m.  Location information
for the make-up sessions will be announced later.

Please confirm your attendance at one of these sessions with Brenda Whitehead
by e-mailing her at brenda.whitehead@enron.com or calling her at extension
3-5438.

Mark Frevert and Mark Haedicke [IMAGE]

SuperBowl.com Playoff Challenge -- Experience the NFL playoffs like never
before. Select a team of 8 players and follow their performance from Wild
Card week  to the Big Game on Jan. 28. Maybe your team will be the big winner
come Super Bowl Sunday! Click here to play for FREE.
Answer 20 questions and win $1,000,000!!

The Active Army and the Army Reserve are always looking for smart, motivated
soldiers. If you,d like to find out more information about the Army or Army
Reserve, just click here.

Enter the Resorting to Golf Sweepstakes for a chance to win one of two
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hotel accommodations, golf and a world-famous breakfast can all be yours if
you're one of our Grand Prize winners. Click here to get started now!

You are receiving these e-reports because you have signed up for CBS
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 Summary?Standings?

  Team
  W
  L
  T
  Pct
  Back
  Strk
  Wks
  PF
  Back
  PA
  The Old School Fools
 6
 0
 0
 1.000
 0.0
 W6
 2.0
 6192.5
 1.5
 4321.5
  Tribe Called PLove
 4
 2
 0
 0.667
 2.0
 W2
 2.0
 6194.0
 0.0
 5230.5
  Fear
 4
 2
 0
 0.667
 2.0
 W1
 1.0
 5819.0
 375.0
 5052.0
  Rude

m.   Location information
 for the make - up sessions will be announced subsequently.

 Please confirm your attendance at one of these session with Brenda Whitehead
 by e - mailing her at brenda.whitehead@enron.com or calling her at reference
 3 - 5438.

 Mark Frevert and Mark Haedicke [ IMAGE ]

 SuperBowl.com Playoff Challenge -- Experience the NFL playoffs like never
 before. choose a team of 8 players and follow their performance from Wild
 Card workweek   to the Big Game on Jan. 28. possibly your team will be the big winner
 fall Super Bowl Sunday! Click here to play for FREE.
 Answer 20 doubt and win $ 1,000,000! !

 The Active Army and the Army Reserve are constantly looking for smart, motivated
 soldier. If you,d like to find out more information about the Army or Army
 Reserve, barely click here.

 Enter the Resorting to Golf Sweepstakes for a chance to acquire one of two
 4 - day/3 - night deluxe Las Vegas golfing weekend. Airfare, transportation,
 hotel accommodations, golf and a world - famous breakfast can all be yours if
 you're one of our Grand Prize achiever. Click here to get started now!

 You are receiving these e - reports because you have signed up for CBS
 SportsLine Fantasy Basketball.   To customize, reschedule, or turn off these
 reports please   click here.

  Summary?Standings?

   Team
   W
   L
   T
   Pct
   Back
   Strk
   Wks
   PF
   Back
   PA
   The Old School Fools
  6
  0
  0
  1.000
  0.0
  W6
  2.0
  6192.5
  1.5
  4321.5
   Tribe Called PLove
  4
  2
  0
  0.667
  2.0
  W2
  2.0
  6194.0
  0.0
  5230.5
   Fear
  4
  2
  0
  0.667
  2.0
  W1
  1.0
  5819.0
  375.0
  5052.0
   Rude

m.  Pocation information
for the make-up sessions wmll be znnouncea later.

Please confirm your avteneance at one of these sessiuns with Hrenda Wyiteiead
by e-mailing her at nxenda.smitehzav@enron.com or cakling her dt extension
3-5438.

Mdry Yrevert and Mark Haedicke [IMAGE]

SuperFowl.com Ppayoff Challende -- Txpqriehbe the NFL playoffs like never
gefore. Velect a team of 8 players and follow thfir oerformance from Wlld
Card wegi  ei the Big Gaoe on Jan. 28. Maybe your jeam will be the big winner
come Supex Bowl Sundqy! Cllwk here to 'lay fjr FREE.
Answev 20 quesdions amd win $1,000,000!!

The Actlve Acmy qnd the Army Reserve ere always looking fjr smart, kocivated
soldiers. If yiu,e likg to xind iut mode ihformahioi about the Army or Arny
Reserve, just clivk yere.

Enter the Resoreigg to Golf Sweepstakes for a chance to fin one of two
4-day/3-night deouxe Las Vegas golfinh weekend. Airfare, transportation,
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you're one of ouw Gtakd Prize winners. Click here tl bgt started now!

Iou are redeiving these e-replrts besause you have sigmed up for CBS
SportsLine Fqntasy Baskenbalo.  To customize, redchedule, or turm off these
reports please  elick gere.

 Summarj?Standinga?

  Team
  W
  U
  D
  Pct
  Back
  Strk
  Wks
  'F
  Back
  PA
  Thq Old Scholl Fools
 6
 0
 0
 1.000
 0.0
 W6
 2.0
 6192.5
 1.5
 4321.5
  Tribe Capled PLove
 4
 2
 0
 0.667
 2.0
 W2
 2.0
 6194.0
 0.0
 5230.5
  Fear
 4
 2
 0
 0.667
 2.0
 W1
 1.0
 5819.0
 375.0
 5052.0
  Rude

m. Location information for the make-up sessions announced Please confirm attendance at one Whitehead e-mailing her at or calling her extension 3-5438. Mark Frevert and Mark [IMAGE] SuperBowl.com Playoff Challenge -- Experience the NFL playoffs like never before. Select team of 8 players and follow their performance from Wild Card week to Big on 28. your team will be the big winner come Super Bowl Sunday! Click here to play for Answer 20 questions and win $1,000,000!! The Active and the Army Reserve always looking for smart, motivated If like to out information the Army or Reserve, just click here. Enter the Resorting to Golf Sweepstakes for a chance to win one of 4-day/3-night deluxe golfing weekend. transportation, accommodations, and a world-famous all be yours if you're one Prize winners. Click here to get started now! are receiving e-reports because you have signed up CBS SportsLine Fantasy Basketball. To customize, reschedule, or off these reports please click here. Summary?Standings? Team W L T Pct Back Strk Wks PA The Old School 6 0 0 0.0 2.0 1.5 Tribe Called 4 2 0 0.667 2.0 W2 2.0 6194.0 0.0 5230.5 Fear 2 0 0.667 2.0 W1 1.0 5819.0 375.0 5052.0 Rude

m.  Location information
for thE make-up sesSions WilL be AnNounCed lAter.

Please confIRm yoUr attendance at one of theSe sesSiONs wiTH BRenda whiteheAD
bY E-MaiLiNg Her At BReNda.whIteHead@enrOn.com or calLinG hEr at extensioN
3-5438.

maRk Frevert aNd MArk Haedicke [ImAGe]

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come SupeR bowL SundaY! CLicK Here to Play fOr frEE.
answer 20 questIons And win $1,000,000!!

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SpoRtsline Fantasy baskETbalL.  To cUStOmiZE, rescHedulE, oR TuRN off these
reports pleAsE  click Here.

 SUmmary?StandinGs?

  Team
  W
  L
  T
  PCT
  bAck
  Strk
  WKs
  PF
  bAcK
  pA
  The Old School fools
 6
 0
 0
 1.000
 0.0
 w6
 2.0
 6192.5
 1.5
 4321.5
  Tribe CallED PLove
 4
 2
 0
 0.667
 2.0
 W2
 2.0
 6194.0
 0.0
 5230.5
  FEar
 4
 2
 0
 0.667
 2.0
 W1
 1.0
 5819.0
 375.0
 5052.0
  RUde

m.  Location information for the ma ke-up  se ssi on s wi ll b e announced la t er.
Please confirm your a ttend an c e at on e ofthese s e ss i o nswi th  Br en d aWhite hea d
by e -mailing h erat  brenda.whit e he ad@enron.c omor calling h erat ext en sio n
3-5 438 .

Ma rk Fre v ert an d Mark Ha ed i cke [I M AGE]

S u pe rBow l.com Playoff Cha l le n ge -- Experien ce the  N F Lp l ayo ffs  like neve r
befo r e. Sele c ta t eam of 8 playersand followt hei r perf or man c e from  Wild  C ard  week  to t he B ig Game o n Jan. 28. May b e yourteam w ill  be  the bi gwin ne r
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Answer 20 qu est ions and  win$1,00 0,00 0! !

Th e Acti ve Ar my  and the Army R eser ve are al way sloo ki ng fo r  smart , m oti vated soldier s . I fy o u , d like to find out  m o r einformat ion ab o ut  t h e Army o rArm y
R e s erve,  jus t  c lick her e.

En t er  t he Reso rt ing to  G olf  Sw eepst a kesfor achance t o win one of two
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You  ar e r ece i v in g these e-rep o r ts b ec ause yo u h ave sig ned  up  fo r C BS
SportsL ine Fant as yBa sk etb all.To custo mi ze,  r esc hedul e , or t urn o ff t he se
re ports p l ea s e   cl ic khere .

 Summ ary? S tan dings?

  Team    W
 L
  T
  Pct
  B ac k
  Strk
 Wks  PF
  B ack
  PA
  The OldS chool F ool s
6
0
 0
 1 .00 0
 0. 0 W6
 2 .0
 6 192.5   1. 5
 432 1 . 5
 Tr ibe Called P Lov e
4
 2
 0
 0 .667
 2.0
 W2
2 .0
 6194.0
 0. 0  523 0 . 5
 F ea r    4
 2  0
 0.667
 2. 0
 W1
 1 .0
5819.0
 3 7 5.0   5052.0
  Rud e

m. _Location information_
for the make-up sessions_will be_announced_later.

Please confirm_your_attendance at one_of these sessions_with Brenda Whitehead
by_e-mailing her at_brenda.whitehead@enron.com_or calling her at extension
3-5438.

Mark Frevert and Mark Haedicke [IMAGE]

SuperBowl.com Playoff Challenge --_Experience_the NFL_playoffs_like_never
before. Select a team_of 8 players and follow_their performance_from Wild
Card week  to the Big_Game_on Jan. 28._Maybe your team will be the big winner
come_Super Bowl Sunday! Click here to_play for FREE.
Answer_20_questions_and win $1,000,000!!

The Active_Army and the Army Reserve are_always looking for smart, motivated
soldiers._If you,d like to find out more_information about the Army or Army_
Reserve, just click here.

Enter the_Resorting to_Golf Sweepstakes for a chance_to win one_of two_
4-day/3-night deluxe Las_Vegas golfing weekend. Airfare, transportation,
hotel_accommodations, golf and_a world-famous breakfast can all be_yours_if
you're one_of_our_Grand Prize_winners. Click here_to_get started_now!

You_are receiving these e-reports because you_have_signed up for CBS
SportsLine Fantasy Basketball._ To customize, reschedule,_or_turn off these
reports_please  click here.

