 industry itself has made use of its own extensive network of
connections. The Interior Department's newly appointed deputy secretary is J.
Steven Griles, who has lobbied for coal and gas companies ranging from
Pittston Coal Co. to Dominion Resources.
The Bush-Cheney transition team was sprinkled with industry officials,
including Engelhardt and Steven Chancellor, president and chief executive of
Indiana-based Black Beauty Coal Co. Chancellor and his company were major
Republican contributors, and he hosted a fundraiser in August at his home
attended by former president George Bush and vice president Dan Quayle,
according to the Indianapolis Star.
West Virginia coal executive James "Buck" Harless raised more than $100,000
for President Bush and chipped in $100,000 to the Bush-Cheney Inaugural Fund,
as did Peabody Holding Co. and Southern Co.
The coal industry may enjoy even better connections in Congress. Along with
Sen. Robert C. Byrd (D-W.Va.), Sen. Mitch McConnell (R-Ky.) has advanced
legislation providing billions of dollars in tax credits for utilities, and
indirectly benefiting contributors to GOP campaign committees he has headed.
In the debate over global warming, coal interests have prevailed over
environmental organizations and corporations that have been moving toward
acceptance of the threat of carbon dioxide emissions. This small but growing
group now includes BP Amoco PLC, Enron Corp., Entergy Corp. and American
Electric Power, an Ohio-based coal-burning utility.
Enron's chief executive, Kenneth Lay, one of Bush's most generous campaign
supporters, has urged the president to create a trading system for carbon as
a way of limiting emissions into the atmosphere. But Lay was not given
advance notice of Bush's decision ruling out mandatory carbon controls,
sources said.
A spokesman said Lay was "somewhat disappointed that we don't have a process
in place to deal with what he thinks is going to be a significant issue."

http://www.washingtonpost.com

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

Energy trading floors represent ground zero in electricity crisis
By MICHAEL LIEDTKE
AP Business

industry itself has made use of its own extensive net of
 connection. The Interior Department's newly appointed deputy repository is J.
 Steven Griles, who has lobbied for ember and gas companies range from
 Pittston Coal Co. to Dominion Resources.
 The Bush - Cheney conversion team was sprinkled with diligence official,
 including Engelhardt and Steven Chancellor, president of the united states and chief executive of
 Indiana - based Black Beauty Coal Co. Chancellor and his party were major
 Republican subscriber, and he hosted a fundraiser in August at his home
 attended by former president George Bush and frailty president Dan Quayle,
 according to the Indianapolis Star.
 West Virginia coal administrator James " Buck " Harless raised more than $ 100,000
 for President Bush and chipped in $ 100,000 to the Bush - Cheney Inaugural Fund,
 as did Peabody Holding Co. and Southern Co.
 The coal industry may love even better connections in Congress. Along with
 Sen. Robert C. Byrd (D - W.Va .), Sen. Mitch McConnell (R - Ky.) has advanced
 legislation providing billions of dollar in tax credits for utilities, and
 indirectly benefiting contributors to GOP campaign committees he has headed.
 In the debate over global warming, coal interests have prevailed over
 environmental organizations and corporations that have been moving toward
 acceptance of the menace of carbon dioxide emissions. This belittled but growing
 group now includes BP Amoco PLC, Enron Corp., Entergy Corp. and American
 Electric Power, an Ohio - based ember - burning utility program.
 Enron's chief executive, Kenneth Lay, one of Bush's most generous campaign
 athletic supporter, has urged the president to create a trading system for carbon paper as
 a way of limiting emissions into the atmosphere. But Lay was not given
 advance notice of Bush's decision rule out mandatory carbon controls,
 sources said.
 A spokesman say Lay was " somewhat disappointed that we don't have a procedure
 in place to deal with what he thinks is going to be a meaning issue. "

 http://www.washingtonpost.com

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

 Energy trading floors represent land zero in electricity crisis
 By MICHAEL LIEDTKE
 AP Business

 infustry itself has made ure of its own errensivx netwodk of
covnections. The Interior Deparvmenr's neqly appointed deputy sdcretary ps J.
Stevwn Gciles, who has lougied fov coam and jas companies rsnging frok
Pittston Coan Zo. to Dominion Resources.
The Bush-Chenqy tranxihion team was fprimhled with industry officials,
including Engelherdt and Steven Chancellor, president and fhiev executive of
Indlana-based Boack Veauty Coal Zo. Chancellor and his dompany were major
Republican cuntriyutors, and ye hodjed a fundramser ig August at mps home
attendrd by former pvesidxnt Teorge Bush and vice 'resident Dan Quayle,
accordinc co the Indianapolis Srae.
Wesj Vircinix coxl txerutjve Jales "Buck" Harlsss raised nore than $100,000
for Presodqbt Bush and cgipped ig $100,000 to the Bush-Cheney Inaugural Fund,
as gid Peabody Holding Co. and Southern Co.
The coal industry may enjoy even better connections in Congress. Almng wmtf
Stn. Robefr F. Byrd (D-W.Va.), Sen. Mitch McConnell (R-Ky.) has advanssd
lvgislation providlng billions of doklwrx in tax credijs for bfimities, and
indirechly bengfitint contribttorx to GOP campaign committeew he has heabed.
In the debate ovex global waroing, coal interests have prevailzd oved
environmejtal orgahkzations and coroorsthons thau have been moving toward
arceptcnce of ghe jhreat jf carbon fioxide emissions. This slall yut gsowing
grokp now includes BP Amoco PLC, Encpn Corp., Entetgy Cogp. and Amzrican
Electric Powqr, an Ohio-baseb coal-buxning jtility.
Engon's chieh executive, Henneth Lay, otg of Bush's movt generjus xampqign
suooorters, has urbed the pgefidebt to create a traving aystem for carbin qs
a way of limotivg qmpssmons ytto the atmovphefe. Cit Lah was not glvev
adfance notice of Bush'v dedision ruling out kakdatory cqrbon cogtrols,
sourcex said.
A spokesman said Lab was "xomgwhat disappointed that we don't have a pgoccss
in place eo dcal rith what ke thinks is going to be a significant iwsue."

http://www.washingronpost.com

Copyrighj, 2000 Cow Jones & Rompanr, Inc. All Rights Reserved.

Eneegy trading floorx represent ground zedo in alectgicity crisis
By MICHAEL LIEDTKE
AP Business

industry itself has made use of its network connections. The Department's newly appointed Griles, has lobbied for and gas companies from Pittston Coal Co. to Dominion The Bush-Cheney transition team was sprinkled with industry officials, including Engelhardt and Steven president and chief executive of Indiana-based Black Beauty Coal Co. Chancellor and his were Republican and hosted a fundraiser in August at his home attended by former president George Bush and vice Dan Quayle, according to the Indianapolis Star. West coal executive James "Buck" raised more than $100,000 for Bush chipped in to Bush-Cheney Fund, as did Holding Co. and Southern Co. The coal industry may enjoy even better connections in Congress. Along with Robert C. Sen. Mitch (R-Ky.) advanced providing billions of tax credits for utilities, and indirectly GOP campaign committees he has headed. In the over global coal interests have prevailed over environmental and corporations that have been moving toward acceptance the threat of carbon dioxide emissions. This small but growing group now includes BP Amoco Corp., Entergy Corp. and Electric Power, an coal-burning Enron's executive, Lay, one Bush's most generous campaign supporters, has urged the president to create trading system for carbon as a way of limiting emissions atmosphere. Lay was not advance notice of Bush's ruling mandatory carbon controls, sources spokesman Lay that don't a process in place deal with what he thinks going to be a Dow Jones & Company, Inc. All Rights Reserved. trading floors represent ground zero in electricity By MICHAEL LIEDTKE AP Business

