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Enron Mail |
FYI
---------------------- Forwarded by Richard Shapiro/NA/Enron on 07/06/2001 03:41 PM --------------------------- Ban Sharma@ENRON_DEVELOPMENT 07/06/2001 01:27 PM To: Mark Palmer@ENRON cc: Richard Shapiro@Enron Subject: DWR Contracts Summary Website Mark, Your site is finally activated. Real interesting. Worth a look Link to the DWR Contracts. http://www.sco.ca.gov/power_page/contract_info.htm Ban An interesting article too: Connell: Power cost twice Davis' figure July 6, 2001 By JOHN HOWARD The Orange County Register SACRAMENTO -- The average cost of electricity purchased under $43 billion of worth of state contracts is actually more than double the amount reported by Gov. Gray Davis' administration, state Controller Kathleen Connell said Thursday. Connell said her staff's analysis put the per-megawatt average at $170, compared with $69 to $79 estimated by Davis. Connell stopped short of suggesting that the higher cost could drive another increase in rates, although consumer groups said the higher amount likely would require some future increase. The controller, who writes the state's checks, said her figures assume fixed prices for natural gas over the duration of the contracts, which range from a few months to 20 years. The administration, noting that nearly half its contracts are pegged to the fluctuating market price of natural gas, said costs on many of the contracts would decline over time. Consumer groups were skeptical of the administration's numbers. "You could cut these numbers in various ways and make different averages, long-range or short-range contracts, peak power or nonpeak, and probably either average could be defended mathematically," said Nettie Hoge of The Utility Reform Network. "We can't tell you whether it's $69 or $170 - the contracts are very convoluted and complex."
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