Enron Mail

From:lorna.brennan@enron.com
To:gabriel.chavez@enron.com, stephen.dowd@enron.com, eric.gadd@enron.com,elberg.gelin@enron.com, martin.gonzalez@enron.com, kevin.hyatt@enron.com, david.junus@enron.com, jebong.lee@enron.com, john.millar@enron.com, michael.ratner@enron.com, glen.hass@enr
Subject:FW: California Regulators Suspend Direct Access to Competitive
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Date:Fri, 5 Oct 2001 08:03:07 -0700 (PDT)

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-----Original Message-----
From: webmaster@cera.com [mailto:webmaster@cera.com]
Sent: Thursday, October 04, 2001 9:00 PM
To: clients@cera.com
Subject: California Regulators Suspend Direct Access to Competitive
Energy Suppliers - CERA Decision Brief



Title: The End of Retail Electric Competition in California
URL(s):

http://www20.cera.com/eprofile?u=35&;m=2713;

http://www20.cera.com/eprofile?u=35&;m=2714;


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CALIFORNIA REGULATORS SUSPEND DIRECT ACCESS TO COMPETIIVE ENERGY SUPPLIERS

California, once considered a harbinger of retail electricity deregulation, is
reversing its previous efforts to create a competitive market for electricity.
Suspending direct access is the latest--though probably not the final--event in
an ongoing series of developments and unique conditions that has made
deregulation a rocky road for players in the California market.

* This decision should not be interpreted as a rejection of the merits of
retail competition, but rather understood as a decision peculiar to the events
in California that have unfolded over the past 18 months.

* The ruling was motivated by the state's need to provide a stable investment
environment to support its impending $13.4 billion bond offering to cover
energy related costs.

* The demise of retail competition in California may delay other states'
efforts to open their markets. However, most states face a very different power
generation situation, practically ensuring that events in California will not
be repeated in their markets.

* From a market perspective this may actually be an ideal time to push forward
with retail choice programs, as many markets move into surplus capacity
situations.


**end**

Follow above URL for complete Decision Brief (10 printed pages).



E-mail Category: Decision Brief
CERA Knowledge Area(s): Western Energy, Retail Energy


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