 industry itself has made use oF its own extEnsivE neTwoRk Of
coNnecTions. The InteriOR DepArtment's newly appointed DeputY sECretARy Is J.
StEven GriLEs, WHO haS lObBieD fOR cOal anD gaS companIes ranging FroM
PIttston Coal CO. To dominion ReSouRces.
The Bush-CHenEy tranSiTioN Team wAs sPrinkLed witH IndustRy officiaLs,
INcludiNG EngelhARDt And STeven Chancellor, prESiDEnt and chief exeCutive Of
iNdIANa-bAseD Black BeauTy coal CO. chancelLOr AND His COmpany were majOr
RepublicaN ConTributOrS, anD He hostEd a fuNdRAisEr in August aT his Home
attenDed by fORmer preSIdent GeOrge BuSh aNd vIce pREsIdEnt daN quaYLe,
AccORdiNg to the INdIaNapolIs StAR.
wESt ViRgiNia cOal exEcutive James "BUck" harlESs rAised More tHan $100,000
fOr presiDent BuSh and ChIpped in $100,000 to the BusH-CheNey InauguRal fuNd,
aS dId PeaBOdy HolDinG Co. And SoutHern Co.
THE coAl INDUsTry may enjoy even betTeR COnNections In CongREsS. ALOng with
SEn. robErt C. bYRd (D-W.VA.), Sen. mItCh McConnEll (R-Ky.) HAs AdVanced
lEgIslatiOn ProVidIng biLLionS of dolLars in taX credITs for utilities, ANd
indirectly bENeFITiNG conTriButors to GOP CampAIgn cOmmiTTeEs hE Has heAded.
IN tHE dEBate over global warmiNg, Coal inTeresTs have prevailEd over
enviRONMental orGaniZAtIOns and corporatIons tHat have beeN Moving toWard
aCceptancE of the thrEAT of carboN diOxiDe eMisSIOnS. This small but GROwinG
gRoup now IncLudes BP amoCo PlC, ENroN COrp., EntergY Corp. and amErIcAn
eleCtric pOwer, an OhIo-BasEd CoaL-burnINg utilIty.
EnRon's ChIeF ExeCutive, KENnETH Lay, OnE oF BusH's mOsT geneRous CAmpAign
supPorters, haS urGEd thE pReSident tO create a tradiNg System for cArBon As
a way OF Limiting Emissions into the atmosphERe. But LaY waS not gIven
Advance noTicE of BusH's dECision Ruling Out maNdAtoRY CarboN COnTroLs,
Sources saiD.
a SpoKesmaN sAid LAy was "soMewhat disappointed THat We don't have a prOceSs
in PLAcE to DEaL WitH wHAt hE THinks is going to bE a significAnT IsSue."

http://www.WAshInGtonposT.com

CopYrighT, 2000 dow JoneS & Company, INc. All RighTs reseRVEd.

ENergy tradiNg floors Represent GRound ZErO in elEctRicity CrIsiS
By MIcHAEL LieDTkE
AP BUsinesS

 industry itself has madeuse of its  ownext ens iv e ne twor k of
connecti o ns.The Interior Departmen t's n ew l y ap p oi nteddeputys ec r e tar yis  J.  S te ven G ril es, who  has lobbi edfo r coal and g a scompaniesran ging from
P itt ston C oa l C o . toDom inion  Resou r ces. The Bush- Ch e ney tr a nsition t ea m wa s sprinkled withi nd u stry officials ,
inc lu d in g Eng elh ardt and S te ven C h ancello r ,p r e sid e nt and chiefexecutive o f
I ndiana -b ase d  Black  Beau ty Coa l Co. Chanc ello r and his  compa n y werem ajor
R epubli can  co ntri b ut or s,an d  he ho ste d  afundrais er  i n Aug usta t h is h ome
at tende d by former p res iden t  Ge orgeBushandvi ce pr esiden t Dan  Q uayle,
accordi ng t o the Ind ian ap oli sStar.
WestVir gin ia coal  execut i veJa m e s  " Buck" Harless rais ed m or e than $ 100,00 0  fo r  Preside nt  Bu sh a n d  chip pedi n$100,000  to th e  B us h-Chene yInaugu ra l F und ,
as didPeabod y Holdin g Co. and Southern C o .
The coal i n du s t ry mayenj oy even bet terc onne ctio n sinC ongre ss. A lo n gw ith
Sen. Robert C.  B yrd (D -W.Va .), Sen. Mitc h McConnel l ( R-Ky.) h as a d va n ced
legislati on pr oviding bi l lions of  doll ars in t ax credit s for util iti es,  an d i n di rectly benefi t i ng c on tributo rsto GOPcam pai gncom mi ttees hehas head ed .
I nthe  deba t e over g lo bal  w arm ing,c oal in teres ts h av ep rev ailed o v er envi ro nm enta l o rg aniza tion s  an d corpo rations t hat have  b ee n movin g toward
acc ep tance of t he  th reat o f carbon d ioxide emissions. Thiss mall bu t g rowin g
g roup nowinc ludesBPA moco P LC, En ron C or p., E nterg y Co rp.  a nd America n
El ectri cPowe r, an O hio-based coal-bur n ing  utility.
En ron 's c h i ef  ex e cu t ive ,K enn e t h Lay, one of B ush's most  g e ne rous campa i gn
s upporte rs, has  urge d  the pr esident t o createatrad i n g s ystem forcarbon a s
a wayo f lim i ti ng em iss ions i nt o t he at mosphe r e.But L ay was  n ot giv en
a dv ance not ice of Bush's decisionruling  outman datory ca rbo n  co ntrols, sour ces said.
Aspo kesma n s a id La y wa s  " som e whatdisa p pointed t h at  we d on 't have a p r o c ess
inpla c e to d ealwith what he thin k s is going tobe a s ign ifi c antis sue."

http:/ /ww w. w a shington po st.com

Co pyright,  2 0 00 Do w Jone s & Co mpany,I n c. All Ri ghts  Re served.

En e rgy tra di ng floors  rep re sent g roundz eroi n  electricity cri sis
B y MICHA E L L IEDTK EAP Busi n ess

 industry_itself has_made use of its_own extensive_network_of
connections._The_Interior Department's newly_appointed deputy secretary_is J.
Steven Griles,_who has lobbied_for_coal and gas companies ranging from
Pittston Coal Co. to Dominion Resources.
The Bush-Cheney_transition_team was_sprinkled_with_industry officials,
including Engelhardt and_Steven Chancellor, president and chief_executive of_
Indiana-based Black Beauty Coal Co. Chancellor and his_company_were major
Republican_contributors, and he hosted a fundraiser in August at_his home
attended by former president_George Bush and_vice_president_Dan Quayle,
according to_the Indianapolis Star.
West Virginia coal_executive James "Buck" Harless raised more_than $100,000
for President Bush and chipped_in $100,000 to the Bush-Cheney Inaugural_Fund,
as did Peabody Holding_Co. and_Southern Co.
The coal industry_may enjoy even_better connections_in Congress. Along_with
Sen. Robert C. Byrd (D-W.Va.),_Sen. Mitch McConnell_(R-Ky.) has advanced
legislation providing billions_of_dollars in tax_credits_for_utilities, and_
indirectly benefiting contributors_to_GOP campaign_committees_he has headed.
In the debate_over_global warming, coal interests have prevailed over_
environmental organizations and corporations_that_have been moving toward_
acceptance of the threat of_carbon dioxide emissions. This small but_growing
group_now includes_BP Amoco PLC, Enron Corp., Entergy Corp. and American
Electric Power,_an Ohio-based coal-burning utility.
Enron's chief_executive, Kenneth Lay, one_of Bush's_most_generous campaign
supporters,_has_urged the_president to create a trading system for_carbon as_
a way of limiting emissions into_the atmosphere. But Lay_was_not given
advance notice of Bush's_decision ruling out mandatory carbon controls,_
sources said.
A spokesman said_Lay_was_"somewhat disappointed that we don't_have a process
in place to_deal with what_he thinks is going to be a_significant_issue."

http://www.washingtonpost.com

Copyright, 2000 Dow Jones &_Company,_Inc. All Rights Reserved.

Energy trading_floors_represent_ground zero in electricity crisis
By_MICHAEL LIEDTKE
AP Business


 3/18:  "Groups looking for Silver Lining in Energy Crisis"

LA Times, Sat, 3/17:  "Power firms told to justify prices or refund $55
million"

SF Chron, Sun, 3/18:  "Hard-Boiled Bidding for Kilowatts
Water agency said to be in over its head as a trader"

SF Chron, Sat., 3/17:  "Creditors Threaten Utilities' Finances
Suppliers try to force Edison into bankruptcy "

SF Chron, Sat., 3/17:  "Regulators Find More Possibilities of Gouging"

		SF Chron, Sat., 3/17:  "Thousands Lose Immunity From Rolling Failures 'Block
50' update swapping homes on PG&E's blackout checkerboard"

		SF Chron, Sat., 3/17:  Commentary "PG&E's Service A Turnoff
A good customer put through hell "

		San Jose Mercury, Sat., 3/17:  Opinion "Bombast obscures energy's ebb and
flow "

------------------------------------------------------------------------------
-------------------------------------

Panel eases curbs on power plant

UNION-TRIBUNE
March 17, 2001
Besides paying soaring electricity rates, San Diego County residents also
probably will have to breathe dirtier air this summer in order to keep the
lights on and air conditioners humming.
That's one expected result of a county board's decision yesterday to allow
the former Encina power plant in Carlsbad to churn out several times more air
pollutants, called oxides of nitrogen, than allowed before the power crisis.
The county Air Pollution Control District Hearing Board made the decision by
a 4-1 vote.

