help would-be merchant power plant investors plow through red tape.

"Increasing New York's generating capacity will also lessen the state's
escalating and risky reliance on out-of-state sources of electricity," the
ISO added. "Since 1999, New York State has been unable to cover its reserve
requirements from in-state sources."

Not everyone agrees with that analysis, insofar as it argues for circling the
wagons inward. Some analysts believe the ultimate solution lies not in tying
in more inwardly dedicated power, but in expanding the marketplace by
breaking down inter-jurisdictional barriers. In any case, New York energy
regulatory authorities and those responsible elsewhere in the U.S. Northeast,
such as PJM (Pennsylvania-New Jersey-Maryland) Interconnection and the New
England Power Pool, are in vastly better shape in terms of "cross-border"
cooperation than California and its neighbors in that efforts are being made
among various authorities toward developing an integrated regional
electricity market. In California, by contrast, the state's focus*for
example, in the case of new gas-fired power plant development*has been to
ensure dedicated supply to the California market alone, rather than on a
regional marketplace.

The New York ISO's new broad-based analysis of market-restructuring needs
argues that the relatively stronger health of its reformed environment is
"due in large part to the ability of New York's utilities to enter into
long-term power contracts."

What needs to be done most, it says, is to move aggressively to build some of
the more than 29,000 MW of "proposed new generation in the siting pipeline."

In the meantime, the 30,200 MW of electricity New Yorkers used on a peak day
last summer shouldn't be eclipsed on too many days this coming summer (given
early long-range weather forecasts). Demand, however, is expected to increase
at an annual average rate of up to 1.4%.

So while New York City, the rest of the state and adjacent parts might
breathe easy this year, it could be a brief rest from the fray. Meanwhile, a
4% shortfall is still being

help would - be merchant power plant investors plow through crimson magnetic tape.

 " Increasing New York's generating capacity will besides lessen the country's
 escalating and hazardous reliance on out - of - state reference of electricity, " the
 ISO added. " Since 1999, New York State has been unable to shroud its reserve
 requirements from in - country source. "

 Not everyone agrees with that analysis, insofar as it argues for circling the
 wagons in. Some analysts believe the ultimate solution lies not in tie
 in more inwardly dedicated power, but in inflate the marketplace by
 fail down inter - jurisdictional barriers. In any case, New York energy
 regulatory authorities and those creditworthy elsewhere in the U.S. Northeast,
 such as PJM (Pennsylvania - New Jersey - Maryland) Interconnection and the New
 England Power Pool, are in vastly better shape in terms of " cross - border "
 cooperation than California and its neighbors in that efforts are being lay down
 among various authorities toward developing an integrated regional
 electricity market. In California, by contrast, the state's focus*for
 example, in the case of new gasoline - fired power plant development*has been to
 see consecrated provision to the California market alone, rather than on a
 regional marketplace.

 The New York ISO's new broad - based analysis of market - restructure needs
 argues that the relatively stronger health of its reformed environment is
 " due in large part to the ability of New York's utilities to enter into
 long - term power contract. "

 What needs to be do most, it says, is to move aggressively to build some of
 the more than 29,000 MW of " proposed newfangled generation in the siting pipeline. "

 In the meantime, the 30,200 MW of electricity New Yorkers use on a peak day
 last summer shouldn't be eclipsed on besides many days this come summer (given
 early retentive - range weather prognosis). Demand, however, is expected to increase
 at an annual average rate of up to 1.4% .

 indeed while New York City, the rest of the state and adjacent parts might
 breathe easy this class, it could be a brief rest from the fray. Meanwhile, a
 4% deficit is still being

hepp would-be merchant powev plant investors plow vhrough red tapd.

"Increasing New York's generetint capqcity will also lessen the statv's
escalaring qnd risky csliance on ouf-lf-stctx sources of elgctricity," tha
ISO added. "Sitcd 1999, New York State has been unable to sover iys reserve
requitemenus srom pn-wtate sources."

Not everyone agdees wiuh that analysis, imsofar as it argues for cigclijg the
wagons inwagd. Some anaoystf believe the ultimate solution liea not in tying
in more inwardly dedieated power, byt lt expanding the iarketplace nj
breakhng dowm inter-jurisdigtionel bqrriers. In any case, Nxw York energy
regulwtory autvoxities and those respinwible elsawhefw iv tge U.A. Nortjeaat,
such as PJM (Pennsyovania-New Jersey-Marulwbd) Interconnedtion wnq the New
England Power Pool, are in vasuly bstter shape in terms of "cross-border"
cooperatlon than Salifornia and its neighbors in that efforts are teing oadt
qmong cagious authorities toward developing an integrwfec gegional
electriclty market. In Caligognow, by contrast, the sczts's focus*for
examplf, in thg case of new gws-fited power plant development*yas been to
vnsuee dedicated supplv to the Calnfornis marlet alone, rather than ou a
refional markftplace.

Tgd New York ISO's vew bsoad-based analysis of markqt-restrucvuriny needs
xrgugs that the relatlvely stronger health of its teformad environlent is
"due in large part to thx ability of Mef Ymrk's utijitiex to enter ineo
long-term pocer contxacts."

Dhat needs to be vone most, it says, is to mmge aggressivxly to buyld wome of
the oore than 29,000 MW pf "proposvd new generation in the sijihg pipeline."

In cke meantime, the 30,200 KW uf qlvctcicitr New Yorkers usea ov a pexk day
last rummrr shouldn't be eclipved kn too many days tnif coming summer (diven
early lpng-range weather flrecavts). Demamd, rowever, is expected to increass
at an ajnuwl average rwte if up to 1.4%.

So while New York City, the rest of the stete and adjacent parts night
breathe easy jhix year, it cpuld fe a briex rest from the fray. Meanwhile, a
4% shovtfall is still being

help would-be merchant power plant investors plow tape. New York's capacity will also risky on out-of-state sources electricity," the ISO "Since 1999, New York State has unable to cover its reserve requirements from in-state sources." Not everyone agrees with analysis, insofar as it argues for circling the wagons inward. Some analysts believe ultimate lies in in more inwardly dedicated power, but in expanding the marketplace by breaking down inter-jurisdictional barriers. In case, New York energy regulatory authorities and those elsewhere in the U.S. such as PJM (Pennsylvania-New Jersey-Maryland) and New England Pool, in better shape in of "cross-border" cooperation than California and its neighbors in that efforts are being made among various authorities developing an electricity market. California, contrast, state's focus*for example, case of new gas-fired power plant ensure dedicated supply to the California market alone, than on regional marketplace. The New York ISO's broad-based analysis of market-restructuring needs argues that the stronger health of its reformed environment is "due in large part to the ability of utilities to enter into power contracts." What to done it is to aggressively to build some of the more than 29,000 MW of new generation in the siting pipeline." In the meantime, the of New Yorkers used a peak day last shouldn't eclipsed on too many coming (given forecasts). however, expected to increase at annual average rate of up 1.4%. So while New the state and adjacent parts might breathe easy year, it could be a brief rest the fray. Meanwhile, a 4% shortfall is still being

help would-be merchant power pLant investOrs plOw tHroUgH red Tape.

"increasing New YORk's gEnerating capacity will aLso leSsEN the STaTe's
esCalatinG AnD RIskY rElIanCe ON oUt-of-sTatE sourceS of electriCitY," tHe
ISO added. "SiNCe 1999, new York StaTe hAs been unable To cOver itS rEseRVe
reqUirEmentS from iN-State sOurces."

Not EvERyone aGRees witH THaT anaLysis, insofar as it aRGuES for circling thE
wagonS iNWaRD. somE anAlysts beliEvE the uLTimate sOLuTION liES not in tying
in More inwardlY DedIcated PoWer, BUt in exPandiNg THe mArketplace bY
breAking down Inter-jURisdictIOnal barRiers. IN anY caSe, NeW yoRk EneRgY
RegULaTorY AutHorities AnD tHose rEspoNSIBLe elSewHere In the u.S. Northeast,
suCh aS PJM (pEnnSylvaNia-NeW JerSeY-MaryLand) InTercoNnEction and the New
englAnd Power POol, ArE in VaStly bETter shApe In tErms of "cRoss-borDEr"
cOoPERAtIon than California aNd ITS nEighbors In that EFfOrTS are beinG mAde
AmonG VAriouS autHOrIties towArd devELoPiNg an intEgRated rEgIonAl
eLectrICity Market. in CalifoRnia, bY Contrast, the staTE's focus*for
exaMPlE, IN tHE casE of New gas-fired PoweR PlanT devELoPmeNT*has bEen to
EnSUrE Dedicated supply to thE CAliforNia maRket alone, rathEr than on a
rEGIOnal markEtplACe.

tHe New York ISO's nEw broAd-based anaLYsis of maRket-rEstructuRing needs
ARGues that The RelAtiVelY STrOnger health of ITS refOrMed enviRonMent is
"dUe iN laRge ParT tO the abiliTy of New YOrK's UtIlItiEs to eNTer into
lOnG-teRm PowEr conTRacts."

WHat neEds tO bE dONe mOst, it saYS, iS TO movE aGgRessIveLy To buiLd soME of
The more Than 29,000 MW of "pRopOSed nEw GeNeratioN in the siting pIpEline."

In the MeAntIme, the 30,200 mw Of electrIcity New Yorkers used on a pEAk day
laSt sUmmer ShouLdn't be eclIpsEd on toO maNY days tHis comIng suMmEr (gIVEn
earLY LoNg-rAnGe weather fOREcaSts). DeMaNd, hoWever, is Expected to increase
AT an Annual average RatE of uP TO 1.4%.

SO whILe nEw YOrK citY, THe rest of the statE and adjaceNt PArTs might
breAThe EaSy this yEar, it coUld be A Brief reSt from the Fray. MeanwHiLe, a
4% sHORtfAll is still Being

help would-be merchant p ower plant  inve sto rspl ow t hrou gh red tape. "Inc reasing New York's gen erati ng capa c it y wil l alsol es s e n t he  s tat e' s  escal ati ng andrisky reli anc eon out-of-st a te  sources o f e lectricity,"  th e
ISO  a dde d . "Si nce  1999 , NewY ork St ate has b ee n  unabl e  to cov e r  i ts r eserve
requireme n ts from in-statesource s. "  N oteve ryone agre es  with that an a ly s i s , i n sofar as it a rgues for c i rcl ing th e
wa g ons in ward.  S o meanalysts be liev e the ult imates olution lies no t in t yin g in m o re  i nwa rd l y d e di cat e d p ower, bu tin  expa ndin g t h e ma rke tpla ce by
breaking do wninte r -ju risdi ction al b ar riers . In a ny ca se , New York ener gy regulator y a ut hor it ies a n d thos e r esp onsible  elsewh e rein t h eU.S. Northeast,
s uc h as  PJM (Pe nnsylv a ni a- N ew Jerse y- Mar ylan d )  Inte rcon n ec tion and  the N e w
E nglandPo wer Po ol , a rein va s tlybetter  shape i n ter m s of "cross-bo r der"
coopera t io n th a n Ca lif ornia and i ts n e ighb orsi ntha t  effo rts a re be i ng made
among vari ou s auth oriti es toward dev eloping an i n tegrated  reg i on a l
electricity  mark et. In Cal i fornia,by co ntrast,the state ' s  focus* for
e xam ple , in  the case ofn e w ga s- fired p owe r plant  de vel opm ent * has beento
ensu re  d ed ic ate d sup p ly to th eCal if orn ia ma r ket al one,rath er  t h anon a
r e gi o n al m ar ke tpla ce.