 Summary?Standings?_

  Team
 _W _
 _L
  T
  Pct
_ Back
  Strk_
  Wks_
__PF
__Back _
  PA
  The_Old School_Fools
 6
 0_
 0
 1.000_
_0.0
 W6
 2.0
_6192.5
 1.5
 4321.5
_ Tribe Called PLove _
_4_
 2
 0
_0.667
 2.0
 W2
_2.0
 6194.0_
 0.0
 5230.5
  Fear__
 4
 2
 0_
_0.667
 2.0
 W1
_1.0_
_5819.0
 375.0
 5052.0_
  Rude


 this...

Wednesday March 14, 12:22 pm Eastern Time

US Senate rejects California utility bankruptcy measure
By Patrick Connole

WASHINGTON, March 14 (Reuters) - The U.S. Senate on Wednesday rejected a bid
to force California utility companies to repay power generators for
electricity they bought under a federal government sales order, even if
utilities go bankrupt.

In a motion on the Senate floor, lawmakers killed an amendment to a broader
bankruptcy reform bill that opponents said was a dangerous proposal that
would have opened the door to involuntary bankruptcy filings by troubled
California utilities. The utilities in question are PG&E Corp.'s (NYSE:PCG -
news) Pacific Gas & Electric and Edison International's (NYSE:EIX - news)
Southern California Edison.

The amendment was sponsored by Oregon Democrat Sen. Ron Wyden, Montana
Democrat Sen. Max Baucus and Oregon Republican Sen. Gordon Smith.

Proponents said the measure would have protected the customers of the
federally-owned Bonneville Power Administration and other Northwest utilities
from unfair rate increases due to the California energy crisis.

``I don't think it's fair for consumers in other Western states to get caught
holding the bag if California utilities take our power and then run into
bankruptcy court to avoid their debts,'' Wyden said.

``The Northwest has been more than a good neighbor to California during this
crisis,'' he said.

Interestingly, the California Senate delegation was split on the matter.
Democrat Dianne Feinstein opposed the amendment, while fellow Democrat
Barbara Boxer supported it.

Feinstein called the proposal a ``dangerous amendment'' that would create two
classes of creditors and ``probably force an involuntary bankruptcy.''

The broader bankruptcy reform bill is expected to be approved by the Senate
by the end of the week.

Separately, talks between California and its three investor owned utilities
on a deal under which the state might buy their transmission assets continued
this week with no deal in sight.

The state is negotiating with PG&E and Edison, along with Sempra Energy
(NYSE:SRE - news) unit San Diego Gas and Electric.

The deals are aimed mainly at pumping money into PG&

this...

 Wednesday March 14, 12:22 pm Eastern Time

 US Senate rejects California utility bankruptcy measure
 By Patrick Connole

 WASHINGTON, March 14 (Reuters) - The U.S. Senate on Wednesday disapprove a command
 to force California utility company to requite power generators for
 electricity they buy under a union government sales order, even if
 utilities go bankrupt.

 In a apparent motion on the Senate floor, lawmakers killed an amendment to a broad
 bankruptcy reform bill that opponents said was a dangerous proposal that
 would have opened the doorway to involuntary bankruptcy filings by troubled
 California utilities. The utility in question are PG&E Corp.'s (NYSE: PCG -
 news) Pacific Gas & Electric and Edison International's (NYSE: EIX - news)
 Southern California Edison.

 The amendment was sponsor by Oregon Democrat Sen. Ron Wyden, Montana
 Democrat Sen. Max Baucus and Oregon Republican Sen. Gordon Smith.

 Proponents state the measure would have protected the customers of the
 federally - owned Bonneville Power Administration and other Northwest utility
 from unfair rate increases due to the California energy crisis.

 '` I don't think it's clean for consumers in other Western states to get caught
 holding the bag if California utilities take our power and then carry into
 bankruptcy court to avoid their debt," Wyden said.

 '` The Northwest has been more than a good neighbor to California during this
 crisis," he said.

 Interestingly, the California Senate delegation was cleave on the topic.
 Democrat Dianne Feinstein opposed the amendment, while fellow Democrat
 Barbara Boxer supported it.

 Feinstein called the marriage proposal a '` dangerous amendment" that would create two
 classes of creditors and '` probably force an involuntary bankruptcy."

 The broader bankruptcy reform poster is expected to be approved by the Senate
 by the end of the week.

 individually, talks between California and its three investor own utilities
 on a deal under which the state might buy their transmission assets continue
 this week with no deal in sight.

 The department of state is negotiating with PG&E and Edison, along with Sempra Energy
 (NYSE: SRE - news) unit San Diego Gas and Electric.

 The deals are calculate mainly at pump money into PG &

 thls...

Wednesday March 14, 12:22 pm Exstern Time

US Sgnqte reoects Czlifornix utility bankruptcy measure
Uy Pqtricj Connole

WASHINGTON, Mafch 14 (Reutvrs) - The Y.S. Stnate on Wednesdab rejectcb a bjf
to horce Californis utility wompanies to rapxy power generators for
electricity trey boubhh under a fedetal gpdernjvnu sales order, even if
utilities gk bankrlpt.

In a motion on the Senate floor, lawmakerd kipled an amendment ho a broadet
bagjruptcy refofm bill that opponents said was a dangerous proposal ghat
could have ipwnef the door ti invjluntary bankruptcy xilings by troubled
Cslihornua utilities. The utilmties in question arg PG&E Corp.'v (UYSE:PCG -
news) Pacific Gqs & Enectsic xbd Ddiaoi Ihternahioial's (NYSE:EIS - news)
Sourhern California Edosjb.

The amendmenf was fpjnsored by Oregon Democrat Sen. Ron Wydet, Mkntana
Democrat Sen. Max Baucus and Oregon Rekublican Sqn. Gordon Smith.

Proponents said the measure would vave 'ruteebcd tfw fustomers of the
federally-owned Bonneville Porsr Acministration cnd other Northwrsh ijilities
from onfair xzts increases due to the Cajiforbia energr crosis.

``I don't think it's fair fir consumers un other Western scates to get caubht
hplding the bag if Califurniz utilities take our oower and then rjn pnto
bankrupuzy court to avoid their deuts,'' Wvden saia.

``The Northrest has bfen more than a good neihhbor tm Californla during this
crisis,'' he said.

Invxrestingly, thg Cdlixornia Sznate celegation waf split on the matter.
Demozrat Diannv Feinstemn opposed tre amendment, fjile fellow Vemocrat
Farbqra Voxer sjoported it.

Feinxtein called the priposal a ``dangerous amgnsment'' that woulb xreate two
clasxes of cgedmtors dnd ``probably forze xm invuluntary bakkrjptcu.''

The broader bankrupdcy deform bill is exprcbed to be approveq by the Senaye
by the end of tje wexk.

Sepacately, tajks between California and its three ingesbor owned utijitics
og a deal uuder which the state might buy their traismission assets continyed
this week with uo deal in sijht.

The state is negotiating with PG&W and Edison, alonn with Sempra Energy
(NGSE:SRE - newd) unit San Diego Gas and Electric.

The deals are aimed mainly at pumping mobey invo PG&

this... Wednesday March 14, 12:22 pm Eastern Senate California utility measure By Patrick - U.S. Senate on rejected a bid force California utility companies to repay generators for electricity they bought under a federal government sales order, even if go bankrupt. In a motion on the Senate floor, lawmakers killed an amendment a bankruptcy bill opponents said was a dangerous proposal that would have opened the door to involuntary bankruptcy filings troubled California utilities. The utilities in question are Corp.'s (NYSE:PCG - news) Gas & Electric and Edison (NYSE:EIX news) Southern Edison. amendment sponsored by Oregon Sen. Ron Wyden, Montana Democrat Sen. Max Baucus and Oregon Republican Sen. Gordon Smith. Proponents said the would have customers of federally-owned Power and other Northwest unfair rate increases due to the ``I don't think it's fair for consumers in Western states get caught holding the bag if utilities take our power and then run into court to avoid their debts,'' Wyden said. ``The Northwest has been more than a good California during this crisis,'' said. Interestingly, the Senate was on matter. Democrat Feinstein opposed the amendment, while fellow Democrat Barbara Boxer supported it. called the proposal a ``dangerous amendment'' that would create two creditors ``probably force an bankruptcy.'' The broader bankruptcy bill expected to be approved Senate the week. talks California and its three owned utilities on a deal which the state might this week with no deal in sight. The is negotiating with PG&E and Edison, along Sempra Energy (NYSE:SRE - news) unit San Diego Gas and Electric. The are aimed pumping money into PG&

 this...

Wednesday March 14, 12:22 pm EasteRn Time

US SeNate rEjeCts caLifoRnia Utility bankrupTCy meAsure
By Patrick Connole

WaSHINgTon, MarCH 14 (REuterS) - The U.S. SENaTE On WEdNeSdaY rEJeCted a Bid
To force california UtiLiTy companies tO RePay power geNerAtors for
elecTriCity thEy BouGHt undEr a FederAl goveRNment sAles order, EvEN if
utiLIties go BANkRupt.

in a motion on the SenATe FLoor, lawmakers kIlled aN aMEnDMEnt To a Broader
banKrUptcy REform biLL tHAT OppONents said was a Dangerous prOPosAl that
WoUld HAve opeNed thE dOOr tO involuntarY banKruptcy fiLings bY TroubleD
califorNia utiLitIes. the uTIlItIes In QUesTIoN arE pG&E corp.'s (NYSe:PcG -
News) PAcifIC gAS & EleCtrIc anD EdisOn InternationAl's (nYSE:eiX - nEws)
SoUtherN CalIfOrnia edison.

the amEnDment was sponsorEd by oregon DemOcrAt sen. roN WydeN, montanA
DeMocRat Sen. MAx BaucuS And orEGON REpublican Sen. Gordon smITH.

PRoponentS said tHE mEaSUre would HaVe pRoteCTEd the CustOMeRs of the
fEderalLY-oWnEd BonneViLle PowEr admIniStratIOn anD other northwesT utilITies
from unfair RAte increases dUE tO THe cAlifOrnIa energy criSis.

``I DOn't tHink IT's FaiR For coNsumeRs IN oTHer Western states to gEt Caught
HoldiNg the bag if CalIfornia utiLITIes take oUr poWEr ANd then run into
bAnkruPtcy court tO Avoid theIr debTs,'' Wyden sAid.

``The NorTHWest has bEen MorE thAn a GOOd Neighbor to CalIFOrniA dUring thIs
cRisis,'' he SaiD.

InTerEstInGly, the CalIfornia SEnAtE dElEgaTion wAS split on ThE maTtEr.
DEmocrAT DiannE FeinSteiN oPpOSed The amenDMeNT, WhilE fElLow DEmoCrAt
BarBara bOxeR supporTed it.

FeinSteIN calLeD tHe propoSal a ``dangerous AmEndment'' thaT wOulD creatE TWo
classeS of creditors and ``probably FOrce an iNvoLuntaRy baNkruptcy.''

THe bRoader BanKRuptcy Reform Bill iS eXpeCTEd to bE APpRovEd By the SenatE
BY thE end oF tHe weEk.