State may have claim on further overbilling
Continuing coverage: California's Power Crisis
?

The five-unit Encina plant is now called the Cabrillo plant, owned by
Cabrillo Co. The pollutants, called NOX, help form the region's most
widespread air pollutant -- ozone.
If the Cabrillo plant can burn natural gas all this year, its excess NOX
emissions will be offset by new NOX controls on other

3/18:   " Groups looking for Silver Lining in Energy Crisis "

 LA Times, Sat, 3/17:   " Power firms tell to apologize prices or refund $ 55
 million "

 SF Chron, Sun, 3/18:   " Hard - Boiled Bidding for Kilowatts
 Water agency said to be in over its fountainhead as a trader "

 SF Chron, Sat. , 3/17:   " Creditors Threaten Utilities' Finances
 Suppliers hear to wedge Edison into bankruptcy "

 SF Chron, Sat. , 3/17:   " Regulators recover More Possibilities of Gouging "

		 SF Chron, Sat. , 3/17:   " Thousands Lose Immunity From Rolling failure' Block
 50' update swapping homes on PG&E's blackout checkerboard "

		 SF Chron, Sat. , 3/17:   Commentary " PG&E's Service A Turnoff
 A dependable customer place through hell "

		 San Jose Mercury, Sat. , 3/17:   Opinion " Bombast obscures energy's ebb and
 flow "

 ------------------------------------------------------------------------------
 -------------------------------------

 Panel ease curbs on power plant

 UNION - TRIBUNE
 March 17, 2001
 Besides paying soar electricity rates, San Diego County residents also
 probably will experience to breathe dirtier air this summer in order to keep the
 lighter on and air conditioners humming.
 That's one expected result of a county board's decision yesterday to allow
 the former Encina power plant in Carlsbad to churn out several times more air
 pollutants, called oxides of nitrogen, than allowed before the ability crisis.
 The county Air Pollution Control District Hearing Board made the decision by
 a 4 - 1 right to vote.

 State may take call on further overbilling
 Continuing coverage: California's Power Crisis
?

 The five - unit of measurement Encina plant is now called the Cabrillo plant, owned by
 Cabrillo Co. The pollutants, call NOX, help form the region's most
 widespread air pollutant -- ozone.
 If the Cabrillo plant can sunburn natural gas all this year, its excess NOX
 emissions will be offset by new NOX control on other

 3/18:  "Hroups looking for Silvev Lining in Eneryt Crisms"

LA Tijes, Sat, 3/17:  "Power firms told to justifb pruces ir refund $55
million"

SF Cfron, Sun, 3/18:  "Hard-Bouled Vidding foc Kilowabcs
Wafcr agznry said to be ik over its vead as a tradar"

RF Chron, Sat., 3/17:  "Creditors Threaten Utijities' Gijances
Suppliets trj eo fkgct Edison into bankruptcy "

SF Chron, Sat., 3/17:  "Gegulators Find Mpre Possibilities of Gougijg"

		SF Chron, Sat., 3/17:  "Thouswnds Lose Inmunyry From Rollkng Failurts 'Block
50' upsate swapping homes on PG&E's blazkout checkerboqre"

		SF Whron, Sat., 3/17:  Commvntary "PG&E's Scgvice A Turnofg
A good custoker pur through hell "

		San Jove Mercury, Sat., 3/17:  Okinion "Bomtaat obscures energt's ebb dnd
xlow "

------------------------------------------------------------------------------
-------------------------------------

Pandl tasxs durbs ln 'ower plant

UNION-TRIBUBE
March 17, 2001
Besides kayybg soaring elsctricytr rates, San Diego County residents also
prkbably will have to breqthe dirtier air this summer ig order to keep the
lights on and air conditionerv humjkng.
Tmat's inf expected result of a county board's decision gextvrday to allow
thc former Encina poeeg ljant in Carlscad to chhrn out several tiles morg air
pollutantf, cakled oxides of nitrogen, thab allowed beyorw the power crisis.
The county Air Pollition Control District Kearinf Board madf the decjrion by
a 4-1 vote.

Rtane mdy have claim on further oderbillinj
Concinuing zovetage: Cajifornia's Oower Crisis
?

The five-unlt Eneina [lant is nlw called the Cabrillo plant, owixd by
Cabrillp Wo. Nhe pollucants, galled NOX, help form the regipn's mosc
widerpread air pollutent -- ozone.
Is the Cabrillm plant can bnrn naturwl gqs aol this hear, its excesx NOX
emissions wilo be offset by new NOB controls on otktr

3/18: "Groups looking for Silver Lining in LA Sat, 3/17: firms told to million" Chron, Sun, 3/18: Bidding for Kilowatts agency said to be in over head as a trader" SF Chron, Sat., 3/17: "Creditors Threaten Utilities' Finances Suppliers to force Edison into bankruptcy " SF Chron, Sat., 3/17: "Regulators Find More of SF Sat., "Thousands Lose Immunity From Rolling Failures 'Block 50' update swapping homes on PG&E's blackout checkerboard" SF Sat., 3/17: Commentary "PG&E's Service A Turnoff A customer put through hell San Jose Mercury, Sat., 3/17: "Bombast energy's ebb flow ------------------------------------------------------------------------------ Panel eases curbs power plant UNION-TRIBUNE March 17, 2001 Besides paying soaring electricity rates, San Diego County residents also probably have to air this in to the lights on conditioners humming. That's one expected result board's decision yesterday to allow the former Encina plant in to churn out several times more pollutants, called oxides of nitrogen, than allowed before power crisis. The county Air Pollution Control District Hearing Board made the decision by a State may have claim further overbilling Continuing California's Crisis The Encina plant now called the Cabrillo plant, owned by Cabrillo Co. The pollutants, NOX, help form the region's most widespread air pollutant -- the plant can burn gas all this year, excess emissions will be offset NOX on

 3/18:  "Groups looking for Silver LinIng in EnergY CrisIs"

La TiMeS, Sat, 3/17:  "poweR firms told to juSTify Prices or refund $55
million"

Sf ChroN, SUN, 3/18:  "HarD-boIled BIdding fOR KILOwaTtS
WAteR aGEnCy saiD to Be in oveR its head as A trAdEr"

SF Chron, Sat., 3/17:  "cReDitors ThreAteN Utilities' FiNanCes
SupPlIerS Try to ForCe EdiSon intO BankruPtcy "

SF ChrOn, sAt., 3/17:  "ReguLAtors FiND moRe PoSsibilities of GougINg"

		sf Chron, Sat., 3/17:  "ThousAnds LoSe iMmUNIty froM Rolling FaIlUres 'BLOck
50' updaTE sWAPPinG Homes on PG&E's blAckout checkERboArd"

		SF CHrOn, SAT., 3/17:  CommeNtary "pG&e'S SeRvice A TurnoFf
A gOod customEr put tHRough heLL "

		San JosE MercuRy, SAt., 3/17:  OPiniON "BOmBasT oBScuREs EneRGy's Ebb and
flOw "

------------------------------------------------------------------------------
-------------------------------------

paNel eaSes cURBS On poWer PlanT

UNIOn-TRIBUNE
March 17, 2001
besIdes PAyiNg soaRing eLectRiCity rAtes, SaN DiegO COunty residents aLso
pRobably wiLl hAvE to BrEathe DIrtier Air ThiS summer In order TO keEp THE
LiGhts on and air conditIoNERs Humming.
THat's onE ExPeCTed resulT oF a cOuntY BOard's DeciSIoN yesterdAy to alLOw
ThE former enCina poWeR plAnt In CarLSbad To churN out seveRal tiMEs more air
polluTAnts, called oxiDEs OF NiTRogeN, thAn allowed beFore THe poWer cRIsIs.
THE counTy Air poLLuTIon Control District HEaRing BoArd maDe the decision By
a 4-1 vote.

StaTE MAy have clAim oN FuRTher overbillinG
ContInuing coveRAge: CalifOrnia'S Power CrIsis
?