Th e Ne w  Yo rk ISO' s new bro ad- b ased  a na lysis o f market-rest ru cturing ne ed s argues t hat therelatively stronger hea l th of i tsrefor medenvironme ntis
"d uei n larg e part  to t he  ab i l ity o f Ne w Y or k's utilit i e s t o ent er  int o
long -term power contra c ts. "

What need s t o be d on e m o st ,  it  s a ys, i s to move aggre ssively to  b u il d some ofthe  m ore tha n 29,00 0 MWo f "prop osed newgeneratio nin t h e  si ting pipel ine."
In the me a ntime ,  t he 30 ,20 0 MW o fele ctric ity Ne w  Yo rkers  usedon  a pea k day  last sum mer shouldn't be eclips ed ontoo m any  days thi s c o min g summer(giv en
earlylon g-r angewea t her f orec a st s). Deman d, h o wever, is ex pec t e dto increase a t a n ann ual averag e ra te of up to 1.4%.

So while New  Yor k Cit y,t he r es t of the state  an da d jacent p ar ts might
b reathe e as y  this  year,  it co uld bea br i ef res t fr omthe fray.  Me an w hile, a  4% shortf allis  still  being

help_would-be merchant_power plant investors plow_through red_tape._

"Increasing New_York's_generating capacity will_also lessen the_state's
escalating and risky_reliance on out-of-state_sources_of electricity," the
ISO added. "Since 1999, New York State has been unable to_cover_its reserve_
requirements_from_in-state sources."

Not everyone agrees_with that analysis, insofar as_it argues_for circling the
wagons inward. Some analysts believe_the_ultimate solution lies_not in tying
in more inwardly dedicated power, but_in expanding the marketplace by
breaking_down inter-jurisdictional barriers._In_any_case, New York energy_
regulatory authorities and those responsible elsewhere_in the U.S. Northeast,
such as_PJM (Pennsylvania-New Jersey-Maryland) Interconnection and the New_
England Power Pool, are in vastly_better shape in terms of_"cross-border"
cooperation_than California and its neighbors_in that efforts_are being_made
among various_authorities toward developing an integrated regional_
electricity market. In_California, by contrast, the state's focus*for_
example,_in the case_of_new_gas-fired power_plant development*has been_to_
ensure dedicated_supply_to the California market alone, rather_than_on a
regional marketplace.

The New York_ISO's new broad-based analysis_of_market-restructuring needs
argues that_the relatively stronger health of_its reformed environment is
"due in_large part_to the_ability of New York's utilities to enter into
long-term power contracts."_

What needs to be done most,_it says, is to_move aggressively_to_build some of_
the_more than_29,000 MW of "proposed new generation in_the siting_pipeline."

In the meantime, the 30,200_MW of electricity New_Yorkers_used on a peak day
last_summer shouldn't be eclipsed on too_many days this coming summer_(given_
early_long-range weather forecasts). Demand, however,_is expected to increase
at an_annual average rate_of up to 1.4%.

So while New_York_City, the rest of the state_and_adjacent parts might
breathe easy this_year,_it_could be a brief rest_from the fray. Meanwhile, a
4%_shortfall is still being


facilities in the
  United States

  Sempra Communications: Invests in telecommunications

  Sempra Energy Financial: Invests in affordable housing partnerships

  Source: Company reports

  PHOTO: Sempra's San Diego headquarters; ; GRAPHIC: Metering Sempra Energy,
Los
  Angeles Times;

  Copyright, 2000 Dow Jones & Company, Inc. All Rights Reserved.

  Financial
  Is Another Energy Crisis Ahead?; Winter Fuel Costs Will Rise; After That,
Nothing Is
  Certain
  Kenneth Bredemeier

  09/17/2000
  The Washington Post
  FINAL
  Page H01
  Copyright 2000, The Washington Post Co. All Rights Reserved

  This winter the mailman will be delivering markedly higher heating bills
throughout much of
  the country, including the Washington area.

  Those who use natural gas--the dominant heating fuel in the Washington area
and
  throughout the United States--face a 27 percent increase. Heating oil
customers,
  particularly in the Northeast where 35 percent of homeowners use the fuel
to warm their
  houses, may have to pay more than $2 a gallon--twice the current price--as
the days grow
  shorter and temperatures plunge.

  Motorists get hit in the wallet every time they pull into a service
station: They now typically
  pay more than $1.60 a gallon for gas, and the days of 90-cent-a-gallon
gas--yes, it was just
  last year--are but a distant memory. At least that's better than in
England, France and
  Belgium where motorists are waiting in long lines to buy $4-a-gallon gas,
only to find that
  some stations have run out.

  Is this the start of an energy crisis?

  Many energy analysts and government economists say not, that supplies of
various forms
  of energy will prove sufficient over the next few months, but that the
costs will continue to
  follow the law of supply and demand. When there's not an excess of a fuel
available--and
  numerous types of fuel reserves are quite low--consumers will likely think

facilities in the
   United States

   Sempra Communications: Invests in telecommunications

   Sempra Energy Financial: Invests in affordable caparison partnership

   Source: Company report

   PHOTO: Sempra's San Diego headquarters; ; GRAPHIC: Metering Sempra Energy,
 Los
   Angeles Times;

   Copyright, 2000 Dow Jones & Company, Inc. All Rights allow.

   Financial
   Is Another Energy Crisis Ahead? ; Winter Fuel Costs Will Rise; After That,
 Nothing Is
   sealed
   Kenneth Bredemeier

   09/17/2000
   The Washington Post
   FINAL
   Page H01
   Copyright 2000, The Washington Post Co. All Rights Reserved

   This winter the mailman will be delivering markedly higher heating system beak
 throughout much of
   the area, including the Washington area.

   Those who practice natural gas -- the prevailing heating fuel in the Washington sphere
 and
   throughout the United States -- confront a 27 percent increase. Heating vegetable oil
 customers,
   particularly in the Northeast where 35 percentage of homeowners practice the fuel
 to warm their
   houses, may have to pay more than $ 2 a gallon -- twice the current price -- as
 the days grow
   short and temperatures plunge.

   Motorists get hit in the wallet every time they rend into a overhaul
 station: They now typically
   pay more than $ 1.60 a gallon for gas, and the days of 90 - cent - a - gallon
 accelerator -- yes, it was merely
   last year -- are but a aloof memory. At least that's dependable than in
 England, France and
   Belgium where motorist are waiting in long lines to buy $ 4 - a - gallon gas,
 only to find that
   some stations have tend out.

   Is this the start of an energy crisis?

   Many energy analysts and government economists pronounce not, that supplies of
 various forms
   of energy will rise sufficient over the next few calendar month, but that the
 costs will continue to
   follow the law of supply and requirement. When there's not an excess of a fuel
 available -- and
   numerous types of fuel reserves are quite depleted -- consumers will likely think

facllities in the
  United Suates

  Sempra Communicatmons: Inbests in telecommunications

  Sempra Xnerty Fibancial: Invests in affurdable hlusing pqrtntrships

  Source: Company rc'orts

  PHMVO: Sempra's San Ciego headxuarters; ; GRAPVIZ: Letering Sempra Energy,
Los
  Angeles Times;

  Copyriggt, 2000 Dow Jones & Compamy, Inc. All Rights Reserved.

  Finabciaj
  Is Anothef Energy Cgnsis Ahead?; Sinter Fuel Costs Will Rise; Aftdr Thct,
Nothing Us
  Cfttain
  Kennxth Brvdemeier

  09/17/2000
  The Washinbton Post
  FIKAL
  Pate H01
  Copyright 2000, The Washington Post Cj. All Rigvta Reserved

  This wunter the maiunan wiml bs deligermng markedlg higher heqting bills
throughpue much of
  the countwy, including the Washington area.

  Those wvo hse natural gas--the domibant heating fuel in jhe Washindton area
and
  throughout the United States--face a 27 perrevt nkgrearw. Jeating oil
customers,
  particularly in the Nowfhtasn where 35 percent jf homeownets uxg the fuel
to darm tksid
  houses, may have to pay more than $2 a dallpn--twice the current price--as
the days grjq
  shorter and tem'eratures plbnge.

  Kotorosts get hit in the waluet svery time hhey pull knto a service
sgatpon: Dhey now typically
  pay mowe than $1.60 e galkon for gas, and tre days of 90-cent-a-gallon
gas--yes, it wws judt
  last yeag--are but a distant memory. At leext that's betjer thdn in
Enyland, Nrance and
  Beldium where motprists cre wakting in lkng linxs to buy $4-a-gwllon gas,
onlf to find thav
  some seatiins yave ruv out.

  Is this yhe start of an eneegy crisis?

  Many ekergy znalysts and gortrnnent economists sah njt, tiat st[plies of
vasiour futms
  uf energy wlll profe sufficient over tve nsxt few months, but tmat the
cists wilj continue to
  follow the law ov sup'ly anv demamd. Rhen there's not an excess of a fuel
avallanle--and
  numerjus bypef of fuel xeserves are quite low--consumers will likxly think

facilities in the United States Sempra Communications: telecommunications Energy Financial: in affordable housing Sempra's Diego headquarters; ; Metering Sempra Energy, Angeles Times; Copyright, 2000 Dow Jones Company, Inc. All Rights Reserved. Financial Is Another Energy Crisis Ahead?; Winter Fuel Will Rise; After That, Nothing Is Certain Kenneth Bredemeier 09/17/2000 The Washington Post Page Copyright The Post Co. All Rights Reserved This winter the mailman will be delivering markedly higher heating bills much of the country, including the Washington area. who use natural gas--the heating fuel in the Washington and the United a percent Heating oil customers, in the Northeast where 35 percent of homeowners use the fuel to warm their houses, may have pay more a gallon--twice current the grow shorter and Motorists get hit in the wallet pull into a service station: They now typically more than a gallon for gas, and the of 90-cent-a-gallon gas--yes, it was just last year--are a distant memory. At least that's better than in England, France and Belgium where motorists in long lines to $4-a-gallon gas, only find some have out. Is the start of an energy crisis? Many energy analysts and government say not, that supplies of various forms of energy will over next few months, that the costs will to the law of supply When not a available--and types of fuel reserves quite low--consumers will likely think

facilities in the
  United StatEs

  Sempra CoMmuniCatIonS: INvesTs in TelecommunicatIOns

  SEmpra Energy Financial: InVests In AFforDAbLe houSing parTNeRSHipS

  SOuRce: coMPaNy repOrtS

  PHOTO: SEmpra's San DIegO hEadquarters; ; GraPhIC: MeterinG SeMpra Energy,
LoS
  AnGeles TImEs;

  COPyrigHt, 2000 DOw JonEs & CompANy, Inc. ALl Rights REsERved.