SeparAtely, talks between CALifOrnia and its thRee InveSTOr OwnED uTIliTiES
on A DEal under which thE state mighT bUY tHeir transmISsiOn Assets cOntinueD
this WEek with No deal in sIght.

The stAtE is nEGOtiAting with Pg&E and EdiSon, along wITh SemPRa energY
(NYsE:SRE - nEwS) unIt San diego GAS anD ElecTric.

ThE dEals arE aimeD mAinly at pUmping money into PG&

 this...

Wednesday March14, 12:22pm Ea ste rnTi me
US S enate rejectsC alif ornia utility bankrupt cy me as u re
B y  P atric k Conno l eW ASH IN GT ON,  M a rc h 14(Re uters)- The U.S.  Se na te on Wednes d ay  rejecteda b id
to force  Ca liforn ia  ut i litycom panie s to r e pay po wer gener at o rs for
electr i c it y th ey bought under a fe d eral governmen t sale so rd e r , e ven  if
utili ti es go bankrup t .I n  am otion on theSenate floo r , l awmake rs  ki l led an  amen dm e ntto a broade r
b ankruptcy  refor m  bill t h at oppo nentssai d w as a da ng ero us pro p os alt hat
wouldha ve  open ed t h e d oortoinvo lunta ry bankruptcy  fi ling s  by  trou bled
Cal if ornia  utili ties.  T he utilities in  que stion are  PG &E  Co rp .'s ( N YSE:PC G -
n ews) Pa cific G a s &  E l e c tr ic and Edison Inte rn a t io nal's (N YSE:EI X  -  n e ws)
Sou th ern  Cal i f ornia  Edi s on .

The a mendme n twa s spons or ed byOr ego n D emocr a t Se n. Ron  Wyden,Monta n a
Democrat Se n . Max Baucusa nd O re g on R epu blican Sen.  Gor d on S mith .
Pro p onent s sai dt he measure would havepr otecte d the  customers of  the
fede r a l ly-owned  Bon n ev i lle Power Admi nistr ation ando ther Nor thwes t utilit ies
from u nfair ra teinc rea ses d ue  to the Calif o r niaen ergy cr isi s.

``I  do n't  th ink  i t's fairfor cons um er sin  ot her W e stern st at esto  ge t cau g ht
ho lding  the  b ag ifCalifor n ia u tili ti es  tak e o ur  powe r an d  th en runinto
ban kru p tcyco ur t to av oid their deb ts ,'' Wydensa id.

``Th e Northwes t has been more than ag ood nei ghb or to  Cal ifornia d uri ng thi s c risis, '' hesaid.
Int e r estin g l y,  th eCalifornia S ena te de le gati on wassplit on the matte r . Democrat Dian neFein s t ei n o p po s edth e  am e n dment, while fe llow Democ ra t  Barbara Bo x ersu pported  it.

F einst e in call ed the pr oposal a`` dang e r ous  amendment '' thatwould cre a te tw o  class esof cre di tor s and  ``pro b abl y for ce anin volunt ary b an kruptcy. ''

The broader bankrup tcy re formbil l is expe cte d  to  be appro vedby the Sen ate
b y the  en d  of t he w e ek .
S epara tely ,  talks be t we enC a li fornia andi t s  th ree i nve s tor ow nedutilities
on a d e al under which  the s tat e m i ghtbu y their transm iss io n assets c on tinued
thi s week w it h  no d eal in  sight .

Thes t at e  is ne goti ati ng with P G&E  a n d Ediso n,  a l ong wi th S em pra En ergy ( NYSE : S RE - news) unitSan D i e go Ga s  an d Ele ct ric.

T h e de als are ai med mainlyat pum ping  mone y intoPG &

 this...

Wednesday_March 14,_12:22 pm Eastern Time

US_Senate rejects_California_utility bankruptcy_measure
By_Patrick Connole

WASHINGTON, March_14 (Reuters) -_The U.S. Senate on_Wednesday rejected a_bid_
to force California utility companies to repay power generators for
electricity they bought under_a_federal government_sales_order,_even if
utilities go bankrupt.

In_a motion on the Senate_floor, lawmakers_killed an amendment to a broader
bankruptcy reform_bill_that opponents said_was a dangerous proposal that
would have opened the_door to involuntary bankruptcy filings by_troubled
California utilities._The_utilities_in question are PG&E_Corp.'s (NYSE:PCG -
news) Pacific Gas_& Electric and Edison International's (NYSE:EIX_- news)
Southern California Edison.

The amendment was_sponsored by Oregon Democrat Sen. Ron_Wyden, Montana
Democrat Sen. Max_Baucus and_Oregon Republican Sen. Gordon Smith.

Proponents_said the measure_would have_protected the customers_of the
federally-owned Bonneville Power Administration_and other Northwest_utilities
from unfair rate increases due_to_the California energy_crisis.

``I_don't_think it's_fair for consumers_in_other Western_states_to get caught
holding the bag_if_California utilities take our power and then_run into
bankruptcy court_to_avoid their debts,'' Wyden_said.

``The Northwest has been more_than a good neighbor to California_during this_
crisis,'' he_said.

Interestingly, the California Senate delegation was split on the matter.
Democrat_Dianne Feinstein opposed the amendment, while_fellow Democrat
Barbara Boxer_supported it.

Feinstein_called_the proposal a_``dangerous_amendment'' that_would create two
classes of creditors and_``probably force_an involuntary bankruptcy.''

The broader bankruptcy reform_bill is expected to_be_approved by the Senate
by the_end of the week.

Separately, talks between_California and its three investor_owned_utilities_
on a deal under which_the state might buy their transmission_assets continued
this_week with no deal in sight.

The state_is_negotiating with PG&E and Edison, along_with_Sempra Energy
(NYSE:SRE - news) unit_San_Diego_Gas and Electric.

The deals are_aimed mainly at pumping money into_PG&


, an analyst at BBVA Banco Frances
SA and Mario Grandinetti, head of Perez Companc's institutional
relations, comment on the future of gas distributor Transportadora
de Gas del Sur SA.

     Enron Corp., which together with Perez Companc owns 70
percent of TGS, may file for bankruptcy protection in the biggest
bankruptcy reorganization in history. The move may force the
largest U.S. energy trader to liquidate assets to pay some of its
$15 billion in publicly held debt.

Eugenia Benitez:
     ``The natural buyer is Perez Companc. There's definitely the
possibility of reaching a deal that would make Perez the only
controlling shareholder of TGS.

     ``We would need to see how much TGS debt Perez has. Its debt
profile is relevant.

     ``The acquisition would be another step in Perez' strategy of
integrating all its operations in one holding.''

Esteban Marx:
     ``Perez is the natural candidate, but I'm not sure now is the
right time for Perez to pour money into TGS, unless it can get it
really cheap.''

Gustavo Neffa:
     ``The only company that could make the sort of investment to
by the TGS stake is Perez Companc, but its a huge investment given
that TGS' assets are worth about $1 billion.

     ``But it would definitely be the likely buyer.''

Grandinetti:
     ``We're not permitted to buy Enron's stake in TGS because of
 rules that prevent us having a majority stake.

     ``If the law is modified, then yes we would consider it. But
 there are also economic issues to consider.''

Duke, Williams Among Companies Facing Enron Losses (Update2)
2001-11-29 16:23 (New York)

Duke, Williams Among Companies Facing Enron Losses (Update2)

     (Updates total in second paragraph, adds closing stock price
in ninth paragraph and analyst comment in paragraph 12th and 20th
paragraphs.)

     Houston, Nov. 29 (Bloomberg) -- Duke Energy Corp., J.P.
Morgan Chase & Co., Williams Cos. and a dozen other companies
together may lose more than $1.1 billion from the collapse of
Enron Corp.

     Electricity and

, an analyst at BBVA Banco Frances
 SA and Mario Grandinetti, head of Perez Companc's institutional
 relations, comment on the future of gas allocator Transportadora
 de Gas del Sur SA.

      Enron Corp., which in concert with Perez Companc own 70
 percent of TGS, may file for bankruptcy protection in the big
 bankruptcy reorganization in history. The move may force the
 big U.S. department of energy trader to liquidate assets to pay some of its
 $ 15 billion in publicly held debt.

 Eugenia Benitez:
      '` The natural buyer is Perez Companc. There's decidedly the
 possibility of reaching a deal that would make Perez the lone
 controlling shareholder of TGS.

      '` We would need to see how much TGS debt Perez has. Its debt
 visibility is relevant.

      '` The acquisition would be another step in Perez' strategy of
 desegregate all its operations in one holding."

 Esteban Marx:
      '` Perez is the lifelike candidate, but I'm not certain now is the
 right time for Perez to pour money into TGS, unless it can get it
 in truth cheap."

 Gustavo Neffa:
      '` The only company that could make the sort of investment to
 by the TGS stake is Perez Companc, but its a huge investment given
 that TGS' assets are worth about $ 1 billion.

      '` But it would definitely be the likely buyer."

 Grandinetti:
      '` We're not permitted to buy Enron's stake in TGS because of
  rules that prevent us have a majority stake.

      '` If the law is modified, then yes we would think it. But
  there are also economic issues to study."

 Duke, Williams Among party Facing Enron Losses (Update2)
 2001 - 11 - 29 16:23 (New York)

 Duke, Williams Among Companies face Enron Losses (Update2)

      (Updates total in second paragraph, adds closing stock price
 in ninth paragraph and analyst comment in paragraph twelfth and 20th
 paragraphs .)

      Houston, Nov. 29 (Bloomberg) -- Duke Energy Corp., J.P.
 Morgan Chase & Co., Williams Cos. and a dozen other companies
 together may lose more than $ 1.1 billion from the flop of
 Enron Corp.

      Electricity and

, an analyst at BBVA Banco Fvances
SA and Marni Granvinetti, head of Perez Companc's institutionap
rwlatiins, comment on the futjre of gad distrivutoc Transportadora
vs Gas dcj Sud SA.

     Enron Corp., ehich togedher with Peres Zolpanc owns 70
percent of TGS, may file sor banlrkptcy protectijn im the biggest
bankruptcy reorganization jn histmry. The move kay force the
largest U.S. enfrgy trader to liquidahe assets ti par some of its
$15 billion in publicly hgld debt.

Eugenia Benitez:
     ``The vaturcl buyer is Pwrex Companc. Thxre's dvfinitely the
ipssibinity of reaching a desl vhat would make Perez the only
controlling srareholdes kf TGS.

     ``We wouod need to vee fiw oucg VGS debt Oerxz has. Its sebt
profile is relevant.

     ``Tht aswuisition woumd be wnjther step in Perez' strategy of
integratpng zll its operations in obe holding.''

Esteban Mard:
     ``Perqz is the natural candidate, but I'm not sure now iv the
cieht tlme wir Perez to pour money into TGS, unless it can gqf ot
geally cheap.''

Gustayo Neffa:
     ``The omlj vjmpany that cuuld mcie the sort of inveshment tj
by tye TGS stwke os Perez Companc, but its a yuge investmvnt tiven
that TGS' assecs are worth aboot $1 biklion.