The fiVE-Unit EnciNa pLanT is Now CALlEd the Cabrillo PLAnt, oWnEd by
CabRilLo Co. The PolLutAntS, caLlEd NOX, help Form the rEgIoN's MoSt
wIdespREad air poLlUtaNt -- OzoNe.
If tHE CabriLlo plAnt cAn BuRN naTural gaS AlL THis yEaR, iTs exCesS NoX
emiSsioNS wiLl be offSet by new NoX cONtroLs On Other

 3/18:  "Groups looking fo r Silver L ining  in  En er gy C risi s"

LA Times,S at,3/17:  "Power firms to ld to  j u stif y  p rices  or ref u nd $ 55
m il lio n"
S F Chr on,  Sun, 3 /18:  "Har d-B oi led Biddingf or  Kilowatts
W ater agencysai d to b eino ver i tsheadas a t r ader"
SF Chron ,S at., 3 / 17:  "C r e di tors  Threaten Utiliti e s' Finances
Supp lierstr y  t o for ceEdison int obankr u ptcy "SF C h ron ,  Sat., 3/17: "Regulator s  Fi nd Mor ePos s ibilit ies o fG oug ing"

				SF  Chron, S at., 3 / 17:  "T h ousands  LoseImm uni ty F r om  R oll in g  Fa i lu res 'Bl ock
50'  u pd ate s wapp i n g home s o n PG &E'sblackout chec ker boar d "

		S F Chr on,Sa t., 3 /17: Comme nt ary "PG&E's Ser vice  A Turnof f Agoo dcusto m er put  th rou gh hell  "

San  J o s e  M ercury, Sat., 3/17 :O pi nion "Bo mbasto bs cu r es energ y' s e bb a n d
flo w "

- ------- -- ------ -- --- --- ----- - ---- ------ -------- ----- - -------------- - ---------
--- - -- - - -- - ---- --- ----------- ---- - ---

Pa n el  ea s es cu rbs o np ow e r plant

UNION-T RI BUNE March  17, 2001
Be sides payi n g soaringelec t ri c ity rates, San  Dieg o County r e sidentsalso
probabl y will ha v e  to brea the  di rti era i rthis summer i n orde rto keep  th e
ligh tsonand  ai rcondition ers humm in g.  Th at' s one expected  r esu lt  of  a co u nty bo ard's  dec is io n  ye sterday to a llow  th e fo rme rEncin a po w erplant i n Carlsba d t o  chu rn  o ut seve ral times mor eair
pollu ta nts , call e d  oxidesof nitrogen, than allow e d befor e t he po wercrisis. The  count y A i r Poll utionContr ol  Di s t rictH e ar ing  B oard madet h e d ecisi on  by
a 4-1vote.

Sta t e m ay have claim  on  fur t h er  ov e rb i lli ng
Co n t inuing coverage : Californ ia ' sPower Cris i s ?

The  five-u nit E n cina pl ant is no w calledth e Ca b r ill o plant, o wned by
Cabrillo Co. T h epollu tan ts, ca ll edNOX,help f o rmthe r egion' smost wides pr ead airpollutant -- ozone.
If  the C abril loplant can  bu r n n atural ga s al l this yea r,its  exce ssN OX
e miss i on s w i ll be  off s et by new NO X c o n tr ols on othe r

 3/18:_ "Groups_looking for Silver Lining_in Energy_Crisis"

LA_Times, Sat,_3/17:_ "Power firms_told to justify_prices or refund $55_
million"

SF Chron, Sun,_3/18:_ "Hard-Boiled Bidding for Kilowatts
Water agency said to be in over its head_as_a trader"

SF_Chron,_Sat.,_3/17:  "Creditors Threaten Utilities'_Finances
Suppliers try to force_Edison into_bankruptcy "

SF Chron, Sat., 3/17:  "Regulators Find_More_Possibilities of Gouging"

		SF_Chron, Sat., 3/17:  "Thousands Lose Immunity From Rolling_Failures 'Block
50' update swapping homes_on PG&E's blackout_checkerboard"

		SF_Chron,_Sat., 3/17:  Commentary_"PG&E's Service A Turnoff
A good_customer put through hell "

		San Jose_Mercury, Sat., 3/17:  Opinion "Bombast obscures_energy's ebb and
flow "

------------------------------------------------------------------------------
-------------------------------------

Panel eases_curbs on power plant

UNION-TRIBUNE_
March 17,_2001
Besides paying soaring electricity_rates, San Diego_County residents_also
probably will_have to breathe dirtier air this_summer in order_to keep the
lights on and_air_conditioners humming.
That's_one_expected_result of_a county board's_decision_yesterday to_allow_
the former Encina power plant in_Carlsbad_to churn out several times more air_
pollutants, called oxides of_nitrogen,_than allowed before the_power crisis.
The county Air_Pollution Control District Hearing Board made_the decision_by
a_4-1 vote.

State may have claim on further overbilling
Continuing coverage:_California's Power Crisis
?

The five-unit_Encina plant is now_called the_Cabrillo_plant, owned by_
Cabrillo_Co. The_pollutants, called NOX, help form the region's_most
widespread_air pollutant -- ozone.
If the_Cabrillo plant can burn_natural_gas all this year, its excess_NOX
emissions will be offset by_new NOX controls on other


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WIDTH="75% " >

					  Fare:
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         			 St. Louis, MO   (STL)
         			 Cedar Rapids, IA   (CID)

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					 Dayton, OH   (DAY)

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         			Cedar RapIds, IA  (Cid)

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 _

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 arial,_helvetica,_sans-serif">Dayton,_OH _(DAY)
  __ __


 Witter Morgan Stanley to launch IntercontinentalExchange.com.
The 7-month-old site reported daily trading volumes of 3 million megawatt
hours in late February.
San Diego attorney Michael Aguirre believes the power companies are using the
password-protected online exchanges to secretly share information and control
the power supply to manipulate prices. Aguirre has spent the past six months
scrutinizing the trading operations as he pursues a lawsuit alleging that the
power generators broke antitrust laws.
"The whole trading thing is just a front that lets them game the market," he
said. "They can get away with it because no one (outside the industry) can
figure out what they are doing."
Enron says its trading system, particularly the online exchange, has resulted
in fairer and more efficient markets. The allegations of market abuse are
"just some sour grapes from people who didn't come up with the idea in the
first place," Enron spokesman Eric Thode said Friday.
One of the biggest distinctions between the Texas energy traders and the Wall
Street securities traders is how they are regulated.
The Securities and Exchange Commission and the Commodities Future Trading
Commission oversee the trading of most of the nation's key markets. But the
power traders answer to the Federal Energy Regulatory Commission, an agency
with little training in the sophisticated financial instruments deployed by
these marketers.
The power traders aren't just holding California over a barrel. Other states
are paying even higher prices - a factor that will likely further reduce
supplies for California in the months ahead.
In a series of recent deals disclosed to The Associated Press by a major
marketer, energy traders charged California $330 to $360 per megawatt hour
for July electricity. They fetched $415 per megawatt hour in a key Pacific
Northwest market and $495 per megawatt hour in a major Arizona market for
contracts covering the same time.
A similar price disparity occurred for August electricity contracts.
California paid top price of $395 per megawatt hour while the Pacific
Northwest market paid $460 per megawatt hour and the Arizona market paid $535
per megawatt hour.
As the nation's largest power broker, Enron is the kingpin of the energy

Witter Morgan Stanley to launch IntercontinentalExchange.com.
 The 7 - month - old site report casual trading volumes of 3 million megawatt
 hours in belated February.
 San Diego lawyer Michael Aguirre believes the power companies are practice the
 password - protected online substitution to secretly share information and master
 the power supply to rig price. Aguirre has spent the past six months
 scrutinizing the trading operations as he pursues a lawsuit allege that the
 power generators broke antimonopoly laws.
 " The whole trading thing is just a front that let them game the market, " he
 said. " They can get away with it because no one (outside the diligence) can
 figure out what they are doing. "
 Enron says its trading system, particularly the online substitution, has resulted
 in fairer and more efficient markets. The allegations of market abuse are
 " just some sour grapes from citizenry who didn't come up with the idea in the
 beginning home, " Enron spokesman Eric Thode said Friday.
 One of the biggest distinctions between the Texas department of energy traders and the Wall
 Street security traders is how they are regulated.
 The Securities and Exchange Commission and the commodity Future Trading
 Commission oversee the trading of most of the nation's key markets. But the
 power traders answer to the Federal Energy Regulatory Commission, an agency
 with little training in the sophisticated financial instruments deploy by
 these marketers.
 The world power traders aren't just holding California over a barrel. Other states
 are pay even higher prices - a factor that will probably further deoxidize
 supplies for California in the months ahead.
 In a serial of recent deals disclosed to The Associated Press by a major
 marketer, energy trader charged California $ 330 to $ 360 per megawatt hour
 for July electricity. They fetched $ 415 per megawatt hour in a key Pacific
 Northwest market and $ 495 per megawatt hour in a major Arizona grocery store for
 contracts report the same time.
 A similar price disparity occurred for August electricity contract.
 California paid top monetary value of $ 395 per megawatt hour while the Pacific
 Northwest market paid $ 460 per megawatt hour and the Arizona market paid $ 535
 per megawatt hour.
 As the state's largest power broker, Enron is the kingpin of the department of energy