  FiNAncial
  IS aNoTher energy Crisis Ahead?; wInTEr Fuel Costs WilL Rise; AFtER THAT,
NoThiNg Is
  CertaiN
  KEnnetH bredemeIEr

  09/17/2000
  tHE wasHIngton Post
  FINaL
  Page H01
  CopyRIghT 2000, The WaShIngTOn Post co. All riGHts reserved

  ThiS winTer the maiLman wiLL be deliVEring maRkedly HigHer HeatINg BiLls
ThROugHOuT muCH of
  The countRy, InCludiNg thE wASHingTon Area.

  those Who use natural Gas--The dOMinAnt heAting Fuel In The WaShingtOn areA
aNd
  throughout the unitEd States--fAce A 27 pErcEnT incrEAse. HeaTinG oiL
customErs,
  partICulArLY IN tHe Northeast where 35 peRcENT oF homeownErs use THe FuEL
to warm tHeIr
  hOuseS, MAy havE to pAY mOre than $2 a Gallon--TWiCe The currEnT price--As
The DayS grow
  SHortEr and tEmperatuRes plUNge.

  Motorists geT Hit in the walleT EvERY tIMe thEy pUll into a serVice
STatiOn: ThEY nOw tYPicalLy
  pay MoRE tHAn $1.60 a gallon for gas, and tHe Days of 90-Cent-a-Gallon
gas--yes, iT was just
  laST YEar--are buT a diSTaNT memory. At least That's Better than IN
England, francE and
  BelgIum where mOTOrists arE waItiNg iN loNG LiNes to buy $4-a-gallON Gas,
oNlY to find ThaT
  some stAtiOns HavE ruN oUt.

  Is this tHe start oF aN eNeRgY crIsis?

  MANy energy AnAlyStS anD goveRNment eConomIsts SaY nOT, thAt supplIEs OF
VariOuS fOrms
  Of eNeRgy wiLl prOVe sUfficieNt over the NexT Few mOnThS, but thaT the
costs will CoNtinue to
  foLlOw tHe law oF SUpply and Demand. When there's not an exCEss of a fUel
AvailAble--And
  numeroUs tYpes of FueL ReservEs are qUite lOw--ConSUMers wILL lIkeLy Think

facilities in the
  United  States

 Semp raCom mu nica tion s: Invests int elec ommunications

  Sempr a Ene rg y  Fin a nc ial:Invests in a ffo rd ab leho u si ng pa rtn erships

  Source : C om pany reports
  PHOTO: S emp ra's San Die goheadqu ar ter s ; ; G RAP HIC:Meteri n g Semp ra Energy ,Los
 A ngelesT i me s;

  Copyrigh t,  2000 Dow Jon e s& C omp a ny, Inc. AllRights Rese r ved .

  Financ ial
  Is Ano ther E n ergy Cr i sis Ahe ad?; W int erFuel Co st s W il l  Ri s e;  Af t erThat,
N ot hi ng Is
  C e r t a in   K enne th Br edemeier

 09/ 1 7/2 000   The  Was hi ngton  Post
  FI NA L
  Page H01   Co pyright 2 000 ,The  W ashin g ton Po stCo.  All Ri ghts Re s erv ed  This winter the ma il m a nwill bedelive r in gm arkedlyhi ghe r he a t ing b ills
t hroughou t much of
 the co un try, i nc lud ing  theW ashi ngtonarea.

 Thos e  who use natur a l gas--the do m in a n th eati ngfuel in the  Was h ingt on a r ea
a n d
  t hroug ho u tt he United States--f ac e a 27  perc ent increase.  Heating o i l
custome rs, p a rticularly inthe N ortheast w h ere 35 p ercen t of hom eowners u s e  the fue l towar m t h e ir
  houses, ma y have  t o pay m ore  than $ 2 a  ga llo n-- tw ice the c urrent p ri ce -- as
t he da y s grow
 s hor te r a nd te m peratu res p lung e.
 Mo torists ge t hitin  t he w all et  ever y ti m e t hey pul l into aser v ice
s ta tion: T hey now typic al ly
  pay m or e t han $1 . 6 0 a gall on for gas, and the day s  of 90- cen t-a-g allo n
gas--y es,  it wa s j u st
  l ast ye ar--a re  bu t a dis t a nt  me mo ry. At lea s t  th at'sbe tter  than i n
England, France and
  Belgium wh ere  mot o r is tsa re wai ti n g i n long lines to b uy $4-a-ga ll o ngas,
only tofi nd that
  some  stat i ons hav e run out .

  Is t hi s th e sta rt of an e nergy cr isis?

 M any e n er gy an aly sts an dgov ernme nt eco n omi sts s ay not ,that s uppli es  of
var ious forms
  of energywill p rovesuf ficient o ver the  next few  mon ths, but t hat  th e
co sts willcont i nu e t o
  fo llow the law o f  s upp l y  a nd demand.W h e n t here' s n o t an e xces s of a fuel
avai l able--and
  nu mero u s  ty pes of f ue l reserves are  qu it e low--con su mers will l ikely th in k

facilities in_the
 _United States

  Sempra_Communications: Invests_in_telecommunications

 _Sempra_Energy Financial: Invests_in affordable housing_partnerships

  Source: Company_reports

 _PHOTO:_Sempra's San Diego headquarters; ; GRAPHIC: Metering Sempra Energy,
Los
  Angeles Times;

__ ___    _    _ _       __  _        _     _  ___

  Copyright, 2000_Dow Jones & Company, Inc. All_Rights Reserved.

 _      _     _    _ _
  Financial_
  Is_Another Energy_Crisis Ahead?; Winter_Fuel Costs Will Rise; After That,_
Nothing Is
 _Certain
  Kenneth Bredemeier
__
__09/17/2000_
 _The Washington Post_
_ FINAL_
_ Page H01
  Copyright_2000,_The Washington Post Co. All Rights Reserved_

  This winter_the_mailman will be delivering_markedly higher heating bills
throughout_much of
  the country, including_the Washington_area.

 _Those who use natural gas--the dominant heating fuel in the Washington_area
and
  throughout the United_States--face a 27 percent_increase. Heating_oil_
customers,
  particularly_in_the Northeast_where 35 percent of homeowners use the_fuel
to_warm their
  houses, may have_to pay more than_$2_a gallon--twice the current price--as
the_days grow
  shorter and temperatures_plunge.

  Motorists get hit_in_the_wallet every time they pull_into a service
station: They now_typically
  pay_more than $1.60 a gallon for gas,_and_the days of 90-cent-a-gallon
gas--yes, it_was_just
  last year--are but a_distant_memory._At least that's better than_in
England, France and
  Belgium_where motorists are waiting in long lines to buy_$4-a-gallon gas,
only_to find that
  some_stations_have_run out.

  Is this the start of an energy_crisis?

 _Many energy analysts_and government economists say not, that supplies of
various forms
_ of energy will prove sufficient over_the next few months, but that the
costs will continue to
_ follow the law of supply and demand._When there's not an excess of a_fuel
available--and
  numerous_types_of fuel reserves are quite low--consumers will_likely_think


 Stevens provided environmental
base line scope of work per Charlie Thompson's request for Dyess AFB,
Goodfellow AFB, Lackland AFB, Laughlin AFB, Randolph AFB, Sheppard AFB,
Ellington Field ANGB, Fort Bliss, and NAS JRB Fort Worth.
CWT Thermo-Depolymerization -EES Bruce Stram has requested an environmental
analysis of the technology. EE&CC  has completed a review of the processes
involved and is satisfied with the technology.    Don Stevens will set up a
meeting with  to discuss various environmental issues regarding the project.

Regulatory Technical Analysis

EES Meeting - The Regulatory Technical Analysis Team met with Roger Raney and
John Nixon of EES to discuss the operations of EES and  the services that the
RTA team can provide to EES.

ETS Environmental Procedures - Jim Peterson met with Sue Fernandez of ETS to
discuss changes to the intranet version of the ETS Environmental Procedures.

Houston Non-Attainment Regulation Comments - Marc Phillips compiled and
submitted Enron's comments to TNRCC regarding the Houston non-attainment
regulations.

Greenhouse Gas Emission Credits - Marc Phillips is discussing the possible
use of greenhouse gas emission credits as payment for the methane emission
survey work Indaco performed at Bushton compressor station. If the deal can
be completed, it will be presented in a talk by John Shafer at the EPA
Natural Gas STAR conference in mid-October.

NFPA Proposed Code Revisions - Russell Tucker reviewed 368 currently proposed
revisions to the NFPA codes and standards to identify those having impact on
any Enron companies. This review was prompted by feedback from interviews
conducted with the safety managers of Enron companies in which several
indicated the NFPA and related building codes were important to their
operations. Identified for further investigation were proposals on design
changes for fire control water spray system net flow rates for bay area
offshore platforms and changes to the Industrial Fire Brigade member
qualifications to achieve job performance certification.
 Asset Operations

EPA Acid Rain Workshop - Gus Eghneim is attended an EPA workshop for acid
rain designated representatives.  EPA  discussed the latest developments to
the acid

Stevens provided environmental
 base line scope of workplace per Charlie Thompson's request for Dyess AFB,
 Goodfellow AFB, Lackland AFB, Laughlin AFB, Randolph AFB, Sheppard AFB,
 Ellington Field ANGB, Fort Bliss, and NAS JRB Fort Worth.
 CWT Thermo - Depolymerization -EES Bruce Stram has request an environmental
 analysis of the technology. EE&CC   has completed a follow-up of the processes
 involved and is quenched with the technology.     Don Stevens will set up a
 meeting with   to discourse various environmental issues involve the project.

 Regulatory Technical Analysis

 EES Meeting - The Regulatory Technical Analysis Team met with Roger Raney and
 John Nixon of EES to discourse the operations of EES and   the services that the
 RTA team can provide to EES.

 ETS Environmental Procedures - Jim Peterson met with Sue Fernandez of ETS to
 discuss change to the intranet version of the ETS Environmental Procedures.

 Houston Non - Attainment Regulation Comments - Marc Phillips compiled and
 submitted Enron's gossip to TNRCC regarding the Houston non - attainment
 regulations.

 Greenhouse Gas Emission Credits - Marc Phillips is discussing the potential
 use of greenhouse natural gas emission credits as payment for the methane discharge
 survey work Indaco performed at Bushton compressor station. If the deal can
 be completed, it will be presented in a talk by John Shafer at the EPA
 Natural Gas STAR conference in mid - October.

 NFPA Proposed Code Revisions - Russell Tucker reviewed 368 currently proposed
 revisions to the NFPA codes and standards to identify those having impingement on
 any Enron companies. This review was prompt by feedback from interviews
 conducted with the safety managers of Enron party in which several
 indicated the NFPA and related building codes were authoritative to their
 operations. Identified for further investigation were proposals on design
 changes for ardor control water spray system net flow rates for bay sphere
 offshore platform and changes to the Industrial Fire Brigade member
 qualifications to achieve job performance certification.
  Asset Operations

 EPA Acid Rain Workshop - Gus Eghneim is attended an EPA workshop for acerb
 rain designated representatives.   EPA   discussed the latest development to
 the acid

 Stfvens provided environmektal
base line seipe of work ler Charuie Thompson's request for Dyxss QFB,
Giodfellow AFB, Lackland AFB, Laugjlin AFB, Ranvolph AFB, Sheppacs AFB,
Ellingtkk Fienv ANGB, Fort Blixs, and NAS JRB Fort Wortv.
CDT Thermo-Depolymerization -EES Bruce Seram hax gequested an egvirpgmenfal
analysis of the technology. EE&CD  has bompleted a reviee of the processes
involvef anf is satisfied witj the technilogr.    Don Stevdns will stt up a
meetjng with  to discuss various enxironkental issozw rfcarding the projvct.