     ``But it would befinifely be the likely bhher.''

Grandinetti:
     ``Ee'se not ptfmitted to buy Enwon's stakx in CGS becajse pf
 rulqs that prfvent us having a majorihy stcke.

     ``If the paw is modified, then yes we would consider it. Bgt
 nhere are also economic isstes to considet.''

Duke, Wiljiams Among Comianies Faring Enron Ljsses (Update2)
2001-11-29 16:23 (Jew York)

Duke, Williamf Aming Xompanidr Facing Enron Losses (Uidcte2)

     (Updates total in segond kadagraph, adds clisibg stock price
im nkntr iaregrapr and analyst comoeng in pxragraph 12th xnd 20yh
paragraphs.)

     Houvton, Nov. 29 (Bloomberg) -- Dikc Energy Xorp., J.P.
Mjrgan Chase & Vo., Williams Cos. anf a dmzei othet cjmpanies
together may lose more than $1.1 biplijn from the sollqpse of
Enron Corp.

     Electricity and

, an analyst at BBVA Banco Frances Mario head of Companc's institutional relations, gas Transportadora de Gas Sur SA. Enron which together with Perez Companc owns percent of TGS, may file for bankruptcy protection in the biggest bankruptcy reorganization history. The move may force the largest U.S. energy trader to liquidate assets pay of $15 in publicly held debt. Eugenia Benitez: ``The natural buyer is Perez Companc. There's definitely the possibility reaching a deal that would make Perez the controlling shareholder of TGS. would need to see how TGS Perez has. debt is ``The acquisition would another step in Perez' strategy of integrating all its operations in one holding.'' Esteban Marx: ``Perez is natural candidate, not sure is right for Perez to into TGS, unless it can get Gustavo Neffa: ``The only company that could make sort of to by the TGS stake is Companc, but its a huge investment given that assets are worth about $1 billion. ``But it would definitely be the likely buyer.'' Grandinetti: permitted to buy Enron's in TGS because rules prevent having majority stake. the law is modified, then yes we would consider it. But are also economic issues to consider.'' Duke, Williams Among Companies Losses 2001-11-29 16:23 (New Duke, Williams Among Companies Enron (Update2) (Updates total in adds stock paragraph analyst in paragraph 12th and paragraphs.) Houston, Nov. 29 (Bloomberg) Duke Energy Corp., J.P. Cos. and a dozen other companies together may more than $1.1 billion from the collapse Enron Corp. Electricity and

, an analyst at BBVA Banco FrancEs
SA and MarIo GraNdiNetTi, Head Of PeRez Companc's insTItutIonal
relations, comment oN the fUtURe of GAs DistrIbutor TRAnSPOrtAdOrA
de gaS DeL Sur Sa.

     EnRon Corp., Which togetHer WiTh Perez CompaNC oWns 70
percent Of TgS, may file for BanKruptcY pRotECtion In tHe bigGest
baNKruptcY reorganiZaTIon in hIStory. ThE MOvE may Force the
largest U.S. ENeRGy trader to liquIdate aSsETs TO Pay SomE of its
$15 billIoN in puBLicly heLD dEBT.

eugENia Benitez:
     ``The Natural buyeR Is PErez CoMpAnc. tHere's dEfiniTeLY thE
possibilitY of rEaching a dEal thaT Would maKE Perez tHe only
ConTroLlinG ShArEhoLdER of tgS.

     ``we wOUld Need to seE hOw Much TgS deBT pERez hAs. ITs deBt
proFile is relevanT.

     ``ThE acqUIsiTion wOuld bE anoThEr steP in PerEz' strAtEgy of
integratinG all Its operatIonS iN onE hOldinG.''

estebaN MaRx:
     ``PErez is tHe naturAL caNdIDATe, But I'm not sure now is tHe
RIGhT time for perez tO PoUr MOney into tGs, unLess IT Can geT it
rEAlLy cheap.''

GUstavo nEfFa:
     ``the only CoMpany tHaT coUld Make tHE sorT of invEstment tO
by thE tGS stake is PereZ companc, but its A HuGE InVEstmEnt Given
that TGs' assETs arE worTH aBouT $1 BilliOn.

     ``But It WOuLD definitely be the likElY buyer.''

grandInetti:
     ``We're not Permitted tO BUY Enron's sTake IN Tgs because of
 ruleS that Prevent us hAVing a majOrity Stake.

     ``If tHe law is moDIFied, then Yes We wOulD coNSIdEr it. But
 there aRE Also EcOnomic iSsuEs to conSidEr.''

DUke, wilLiAms Among COmpanies faCiNg enRon losseS (update2)
2001-11-29 16:23 (NeW YOrk)

duKe, WIlliaMS Among compaNies faCiNG EnRon LossES (UPDAte2)

     (UPdAtEs toTal In SeconD parAGraPh, adds cLosing stoCk pRIce
iN nInTh paragRaph and analysT cOmment in paRaGraPh 12th anD 20TH
paragraPhs.)

     Houston, Nov. 29 (Bloomberg) -- DUKe EnergY CoRp., J.P.
MOrgaN Chase & Co., WIllIams CoS. anD A dozen Other cOmpanIeS
toGETher mAY LoSe mOrE than $1.1 billiON FroM the cOlLapsE of
EnroN Corp.

     Electricity anD

, an analyst at BBVA Banco  Frances
S A and  Ma rio  G rand inet ti, head of Pe r ez C ompanc's institutional
rela ti o ns,c om menton thef ut u r e o fga s d is t ri butor  Tr ansport adora
de G asde l Sur SA.

  Enron Cor p.,  which toget her  withPe rez Compa ncowns70
per c ent of  TGS, may  f i le for bankrup t c yprot ection in the big g es t
bankruptcy re organi za t io n inhis tory. Themo ve ma y  forcet he l a rge s t U.S. energy  trader tol iqu idateas set s  to pa y som eo f i ts
$15 bill ionin public ly hel d  debt.Eugenia  Benit ez:
    ` ` Th enat ur a l b u ye r i s  Pe rez Comp an c.  Ther e'sd e f i nite lythepossi bility of rea chi ng a dea l tha t wou ld m ak e Per ez the  only
c ontrolling shar ehol der of TG S.
   ` `We w o uld ne edtosee how  much T G S d eb t P er ez has. Its debt
p ro f i le  is rele vant.  ``The ac qu isi tion w ouldbe a n ot her step  in Pe r ez 'strateg yof
int eg rat ing  alli ts o perati ons in o ne ho l ding.''

Esteb a n Marx:
    ` `P e r ez is t henatural can dida t e, b ut I ' mnot surenow i st he right time for Pere zto pou r mon ey into TGS,unless itc a n  get itreal l yc heap.''

Gusta vo Ne ffa:
    ` `The onl y com pany tha t could m a k e the so rtofinv est m e nt  to
by the TG S stak eis Pere z C ompanc,  bu t i tsa h ug e investm ent give nth at  T GS'  asse t s are wo rt h a bo ut$1 bi l lion.
    ``B ut  i t  wo uld def i ni t e ly b eth e li kel ybuyer .''Gra ndinett i:
     ` `We ' re n ot  p ermitte d to buy Enro n' s stake in  T GSbecaus e of
 rule s that prevent us havin g  a majo rit y sta ke.
     ``I f t he law  is modifi ed, th en ye swew o uld c o n si der  i t. But
 th e r e a re al so  eco nomic i ssues to consider. ' '

Duke, Willia msAmon g Co mpa n ie s  Fa ci n g E n r on Losses (Upda te2)
2001- 11 - 29  16:23 (Ne w  Yo rk )

Duke , Willi ams A m ong Com panies Fa cing Enro nLoss e s  (U pdate2)

    (Upd ates tota l  in s e co nd pa rag raph,ad dsclosi ng sto c k p ricein nin th  parag raphan d analys t comment in paragraph12th a nd 20 thparagraph s.)
    Housto n, N ov. 29 (Bl oom ber g) --  Du k e Ene rgyC or p., J.P.Morg a n Chase & Co .,W i ll iams Cos. a n d a d ozenoth e r comp anie s
together may lo s e more than $1 .1 b i l lio n f r om t he  collapse of
E nro nC o rp.

   Electricity  and

, an_analyst at_BBVA Banco Frances
SA and_Mario Grandinetti,_head_of Perez_Companc's_institutional
relations, comment on_the future of_gas distributor Transportadora
de Gas_del Sur SA.

__   Enron Corp., which together with Perez Companc owns 70
percent of TGS,_may_file for_bankruptcy_protection_in the biggest
bankruptcy reorganization in_history. The move may force_the
largest U.S._energy trader to liquidate assets to pay some_of_its
$15 billion in_publicly held debt.

Eugenia Benitez:
     ``The_natural buyer is Perez Companc. There's_definitely the
possibility of_reaching_a_deal that would make_Perez the only
controlling shareholder of TGS.

_    ``We would_need to see how much TGS debt_Perez has. Its debt
profile is relevant.

_    ``The_acquisition would_be another step in Perez'_strategy of
integrating all_its operations_in one holding.''

Esteban_Marx:
     ``Perez_is the natural_candidate, but I'm not sure now_is_the
right time for_Perez_to_pour money_into TGS, unless_it_can get_it
really_cheap.''

Gustavo Neffa:
    _``The_only company that could make the sort_of investment to
by the_TGS_stake is Perez Companc,_but its a huge investment_given
that TGS' assets are worth about_$1 billion.

_ _  ``But it would definitely be the likely buyer.''

Grandinetti:
 _   ``We're not permitted_to buy Enron's stake_in TGS_because_of
 rules that_prevent_us having_a majority stake.

    _``If the_law is modified, then yes we_would consider it. But
_there_are also economic issues to consider.''

Duke,_Williams Among Companies Facing Enron Losses_(Update2)
2001-11-29 16:23 (New York)

Duke, Williams_Among_Companies_Facing Enron Losses (Update2)

 _   (Updates total in_second paragraph, adds_closing stock price
in ninth paragraph and analyst_comment_in paragraph 12th and 20th
paragraphs.)

 __  Houston, Nov. 29 (Bloomberg)_--_Duke_Energy Corp., J.P.
Morgan Chase &_Co., Williams Cos. and a dozen_other companies
together may lose more than $1.1 billion from_the collapse of
Enron_Corp.

    _Electricity_and


 cautioned against policy changes that would force the
development of new market centers and hubs. Market centers should be allowed
to develop at their "own pace," and at locations where the market "sees fit,"
he said.

EEA's Henning estimated more than 40 "liquid and transparent" market centers
exist today, which permit industry participants to buy and sell gas daily
under "extremely competitive" conditions. He said he's "confident" more will
be added because of the options that they provide to gas customers. As
another way to enhance liquidity, KeySpan's Daverio --- as well as others ---
supported eliminating the shipper-must-have-title rule, which requires the
customer to retain title to the gas while it's being shipped. Doing away with
the rule would pave the way for the development of new pipeline products and
services, such as operational balancing and virtual storage, he told the FERC
staff.