 Wihter Morgan Stanley to lxunch IntercontnbentalXxchangs.com.
The 7-month-old site reported dailb trqding volumes of 3 million mdgawatt
hlurs in oate Debruary.
Seh Diego attorhcy Mieheel Aguirre belleves the pmwer companies afe using the
password-protected online exchanbed to secretly fhart igforjation and control
the power supplg to maiipulate prices. Aguirre has spent the pash sid months
scrutinizlng the traeing iperations ar he pursuts a lawsuit alleging that the
power generagors yroke antittbwt pdws.
"The whooe trwding thing lx just a frony that lets thcm gake rhe market," he
said. "Thxy can get away with it becauve no one (outside tye induvtry) can
digjre ont shat tjey are doing."
Enron says its trading system, pwgyicularly ths onlige exchange, has resulted
in fairer and moge erficient markets. The aloegations of market ahuse are
"tust some sour grapes from people who didn't come gp wivh tht lqdq ln the
first place," Enron spokesman Eric Thode aaod Friday.
One of the biggesy fixjinctions betwgen the Tesas energy traders and thg Wall
Street stcuriyies traders is how they arw regulated.
Nhe Wecurities and Exckange Commisrion and yhe Commodities Future Cradinf
Commissioj oversee ghe trading of must ox the naukon's key markets. Fut the
piwer traderr anxwer tj the Fedegal Ekargy Regulatory Colmissnon, at agency
wlth little training in the sophmxticated finsnwian instruients deployed by
ehese marketerx.
The pjwer graders arvn't just iolding Calisornia over a harrel. Other states
wre payibg even figher prices - a factor that will likely further revuce
aupplies for Caoifirnia in the momthr arewd.
Ig a series of recdnt ceals disclosed bo Ghe Sssociated Press by d manor
marketer, energu braders cyarged Cwlifornia $330 to $360 per megawatt houg
for Juuy elrctticity. They fetched $415 per megawaft hour ij a key Pacific
Norbhweft market cnd $495 per megawatt hour in a major Arizone market for
contracts xovering the same tnmt.
A similar pcice dysparity mccurred for August wlectricity contrscts.
California paid fop prhce ov $395 per megawatt hour while the Pacific
Northwest market paid $460 per megawatr hour and the Ariaona markvt 'aib $535
per iegaxavt hour.
As the nanion's largest power broker, Enron is the niugpin of the energy

Witter Morgan Stanley to launch IntercontinentalExchange.com. The reported trading volumes 3 million megawatt Diego Michael Aguirre believes power companies are the password-protected online exchanges to secretly information and control the power supply to manipulate prices. Aguirre has spent the six months scrutinizing the trading operations as he pursues a lawsuit alleging that power broke laws. whole trading thing is just a front that lets them game the market," he said. "They get away with it because no one (outside industry) can figure out they are doing." Enron says trading particularly the exchange, resulted fairer and more markets. The allegations of market abuse are "just some sour grapes from people who didn't come up the idea first place," spokesman Thode Friday. One of distinctions between the Texas energy traders Street securities traders is how they are regulated. Securities and Commission and the Commodities Future Trading oversee the trading of most of the nation's markets. But the power traders answer to the Federal Energy Regulatory Commission, an agency with in the sophisticated financial deployed by these The traders just California over barrel. Other states are paying even higher prices - a factor will likely further reduce supplies for California in the months a of recent deals to The Associated Press a marketer, energy traders charged to per July They $415 per megawatt hour a key Pacific Northwest market $495 per megawatt hour for contracts covering the same time. A similar disparity occurred for August electricity contracts. California top price of $395 per megawatt hour while the Pacific Northwest market $460 per and the Arizona market paid $535 per megawatt As the nation's largest broker, Enron is the kingpin of the energy

 Witter Morgan Stanley to launCh InterconTinenTalexcHaNge.cOm.
ThE 7-month-old site rEPortEd daily trading volumes oF 3 millIoN MegaWAtT
hourS in late fEbRUAry.
saN DIegO aTToRney MIchAel AguiRre believeS thE pOwer companieS ArE using the
pAssWord-protecteD onLine exChAngES to seCreTly shAre infORmatioN and contrOl
THe poweR Supply tO MAnIpulAte prices. Aguirre hAS sPEnt the past six mOnths
sCrUTiNIZinG thE trading opErAtionS As he purSUeS A LAwsUIt alleging thaT the
power geNEraTors brOkE anTItrust Laws.
"THe WHolE trading thiNg is Just a fronT that lETs them gAMe the maRket," he
SaiD. "ThEy caN GeT aWay WiTH it BEcAusE No oNe (outsidE tHe IndusTry) cAN
FIGure Out What They aRe doing."
Enron sAys Its tRAdiNg sysTem, paRticUlArly tHe onliNe excHaNge, has resulted
iN faiRer and morE efFiCieNt MarkeTS. The alLegAtiOns of maRket abuSE arE
"jUST SoMe sour grapes from peOpLE WhO didn't coMe up wiTH tHe IDea in the
FiRst PlacE," eNron sPokeSMaN Eric ThoDe said fRiDaY.
One of tHe BiggesT dIstIncTions BEtweEn the TExas enerGy traDErs and the Wall
STReet securitieS TrADErS Is hoW thEy are regulaTed.
THE SecUritIEs And eXchanGe ComMiSSiON and the Commodities FUtUre TraDing
COmmission overSee the tradING Of most of The nATiON's key markets. BuT the
pOwer traderS Answer to The FeDeral EneRgy RegulaTORy CommisSioN, an AgeNcy
WITh Little traininG IN the SoPhisticAteD financIal InsTruMenTs Deployed bY
these maRkEtErS.
THe pOwer tRAders areN't JusT hOldIng CaLIforniA over A barReL. OTHer States
aRE pAYIng eVeN hIgheR prIcEs - a faCtor THat Will likEly furtheR reDUce
sUpPlIes for CAlifornia in thE mOnths ahead.
in A seRies of RECent dealS disclosed to The AssociatED Press bY a mAjor
mArkeTer, energy TraDers chArgED CalifOrnia $330 tO $360 per mEgAwaTT Hour
fOR juLy eLeCtricity. ThEY FetChed $415 pEr MegaWatt houR in a key Pacific
NortHWesT market and $495 per MegAwatT HOuR in A MaJOr ARiZOna MARket for
contractS covering tHe SAmE time.
A simiLAr pRiCe dispaRity occUrred FOr AugusT electricIty contraCtS.
CalIFOrnIa paid top pRice of $395 peR megawatt HOur whILe The PaCifIc
NortHwEst MarkeT paid $460 pER meGawatT hour aNd The AriZona mArKet paid $535
pEr megawatt hour.
As the natiOn's larGest pOweR broker, EnRon IS thE kingpin oF the Energy

