From: jeff.dasovich@enron.com
To: 'lipper@enron.com, kip.lipper@sen.ca.gov
Date: 2001-09-19 21:25:29+00:00
Subject: RE: Angelides Quotes Regarding State Fiscal Position in the Event
	BondIssuance Stalls

Thanks.  Don't hesitate if there's anything else.  We're trying to get Bilas and Duque on board.

Best,
Jeff

-----Original Message-----
From: Lipper, Kip [mailto:Kip.Lipper@sen.ca.gov]
Sent: Wednesday, September 19, 2001 4:06 PM
To: Dasovich, Jeff
Subject: RE: Angelides Quotes Regarding State Fiscal Position in the
Event BondIssuance Stalls


Nevermind.  I see the cite now.

Thanks for your time as well.  We're doing our best to help.

-----Original Message-----
From: Dasovich, Jeff [mailto:Jeff.Dasovich@ENRON.com]
Sent: Wednesday, September 19, 2001 11:21 AM
To: kip.lipper@sen.ca.gov
Cc: vjw@cleanpower.org
Subject: Angelides Quotes Regarding State Fiscal Position in the Event
Bond Issuance Stalls


Kip:

Thanks for taking the time to talk.  Here's the quote and the cite from
Angelides re: state position in the event bond issuance stalls.  If
there's anything you need, don't hestitate to call me at 415.782.7822.
Please confirm that you got this, since I'm not sure if I have your
email address right.

Best,
Jeff

************************************************************************
**********
		"The Administration does not project that the State will
need to make additional State loans to support the DWR Power Supply
Program even if DWR does not issue its revenue bonds as planned during
the 2001-02 fiscal year. DWR projects that its funds on hand at the date
of this Official Statement and projected revenues appear to be
sufficient to finance the Power Supply Program. The cash needs of the
Power Supply Program depend, among other things, on future power
purchase costs, the timing and amount of revenues from power sales, the
availability of additional interim loans, and the timing of the issuance
of revenue bonds by DWR. The Power Supply Act limits loans and advances
from the State under the Power Supply Act after November 15, 2001, to
amounts required for short-term cash flow purposes of no more than $500
million in the aggregate and requires repayment within 180 days.
However, the Governor has the power under the Emergency Services Act to
order additional loans or other advances to DWR if needed to further
mitigate the emergency.

			The State expects to maintain adequate cash
reserves to fund its normal operations during the 2001-02 fiscal year
whether or not DWR repays the State loans during the fiscal year. The
State plans to issue short-term notes to assure that adequate cash
balances are maintained. The State has regularly issued short-term debt
in the past to meet its cash flow needs. See 'State Indebtedness-Cash
Flow Borrowings.'"

(California Treasurer's Office, Preliminary Official Statement, August
31, 2001, $5,700,000,000 State of California 2001-02 Revenue
Anticipation Notes, Appendix A, p. A-4) (emphasis added.)


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