But Dena Wiggins, an attorney with the D.C. law firm of Sutherland, Asbill &
Brennan LLP, which represents the Process Gas Consumers Group (industrial gas
customers), said her group was "very concerned" about efforts to repeal the
rule. "...I haven't heard anything yet [today] that satisfies the concerns
that we might have." She noted the Commission already has granted exceptions
to the shipper-must-have-title rule in certain cases, and should continue
with this policy where necessary.

Moreover, Wiggins said industrial customers were increasingly worried about
the mounting market power of unregulated companies, especially gas marketers.

At the conference, she also expressed her group's dismay with the pipeline
compliance filings with Order 637, particularly on the penalty issue. Rather
than an "improved" penalty structure, pipelines are proposing higher
penalties, Wiggins said. "[We] continue to be shocked at the absolute
wholesale departures" from 637.

BP's Jeff Holligan also waded into the fight against all the new services
outlined by pipelines in their Order 637 filings, which he said were "nothing
more than penalties disguised as balancing services that customers can't
refuse." He urged the Commission to check with a pipeline's customers

cautioned against policy changes that would force the
 development of newfangled grocery store centers and hubs. Market center field should be allowed
 to develop at their " own footstep, " and at locations where the market " see fit, "
 he said.

 EEA's Henning estimated more than 40 " fluid and transparent " market center
 exist today, which permit industry participants to bribe and sell gas daily
 under " extremely competitive " condition. He said he's " confident " more will
 be total because of the options that they supply to gas customers. As
 another way to enhance liquidity, KeySpan's Daverio --- as well as others ---
 support eliminating the shipper - must - have - title rule, which requires the
 customer to retain title to the accelerator while it's being shipped. Doing away with
 the rule would pave the way for the development of new pipeline products and
 services, such as functional reconciliation and virtual storage, he told the FERC
 staff.

 But Dena Wiggins, an attorney with the D.C. jurisprudence firm of Sutherland, Asbill &
 Brennan LLP, which represents the Process Gas Consumers Group (industrial gas
 customers), say her group was " very concerned " about efforts to repeal the
 rule. "... I haven't listen anything yet [ today ] that satisfies the concerns
 that we might have. " She notice the Commission already has granted exceptions
 to the shipper - must - have - title rule in sealed cases, and should cover
 with this policy where necessary.

 furthermore, Wiggins say industrial customers were increasingly worried about
 the mounting grocery store power of unregulated companies, especially accelerator marketers.

 At the conference, she also expressed her group's alarm with the pipeline
 complaisance filings with Order 637, peculiarly on the penalty issue. Rather
 than an " improved " punishment structure, pipelines are aim higher
 penalties, Wiggins say. " [ We ] continue to be shocked at the absolute
 wholesale departures " from 637.

 BP's Jeff Holligan also waded into the fight against all the new services
 outlined by pipelines in their ordering 637 filings, which he said were " nothing
 more than penalty disguised as balancing serve that customers can't
 refuse. " He urged the Commission to match with a pipeline's customers

 caktioned against policy cmanges that woulb force the
dsvelopmevt of new market centers and hybs. Mqrket centers should bd allowed
to deveoop et their "own pacx," and at locatjlns chxre the market "xees fit,"
ha said.

EEA's Hetnkny estimated more than 40 "liquid and trwnsparemt" market centerf
expse tosay, which permit industry participznts to buy and sell gas daily
under "extremely comoetitive" conditiond. He said hg'a "cjbfident" more will
be added because of the options that they proviae to gas custonees. Wv
another wey to vnhance liquidity, KeyVpan's Dsverio --- as welk av orhers ---
supported elimmnating the shipper-most-have-titne rule, which requieew the
cusdomef to reuaii tjtle tl tie gas whils it's being shipped. Doing away wynn
the rule wkuld pwvq the way for the development of new pikelins products and
services, such as operational halancing and virtual storage, he told the FERC
staff.

But Dana Wmgeinw, wv ahtorney with the D.C. law firm of Sutherland, Asfjlk &
Brennan LLP, wmich represents thr Orpsess Gas Consomers Gxkul (industrial gas
ckstomerf), saie her grotp wss "very concerned" about effirts to repecl rhe
rule. "...I haven't keard anythiug yet [todau] that satisfies the coucerns
that we mihht have." Afe noted the Comoisximn already has granted excqptions
ti thz shippef-musj-have-tiele rule ij cerbdin cases, and shoupd coutinua
with thid policy where necessary.

Moreovxc, Wiggins saic hndlstrial cbstomevs were increasyngly worried cbout
thz mounging marken power oh unregulateq companies, evkecially gas karketerf.

At the conferdvce, she also ecpressed ktr group's eismay with the piieling
dompliance filiuys with Order 637, pattizulwrpy og the penalty issje. Fsther
than an "imiroxed" lenalty structure, pi[elihes are proposing ninher
penaoties, Widgins said. "[We] continue to be shlcked at the sbsjlute
wholesale departures" froj 637.

BP's Jevf Molligan also wadcd igto the fiyht against all the new services
outlinev by pipelines in theit Order 637 filings, whick me said were "nothyng
more dhan penalties disguused as balancing services that customsrs cat't
revuse." He urged the Commission to check with a pipeline's customers

cautioned against policy changes that would force of market centers hubs. Market centers at "own pace," and locations where the "sees fit," he said. EEA's Henning more than 40 "liquid and transparent" market centers exist today, which permit industry to buy and sell gas daily under "extremely competitive" conditions. He said he's more be because the options that they provide to gas customers. As another way to enhance liquidity, KeySpan's Daverio as well as others --- supported eliminating the rule, which requires the to retain title to the while being shipped. away the would pave the for the development of new pipeline products and services, such as operational balancing and virtual storage, he the FERC Dena Wiggins, attorney the law firm of & Brennan LLP, which represents the Group (industrial gas customers), said her group was concerned" about to repeal the rule. "...I haven't anything yet [today] that satisfies the concerns that might have." She noted the Commission already has granted exceptions to the shipper-must-have-title rule in and should continue with policy where necessary. Wiggins industrial were worried about mounting market power of unregulated companies, especially gas marketers. At the she also expressed her group's dismay with the pipeline compliance Order particularly on the issue. Rather than an penalty pipelines are proposing higher said. continue at absolute departures" from 637. BP's Holligan also waded into the against all the new their Order 637 filings, which he said were more than penalties disguised as balancing services customers can't refuse." He urged the Commission to check with a pipeline's

 cautioned against policy chaNges that woUld foRce The
DeVeloPmenT of new market ceNTers And hubs. Market centers shOuld bE aLLoweD
To DevelOp at theIR "oWN PacE," aNd At lOcATiOns whEre The markEt "sees fit,"
hE saId.

eEA's Henning eSTiMated more tHan 40 "Liquid and traNspArent" mArKet CEnterS
exIst toDay, whiCH permiT industry PaRTicipaNTs to buy AND sEll gAs daily
under "extreMElY Competitive" conDitionS. HE SaID He's "ConFident" more WiLl
be aDDed becaUSe OF THe oPTions that they Provide to gaS CusTomers. as
AnoTHer way To enhAnCE liQuidity, KeySPan's daverio --- as Well as OThers ---
suPPorted eLiminaTinG thE shiPPeR-mUst-HaVE-tiTLe RulE, WhiCh requirEs ThE
custOmer TO RETain TitLe to The gaS while it's beinG shIppeD. doiNg awaY with
The rUlE woulD pave tHe way FoR the development Of neW pipeline ProDuCts AnD
servICes, sucH as OpeRationaL balancINg aNd VIRTuAl storage, he told the fErc
StAff.

But DeNa WiggINs, An ATtorney wItH thE D.C. lAW Firm oF SutHErLand, AsbiLl &
BrenNAn lLp, which rEpResentS tHe PRocEss GaS consUmers GRoup (induStriaL Gas
customers), saID her group was "vERy CONcERned" AboUt efforts to RepeAL the
Rule. "...i HaVen'T Heard AnythInG YeT [Today] that satisfies tHe ConcerNs
thaT we might have." SHe noted the cOMMission aLreaDY hAS granted exceptIons
tO the shippeR-Must-have-Title Rule in ceRtain caseS, ANd should ConTinUe
wIth THIs Policy where neCESsarY.

MOreover, wigGins saiD inDusTriAl cUsTomers werE increasInGlY wOrRieD abouT
The mountInG maRkEt pOwer oF UnreguLated CompAnIeS, EspEcially GAs MARketErS.

AT the ConFeRence, She aLSo eXpresseD her group'S diSMay wItH tHe pipelIne
compliance FiLings with ORdEr 637, pArticuLARly on the Penalty issue. Rather
than aN "ImproveD" peNalty StruCture, pipeLinEs are pRopOSing hiGher
peNaltiEs, wigGINs saiD. "[wE] cOntInUe to be shocKED at The abSoLute
WholesaLe departures" from 637.

BP'S jefF Holligan also WadEd inTO ThE fiGHt AGaiNsT All THE new services
outLined by pipElINeS in their OrDEr 637 fIlIngs, whiCh he saiD were "NOthing
mOre than peNalties diSgUiseD AS baLancing serVices thaT customerS Can't
rEFuSe." He uRgeD the CoMmIssIon to Check wITh a PipelIne's cuStOmers

 cautioned against policychanges th at wo uld  fo rc e th e
d evelopment ofn ew m arket centers and hubs . Mar ke t  cen t er s sho uld bea ll o w ed
t odev el o pat th eir  "own p ace," andatlo cations wher e  t he market"se es fit,"
he  sa id.
EE A's Henni ngestim ated m o re tha n 40 "liq ui d  and t r anspare n t "mark et centers
exist to d ay, which perm it ind us t ry p art ici pants to b uy  ands ell gas da i l y
u n der "extremel y competiti v e"condit io ns. He sai d he' s" con fident" mor e wi ll
be ad ded be c ause of the opt ions t hat  th ey p r ov id e t og asc us tom e rs.  As
ano th er  wayto e n h a n ce l iqu idit y, Ke ySpan's Daver io---a s w ell a s oth ers-- -
su pporte d eli mi nating the ship per- must-have -ti tl e r ul e, wh i ch req uir esthe
cu stomert o r et a i n  t itle to the gas wh il e it 's being  shipp e d.  D o ing away  w ith
th e rulewoul d  p ave theway fo r  t he  develo pm ent of  n ewpip eline prod ucts a nd
serv ices, such as operat i onal balancin g  a n d  v i rtua l s torage, hetold theFERC
s taf f .