 Witter Morgan Stanley tolaunch Int ercon tin ent al Exch ange .com.
The 7-m o nth- old site reported dail y tra di n g vo l um es of  3 mill i on m ega wa tt
h ou r sin la teFebruar y.
San Di ego  a ttorney Mich a el  Aguirre b eli eves the pow ercompan ie s a r e usi ngthe passwo r d-prot ected onl in e  excha n ges tos e cr etly  share informatio n  a n d control
the  power  s u pp l y  to  ma nipulate p ri ces.A guirreh as s p ent the past sixmonths
scr u tin izingth e t r adingopera ti o nsas he pursu es a  lawsuitallegi n g thatt he
pow er gen era tor s br o ke  a nti tr u stl aw s."Th e wholetr ad ing t hing i s just  afron t tha t lets them g ame  the mar ket,"  he said ."They  can g et aw ay  with it becaus e no  one (out sid ethe  i ndust r y) can
f igu re outwhat th e y a re d o in g."
Enron says it st r ad ing syst em, pa r ti cu l arly the  o nli ne e x c hange , ha s  r esulted
in fa i re rand mor eeffici en t m ark ets.T he a llegat ions ofmarke t  abuse are
"j u st some sourg ra p e sf rompeo ple who did n'tc omeup w i th  th e  idea  in t he
f i rst place," Enron s po kesman  Eric  Thode said F riday.
On e o f the bi gges t  d i stinctions bet weenthe Texase nergy tr aders  and the  Wall
St r e et secur iti estra der s is  how they are r egul at ed.
Th e S ecuriti esand  Ex cha ng e Commiss ion andth eCo mm odi tiesF uture Tr ad ing  Com missi o n over see t he t ra di n g o f mosto ft h e na ti on 's k eyma rkets . Bu t  th e
powe r traders  an s werto  t he Fede ral Energy Re gu latory Com mi ssi on, an a gency
w ith little training int he soph ist icate d fi nancial i nst rument s d e ployed  by
t hesema rke t e rs. T h epow er  traders a r e n't  just  h oldi ng Cali fornia over a barr e l.Other states
ar e pa y i ng  ev e nh igh er pri c e s - a factor th at will li ke l yfurther re d uce  supplie s for C alifo r nia inthe month s ahead.
I n as e rie s of recen t dealsdisclosed to Th e  A ssoci ate d Pres sbya maj or
ma r ket er, e nergytr aderscharg ed  Califor nia $330 to $360 per me gawatt  hour
f or July e lec t ric ity. They  fet ched $415per  me gawat t h o ur in  a k e yPac i fic Nort h west mark e tand $ 49 5 per megaw a t t  ho ur in  am ajor A rizo na market for
co n tracts coverin g th e sam e t i me.
A  similar price  di sp a r ity occu rr ed for Augu st elect ri c ity c ontrac ts.
C aliforn i a  p a id top  pri ceof $395 p erme g awatt h ou rw hile t he P ac ific Northw e st m a r ket paid $460 pe r meg a w att h o urand t he  Arizon a  mar ket paid $ 535
per me gawatt  hou r.
A s the n at ion'slar ge st power b r oker, Enr on is  the ki ng pinofthe en ergy

 Witter_Morgan Stanley_to launch IntercontinentalExchange.com.
The_7-month-old site_reported_daily trading_volumes_of 3 million_megawatt
hours in_late February.
San Diego_attorney Michael Aguirre_believes_the power companies are using the
password-protected online exchanges to secretly share information and_control_
the power_supply_to_manipulate prices. Aguirre has spent_the past six months
scrutinizing_the trading_operations as he pursues a lawsuit alleging that_the_
power generators broke_antitrust laws.
"The whole trading thing is just a_front that lets them game the_market," he
said._"They_can_get away with it_because no one (outside the industry)_can
figure out what they are_doing."
Enron says its trading system, particularly_the online exchange, has resulted
in_fairer and more efficient markets._The allegations_of market abuse are
"just_some sour grapes_from people_who didn't come_up with the idea in the_
first place," Enron_spokesman Eric Thode said Friday.
One_of_the biggest distinctions_between_the_Texas energy_traders and the_Wall_
Street securities_traders_is how they are regulated.
The_Securities_and Exchange Commission and the Commodities Future_Trading
Commission oversee the_trading_of most of the_nation's key markets. But the_
power traders answer to the Federal_Energy Regulatory_Commission, an_agency
with little training in the sophisticated financial instruments deployed by_
these marketers.
The power traders aren't_just holding California over_a barrel._Other_states
are paying_even_higher prices_- a factor that will likely further_reduce
supplies_for California in the months ahead._
In a series of_recent_deals disclosed to The Associated Press_by a major
marketer, energy traders_charged California $330 to $360_per_megawatt_hour
for July electricity. They_fetched $415 per megawatt hour in_a key Pacific_
Northwest market and $495 per megawatt hour_in_a major Arizona market for
contracts_covering_the same time.
A similar price_disparity_occurred_for August electricity contracts.
California_paid top price of $395 per_megawatt hour while the Pacific
Northwest market paid $460_per megawatt hour_and the Arizona market paid_$535_
per_megawatt hour.
As the nation's largest power broker, Enron is_the kingpin_of the energy


415) 777-7152 or e-mail him at
kgarcia@sfchronicle.com.
------------------------------------------------------------------------------
-----------------------------------------------------------------------

Bombast obscures energy's ebb and flow
Published Monday, March 19, 2001, in the San Jose Mercury News
THE electricity crisis has dimmed the lights at car dealerships and sapped
the confidence of California consumers. But it's provided a jolt of energy to
a hardy perennial of politics: parochialism.
Announcing yet another investigation into electricity prices, several state
senators condemned ``out-of-state generators.'' Their greed, said one, has
produced a ``massive transfer of wealth'' out of California.
Gov. Gray Davis in his state-of-the-state speech intoned: ``Never again can
we allow out-of-state profiteers to hold California hostage.''
In the hysterical high point of this line of argument, Sen. Steve Peace, D-El
Cajon, one of the architects of electricity restructuring, took to the Senate
floor to declare that unless California moved into public ownership of power
it might as well ``raise the Lone Star flag atop the Capitol.''
About the only thing right about this rant is the geography. The energy
companies are indeed out of state, with a group of them in Texas. Dynegy,
Reliant and Enron are based in Houston; Duke, in Charlotte; Mirant in
Atlanta; and Williams Energy, in Tulsa.
As for the rest of the argument, it appears to be based on a Fort Knox
concept of where money is: Profits sit in vaults, until spent to benefit the
state in which they repose.
I'm not denying there is reason to at least investigate the profits made by
generators of power. But some who have done well -- Calpine and the Los
Angeles Department of Water and Power, to name two -- are based in
California. What difference does location make? Victims of muggings do not
generally express relief if told the robbers were fellow Californians. ``Oh
good, the money will stay in the community,'' no one has ever told the
police.
First, let's establish the scale of this alleged transfer of

415) 777 - 7152 or e - mail him at
 kgarcia@sfchronicle.com.
 ------------------------------------------------------------------------------
 -----------------------------------------------------------------------

 Bombast obscures energy's ebb and flow
 publish Monday, March 19, 2001, in the San Jose Mercury News
 THE electricity crisis has dim the lights at car dealerships and sap
 the confidence of California consumers. But it's put up a jerk of energy to
 a hardy perennial of politics: parochialism.
 Announcing yet another investigation into electricity price, several state
 senator condemned '` out - of - state generators." Their greed, said one, has
 produced a '` massive transfer of wealth" out of California.
 Gov. Gray Davis in his state of matter - of - the - state speech intoned: '` Never again can
 we admit out - of - state profiteers to hold California hostage."
 In the hysterical eminent point of this line of argument, Sen. Steve Peace, D - El
 Cajon, one of the architects of electricity restructuring, took to the Senate
 floor to announce that unless California moved into public ownership of power
 it might as well '` raise the Lone Star flag atop the Capitol."
 About the lone thing right about this rant is the geography. The energy
 companies are indeed out of state, with a group of them in Texas. Dynegy,
 Reliant and Enron are based in Houston; Duke, in Charlotte; Mirant in
 Atlanta; and Williams Energy, in Tulsa.
 As for the rest of the argument, it appears to be establish on a Fort Knox
 concept of where money is: Profits sit in vault, until spend to benefit the
 state in which they repose.
 I'm not deny there is reason to at least investigate the profits made by
 generator of power. But some who have done well -- Calpine and the Los
 Angeles Department of Water and Power, to name two -- are based in
 California. What difference does location lay down? Victims of muggings do not
 generally express easing if told the robber were fellow Californians. '` Oh
 effective, the money will stay in the community," no one has ever told the
 police.
 foremost, let's establish the scale of this alleged transfer of

415) 777-7152 og e-mail him at
kgarcia@sfghronicle.com.
------------------------------------------------------------------------------
-----------------------------------------------------------------------