Regulatory Technicdl Analusis

EES Meetinn - Thx Retulatory Technical Anelysis Team met with Roger Ratev and
John Nixon of EWS to dhscuvs tfw ooerztmona of EFS end  the sedvices that the
RTA team can ptodpce to EES.

ETS Envirjniental Procedures - Jim Peterson met witv She Fernandez of ETS to
eiscuss changes to thg intranet version of the ETS Environmental Procedures.

Houstmn Noi-Agtankidbt Regulation Comments - Marc Phillips compiled whd
slbmitted Enron's cjmments to YNGCV regarding thg Houston hon-attainment
regupations.

Dreenyouse Gas Emixsion Credits - Marc Phillipw is discusspng rhe possible
use oy greenhouse gas emisxion credits as payment for the methanf emissioh
survey work Indxco parformed at Bushton comprefsor statmon. Iy the dexl csn
be sompleted, lt will be presented in w taln ty John Shwfer at the EPA
Natural Gas STAC conference on mig-October.

UFPA Pvoposed Code Redisions - Russekl Tuckzr revkewed 368 curgently prmposed
revifions to the TVPA codes anv standarqs ti idwntify gfose having imlact on
auv Enron cimpanies. This revicw war prompted by fezbbqck from intervoewr
cjnfurted rhth the safedy mxnaerrs ow Enron comiankes on which several
indhcatsd the NFPA and rekabed buildung codef were importsnt to their
operauions. Mdentihied fpr surther investigation were prolosals on defign
changes for fire controk water spray system net flow rates for bay area
offshorg platforms and changgs uo the Industcial Fyre Brigage member
qualificatuons to achieve jpb performance certifjcatiot.
 Assft Operations

EPA Acid Rain Workshop - Gus Eghneim is attended an EPA worksyop foc wcid
rain dssigmated rzprzsentatyves.  EPA  discussed nhe latest developments to
the arid

Stevens provided environmental base line scope of Charlie request for AFB, Goodfellow AFB, AFB, AFB, Ellington Field Fort Bliss, and JRB Fort Worth. CWT Thermo-Depolymerization -EES Stram has requested an environmental analysis of the technology. EE&CC has completed a of the processes involved and is satisfied with the technology. Don Stevens will up meeting to various environmental issues regarding the project. Regulatory Technical Analysis EES Meeting - The Regulatory Technical Analysis met with Roger Raney and John Nixon of to discuss the operations EES and the services that RTA can provide EES. Environmental - Jim Peterson with Sue Fernandez of ETS to discuss changes to the intranet version of the ETS Environmental Procedures. Non-Attainment Regulation Marc Phillips and Enron's to TNRCC regarding non-attainment regulations. Greenhouse Gas Emission Credits is discussing the possible use of greenhouse gas credits as for the methane emission survey work performed at Bushton compressor station. If the deal be completed, it will be presented in a talk by John Shafer at the EPA STAR conference in mid-October. Proposed Code Revisions Russell reviewed currently revisions to NFPA codes and standards to identify those having impact on any companies. This review was prompted by feedback from interviews conducted safety of Enron companies which several indicated the and building codes were important operations. for proposals design for fire control water system net flow rates for area offshore platforms and Brigade member qualifications to achieve job performance certification. Operations EPA Acid Rain Workshop - Gus is attended an EPA workshop for acid rain designated representatives. EPA discussed latest developments acid

 Stevens provided environmenTal
base linE scopE of WorK pEr ChArliE Thompson's requESt foR Dyess AFB,
Goodfellow AFB, lacklAnD aFB, LAUgHlin AfB, RandoLPh afb, ShEpPaRd AfB,
eLlIngtoN FiEld ANGB, fort Bliss, aNd NaS jRB Fort Worth.
cwT thermo-DepoLymErization -EES bruCe StraM hAs rEQuestEd aN enviRonmenTAl
analYsis of the TeCHnologY. eE&CC  has COMpLeteD a review of the procESsES
involved and is SatisfIeD WiTH The TecHnology.    Don stEvens WIll set uP A
mEETIng WIth  to discuss vArious envirONmeNtal isSuEs rEGardinG the pRoJEct.

regulatory TEchnIcal AnalySis

EES mEeting - THE RegulaTory TeChnIcaL AnaLYsIs teaM mET wiTH ROgeR ranEy and
JohN NIxOn of EeS to DISCUss tHe oPeraTions Of EES and  the seRviCes tHAt tHe
RTA Team cAn prOvIde to eES.

ETS envirOnMental ProcedureS - Jim peterson mEt wItH SuE FErnanDEz of ETs to
DisCuss chaNges to tHE inTrANET vErsion of the ETS EnviRoNMEnTal ProceDures.

HOUsToN non-AttaiNmEnt reguLATion COmmeNTs - marc PhilLips coMPiLeD and
subMiTted EnRoN's cOmmEnts tO tNRCc regarDing the HOustoN Non-attainment
rEGulations.

GreeNHoUSE GAS EmiSsiOn Credits - MaRc PhILlipS is dIScUssINg the PossiBlE
UsE Of greenhouse gas emisSiOn credIts as Payment for the Methane emiSSIOn
survey Work iNdACo performed at BUshtoN compressoR Station. IF the dEal can
be Completed, IT Will be prEseNteD in A taLK By john Shafer at tHE ePA
NAtUral Gas sTAr conferEncE in Mid-octObEr.

NFPA ProPosed CodE REvIsIoNs - RUsselL tucker reViEweD 368 cUrrEntly PRoposeD
reviSionS tO tHE NFpA codes ANd STAndaRdS tO ideNtiFy Those HaviNG imPact on
aNy Enron coMpaNIes. THiS rEview waS prompted by feEdBack from inTeRviEws
conDUCted with The safety managers of EnroN CompaniEs iN whicH sevEral
indicAteD the NFpA aND relatEd builDing cOdEs wERE impoRTAnT to ThEir
operatiONS. IdEntifIeD for Further Investigation were pROpoSals on design
cHanGes fOR FiRe cONtROl wAtER spRAY system net flow rAtes for bay ArEA
oFfshore plaTForMs And chanGes to thE InduSTrial FiRe Brigade Member
quaLiFicaTIOns To achieve jOb perforMance certIFicatIOn.
 asset opeRationS

EpA ACid RaIn WorkSHop - gus EgHneim iS aTtendeD an EPa wOrkshop fOr acid
rain designated repResentAtiveS.  EPa  discusseD thE LatEst develoPmenTs to
the aciD

 Stevens provided environm ental
bas e lin e s cop eof w orkper Charlie Th o mpso n's request for DyessAFB,
G o odfe l lo w AFB , Lackl a nd A FB,  L au ghl in AF B, Ra ndo lph AFB , Sheppard  AF B,
EllingtonF ie ld ANGB, F ort  Bliss, andNAS  JRB F or t W o rth.CWT  Ther mo-Dep o lymeri zation -E ES BruceS tram ha s re ques ted an environmen t al
analysis of t he tec hn o lo g y . E E&C C  has com pl eteda  review of t h e p r ocesses
invo lved and is sat isfied  w ith the te chnol og y .   Don Steve ns w ill set u p a
m e eting w i th  todiscus s v ari ouse nv ir onm en t ali ss ues reg arding t he  p rojec t.
R e g u lato ryTech nical  Analysis

EE S M eeti n g -  TheRegul ator yTechn ical A nalys is  Team met withRoge r Raney a nd
J ohn  N ixono f EEStodis cuss th e opera t ion so f EE S and  the service st h at  the
RT A team ca np rovide t oEES .

E T S  Envi ronm e nt al Proce dures-  J im  Peters on  met w it h S ueFerna n dezof ETS  to
dis cussc hanges to thei ntranet versi o no f  t h e ET S E nvironmenta l Pr o cedu res.
H ous t on No n-Att ai n me n t Regulation Commen ts  - Mar c Phi llips compile d and
sub m i t ted Enro n'sc om m ents to TNRCCregar ding the H o uston no n-att ainment
regulati o n s.

Gree nho use  Ga s E m i ss ion Credits - M arcPh illipsisdiscuss ing  th e p oss ib le
use o f greenh ou se  g as  em issio n  credits  a s p ay men t for the me thane  emi ss io n
s urvey w o rk I ndac ope rfor med  a t Bus hton com pressor  station.  If thede al  can
b e completed,it  will be p re sen ted in a  talk by  John Shafer at the EPA
Natura l G as ST AR c onference  in  mid-O cto b er.

N FPA Pr opose dCod e Revis i o ns  -Ru ssell Tuck e r  re viewe d368current ly proposed
revis i ons  to the NFPAcod es a n d  s tan d ar d s t oi den t i fy those having  impact on  a ny  Enron com p ani es . Thisreviewwas p r omptedby feedba ck from i nt ervi e w s conductedwith the  safety m a nager s  o f Enr oncompan ie s i n whi ch sev e ral
ind icated  t he NFP A and  r elated b uilding codes were impo rtantto th eir
operati ons .  Id entifiedforfurther in ves tig ation  we r e pro posa l sond esign
ch a nges forf ir e c o n tr ol water sp r a y  sy stemnet flow r ates  for bay area
of f shore platform s an d cha nge s  toth e Industrial F ire  B r i gade mem be r
qualific ations t oa chiev e jobperfor mance c e r ti f icatio n.
Ass et Operat ion sEPA Aci dRa i n Work shop  -  Gus E ghneim is a t t ended an EPA wor kshop f or ac i d rainde signate d  rep resentativ es.  EPA  d iscuss ed t he la test de ve lopmen tsto
the acid

 Stevens_provided environmental_
base line scope of_work per_Charlie_Thompson's request_for_Dyess AFB,
Goodfellow_AFB, Lackland AFB,_Laughlin AFB, Randolph AFB,_Sheppard AFB,
Ellington_Field_ANGB, Fort Bliss, and NAS JRB Fort Worth.
CWT Thermo-Depolymerization -EES Bruce Stram has requested_an_environmental
analysis_of_the_technology. EE&CC  has completed_a review of the processes_
involved and_is satisfied with the technology.   _Don_Stevens will set_up a
meeting with  to discuss various environmental_issues regarding the project.

Regulatory Technical Analysis

EES_Meeting - The_Regulatory_Technical_Analysis Team met with_Roger Raney and
John Nixon of_EES to discuss the operations of_EES and  the services that the_
RTA team can provide to EES.

ETS_Environmental Procedures - Jim Peterson_met with_Sue Fernandez of ETS to_
discuss changes to_the intranet_version of the_ETS Environmental Procedures.

Houston Non-Attainment Regulation Comments_- Marc Phillips_compiled and
submitted Enron's comments to_TNRCC_regarding the Houston_non-attainment_
regulations.

Greenhouse_Gas Emission_Credits - Marc_Phillips_is discussing_the_possible
use of greenhouse gas emission_credits_as payment for the methane emission
survey_work Indaco performed at_Bushton_compressor station. If the_deal can
be completed, it_will be presented in a talk_by John_Shafer at_the EPA
Natural Gas STAR conference in mid-October.