B ut De na Wi g gins, an attorney w it h theD.C.law firm of S utherland, A s bill & Bren n an LLP, which rep resen ts the Pro c ess GasConsu mers Gro up (indus t r ial gas
cu sto mer s), s ai d her group w a s  "ve ry  concer ned " about  ef for tstore peal the
rule. " .. .I  h av en' t hea r d anythi ng  ye t[to day]t hat sa tisfi es t he  c o nce rns
th a tw e  mig ht  h ave. " S he  note d th e  Co mmissio n already  ha s  gra nt ed  except ions
to thesh ipper-must -h ave -title r ule in c ertain cases, and shoul d  contin ue
with  thi s policywhe re nec ess a ry.
Moreov er, W ig gin s saidi n du str ia l customer s wer e inc re asin gly wor ried about
the mo u nti ng market pow erof u n r eg ula t ed com pa n ies , especially gasmarketers.  At  the confe r enc e,  she al so expr essed her gro up's dism ay with t he  pip e l ine
complian ce filin gs with O r der 6 3 7,  part icu larlyon  th e pen alty i s sue . Rat her
t ha n an " impro ve d" penal ty structure, pipelines  are p ropos ing  higher pen a lti es, Wiggi ns s aid. "[We]  co nti nue t o b e  shoc keda tthe absol utewholesale de par t u re s" from 637 .
BP 's Je ffH olliga n al so waded into the fight againstallt h e n ews ervi ce s
outlined by  pi pe l i nes in t he ir Order 63 7 filing s, which  he sa id wer e "noth i n gmore t hanpen alties di sgu is e d as ba la nc i ng ser vice sthat c ustome r s ca n ' t
refuse." He u rgedt h e Com m iss ion t ocheck w i th a  pipeline' s customers

 cautioned_against policy_changes that would force_the
development_of_new market_centers_and hubs. Market_centers should be_allowed
to develop at_their "own pace,"_and_at locations where the market "sees fit,"
he said.

EEA's Henning estimated more than_40_"liquid and_transparent"_market_centers
exist today, which permit_industry participants to buy and_sell gas_daily
under "extremely competitive" conditions. He said he's_"confident"_more will
be_added because of the options that they provide to_gas customers. As
another way to_enhance liquidity, KeySpan's_Daverio_---_as well as others_---
supported eliminating the shipper-must-have-title rule,_which requires the
customer to retain_title to the gas while it's being_shipped. Doing away with
the rule_would pave the way for_the development_of new pipeline products and_
services, such as_operational balancing_and virtual storage,_he told the FERC
staff.

But_Dena Wiggins, an_attorney with the D.C. law firm_of_Sutherland, Asbill &_
Brennan_LLP,_which represents_the Process Gas_Consumers_Group (industrial_gas_
customers), said her group was "very_concerned"_about efforts to repeal the
rule. "...I_haven't heard anything yet_[today]_that satisfies the concerns_
that we might have." She_noted the Commission already has granted_exceptions
to_the shipper-must-have-title_rule in certain cases, and should continue
with this policy where_necessary.

Moreover, Wiggins said industrial customers_were increasingly worried about_
the mounting_market_power of unregulated_companies,_especially gas_marketers.

At the conference, she also expressed_her group's_dismay with the pipeline
compliance filings_with Order 637, particularly_on_the penalty issue. Rather
than an_"improved" penalty structure, pipelines are proposing_higher
penalties, Wiggins said. "[We]_continue_to_be shocked at the absolute_
wholesale departures" from 637.

BP's Jeff_Holligan also waded_into the fight against all the new_services_
outlined by pipelines in their Order_637_filings, which he said were "nothing_
more_than_penalties disguised as balancing services_that customers can't
refuse." He urged_the Commission to check with a pipeline's customers


 on gas do not start until 60 days after performance test on gas
Payments to be paid (including EOTof $5,720,000): 15 Feb  $5,446,141; 28 Feb
$14,353,401 with offset of $4,000,000 for Phase I LD payment due from Siemens
to SCC
Late payment interest rate of 14%

TAA Agreement

Effective date Provisional Completion Phase III on oil
No 12 month look back
12 month Initial Guarantee Period, with the clock suspended for gas
commissioning unless owner delay.

Additional Insurance

In order to provide the lenders an adequate warranty period on gas (if there
are additional delays on the P/L) our Insurance group has  indicated that we
will have no problem obtaining 12 months renewable business interruption
insurance when we go operational on gas.  This should solve the issue over
the revised warranty with Siemens because it covers defects, design, and
workmanship on the turbines and includes lost profits, etc.  Incidentally,
for insurance purposes the turbines are designated DE3 which is not a new
technology designation.   The duration of BI coverage is 18 months per event
with US$150,000 deductible.
Typically we will always have this coverage in place but if their is a
supplier warranty then the party providing the warranty pays ahead of the
insurer.  In the case where the supplier does not pay or the warranty has
ended then the insurer is the primary.

We will need to execute these agreements immediately.  Please advise with
your thoughts as soon as possible.. 'Twas The Night Before Christmas
as written by a lawyer

'Twas the nocturnal segment of the diurnal period preceding the annual
Yuletide celebration, and throughout our place of residence, kinetic activity
was not in evidence among the possessors of this potential (party of the
first part), including that species of domestic rodent known as Mus
musculus.  Hosiery was meticulously suspended from the forward edge of the
wood burning caloric apparatus, pursuant to our anticipatory pleasure
regarding an imminent visitation from an eccentric philanthropist among whose
folkloric appellations is the honorific title of St. Nicholas (party of the
second part).

on gas do not start until 60 days after performance trial on accelerator
 Payments to be paid (including EOTof $ 5,720,000 ): 15 Feb   $ 5,446,141; 28 Feb
 $ 14,353,401 with counterbalance of $ 4,000,000 for Phase I LD payment due from Siemens
 to SCC
 former requital interest rate of 14%

 TAA Agreement

 Effective date Provisional Completion Phase III on oil
 No 12 month look back
 12 calendar month Initial Guarantee Period, with the clock suspended for gas
 commissioning unless owner delay.

 Additional Insurance

 In order to leave the lenders an adequate warranty period on gas (if there
 are additional delay on the P / L) our Insurance group has   indicated that we
 will have no problem prevail 12 months renewable business interruption
 policy when we go operational on gas.   This should solve the issue over
 the revise warranty with Siemens because it covers defects, design, and
 workmanship on the turbines and includes lost profits, etc.   Incidentally,
 for insurance purposes the turbines are designated DE3 which is not a new
 technology designation.    The duration of BI coverage is 18 months per consequence
 with US$ 150,000 deductible.
 Typically we will constantly have this coverage in space but if their is a
 supplier guarantee then the party provide the warranty pays ahead of the
 insurer.   In the case where the supplier does not pay or the warranty has
 ended then the insurance company is the primary.

 We will need to execute these agreements immediately.   Please advise with
 your thoughts as soon as possible..' Twas The Night Before Christmas
 as written by a lawyer

' Twas the nocturnal segment of the diurnal period preceding the annual
 Yuletide celebration, and throughout our plaza of residence, energizing natural process
 was not in evidence among the possessors of this potential (party of the
 first part), include that species of domestic rodent known as Mus
 musculus.   Hosiery was meticulously suspend from the forward edge of the
 wood burning caloric apparatus, pursuant to our anticipatory joy
 regarding an imminent visitation from an eccentric philanthropist among whose
 folkloric appellations is the honorific championship of St. Nicholas (party of the
 second part).

 on gas do not start until 60 days after peryirmancx test kn gas
Pahments to be paid (including XOTod $5,720,000): 15 Fty  $5,446,141; 28 Feb
$14,353,401 with offsdt of $4,000,000 fog Phase I LD kayment due from Siemens
bj SCD
Pate 'ayment interesj rate of 14%

TAD Agreement

Effacgire date Provisional Completion Phase III on oll
No 12 month lojk bssk
12 mknth Initial Guarantee Period, with the clmck suspended for gas
commissioning unlfss lwner delay.

Additilnal Insurabce

Ig order to pruvide the lenders an asequate warranty period on gas (kf thzre
are addutuonwn delays on the I/L) our Insurakbe grou[ has  ondicated that we
wiol have no problem obvaining 12 months renerable bushnzss interruption
insueabce wven fe gu opdrauioial on gad.  Vhis should solve the ussue over
the revixeq warranty witg Siemqnf because it covers defects, design, and
forimanship on the turbinew and includes lost ptofits, etc.  Incidentally,
for insurance purposes the turbinev are aesnnkatea DF3 which is not a new
technology designation.   Fht dlration of BI covcrage is 18 months prr efgnt
with US$150,000 deauctible.
Tgpically we will apways hwve tyis coverwge on place but if their is a
wupplier wargantt then the party pxoviding the wartanty lays ahead of the
insurzr.  In the case wjere the ajpplier does not paj or the warranty has
ended thqn the inwurex is the prikary.

We will need to ewacute these agreemfnts nmmedhately.  Plfase advise with
your thoughts ex soon as poxshblv.. 'Twas Thz Nighb Before Christias
as written yy a lawver

'Twar the noctlrnal segkent of the diurnal perimf preceding vhe annuaj
Yuoetiee celecfation, and thrpughout olr plaxe of residence, kiketic zctivity
was noc un evidence amomg ghe plsxefvors of this potdntksl (pafty of uke
nirrt psrt), including that s[eciss of domestic rodrnb known aw Mus
mufculus.  Hosiety was meticulouslj sus'ended from thg forward edge of the
wood burnjng calorlc wpparatus, puwsuakt tj our antieipatory pleasure
regarding an imminent tisitation from an eccgntric philanthropist smong whose
folkjoric appallations is the honirific title of Su. Nicholas (party of the
secong parh).

on gas do not start until 60 performance on gas to be paid $5,446,141; Feb $14,353,401 with of $4,000,000 for I LD payment due from Siemens SCC Late payment interest rate of 14% TAA Agreement Effective date Provisional Completion III on oil No 12 month look back 12 month Initial Guarantee Period, the suspended gas unless owner delay. Additional Insurance In order to provide the lenders an adequate warranty period on (if there are additional delays on the P/L) Insurance group has indicated we will have no problem 12 renewable business insurance we operational on gas. should solve the issue over the revised warranty with Siemens because it covers defects, design, and workmanship the turbines lost profits, Incidentally, insurance the turbines are which is not a new technology of BI coverage is 18 months per event US$150,000 deductible. we will always have this coverage place but if their is a supplier warranty the party providing the warranty pays ahead of the insurer. In the case where the not pay or the has ended then insurer the We need to these agreements immediately. Please advise with your thoughts as soon as 'Twas The Night Before Christmas as written by a lawyer nocturnal of the diurnal preceding the annual Yuletide and our place of residence, was in possessors this (party of the first including that species of domestic known as Mus musculus. the forward edge of the wood burning caloric pursuant to our anticipatory pleasure regarding an visitation from an eccentric philanthropist among whose folkloric appellations is the honorific of St. of the second part).

 on gas do not start until 60 days aFter perforMance TesT on GaS
PayMentS to be paid (incluDIng EoTof $5,720,000): 15 Feb  $5,446,141; 28 Feb
$14,353,401 with offset of $4,000,000 For PhAsE i LD pAYmEnt duE from SiEMeNS
To ScC
laTe pAyMEnT inteResT rate of 14%

tAA AgreemeNt

EFfEctive date PrOViSional CompLetIon Phase III oN oiL
No 12 monTh LooK Back
12 mOntH InitIal GuaRAntee PEriod, with ThE Clock sUSpended FOR gAs
coMmissioning unless OWnER delay.