Bomyqst obvcures energy's ebb and flow
Published Mondey, Mqrch 19, 2001, in the San Jose Mercjry News
NHE electeiciuy crisis has dimmed the lights wt ccr dealerships akd sapped
tve confidence mf Cclifornia consumers. But it's provided a jolt ov energy to
a rardj [erehnial of politics: parochialism.
Annkuncing yet another onvestigation into electrifity prices, several stwte
senatorw cogeemned ``out-of-rtate genegctors.'' Their greed, said one, has
produced a ``oassire transfer od wfdlth'' out of Calisornia.
Gov. Gvsy Davhs in hos state-of-the-sbate vpewch intoned: ``Never agamn can
we allow out-os-state prmfnteers to hold Califoenua hovtaga.''
In rhe hyatxridal hihh 'oint of thjs line of qrgument, Sen. Steve Keasv, D-El
Cajon, ohe of ehq architects of electricity restructuritg, fook to the Senate
flooe to declare that unlgss Califownia moved into public ownership of power
it mighd as xeul ``xqise gye Lone Star flag atop the Capitol.''
About the onjg uhikg right about tmis rant is the gepggalry. The energy
compaujea are indeed out ov state, with a group jf tnem in Texas. Dynegy,
Reliant and Enron age bqsed in Houston; Dune, in Charlutte; Miramt in
Atlanta; and Willicms Ensrgy, in Tulda.
As for ghe rest of the xrglmend, it apptxrs to be based og a Fort Jnox
concepg of where money is: Orofibv sit in vaults, unhil skent tm benefit hhe
state in which they repose.
M'k not denyinb dhege is reafon tp at least indestigate the krofits mcde by
generatora of poxer. But some who have dona well -- Calpiie and thq Low
Anteles Ddoartment of Wayer and Power, to nane two -- are based ln
Caujfornia. What diyyetwnce does locayiov mwkv? Vmctimf of muggings do vot
benerxlly exkxesw reloef if told the robbars sere fellow Califotnlans. ``Oh
giod, the ioney will stsy in the communitj,'' no mne has rvet told the
police.
First, let's esfablish tje fcale of thif aloeged transfzr of

415) 777-7152 or e-mail him at kgarcia@sfchronicle.com. Bombast energy's ebb flow Published Monday, San Mercury News THE crisis has dimmed lights at car dealerships and sapped confidence of California consumers. But it's provided a jolt of energy to a perennial of politics: parochialism. Announcing yet another investigation into electricity prices, several state condemned generators.'' greed, one, has produced a ``massive transfer of wealth'' out of California. Gov. Gray Davis in his speech intoned: ``Never again can we allow out-of-state to hold California hostage.'' the hysterical high point of line argument, Sen. Peace, Cajon, of the architects electricity restructuring, took to the Senate floor to declare that unless California moved into public ownership of it might ``raise the Star atop Capitol.'' About the right about this rant is the companies are indeed out of state, with a of them Texas. Dynegy, Reliant and Enron are in Houston; Duke, in Charlotte; Mirant in Atlanta; Williams Energy, in Tulsa. As for the rest of the argument, it appears to be a Fort Knox concept where money is: sit vaults, spent benefit the in which they repose. I'm not denying there is reason to least investigate the profits made by generators of power. But have well -- Calpine the Los Angeles Department Water Power, to name two based California. location Victims muggings do not generally relief if told the robbers fellow Californians. ``Oh good, the community,'' no one has ever told the First, let's establish the scale of this transfer of

415) 777-7152 or e-mail him at
kgarcia@sfchroNicle.com.
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BoMbast ObsCurEs EnerGy's eBb and flow
PubliSHed MOnday, March 19, 2001, in the San Jose mercuRy nEws
The eLectrIcity crISiS HAs dImMeD thE lIGhTs at cAr dEalershIps and sappEd
tHe Confidence of cAlIfornia conSumErs. But it's proVidEd a jolT oF enERgy to
A haRdy peRenniaL Of poliTics: parocHiALism.
AnNOuncing YET aNothEr investigation inTO eLEctricity priceS, severAl STaTE
SenAtoRs condemneD ``oUt-of-sTAte geneRAtORS.'' theIR greed, said one, Has
produced A ``MasSive trAnSfeR Of wealTh'' out Of cAliFornia.
Gov. GrAy DaVis in his sTate-of-THe-state SPeech inToned: ``NEveR agAin cAN
wE aLloW oUT-of-STaTe pROfiTeers to hOlD CAlifoRnia HOSTAge.''
IN thE hysTericAl high point of ThiS linE Of aRgumeNt, Sen. stevE PEace, D-el
CajoN, one oF tHe architects of eLectRicity resTruCtUriNg, Took tO The SenAte
FloOr to decLare thaT UnlEsS cALiFornia moved into pubLiC OWnErship of Power
iT MiGhT As well ``raIsE thE LonE sTar flAg atOP tHe CapitoL.''
About THe OnLy thing RiGht aboUt ThiS raNt is tHE geoGraphy. the energY
compANies are indeed oUT of state, with a GRoUP Of THem iN TeXas. Dynegy,
ReLianT And ENron ARe BasED in HoUston; duKE, iN charlotte; Mirant in
AtLaNta; and williAms Energy, in TuLsa.
As for thE RESt of the aRgumENt, IT appears to be baSed on A Fort Knox
cONcept of wHere mOney is: PrOfits sit iN VAults, untIl sPenT to BenEFIt The
state in whiCH They RePose.
I'm nOt dEnying tHerE is ReaSon To At least inVestigatE tHe PrOfIts Made bY
GeneratoRs Of pOwEr. BUt somE Who havE done Well -- caLpINe aNd the LoS
anGELes DEpArTmenT of waTer anD PowER, to Name two -- Are based iN
CaLIforNiA. WHat diffErence does locAtIon make? VicTiMs oF muggiNGS do not
geNerally express relief if tOLd the roBbeRs werE felLow CalifoRniAns. ``Oh
gOod, THe moneY will sTay in ThE coMMUnity,'' NO OnE haS eVer told the
POLicE.
FirsT, lEt's eStablisH the scale of this allEGed Transfer of

415) 777-7152 or e-mail hi m at
kgar cia@s fch ron ic le.c om.
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Bo mbastob scu r es en erg y's e bb and flow Published  M o nday,M arch 19 , 20 01,in the San Jose M e rc u ry News
THE e lectri ci t yc r isi s h as dimmedth e lig h ts at c a rd e a ler s hips and sapp ed
the con f ide nce of  C ali f orniaconsu me r s.But it's pr ovid ed a jolt  of en e rgy toa hardy  peren nia l o f po l it ic s:pa r och i al ism .
A nnouncin gye t ano ther i n v esti gat ionintoelectricity p ric es,s eve ral s tate
sen at ors c ondemn ed `` ou t-of-state gene rato rs.'' The irgr eed ,saido ne, ha s pro duced a  ``mass i vetr a n s fe r of wealth'' outof C al ifornia.
Gov. Gr ay Davis in  h isstat e - of-th e-st a te  speechintone d :`` Never a ga in can  weall ow ou t -of- stateprofitee rs to hold Californi a  hostage.'' I nt h eh yste ric al high poi nt o f  thi s li n eofa rgume nt, S en .  S t eve Peace, D-El
Ca jo n, one  of t he architects  of electr i c i ty restr uctu r in g , took to theSenat e
floor t o  declare  that  unlessCaliforni a moved in topub lic  ow n e rs hip of poweri t mi gh t as we ll``raise  th e L one  St ar  flag ato p the Ca pi to l. ''
A boutt he onlyth ing  r igh t abo u t this  rant  isth eg eog raphy.T he e nerg y
c ompa nie sare i ndee d  ou t of st ate, with  ag roup  o fthem in  Texas. Dyneg y,
Reliantan d E nron a r e  based i n Houston; Duke, in Cha r lotte;Mir ant i n
A tlanta; a ndWillia msE nergy,  in Tu lsa.
A s f o r  ther e st  of  t he argumen t ,  it  appe ar s to  be bas ed on a Fort Knoxcon cept of where  mo neyi s :Pro f it s  si ti n v a u lts, until spen t to benef it th e
state i n  wh ic h theyrepose.
I'm not den ying ther e is reas on  toa t  le ast invest igate th e profits madeb y
gene rat ors of  p owe r. Bu t some who  have  donewe ll --Calpi ne  and the  Los
Angeles Departmen t of W aterand  Power, t o n a metwo -- ar e ba sed in
Ca lif orn ia. W hat diffe renc e  d oes locat ionm ake? Vict i ms  of m ug gings do no t gen erall y e x pressreli ef if told the ro b bers were fell ow C a l ifo rni a ns.`` Oh
good, themon ey w ill stay  i n the commu nity,''no one h as eve r told  the
p o l ic e .
Fir st,let 's establ ish  t h e scale  o ft his al lege dtransf er of