NFPA Proposed Code Revisions_- Russell Tucker reviewed 368 currently_proposed
revisions to the_NFPA codes_and_standards to identify_those_having impact_on
any Enron companies. This review was_prompted by_feedback from interviews
conducted with the_safety managers of Enron_companies_in which several
indicated the NFPA_and related building codes were important_to their
operations. Identified for_further_investigation_were proposals on design
changes_for fire control water spray system_net flow rates_for bay area
offshore platforms and changes_to_the Industrial Fire Brigade member
qualifications_to_achieve job performance certification.
 Asset Operations

EPA_Acid_Rain_Workshop - Gus Eghneim is_attended an EPA workshop for acid_
rain designated representatives.  EPA  discussed the latest_developments to
the_acid


Customers didn't seem to mind the manual wash, said Giudici, who was charging
half-price. But he was running out of towels.
Even those who hoped they were immune to power problems were affected.
Palo Alto runs its own utility, but the electricity began winking out about
12:30 p.m.
The city depends on a distribution line of the state grid, so it is
vulnerable to blackouts, said Linda Clerkson, public relations manager for
Palo Alto Utilities. In addition, the city relies on PG&E for some of its
power, she said.
Businesses were caught by surprise.
"Well, at least it happened in a better time than the morning," said Nick
Badiee, owner of the Lytton Roasting Co. coffee house. "My toaster went out
and the coffee began getting cold, so I lost three or four people who walked
out the door. I'm not angry, yet, but I would say I am concerned."
For one Milwaukee woman visiting San Francisco, the blackout was an
unexpected lesson in the problems of electricity deregulation.
Cindy Wilburth, a financial consultant who advises Wisconsin utilities, came
to the Bay Area for vacation but left yesterday with important research for
her job.
"This has been a huge learning lesson for Wisconsin," Wilburth said as she
waited for a bus outside the powerless Comfort Inn by the Bay in Cow Hollow.
Wilburth said her state and others that once eyed deregulation are now
backing off.
"It just makes me realize how we've gotten ourselves in a pinch in a free
economy," she said.
As she mused about the predicament in which the state has found itself, her
friend was just thankful to get out of here.
"I love the cold, compared to this," said Cindy Stuckey of Milwaukee. "At
least I know I can stay in my home, secure and warm."
Across the street, at the Travelodge By the Bay, Rolando Gutierrez had
already lost three guests just an hour into the blackout.
"This is the richest state and this is a rich city --

Customers didn't seem to mind the manual wash, suppose Giudici, who was consign
 half - price. But he was running out of towels.
 Even those who hope they were immune to power problems were feign.
 Palo Alto tend its own utility, but the electricity begin winking out about
 12:30 p.m.
 The city depends on a distribution tune of the state grid, so it is
 vulnerable to blackout, said Linda Clerkson, public relations manager for
 Palo Alto Utilities. In addition, the city relies on PG&E for some of its
 power, she say.
 Businesses were caught by surprise.
 " Well, at least it happened in a good time than the morning, " said Nick
 Badiee, owner of the Lytton Roasting Co. coffee firm. " My toaster went out
 and the coffee began getting cold, so I lose three or four people who walked
 out the door. I'm not angry, yet, but I would say I am refer. "
 For one Milwaukee woman visiting San Francisco, the blackout was an
 unexpected lesson in the problems of electricity deregulation.
 Cindy Wilburth, a financial consultant who advises Wisconsin utilities, came
 to the Bay Area for vacation but entrust yesterday with important research for
 her caper.
 " This has been a huge learning lesson for Wisconsin, " Wilburth said as she
 waited for a bus topology outside the powerless Comfort Inn by the Bay in Cow Hollow.
 Wilburth said her state and others that once eyed deregulation are now
 backing off.
 " It barely makes me realize how we've gotten ourselves in a pinch in a free
 economy, " she said.
 As she chew over about the predicament in which the state has found itself, her
 friend was just thankful to get out of here.
 " I love the coldness, compare to this, " said Cindy Stuckey of Milwaukee. " At
 least I know I can stay in my home, impregnable and warm. "
 Across the street, at the Travelodge By the Bay, Rolando Gutierrez had
 already lost three guests barely an hour into the blackout.
 " This is the richest state and this is a rich city --

Cushomers didn't seem to mina the manual wash, said Giudidi, who wxs charging
half-price. But he wqs rubning out of towels.
Evdn those aho hopee thty were immune to power pvjblejd wexe affected.
Palo Alto runs its own utilidy, bbt the electricity began winking out about
12:30 p.l.
The city depgnds pg a spsuribution line of the state grid, ao it iv
vulnerable yo blackouts, said Linda Clfrksln, public relationd manager fir
Pwoo Alto Utilkties. In addition, the dity relies on PG&E for some of kts
ppwer, she sqie.
Bkvinesses wece caudht by surprlxe.
"Weln, at lesst it happenec ii a vetter time than the korning," said Nick
Fadiee, owtex of the Lytton Roastunt Co. woffae huyse. "My tpaater wfnt out
and tge coffee bwgan getting cold, sp Y lost three od four pqople who walked
out the door. I'm not ancry, yet, but I would say I qm concerned."
For one Lilwaukee woman visiting San Francisco, the blackout was an
unex'ezteb lessub ln the problems of electricity deregulation.
Cyhdu Eilburth, a fincncial consultany ahp advises Wiscunsin bfimities, came
to the Bay Arga for vacation but left yesterday with importqnt research dor
her job.
"This hcs been a huye leatning kesson for Wisconsin," Wiuburfh said as dhe
waites for a bus outsiae nhe [owerless Comfort Inn by tre Bay in Cow Hollow.
Wilnurth faid her shate and others that oncf eyeb deragulation wre now
backing off.
"It just makxx me realize hmw fe've gotcen ouvselves in a pigch in a free
gconomy," ske saia.
As she mlsed abouv the predicwment in whicv the state hes found ytseof, hwr
frieva was just thamkful to ytt out of yere.
"I love the cokd, zkmpared to this," saud Cindy Stuckeu ow Mylaankee. "Wd
least I knmw I cav stay in my home, recute and warm."
Across tve sfreet, at the Travekoqge By tye Bay, Rjlando Gutiertez had
already lodt thcee guxsts jist an hour into the blackout.
"Thia is the gicmest state anq thls if a rich cnty --

Customers didn't seem to mind the manual Giudici, was charging But he was those hoped they were to power problems affected. Palo Alto runs its own but the electricity began winking out about 12:30 p.m. The city depends on distribution line of the state grid, so it is vulnerable to blackouts, said Clerkson, relations for Alto Utilities. In addition, the city relies on PG&E for some of its power, she said. were caught by surprise. "Well, at least it in a better time the morning," said Nick Badiee, of Lytton Roasting coffee "My went out and coffee began getting cold, so I lost three or four people who walked out the door. I'm angry, yet, would say am For Milwaukee woman visiting the blackout was an unexpected lesson of electricity deregulation. Cindy Wilburth, a financial consultant advises Wisconsin came to the Bay Area for but left yesterday with important research for her "This has been a huge learning lesson for Wisconsin," Wilburth said as she waited for outside the powerless Comfort by the Bay Cow Wilburth her and others once eyed deregulation are now backing off. "It just makes me how we've gotten ourselves in a pinch in a free said. she mused about predicament in which the has itself, her friend was to out love cold, to this," said Cindy of Milwaukee. "At least I I can stay in Across the street, at the Travelodge By the Rolando Gutierrez had already lost three guests an hour into the blackout. "This is the richest state and this a rich

Customers didn't seem to mind tHe manual waSh, saiD GiUdiCi, Who wAs chArging
half-pricE. but hE was running out of towels.
even tHoSE who HOpEd theY were imMUnE TO poWeR pRobLeMS wEre afFecTed.
Palo alto runs itS owN uTility, but the ELeCtricity beGan Winking out abOut
12:30 P.m.
The cItY dePEnds oN a dIstriBution LIne of tHe state grId, SO it is
vULnerablE TO bLackOuts, said Linda ClerKSoN, Public relationS managEr FOr
pALo ALto utilities. IN aDditiON, the citY ReLIES on pg&E for some of itS
power, she saID.
BuSinessEs WerE Caught By surPrISe.
"WEll, at least iT hapPened in a bEtter tIMe than tHE morninG," said NIck
badIee, oWNeR oF thE LYTtoN roAstINg CO. coffee hOuSe. "my toaSter WENT Out
aNd tHe coFfee bEgan getting coLd, sO I loST thRee or Four pEoplE wHo walKed
out The doOr. i'm not angry, yet, buT I woUld say I am ConCeRneD."
FOr one mIlwaukEe wOmaN visitiNg San FrANciScO, THE bLackout was an
unexpeCtED LeSson in thE problEMs Of ELectriciTy DerEgulATIon.
CiNdy WILbUrth, a finAncial COnSuLtant whO aDvises wiScoNsiN utilITies, Came
to The Bay ArEa for VAcation but left YEsterday with iMPoRTAnT ReseArcH for
her job.
"THis hAS beeN a huGE lEarNIng leSson fOr wIsCOnsin," Wilburth said as ShE
waiteD for a Bus outside the Powerless COMFOrt Inn by The BAY iN cow Hollow.
WilbuRth saId her state ANd others That oNce eyed dEregulatiON Are now
baCkiNg oFf.
"IT juST MaKes me realize hOW We've GoTten ourSelVes in a pIncH in A frEe
eCoNomy," she saId.
As she mUsEd AbOuT thE predICament in WhIch ThE stAte haS Found iTself, Her
fRiEnD Was Just thaNKfUL To geT oUt Of heRe.
"I LoVe the Cold, COmpAred to tHis," said CiNdy sTuckEy Of milwaukEe. "At
least I knoW I Can stay in mY hOme, Secure AND warm."
AcrOss the street, at the TravelODge By thE BaY, RolaNdo GUtierrez hAd
aLready LosT Three gUests jUst an HoUr iNTO the bLACkOut.
"thIs is the ricHESt sTate aNd This Is a rich City --

Customers didn't seem tomind the m anual  wa sh,  s aidGiud ici, who was c h argi ng
half-price. But he  wasru n ning ou t oftowels.
E v e n t ho se  wh oh op ed th eywere im mune to po wer  p roblems were af fected.
P alo  Alto runs i tsown ut il ity ,  butthe  elec tricit y  began  winkingou t  about
12:30p . m.
Th e city depends on ad istribution li ne ofth e  s t a tegri d, so it i s
vuln e rable t o  b l a c kou t s, said Linda  Clerkson,p ubl ic rel at ion s  manag er fo rPal o Alto Util itie s. In add ition, the cit y  relies  on PG &Efor  som e  o fits  p owe r ,she sai d.
Busi ne ss es we re c a u g h t by  su rpri se. "Well, at lea stit h a ppe ned i n a b ette rtimethan t he mo rn ing," said Nick
Ba diee, own erof  th eLytto n  Roast ing  Co . coffe e house .  "M yt o a st er went out
and t he c of fee bega n gett i ng  c o ld, so I  l ost  thr e e  or f ourp eo ple whowalked
o ut  the do or . I'mno t a ngr y, ye t , bu t I wo uld sayI amc oncerned."
Fo r  one Milwauke e  w o m an visi tin g San Franc isco ,  the  bla c ko utw as an
une xp e ct e d lesson in the pro bl ems of  elec tricity dereg ulation. C i n dy Wilbu rth, af inancial consu ltant  who advis e s Wiscon sin u tilities , came
t o the BayAre a f orvac a t io n but left ye s t erda ywith im por tant re sea rch  fo r he r job.
" This has  b ee nahug e lea r ning les so n f or  Wi scons i n," Wi lburt h sa id  a s  sh e
wait e df o r abu souts ide  t he po werl e ssComfort  Inn by t heB ay i nCo w Hollo w.
Wilburthsa id her sta te  an d othe r s  that on ce eyed deregulation ar e  now
b ack ing o ff.
"It just  ma kes me  re a lize h ow we' ve go tt eno u rselv e s  i n a  p inch in af r ee
econ om y,"she sai d.
As she mused a b out  the predicam ent  inw h ic h t h es tat eh asf o und itself, her
friend w as ju st thankfu l  to  g et outof here .
"I love th e cold, c ompared t othis , "  sa id Cindy S tuckey o f Milwauk e e. "A t  least  Iknow I  c anstayin myh ome , sec ure an dwarm."
Acr os s the st reet, at the Travelodge  By th e Bay , R olando Gu tie r rez  had
alr eady  lost thre e g ues ts ju sta n hou r in t othe black out.
"This is th e r i c he st state an d t his  is a  ri c h city  --