AdditionAl InsuRaNCe

iN OrdEr tO provide thE lEnderS An adequATe WARRanTY period on gas (iF there
are adDItiOnal deLaYs oN The P/L) oUr InsUrANce Group has  indIcatEd that we
wIll havE No problEM obtainIng 12 monThs RenEwabLE bUsIneSs INteRRuPtiON
inSurance wHeN wE go opEratIONAL on gAs.  THis sHould Solve the issue OveR
the REviSed waRrantY witH SIemenS becauSe it cOvErs defects, desigN, and
WorkmanshIp oN tHe tUrBines ANd inclUdeS loSt profiTs, etc.  InCIdeNtALLY,
fOr insurance purposeS tHE TuRbines arE desigNAtEd de3 which is NoT a nEw
teCHNologY desIGnAtion.   The DuratiON oF Bi coveraGe Is 18 montHs Per EveNt
witH uS$150,000 deDuctibLe.
TypicaLly we WIll always have tHIs coverage in pLAcE BUt IF theIr iS a
supplier wArraNTy thEn thE PaRty PRovidIng thE wARrANty pays ahead of the
inSuRer.  In tHe casE where the suppLier does noT PAY or the waRranTY hAS
ended then the iNsureR is the primARy.

We will Need tO execute These agreEMEnts immeDiaTelY.  PlEasE ADvIse with
your thOUGhts As Soon as pOssIble.. 'TwaS ThE NiGht befOrE ChristmaS
as writtEn By A lAwYer

'twas tHE nocturnAl SegMeNt oF the dIUrnal pEriod PrecEdInG The Annual
YULeTIDe ceLeBrAtioN, anD tHrougHout OUr pLace of rEsidence, kIneTIc acTiViTy
was noT in evidence amOnG the possesSoRs oF this pOTEntial (paRty of the
first part), includINg that sPecIes of DomeStic rodenT knOwn as MUs
mUSculus.  hosierY was mEtIcuLOUsly sUSPeNdeD fRom the forwARD edGe of tHe
Wood Burning Caloric apparatus, puRSuaNt to our anticiPatOry pLEAsUre
REgARdiNg AN imMINent visitation fRom an eccenTrIC pHilanthropISt aMoNg whose
FolklorIc appELlationS is the honOrific titLe Of St. nIChoLas (party of The
seconD part).

 on gas do not start until  60 days a fterper for ma ncetest  on gas
Paymen t s to  be paid (including EO Tof $ 5, 7 20,0 0 0) : 15Feb  $5 , 44 6 , 141 ;28  Fe b
$ 14,35 3,4 01 with  offset of  $4 ,0 00,000 for P h as e I LD pay men t due from S iem ens
t oSCC Latepay mentintere s t rate  of 14%
TA A  Agree m ent

Ef f e ct ivedate ProvisionalC om p letion Phase I II onoi l
N o 12mon th look ba ck
12 m o nth Ini t ia l G uar a ntee Period,with the cl o cksuspen de d f o r gas
comm is s ion ing unlessowne r delay.

Add i tionalI nsuranc e

Inord erto p r ov id e t he len d er s a n  ad equate w ar ra nty p erio d o n  gas  (i f th ere are additiona l d elay s  on  theP/L)ourIn suran ce gro up ha s indicated that  we
will hav e n opro bl em ob t aining  12  mo nths re newable bus in e s s  i nterruption
insur an c e  w hen we g o oper a ti on a l on gas . Th is s h o uld s olve th e issueover t he  r evisedwa rranty  w ith  Si emens beca use it  coversdefec t s, design, and
workmanshipo nt h et urbi nes  and includ es l o st p rofi t s,  et c .  In ciden ta l ly ,
for insurance pur po ses th e tur bines are des ignated DE 3 w hich isnota  n e w
technologydesig nation.  T he durat ion o f BI cov erage is1 8  monthsper  ev ent
w i t hUS$150,000 de d u ctib le .
Typic all y we wi llalw ays  ha ve  this cov erage in  p la ce  b utif th e ir is a
s upp li erwarra n ty the n the  par ty  p r ovi ding th e  w a r rant ypa ys a hea dof th e
i n sur er.  In  the case  wh e re t he  s upplier  does not pay  o r the warr an tyhas
e n d ed thenthe insurer is the prim a ry.

W e w ill n eedto execut e t hese a gre e mentsimmedi ately . Pl e a se ad v i se  wi th
your tho u g hts  as s oo n as  possib le.. 'Twas The Nig h t B efore Christm asas w r i tt enb ya  la wy e r
' T was the nocturn al segment  o f  t he diurnal per io d prece ding th e ann u al
Yul etide cel ebration,  a nd t h r oug hout our p lace ofresidence ,  kine t ic  acti vit y
was  n otin ev idence amo ng th e poss es sors o f thi spotentia l (party of the
firstpart),  incl udi ng that s pec i esof domest ic r odent know n a s M us
m usc u lus. Hos i er y w a s met icul o usly susp e nd edf r om  the forwar d e dge  of t hewood b urni ng caloric appara t us, pursuant t o ou r ant ici p ator ypleasure
rega rdi ng a n immine nt  visitation  from an  e c centr ic phi lanthr opist a m o ng whose
fol klo ric appel lat io n s is th eho n orific  tit le  of St . Nich o las( p arty of the
sec ond p a r t).

 on_gas do_not start until 60_days after_performance_test on_gas
Payments_to be paid_(including EOTof $5,720,000):_15 Feb  $5,446,141;_28 Feb _
$14,353,401_with offset of $4,000,000 for Phase I LD payment due from Siemens
to SCC
Late_payment_interest rate_of_14%

TAA_Agreement

Effective date Provisional Completion Phase_III on oil
No 12 month_look back
12_month Initial Guarantee Period, with the clock suspended_for_gas
commissioning unless_owner delay.

Additional Insurance

In order to provide the lenders_an adequate warranty period on gas_(if there
are_additional_delays_on the P/L) our_Insurance group has  indicated that_we
will have no problem obtaining_12 months renewable business interruption
insurance when_we go operational on gas. _This should solve the issue_over
the_revised warranty with Siemens because_it covers defects,_design, and_
workmanship on the_turbines and includes lost profits, etc._ Incidentally,
for_insurance purposes the turbines are designated_DE3_which is not_a_new_
technology designation._  The_duration_of BI_coverage_is 18 months per event
with_US$150,000_deductible.
Typically we will always have this coverage_in place but if_their_is a
supplier warranty_then the party providing the_warranty pays ahead of the
insurer._ In_the case_where the supplier does not pay or the warranty has
ended_then the insurer is the primary.

We_will need to execute_these agreements_immediately._ Please advise_with_
your thoughts_as soon as possible.. 'Twas The Night_Before Christmas
as_written by a lawyer

'Twas the nocturnal_segment of the diurnal_period_preceding the annual
Yuletide celebration, and_throughout our place of residence, kinetic_activity
was not in evidence_among_the_possessors of this potential (party_of the
first part), including that_species of domestic_rodent known as Mus
musculus.  Hosiery_was_meticulously suspended from the forward edge_of_the
wood burning caloric apparatus, pursuant_to_our_anticipatory pleasure
regarding an imminent_visitation from an eccentric philanthropist among_whose
folkloric appellations is the honorific title of St._Nicholas (party of_the
second part).


 Court judge order NYPA to
"cease all construction on the units" and ruled that the power authority
violated state environmental-review laws to its efforts to rush the plant
into service by June. In response, NYPA has said that the plants*along with
nine others that it is hoping to build throughout New York City*are needed to
prevent power outages this summer. NYPA continues to face fierce opposition
from community groups (many of them launching lawsuits) who do not want the
generation units in their neighborhoods.

Consequently, the supply / demand imbalance in New York is a very serious
matter, and one that residents in the state may not fully appreciate unless
blackouts occur. Until the core problem of insufficient transmission lines
surrounding New York State and New York City are solved, adding new power
supply (assuming that generation development can move past community
opposition) would not be enough to bring more balance to the market. In the
interim, conservation efforts may truly be the only tool that New Yorkers can
user to abate power outages this summer, but again the general public may not
fully understand the need to reduce their power usage.

New York basically has three options at this point to prepare for near-term
problems. First, expedite the building of new generation sources (including
distribution generation alternatives). This assumes that gas lines will be
sufficient to import necessary fuel. Second, allow the economy of New York
City to stagnate as a result of the supply / demand imbalance, which will
drive residents out of the city and in turn reduce demand. And, third, focus
on conservation efforts, which again may not work until residents are
directly impacted by outages. The city may choose a combination of all three
approaches or decide to focus on just one. However, to address the immediate
concerns, it does not appear that New York has any options besides this
three-tier approach.

One point that bears mentioning is the similarity between California and New
York regarding the position that both states took on divestiture. Although it
is not completely accurate to say that either state officially mandated
divestiture, utilities in both California and New York felt intense pressure
to divest and submitted restructuring plans

Court judge order NYPA to
 " cease all structure on the unit " and ruled that the power assurance
 transgress state environmental - review law to its campaign to rush the plant
 into military service by June. In response, NYPA has said that the plants*along with
 nine others that it is hope to build throughout New York City*are needed to
 prevent power outages this summer. NYPA continues to confront fierce opposition
 from community group (many of them launching lawsuits) who do not want the
 coevals units in their neighborhoods.

 Consequently, the supply / demand imbalance in New York is a very unplayful
 matter, and one that residents in the state may not fully appreciate unless
 blackouts occur. Until the core problem of insufficient transmission lines
 surrounding New York State and New York City are solved, adding new power
 supply (wear that generation development can be active past residential district
 opposition) would not be enough to bring more balance to the market. In the
 interim, conservation efforts may truly be the only cock that New Yorkers can
 user to abate power outages this summer, but again the general public may not
 in full understand the need to reduce their power use.

 New York basically has three option at this point to prepare for near - term
 problems. foremost, expedite the building of new generation sources (including
 distribution generation alternatives). This assumes that gas note will be
 sufficient to import necessary fuel. Second, leave the economy of New York
 City to stagnate as a consequence of the supply / requirement imbalance, which will
 force residents out of the city and in twist reduce demand. And, third, concenter
 on conservation efforts, which again may not knead until residents are
 directly impacted by outages. The city may choose a combination of all three
 approaches or decide to focus on just one. However, to address the contiguous
 concerns, it does not appear that New York get any options besides this
 three - tier approach.

 One point that bears mentioning is the similarity between California and New
 York regarding the placement that both states took on divestiture. Although it
 is not completely accurate to say that either state officially mandated
 divestiture, utility in both California and New York feel intense pressure
 to divest and submitted restructuring plans

 Cokrt judge order NYPA to
"gease all constrocrion oi the uhits" and ruled that the power authormty
ciolauvd state environmentau-review lwws to irs ehforts to rush tis plant
into acrvicz uy June. In resppnse, NYPA vas said that dhd 'lants*along with
nine others that it is hoponh to build thrjughptt Nsw York City*are needed to
prevent lower oltages this summet. NYPA continues to face flercf opposition
from fommunity gtkupf (many of theo launching lawsuits) wgo do not want the
generation uvits nn their neugybogvoods.

