the Senate and House have proposed appointing a bipartisan group of lawmakers to explore whether a budget compromise can be reached with Gov. Johnson. Johnson's Chief of Staff, David McCumber didn't reject the idea for the governor, but did raise some concerns about the approach.

Utility Case No. 3619 - The New Mexico PRC has issued proposed revisions to Rule 572 for Renewable Energy. The Proposed revisions require all providers of electricity to increase their renewable energy portfolio such that they meet certain standards of renewable sources. By Sept. 1, 2003 the portfolio standard will be 2%, by Sept. 1, 2005 it must be 5% and by Sept. 1 2007 renewable sources must be 10% of their energy portfolio. Renewable sources are defined to include solar, wind, hydropower, geothermal and biomass.