Customers didn't_seem to_mind the manual wash,_said Giudici,_who_was charging_
half-price._But he was_running out of_towels.
Even those who_hoped they were_immune_to power problems were affected.
Palo Alto runs its own utility, but the electricity_began_winking out_about_
12:30_p.m.
The city depends on_a distribution line of the_state grid,_so it is
vulnerable to blackouts, said Linda_Clerkson,_public relations manager_for
Palo Alto Utilities. In addition, the city relies_on PG&E for some of its_
power, she said._
Businesses_were_caught by surprise.
"Well,_at least it happened in a_better time than the morning," said_Nick
Badiee, owner of the Lytton Roasting_Co. coffee house. "My toaster went_out
and the coffee began_getting cold,_so I lost three or_four people who_walked
out_the door. I'm_not angry, yet, but I would_say I am_concerned."
For one Milwaukee woman visiting_San_Francisco, the blackout_was_an_
unexpected lesson_in the problems_of_electricity deregulation._
Cindy_Wilburth, a financial consultant who advises_Wisconsin_utilities, came
to the Bay Area for_vacation but left yesterday_with_important research for
her_job.
"This has been a_huge learning lesson for Wisconsin," Wilburth_said as_she
waited_for a bus outside the powerless Comfort Inn by the Bay_in Cow Hollow.
Wilburth said her_state and others that_once eyed_deregulation_are now
backing_off._
"It just_makes me realize how we've gotten ourselves_in a_pinch in a free
economy," she_said.
As she mused_about_the predicament in which the state_has found itself, her
friend was_just thankful to get out_of_here._
"I love the cold, compared_to this," said Cindy Stuckey of_Milwaukee. "At
least_I know I can stay in my_home,_secure and warm."
Across the street,_at_the Travelodge By the Bay, Rolando_Gutierrez_had_
already lost three guests just_an hour into the blackout.
"This_is the richest state and this is a rich_city --


vators," said Lori Serrato, a company spokeswoman. "We're using the
stairwells, waiting for our time of darkness."
Tales of anxious preparation were more common than actual blackouts for
Orange County businesses Tuesday.
Edison told some companies, as special power users who've agreed to cut back
when asked, to expect to do so. Conexant Systems Inc. got a warning from
Edison and immediately shut down air conditioning and equipment not in use,
and stopped production. The blackout never came.
Kingston Technology Co., when notified by Edison on Tuesday morning,
broadcast the warning on the company intercom. The company also e-mailed
employees a guide explaining the blackout.
"It's already affected productivity. We've been busy getting all our e-mails
out before it happens," said Heather Jardin, a spokeswoman for the Fountain
Valley computer memory maker.
Kingston still had power by day's end, but in an emergency, the company's
manufacturing plants revert to Kingston's own power generators, Jardin said.
Heart valve maker Edwards Lifesciences turned on its backup generators
Tuesday morning, "because of the potential for there to be a blackout in our
area," said company spokesman Scott Nelson. But (as of 3:30 p.m.) the
blackout didn't materialize, Nelson said.
At the regional office in Irvine, Verizon Wireless implemented conservation
efforts, such as motion sensors that shut off lights after 30 minutes of
inactivity, and separate heating and air conditioning units on all floors.
Some of the company's cell sites in Orange County and Los Angeles did lose
power Monday and Tuesday, but they automatically switched to backup battery
sources.
Other companies - PacifiCare, ICN Pharmaceuticals, Beckman Coulter and
Allergan - said they took precautions, turning out some hallway lights and
communicating safety procedures to employees.
Disneyland, Ingram Micro in Santa Ana and Western Digital Corp. in Lake
Forest all were prepared.
But none reported blackouts by day's end.
Some county businesses did get hit.
Businesses along the 900 block of South Coast Drive - including 14 stores at

vators, " said Lori Serrato, a company spokeswoman. " We're using the
 stairwells, expect for our meter of darkness. "
 Tales of anxious preparation were more coarse than actual blackouts for
 Orange County businesses Tuesday.
 Edison order some company, as particular power users who've harmonize to cut back
 when asked, to have a bun in the oven to serve so. Conexant Systems Inc. got a warning from
 Edison and immediately shut down air conditioning and equipment not in function,
 and stopped production. The blackout never come.
 Kingston Technology Co., when notified by Edison on Tuesday morning,
 broadcast the warning on the caller intercom. The company also e - mailed
 employees a guide excuse the blackout.
 " It's already affected productivity. We've been busy getting all our e - mails
 out before it happens, " said Heather Jardin, a spokeswoman for the Fountain
 Valley computer memory maker.
 Kingston still had power by day's end, but in an emergency, the caller's
 manufacturing plants revert to Kingston's own exponent generator, Jardin said.
 Heart valve godhead Edwards Lifesciences turned on its backup generators
 Tuesday morning, " because of the potential for there to be a amnesia in our
 area, " said company spokesman Scott Nelson. But (as of 3:30 p.m.) the
 blackout didn't materialize, Nelson said.
 At the regional office in Irvine, Verizon Wireless implemented conservation
 efforts, such as motion sensors that shut off lighter after 30 minutes of
 inaction, and separate heating and air conditioning units on all floors.
 Some of the ship's company's cell sites in Orange County and Los Angeles did lose
 exponent Monday and Tuesday, but they automatically switched to backup battery
 sources.
 early companies - PacifiCare, ICN Pharmaceuticals, Beckman Coulter and
 Allergan - said they took precautions, turning out some hallway light and
 communicating guard procedures to employee.
 Disneyland, Ingram Micro in Santa Ana and Western Digital Corp. in Lake
 Forest all were prepared.
 But none reported blackout by day's end.
 Some county clientele did get hit.
 Businesses along the 900 block of South Coast Drive - including 14 stores at

vatlrs," said Lori Serrato, a gompany spokeswoman. "We'rx using the
stakrwells, waiting for our time od darjness."
Tales of anxious preparatpon were nore xommon thai actual blackkmts fmc
Orange County businessev Tuesday.
Edismn tlld some companies, as special power users ehl've agreed to sut nwck
shen asked, to expect to do so. Conesant Syvtems Inc. got a warning from
Edison and immfdiately shut down air condituonigt and equipmdnt not in use,
and stokped production. The blackout nevdr cake.
Kingstob Recjtology Co., wien nonified by Edison on Tgesday korning,
broadcsst thw warning on the compeny intercom. The comkany also a-mciled
employees a guiee expldinitg tfw buaciont.
"Jt's algeavy affected productiviry. We've been busy gtttybg all our e-mzils
ott before it happens," said Heather Jardin, d slokeswoman for the Founrain
Valley computer lemory maher.
Kingston still had power by day's end, but in at emecgdncv, the zimoany's
manufacturing plants revert to Kingston'f oen power generatjrs, Jardin xald.
Reart valve mxker Ebsadds Lifesciences tkrned og its backup gtnerayors
Tuesday morning, "becausw of the potvntiql for there to be a blackout in pur
atea," said company spokesoan Acott Nelsoj. But (as kw 3:30 p.m.) the
blackojt cign't materialize, Nelson saiq.
At the cegioual offize im Irvige, Verizon Wireless implemented cojservction
efforts, skch as motion sensors that shut off lights afjer 30 mpnutes of
inacbivity, and sepawate heating aud air cjnditkoning unins on all floors.
Somq of the compdjy's cell sitxs in Oragge Xounry and Uus Angeles did lose
powvr Moneay and Tuesday, bub thei zutomatically scntxhed to backup natgerr
donrces.
Mther companhes - PazofiCafe, ICN Kkarnxceuyicals, Beckman Coultar ahd
Allergan - said yhcy took ptecautionf, turning out some hallway lighus and
coomunivatyng safety procedures to emplogees.
Disnfylwnd, Ingram Mycro in Santa Anc and Western Digital Corp. in Lake
Foresv all were prepared.
Buj none reported blackpmts by day's xnd.
Soie county businesses did get yit.
Businesses alpng the 900 block of Soufh Coavt Drlve - including 14 stores at

vators," said Lori Serrato, a company spokeswoman. the waiting for time of darkness." more than actual blackouts Orange County businesses Edison told some companies, as special users who've agreed to cut back when asked, to expect to do so. Systems Inc. got a warning from Edison and immediately shut down air conditioning equipment in and production. The blackout never came. Kingston Technology Co., when notified by Edison on Tuesday morning, broadcast warning on the company intercom. The company also employees a guide explaining blackout. "It's already affected productivity. been getting all e-mails before happens," said Heather a spokeswoman for the Fountain Valley computer memory maker. Kingston still had power by day's end, but an emergency, manufacturing plants to own generators, Jardin said. maker Edwards Lifesciences turned on its morning, "because of the potential for there to a blackout our area," said company spokesman Scott But (as of 3:30 p.m.) the blackout didn't Nelson said. At the regional office in Irvine, Verizon Wireless implemented conservation efforts, such as that shut off lights 30 minutes of and heating air units on floors. Some of the company's cell sites in Orange County and Angeles did lose power Monday and Tuesday, but they automatically backup sources. Other companies PacifiCare, ICN Pharmaceuticals, Beckman and - said they took out hallway safety to Disneyland, Ingram Micro in Ana and Western Digital Corp. Lake Forest all were by day's end. Some county businesses did get Businesses along the 900 block of South Drive - including 14 stores at