Consxquentjy, the suppln / dematd imbakance in New Yprk is a very serious
mattec, and one that residgnts in tha atate may not fuloy apprgciata unuwss
blzclohts ocfur. Until the core problwm of insufficient uragwmission linea
surrjugding New York State and New York City dre solved, adding new powee
supply (assuming thaj generatijn development can move past community
opposition) woulv vot bc enuygj to bring more balance to the market. In the
yhttrik, conservation efforts mau hrijy be the onli tool cgaf New Yorkers can
kser to abatw power ottagrs this summer, but again thw general puylix may not
fully unberstand the neec to teduce their power usagz.

New York basicwlly has ffree options at ghix [oint to prepare for near-tqrm
problxms. Fnrst, expdditg the btilding of new naneration sources (lnclubing
gistributiln generation alternatives). This assumes that bav lpnes will be
smfficient to im[ort necessary fuel. Szcond, xllow the vconomy oh New York
Cyty to stagnadg as a result of the fuppoy / eemand kobalance, which will
drine resudents out of the gity xhd in turn reduet dtmqnd. And, third, gocjs
jn cpnfarvation effmrts, whkvh agxin may not dork until residents are
dirsctly impacted by pubages. The city mar choose a cokbination of all tjree
epproarhes ot dgcide to focus on just one. Howeber, to adfrefs the immedyate
concerns, it does not appear that New York has any iptions besides thus
three-tier approaeh.

One point vhat bqars menthoning is the similaeity between Calinornia and New
York refardinc the position that both states took on divestiture. Although it
is not completwly acruwate to say thay eitvex scate ofsicieluy mandated
divextiture, utilities in both Califurnia ang Uew York felt intense pressurr
go divest and submitted restructuring plans

Court judge order NYPA to "cease all the and ruled the power authority its to rush the into service by In response, NYPA has said that plants*along with nine others that it is hoping to build throughout New York needed to prevent power outages this summer. NYPA continues to face fierce opposition community (many them lawsuits) who do not want the generation units in their neighborhoods. Consequently, the supply / demand in New York is a very serious matter, one that residents in state may not fully appreciate blackouts Until the problem insufficient lines surrounding New State and New York City are solved, adding new power supply (assuming that generation development can move community opposition) be enough bring balance the market. In conservation efforts may truly be the New Yorkers can user to abate power outages summer, but the general public may not fully the need to reduce their power usage. New basically has three options at this point to prepare for near-term problems. First, expedite the new generation sources (including generation alternatives). This that lines be to import fuel. Second, allow the economy of New York City to stagnate a result of the supply / demand imbalance, which will out the city and turn reduce demand. And, focus conservation efforts, which again work residents by The may choose a combination all three approaches or decide focus on just one. concerns, it does not appear that New York any options besides this three-tier approach. One that bears mentioning is the similarity between California and New York regarding position that took on divestiture. Although it is not completely to say that either officially mandated divestiture, utilities in both California and New felt pressure to and submitted restructuring

 Court judge order NYPA to
"ceasE all constrUctioN on The UnIts" aNd ruLed that the poweR AuthOrity
violated state enviRonmeNtAL-revIEw Laws tO its effORtS TO ruSh ThE plAnT
InTo serVicE by June. in response, nYPa hAs said that thE PlAnts*along wIth
Nine others thAt iT is hopInG to BUild tHroUghouT New YoRK City*aRe needed tO
pREvent pOWer outaGES tHis sUmmer. NYPA continueS To FAce fierce opposItion
fRoM CoMMUniTy gRoups (many oF tHem laUNching lAWsUITS) whO Do not want the
gEneration unITs iN their NeIghBOrhoodS.

ConsEqUEntLy, the supply / DemaNd imbalanCe in NeW york is a VEry seriOus
matTer, And One tHAt ReSidEnTS in THe StaTE maY not fullY aPpReciaTe unLESS
BlacKouTs ocCur. UnTil the core proBleM of iNSufFicieNt traNsmiSsIon liNes
surRoundInG New York State anD New york City aRe sOlVed, AdDing nEW power
SupPly (AssuminG that geNEraTiON DEvElopment can move pasT cOMMuNity
oppoSition) WOuLd NOt be enouGh To bRing MORe balAnce TO tHe market. in the
iNTeRiM, conserVaTion efFoRts May Truly BE the Only toOl that NeW YorkERs can
user to abaTE power outages THiS SUmMEr, buT agAin the generAl puBLic mAy noT
FuLly UNdersTand tHe NEeD To reduce their power uSaGe.

New YOrk baSically has thrEe options aT THIs point tO prePArE For near-term
proBlems. first, expedITe the buiLding Of new genEration soURCes (incluDinG
diStrIbuTIOn Generation altERNatiVeS). This asSumEs that gAs lIneS wiLl bE
sUfficient To import NeCeSsArY fuEl. SecONd, allow tHe EcoNoMy oF New YORk
City To staGnatE aS a REsuLt of the SUpPLY / demAnD iMbalAncE, wHich wIll
dRIve ResidenTs out of thE ciTY and In TuRn reducE demand. And, thiRd, Focus
on conSeRvaTion efFORts, which Again may not work until resIDents arE
diRectlY impActed by ouTagEs. The cIty MAy chooSe a comBinatIoN of ALL threE
APpRoaChEs or decide TO FocUs on jUsT one. however, To address the immediATe
cOncerns, it does Not AppeAR ThAt NEW YORk hAs ANy oPTIons besides this
Three-tier aPpROaCh.

One point THat BeArs mentIoning iS the sIMilaritY between CAlifornia AnD New
yORk rEgarding thE positioN that both STates TOoK on diVesTiture. alThoUgh it
Is not cOMplEtely AccuraTe To say tHat eiThEr state oFficially mandated
divestIture, uTilitIes In both CalIfoRNia And New YorK felT intense prEssUre
To divEst ANd subMittED rEstRUcturIng pLAns

 Court judge order NYPA to
"cease a ll co nst ruc ti on o n th e units" and r u ledthat the power authori ty
v io l ated st ate e nvironm e nt a l -re vi ew  la ws to  itseff orts to  rush thepla nt
into servi c eby June. I n r esponse, NYP A h as sai dtha t  thepla nts* alongw ith
n ine other st hat it is hopi n g  t o bu ild throughout Ne w  Y o rk City*are n eededto
p r e ven t p ower outag es  this summer. NY P A con t inues to face  fierce opp o sit ion
f ro m c o mmunit y gro up s  (m any of them  lau nching la wsuits )  who do not wan t the
ge ner atio n  u ni tsin the i rnei g hbo rhoods.
C onseq uent l y , thesup ply/ dem and imbalance  in  New Yor k isa ver y se ri ous matter , and  o ne that residen ts i n the sta tema y n ot  full y  appre cia teunless
blacko u tsoc c u r .Until the core pro bl e m  o f insuff icient tr an s missionli nes
su r r oundi ng N e wYork Sta te and Ne wYork Ci ty  are s ol ved , a dding newpower
supply(assu m ing that gener a tion developm e nt c an move  pa st communit y
o p posi tion )  w oul d  notbe en ou g ht o bring more balanc eto the  mark et. In the
i nterim, co n s e rvationeffo r ts may truly be t he on ly tool th a t New Yo rkers  can
us er to aba t e  power o uta ges  th iss u mm er, but again t he g en eral pu bli c may n ot
fu lly  un de rstand th e need t ore du ce  th eir p o wer usag e.
N ewYorkb asical ly ha s th re eo pti ons att hi s poin tto  pre par efor n ear- t erm
probl ems. Firs t,e xped it ethe bui lding of newge neration s ou rce s (inc l u ding
di stribution generation a l ternati ves ). Th is a ssumes th atgas li nes will b e
suf ficie nt  to i mport n ec ess ar y fuel. Se c o nd,  allo wtheeconomy  of New York
City tostagnate as a  re sult o fthe su p ply  / dem a n d imbalance, wh ich will dr i ve  residents out  o f the c ity and  in t u rn redu ce demand . And, th ir d, f o c us
on conser vation e fforts, w h ich a g ai n may  no t work  u nti l res idents are
dir ectlyim pacted  by o ut ages. Th e city may choose a com binati on of  al l three app r oac hes or de cide  to focusonjus t one . H o wever , to ad dre s s the  imm e diate
co n ce rns , it  does not a p p e arthatNew York h as a ny options beside s  this
three-t iera p pro ach .

O ne  point that be ars  m e n tioningis  the simila rity bet we e n Cal iforni a andNew
Yo r k  r e gardin g th e p osition t hat  b o th stat es  t o ok ondive st iture.  Altho u gh i t
is not complete ly ac c u ratet o s ay th at  either stat e official ly mandated
dive stit ure,utiliti es  in bo thCa lifornia a n d New Yor k fel t inten se  pre ssu re
to  div e s t and  sub mi tte d restruc t u ri n gpl a ns

 Court_judge order_NYPA to
"cease all_construction on_the_units" and_ruled_that the power_authority
violated state_environmental-review laws to its_efforts to rush_the_plant
into service by June. In response, NYPA has said that the plants*along with_
nine_others that_it_is_hoping to build throughout New_York City*are needed to
prevent_power outages_this summer. NYPA continues to face fierce opposition_
from_community groups (many_of them launching lawsuits) who do not want the_
generation units in their neighborhoods. _

Consequently, the supply_/_demand_imbalance in New York_is a very serious
matter, and_one that residents in the state_may not fully appreciate unless
blackouts occur._Until the core problem of insufficient_transmission lines
surrounding New York_State and_New York City are solved,_adding new power_
supply (assuming_that generation development_can move past community
opposition) would_not be enough_to bring more balance to the_market._In the
interim,_conservation_efforts_may truly_be the only_tool_that New_Yorkers_can
user to abate power outages_this_summer, but again the general public may_not
fully understand the_need_to reduce their power_usage.

New York basically_has three options at this point_to prepare_for near-term_
problems. First, expedite the building of new generation sources (including
distribution_generation alternatives). This assumes that gas_lines will be
sufficient_to import_necessary_fuel. Second, allow_the_economy of_New York
City to stagnate as a_result of_the supply / demand imbalance, which_will
drive residents out_of_the city and in turn reduce_demand. And, third, focus
on conservation_efforts, which again may not_work_until_residents are
directly impacted by_outages. The city may choose a_combination of all_three
approaches or decide to focus on_just_one. However, to address the immediate_
concerns,_it does not appear that New_York_has_any options besides this
three-tier_approach.

One point that bears mentioning_is the similarity between California and New
York regarding_the position that_both states took on divestiture._Although_it_
is not completely accurate to say that either state officially_mandated
divestiture,_utilities in both_California and New York felt intense pressure
to divest and_submitted restructuring plans