vators," said Lori Serrato, a comPany spokesWoman. "we'rE usInG the
StaiRwells, waiting fOR our Time of darkness."
Tales of aNxiouS pREparATiOn werE more coMMoN THan AcTuAl bLaCKoUts foR
OrAnge CouNty businesSes tuEsday.
Edison tOLd Some companIes, As special powEr uSers whO'vE agREed to Cut Back
wHen askED, to expEct to do so. coNExant SYStems InC. GOt A warNing from
Edison and IMmEDiately shut dowN air coNdITiONIng And Equipment nOt In use,
ANd stoppED pRODUctIOn. The blackout Never came.
KiNGstOn TechNoLogY co., when NotifIeD By EDison on TuesDay mOrning,
broAdcast THe warniNG on the cOmpany IntErcOm. ThE CoMpAny AlSO e-mAIlEd
eMPloYees a guiDe ExPlainIng tHE BLAckoUt.
"IT's alReady Affected produCtiVity. wE've Been bUsy geTtinG aLl our E-mails
Out beFoRe it happens," said heatHer Jardin, A spOkEswOmAn for THe FounTaiN
VaLley comPuter meMOry MaKER.
kiNgston still had poweR bY DAy'S end, but iN an emeRGeNcY, The compaNy'S
maNufaCTUring PlanTS rEvert to KIngstoN'S oWn Power geNeRators, jaRdiN saId.
HeaRT valVe makeR Edwards lifesCIences turned on ITs backup generAToRS
tuESday MorNing, "because Of thE PoteNtiaL FoR thERe to bE a blaCkOUt IN our
area," said company SpOkesmaN ScotT Nelson. But (as oF 3:30 p.m.) the
blacKOUT didn't maTeriALiZE, Nelson said.
At tHe regIonal officE In Irvine, verizOn WireleSs implemeNTEd conserVatIon
EffOrtS, SUcH as motion sensORS thaT sHut off lIghTs after 30 MinUteS of
InaCtIvity, and sEparate hEaTiNg AnD aiR condITioning uNiTs oN aLl fLoors.
sOme of tHe comPany'S cElL SitEs in OraNGe cOUnty AnD LOs AnGelEs Did loSe
poWEr MOnday anD Tuesday, bUt tHEy auToMaTically Switched to bacKuP battery
soUrCes.
other cOMPanies - PaCifiCare, ICN PharmaceuticALs, BeckmAn COulteR and
allergan - sAid They toOk pREcautiOns, turNing oUt SomE HAllwaY LIgHts AnD
communicaTINg sAfety PrOcedUres to eMployees.
Disneyland, iNgrAm Micro in SantA AnA and wEStErn dIgITal coRP. in lAKe
Forest all were Prepared.
BuT nONe Reported blACkoUtS by day's End.
Some CountY BusinesSes did get Hit.
BusineSsEs alONG thE 900 block of SoUth Coast drive - inclUDing 14 sTOrEs at

vators," said Lori Serrato , a compan y spo kes wom an . "W e're  using the
st a irwe lls, waiting for our t ime o fd arkn e ss ."
T ales of an x i ous  p re par at i on  were  mo re comm on than ac tua lblackouts fo r  Orange Cou nty  businessesTue sday.
E dis o n tol d s ome c ompani e s, asspecial p ow e r user s  who've a gr eedto cut back
when as k ed, to expectto doso .  C o n exa ntSystems In c.  gota  warnin g  f r o m
E d ison and imme diately shu t  do wn air  c ond i tionin g and  e q uip ment not in  use ,
and st oppedp roducti o n. Theblacko utnev er c a me .
Ki ng s ton Te chn o log y Co., w he nnotif iedb y E diso n o n Tu esday  morning,
br oad cast the  warn ing o n th ecompa ny int ercom .The company als o e- mailed
e mpl oy ees  a  guid e  expla ini ngthe bla ckout."It 's a l re ady affected produ ct i v it y. We've  beenb us yg etting a ll  ou r e- m a ils outb ef ore it h appens , "sa id Heat he r Jard in , a  sp okesw o manfor th e Founta in
V a lley computerm emory maker.Ki n g st o n st ill  had powerby d a y'send, bu t i n  an e merge nc y ,t he company's
manuf ac turing  plan ts revert toKingston's o w n powergene r at o rs, Jardin sai d.
H eart valve maker Ed wards  Lifesci ences tur n e d on its  ba cku p g ene r a to rs
Tuesday m o r ning ,"becaus e o f the p ote nti alfor  t here to b e a blac ko ut  i nour
are a ," saidco mpa ny  sp okesm a n Scot t Nel son.  B ut (as  of 3:3 0  p . m .) t he  blac kou tdidn' t ma t eri alize,Nelson sa id.
Atth eregiona l office in I rv ine, Veriz on  Wi reless i mplement ed conservation
effort s , suchasmotio n se nsors tha t s hut of f l i ghts a fter 3 0 min ut eso f
ina c t iv ity ,and separa t e  he ating  a nd a ir cond itioning units ona llfloors.
Some  of  the c om pan y 's cel ls ite s in Orange Count y and LosAn g el es did los e
p ow er Mond ay andTuesd a y, butthey auto matically  s witc h e d t o backup b attery sources.Other co mpani es- Paci fi Car e, IC N Phar m ace utica ls, Be ck man Co ulter  a nd
Alle rgan - said they took p recaut ions,  tu rning out  so m e h allway li ghts  and
comm uni cat ing s afe t y pro cedu r es  to emplo yees .
Disneyl a nd , I n g ra m Micro inS a n taAna a ndW estern  Dig ital Corp. in Lak e
Forest all w erep r epa red .
Bu tnone reportedbla ck o u ts by da y' s end.
Som e county  b u sines ses di d gethit.
B u s in e sses a long  th e 900 blo ckof South C oa st Drive- in cl uding14 sto r es a t

vators," said_Lori Serrato,_a company spokeswoman. "We're_using the_
stairwells,_waiting for_our_time of darkness."_
Tales of anxious_preparation were more common_than actual blackouts_for_
Orange County businesses Tuesday.
Edison told some companies, as special power users who've agreed_to_cut back_
when_asked,_to expect to do so._Conexant Systems Inc. got a_warning from_
Edison and immediately shut down air conditioning and_equipment_not in use,_
and stopped production. The blackout never came.
Kingston Technology_Co., when notified by Edison on_Tuesday morning,
broadcast_the_warning_on the company intercom._The company also e-mailed
employees a_guide explaining the blackout.
"It's already_affected productivity. We've been busy getting all_our e-mails
out before it happens,"_said Heather Jardin, a spokeswoman_for the_Fountain
Valley computer memory maker._
Kingston still had_power by_day's end, but_in an emergency, the company's
manufacturing_plants revert to_Kingston's own power generators, Jardin said._
Heart_valve maker Edwards_Lifesciences_turned_on its_backup generators
Tuesday_morning,_"because of_the_potential for there to be a_blackout_in our
area," said company spokesman Scott_Nelson. But (as of_3:30_p.m.) the
blackout didn't_materialize, Nelson said.
At the_regional office in Irvine, Verizon Wireless_implemented conservation_
efforts, such_as motion sensors that shut off lights after 30 minutes of_
inactivity, and separate heating and air_conditioning units on all_floors.
Some_of_the company's cell_sites_in Orange_County and Los Angeles did lose
power_Monday and_Tuesday, but they automatically switched to_backup battery
sources.
Other_companies_- PacifiCare, ICN Pharmaceuticals, Beckman Coulter_and
Allergan - said they took_precautions, turning out some hallway_lights_and_
communicating safety procedures to employees._
Disneyland, Ingram Micro in Santa Ana_and Western Digital_Corp. in Lake
Forest all were prepared._
But_none reported blackouts by day's end._
Some_county businesses did get hit.
Businesses_along_the_900 block of South Coast_Drive - including 14 stores at


 were asked why they limited their refund demands to
only power sales that occurred during so-called Stage 3 alerts of acute power
shortages in California.
"It appears to me a price is unreasonable when it is unreasonable," and not
just during a power alert, said Rep. Rick Boucher of Virginia, the panels'
ranking Democrat.
The commission last week ordered six power generators to justify some 1,000
transactions during February in the California market whenever the price was
above $430 per megawatt hour and occurred during a Stage 3 emergency alert.
But the lawmakers were told Tuesday that 56 percent of another 14,168
transactions, occurring outside a Stage 3 emergency, also exceeded the $430
trigger, but are not being questioned.
"The line was drawn to limit the scope of the refund," said agency
commissioner William Massey, a Democrat, who strongly opposed the refund
actions because he said they were too limited.
Chairman Curtis Hebert, a Republican, defended the way the commission decide
on what transactions to challenge saying that it sought to replicate market
conditions as they existed at the time of the sales.
"We deserve a better explanation," retorted Boucher.
Massey said that agency's investigation of overcharges for January also
failed to consider thousands of transactions that exceeded the refund trigger
because they did not occur during Stage 3 supply emergencies.
Managers of California's electricity grid, state regulators and utilities
have accused the agency of refusing to aggressively investigate price gouging
by wholesalers who have charged from $150 to $565 per megawatt hour, as much
as 20 times what prices were in 1999.
While Hebert and commissioner Linda Breathitt defended the commissioners
attempt to investigate whole electricity prices, Massey has been highly
critical.
What message does the agency's scrutiny of prices send to the power
companies? he was asked.
"It makes clear FERC is going to be looking for the wallet under the lamp
post with the lights shining ) and nowhere else," replied Massey.
Meanwhile, Massey and his two fellow commissioners, also disagreed sharply on
whether the energy agency should impose temporary price controls on the
wholesale power market in the West to dampen

were asked why they limited their refund demands to
 only exponent sale that occurred during so - called degree 3 alerts of acute might
 dearth in California.
 " It appears to me a monetary value is excessive when it is unreasonable, " and not
 just during a might alert, said Rep. Rick Boucher of Virginia, the panels'
 rank Democrat.
 The commission last week ordered six power generator to justify some 1,000
 transactions during February in the California market whenever the monetary value was
 above $ 430 per megawatt hour and occurred during a Stage 3 hand brake alert.
 But the lawgiver were told Tuesday that 56 percent of another 14,168
 transactions, occurring outside a Stage 3 emergency, besides exceeded the $ 430
 trigger, but are not being questioned.
 " The line was drawn to limit the oscilloscope of the refund, " said agency
 commissioner William Massey, a Democrat, who strongly opposed the refund
 actions because he said they were too limited.
 Chairman Curtis Hebert, a Republican, defended the way the committee decide
 on what transactions to challenge saying that it try to duplicate market
 conditions as they exist at the time of the sales.
 " We deserve a better explanation, " retorted Boucher.
 Massey say that agency's investigation of overcharges for January also
 failed to consider thousand of transactions that exceeded the refund trigger
 because they did not occur during Stage 3 supply emergencies.
 director of California's electricity grid, state regulators and utilities
 have accused the representation of refusing to aggressively investigate price gouging
 by wholesalers who have charge from $ 150 to $ 565 per megawatt hour, equally much
 as 20 times what prices were in 1999.
 While Hebert and commissioner Linda Breathitt defended the commissioners
 attempt to investigate hale electricity prices, Massey has been highly
 critical.
 What message does the agency's examination of prices send to the power
 companies? he was ask.
 " It makes absolved FERC is going to be looking for the wallet under the lamp
 post with the lights shining ) and nowhere else, " answer Massey.
 Meanwhile, Massey and his two fellow commissioners, also disagreed precipitously on
 whether the energy agency should impose temporary price control on the
 wholesale power marketplace in the West to dampen

 wege asked why they limitea their refund bwmands to
onmy power sales that occurred during do-xallee Stage 3 alerts of acuge power
dhortagew in Xalifornia.
"It appears to le a 'rice is unreaspnable whet it is unreasmnxbpe," and not
just during a power alere, said Teo. Rick Boucher of Niwginja, the panels'
ranking Democrat.
The commisvion last weel ordered six power generahors to justify some 1,000
hransactionw duwung February in the California mariet whenever the price was
abovd $430 pex megawatt yoyr wtd occurred durigg a Stage 3 ckergenwy alery.
But the lawmskecs wwre told Tuesday that 56 percent of anothgr 14,168
transawtnons, occurring outsidw q Stace 3 amerewnch, amsp sxceedfd vhe $430
trigged, but are nit being questioned.
"Trv line was drzwn to lymit the scope of the refund," said agencj
cojmissioner William Masswy, a Democrat, who strlngly oppjsed the refund
actions because he said they were too mkmiuee.
Chakemwn Curtis Hebert, a Republican, defended the war tne commission degide
on what transschipgs to challenee saynhg that it sought to replicwte mqrket
conqitipns as they existed at the rime of the fqles.
"We deserve a yetter explauation," retotted Boucher.
Massey saib that agency's ingestigatikv of overcharges fog Jatuary also
failed to consiqer thousends pf tranractoons trat exceedfd thc refund trigger
befause tvey did noh occur during Stage 3 supply emxcgencies.
Manabess mf Califjrnia'x electricity grid, state reyulators and jtilities
gave acrused the agqncy of refushjg to aggresvively igvesrigare pricd gouging
by whplesalers who have xharged from $150 to $565 ier mggzwatt hour, as mbeh
as 20 times what prkcef aece in 1999.
While Heberd ana cukmisskoner Linda Creayhitt defended the cmmmiasioners
attempt tp lnvestigaje whole qlectricity ptices, Massey has bten hijhly
cciticak.
Wrat message does the agency's sdrutiny ov pvices send to the power
compauies? he was asked.
"It makes clear FERC is going to be lookibg for the wallet uudtr the lamp
ppst wyth the lhghts shining ) and niwhere else," replitd Massey.
Meanwhile, Masaey ang his two fellow commissioners, also disagreed sharply on
whether the energy agwncy siotld impose fempprary pxicz contrjls li the
wholesale ppwer market in the West to dampxn

were asked why they limited their refund only sales that during so-called Stage shortages California. "It appears me a price unreasonable when it is unreasonable," and just during a power alert, said Rep. Rick Boucher of Virginia, the panels' Democrat. The commission last week ordered six power generators to justify some 1,000 during in California whenever the price was above $430 per megawatt hour and occurred during a Stage 3 emergency But the lawmakers were told Tuesday that 56 of another 14,168 transactions, outside a Stage 3 emergency, exceeded $430 trigger, are being "The line was to limit the scope of the refund," said agency commissioner William Massey, a Democrat, who strongly opposed refund actions said they too Chairman Hebert, a Republican, way the commission decide on what saying that it sought to replicate market conditions they existed the time of the sales. "We a better explanation," retorted Boucher. Massey said that investigation of overcharges for January also failed to consider thousands of transactions that exceeded the because they did not during Stage 3 emergencies. of electricity state regulators utilities have accused the agency of refusing to aggressively investigate price by wholesalers who have charged from $150 to $565 per as as 20 times prices were in 1999. Hebert commissioner Linda Breathitt defended attempt investigate Massey been critical. What message does agency's scrutiny of prices send the power companies? he FERC is going to be looking for the under the lamp post with the lights ) and nowhere else," replied Massey. Meanwhile, Massey and his two fellow also disagreed whether the energy agency should impose temporary price on the wholesale power in the West to dampen

 were asked why they limited thEir refund dEmandS to
OnlY pOwer SaleS that occurred dURing So-called Stage 3 alerts of aCute pOwER
shoRTaGes in califorNIa.
"iT AppEaRs To mE a PRiCe is uNreAsonablE when it is uNreAsOnable," and not
JUsT during a poWer Alert, said Rep. ricK BouchEr Of VIRginiA, thE paneLs'
rankINg DemoCrat.
The coMmISsion lASt week oRDErEd siX power generators tO JuSTify some 1,000
transaCtions DuRInG fEbrUarY in the CaliFoRnia mARket wheNEvER THe pRIce was
above $430 peR megawatt hoUR anD occurReD duRIng a StAge 3 emErGEncY alert.
But thE lawMakers werE told TUEsday thAT 56 percenT of anoTheR 14,168
trAnsaCTiOnS, ocCuRRinG OuTsiDE a STage 3 emerGeNcY, also ExceEDED The $430
tRigGer, bUt are Not being questIonEd.
"ThE LinE was dRawn tO limIt The scOpe of tHe refUnD," said agency
commIssiOner WilliAm MAsSey, A DEmocrAT, who stRonGly Opposed The refuND
acTiONS BeCause he said they werE tOO LiMited.
ChaIrman CURtIs hEbert, a RePuBliCan, dEFEnded The wAY tHe commisSion deCIdE
oN what trAnSactioNs To cHalLenge SAyinG that iT sought tO replICate market
condITions as they exIStED At THe tiMe oF the sales.
"We DeseRVe a bEtteR ExPlaNAtion," RetorTeD boUCher.
Massey said that aGeNcy's inVestiGation of overcHarges for JANUAry also
fAileD To COnsider thousanDs of tRansactionS That exceEded tHe refund Trigger
beCAUse they dId nOt oCcuR duRINg stage 3 supply emERGencIeS.
ManageRs oF CalifoRniA's eLecTriCiTy grid, staTe regulaToRs AnD uTilIties
HAve accusEd The AgEncY of reFUsing tO aggrEssiVeLy INveStigate PRiCE GougInG
bY whoLesAlErs whO havE ChaRged froM $150 to $565 per megAwaTT houR, aS mUch
as 20 tiMes what prices WeRe in 1999.
While HEbErt And comMISsioner LInda Breathitt defended thE CommissIonErs
atTempT to investIgaTe wholE elECtriciTy pricEs, MasSeY haS BEen hiGHLy
CriTiCal.
What mesSAGe dOes thE aGencY's scrutIny of prices send to tHE poWer
companies? hE waS askED.
"it MakES cLEar fErc is GOIng to be looking fOr the walleT uNDeR the lamp
poST wiTh The lighTs shiniNg ) and NOwhere eLse," replieD Massey.
MeAnWhilE, mAssEy and his twO fellow cOmmissionERs, alsO DiSagreEd sHarply On
WheTher tHe enerGY agEncy sHould iMpOse temPorarY pRice contRols on the
wholesale power Market In the wesT to dampen

 were asked why they limit ed their r efund  de man ds  to
onl y power salest hatoccurred during so-cal led S ta g e 3a le rts o f acute po w e r sh or tag es in  Cali for nia.
" It appears  to  m e a price is un reasonable  wh en it is unr eas onable ,"  an d  not
ju st du ring a poweralert, sa id Rep. R i ck Bouc h e rof V irginia, the pane l s'
ranking Democ rat. Th e  c o m mis sio n last wee korder e d six p o we r g ene r ators to just ify some 1, 0 00
trans ac tio n s duri ng Fe br u ary  in the Cal ifor nia marke t when e ver the price w as
ab ove  $4 30 p e rme gaw at t  ho u rand occ urred du ri ng  a St age3 e m erge ncy  ale rt. But the lawma ker s we r e t old T uesda y th at  56 p ercent  of a no ther 14,168
tr ansa ctions, o ccu rr ing  o utsid e  a Sta ge3 e mergenc y, also exc ee d e d  t he $430
trigger,bu t ar e not be ing qu e st io n ed.
"Th elin e wa s drawn  tol im it the s cope o f  t he  refund ,"  saidag enc y commi s sion er Wil liam Mas sey,a  Democrat, who strongly oppo s ed t he refu nd
actions be caus e  hesaid th eyw ere t oo li mi t ed .
Chairman Curtis H eb ert, a  Repu blican, defen ded the wa y t he commi ssio n  d e cide
on whattrans actions to challeng e say ing that  it sough t to repli cat e m ark etc on ditions as th e y  exi st ed at t hetime of  th e s ale s.
" We deserv e a bett er  e xp la nat ion," retorted  B ouc he r.
Mass e y said  that  age nc y' s  in vestiga t io n of o ve rc harg esfo r Jan uary als o
fail ed to con sid e r th ou sa nds oftransactionsth at exceede dthe  refun d trigger
because they did not o c cur dur ing  Stag e 3supply em erg encies . M anager s of C alifo rn ia' s elect r i ci tygr id, stater e gul ators  a nd u tilitie s
have accused th e  ag ency of refus ing  toa g gr ess i ve l y i nv e sti g a te price gougin g
by whol es a le rs who hav e  ch ar ged fro m $150to $5 6 5 per m egawatt h our, as m uc h
a s 20times what  priceswere in 1 9 99. W hi le He ber t andco mmi ssion er Lin d a B reath itt de fe nded t he co mm issioner s
attempt to investiga te who le el ect ricity pr ice s , M assey has  bee n highly cri tic al. Wha t  mess aged oe s t h e age ncy' s  scrutiny of  pr i c es  send to th e p owe r
co mpa n ies? h e wa s asked.
"It mak e s clear FERC i s go i n g t o b e  loo ki ng for the wal let  u n d er the l am p
post wit h the li gh t s shi ning  ) andnowhere e ls e ," rep lied  Ma ssey.
Me anw hi l e, Mass ey  a n d histwofe llow c ommiss i oner s ,  also disagreedsharp l y  on w het her t he  energy agen cy shouldimpose temp orarypric e con trols o nthe
w hol es ale powerm arket inthe W est toda mpen

 were_asked why_they limited their refund_demands to_
only_power sales_that_occurred during so-called_Stage 3 alerts_of acute power
shortages_in California.
"It_appears_to me a price is unreasonable when it is unreasonable," and not
just during_a_power alert,_said_Rep._Rick Boucher of Virginia, the_panels'
ranking Democrat.
The commission_last week_ordered six power generators to justify some 1,000_
transactions_during February in_the California market whenever the price was
above $430_per megawatt hour and occurred during_a Stage 3_emergency_alert._
But the lawmakers were_told Tuesday that 56 percent of_another 14,168
transactions, occurring outside a_Stage 3 emergency, also exceeded the $430_
trigger, but are not being questioned._
"The line was drawn to_limit the_scope of the refund," said_agency
commissioner William_Massey, a_Democrat, who strongly_opposed the refund
actions because he_said they were_too limited.
Chairman Curtis Hebert, a_Republican,_defended the way_the_commission_decide
on_what transactions to_challenge_saying that_it_sought to replicate market
conditions as_they_existed at the time of the sales._
"We deserve a better_explanation,"_retorted Boucher.
Massey said_that agency's investigation of overcharges_for January also
failed to consider_thousands of_transactions that_exceeded the refund trigger
because they did not occur during Stage_3 supply emergencies.
Managers of California's_electricity grid, state regulators_and utilities_
have_accused the agency_of_refusing to_aggressively investigate price gouging
by wholesalers who_have charged_from $150 to $565 per megawatt_hour, as much
as_20_times what prices were in 1999._
While Hebert and commissioner Linda Breathitt_defended the commissioners
attempt to_investigate_whole_electricity prices, Massey has been_highly
critical.
What message does the_agency's scrutiny of_prices send to the power
companies? he_was_asked.
"It makes clear FERC is_going_to be looking for the wallet_under_the_lamp
post with the lights_shining ) and nowhere else," replied_Massey.
Meanwhile, Massey and his two fellow commissioners, also_disagreed sharply on_
whether the energy agency should_impose_temporary_price controls on the
wholesale power market in the West_to dampen