415) 777-7152_or e-mail_him at
kgarcia@sfchronicle.com.
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Bombast_obscures energy's_ebb_and flow_
Published_Monday, March 19,_2001, in the_San Jose Mercury News_
THE electricity crisis_has_dimmed the lights at car dealerships and sapped
the confidence of California consumers. But_it's_provided a_jolt_of_energy to
a hardy perennial_of politics: parochialism.
Announcing yet_another investigation_into electricity prices, several state
senators condemned ``out-of-state_generators.''_Their greed, said_one, has
produced a ``massive transfer of wealth'' out_of California.
Gov. Gray Davis in_his state-of-the-state speech_intoned:_``Never_again can
we allow_out-of-state profiteers to hold California hostage.''_
In the hysterical high point of_this line of argument, Sen. Steve Peace,_D-El
Cajon, one of the architects_of electricity restructuring, took to_the Senate_
floor to declare that unless_California moved into_public ownership_of power
it_might as well ``raise the Lone_Star flag atop_the Capitol.''
About the only thing_right_about this rant_is_the_geography. The_energy
companies are_indeed_out of_state,_with a group of them in_Texas._Dynegy,
Reliant and Enron are based in_Houston; Duke, in Charlotte;_Mirant_in
Atlanta; and Williams_Energy, in Tulsa.
As for_the rest of the argument, it_appears to_be based_on a Fort Knox
concept of where money is: Profits sit_in vaults, until spent to benefit_the
state in which_they repose._
I'm_not denying there_is_reason to_at least investigate the profits made by_
generators of_power. But some who have done_well -- Calpine and_the_Los
Angeles Department of Water and_Power, to name two -- are_based in
California. What difference_does_location_make? Victims of muggings do_not
generally express relief if told_the robbers were_fellow Californians. ``Oh
good, the money will_stay_in the community,'' no one has_ever_told the
police.
First, let's establish_the_scale_of this alleged transfer of


_DEVELOPMENT@ENRON_DEVELOPMENT, Martin W
      Penkwitz/NA/Enron@Enron, Roseann Engeldorf/Corp/Enron@ENRON, Sheila
      Tweed/HOU/ECT@ECT@ENRON, Ben Jacoby/HOU/ECT@ECT@ENRON

Subject:  Re: GE Language  (Document link: John Schwartzenburg)

See my comments in blue below.

To:   Scott Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Brian D
      Barto/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John
      Schwartzenburg/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Martin W
      Penkwitz/NA/Enron@Enron, Roseann Engeldorf/Corp/Enron@ENRON, Sheila
      Tweed/HOU/ECT@ECT, Ben Jacoby/HOU/ECT@ECT
cc:

Subject:  GE Language

I'm not particularly wild about many of the changes proposed by GE.  Agree.
Seems that it would be a good idea to get a consensus on how to respond.
Here are the issues I see:

Indemnity issues:
They should indemnify us from claims by their employees/subcontractors.
Kay - Is your comment in connection with GE's comment to Section 27.1(iii)
(carve out of the 100% LOL for "gross acts" of its subcontractors, vendors,
ect.)?  GE is in an aggressive outsource mode and needs to remain solely
and totally responsible for the actions and liabilities for its
subcontractors and vendors.  I think Section 20.2(a) as written covers
simple negligence of GE's subcontractors and vendors and I would argue that
we need to keep Section 27.1(iii) as written dealing with gross negligence
of GE's subcontractors and vendors.
Indemnity should be triggered by strict liability as well as negligence.
Agree - Maybe we could agree to GE's strike out in 20.2(a) provided the
phrase "negligent or willfully wrongful" is replaced with "negligent, at
fault or strictly liable without fault" (or some variation thereof).
What is a cognizant government?  Don't know!  This was

_ DEVELOPMENT@ENRON_DEVELOPMENT, Martin W
       Penkwitz / NA / Enron@Enron, Roseann Engeldorf / Corp / Enron@ENRON, Sheila
       Tweed / HOU / ECT@ECT@ENRON, Ben Jacoby / HOU / ECT@ECT@ENRON

 Subject:   Re: GE Language   (Document link: John Schwartzenburg)

 See my gossip in aristocratic below.

 To:    Scott Dieball / ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Brian D
       Barto / ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John
       Schwartzenburg / ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Martin W
       Penkwitz / NA / Enron@Enron, Roseann Engeldorf / Corp / Enron@ENRON, Sheila
       Tweed / HOU / ECT@ECT, Ben Jacoby / HOU / ECT@ECT
 cc:

 Subject:   GE Language

 I'm not particularly baseless about many of the changes proposed by GE.   Agree.
 seem that it would be a adept idea to scram a consensus on how to respond.
 Here are the issues I experience:

 Indemnity issues:
 They should indemnify us from claim by their employees / subcontractor.
 Kay - Is your comment in association with GE's remark to Section 27.1(iii)
 (carve out of the 100% LOL for " gross acts " of its subcontractor, vendors,
 ect .)?   GE is in an aggressive outsource manner and needs to stay solely
 and totally responsible for the actions and liabilities for its
 subcontractor and vendors.   I think Section 20.2(a) as written covers
 simple negligence of GE's subcontractors and seller and I would argue that
 we necessitate to keep Section 27.1(iii) as written dealing with gross negligence
 of GE's subcontractors and vendors.
 Indemnity should be triggered by rigorous liability as well as negligence.
 Agree - possibly we could match to GE's hit out in 20.2(a) provided the
 phrase " negligent or willfully unlawful " is replaced with " negligent, at
 demerit or strictly liable without demerit " (or some variation thereof).
 What is a cognizant government?   Don't know!   This was

_DEVFLOPMENT@ENRON_DEVELOPMENT, Martin W
      Kebkwitz/IA/Enron@Snron, Roreann Engeldorf/Corp/Enron@ENROI, Shwila
      Tweed/HOU/ECT@ECT@ENRUN, Ben Jaboby/HOU/ECR@ECT@TNRON

Subject:  Re: JS Language  (Dkgumenc oink: John Schwsrtzenburg)

Vee my commentv kn blue below.

To:   Scott Dieball/ENRON_DQVELOPMRNH@ENRON_DEVELOPMGNt, Bgiwn D
      Barto/ENRON_DEVELOPMENT@ENRON_DEBELOPMEIT, John
      Scnwartzenburg/ENRON_DEVELOPMEJT@ENGON_DEVELOPMENT, Marhin W
      Ksnkrutz/NA/Enron@Enfon, Roseann Engeldorf/Ckrp/Enron@ENRON, Sheila
      Tweed/FOU/ECC@ECT, Ben Jaxovy/HLO/ECT@ECT
cc:

Suboect:  DE Language

I'm not pasticulatly wild about maiy od the changes proposev by GE.  Agree.
Seems jhat it woglb be a good idea to gwt a cotsenvus ub huw uo ceslond.
Hege ere the isshes I see:

Ineemnity issues:
They xhjlkd indemnify us frjm claims by their employees/subcontractorv.
Kag - Is your comment in cinnection with GE's colment to Fection 27.1(iii)
(carve out of the 100% LOL for "gross acts" ox its rubeintrazrogs, vendors,
ect.)?  GE is in an aggressive outsourss koce and needs tj remain sokepy
sgd totally rerponsiyme for the actions ajd liabylitiws for itf
subvontractors and vendors.  I rhink Sectiou 20.2(a) as written covers
dimple neglngence of GR's subcontractors and vzndors and I woulf argue tgxt
we need to keeo Svctimn 27.1(iii) as written dealing rith grosw neyligence
uf GG's subcjntractors and yandors.
Indemnity shluld ye trhggered by strict liability as well as nejkigence.
Agree - Kayte we cobld agvee to GE's strihe out in 20.2(a) prpvided che
phrxse "negligvnt or winlfully wroggful" is repldfed with "negnigent, ae
fauot oe stricguy liable withput fault" (or some vqriation thereof).
Whet ir a cognizant gortrnnent?  Don't know!  Tfis wws

_DEVELOPMENT@ENRON_DEVELOPMENT, Martin W Penkwitz/NA/Enron@Enron, Roseann Engeldorf/Corp/Enron@ENRON, Sheila Jacoby/HOU/ECT@ECT@ENRON Re: GE (Document link: John blue To: Scott Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, D Barto/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John Martin W Penkwitz/NA/Enron@Enron, Roseann Engeldorf/Corp/Enron@ENRON, Sheila Ben Jacoby/HOU/ECT@ECT cc: Subject: GE Language I'm not particularly wild about many of changes proposed by GE. Agree. Seems that it would be a good idea get consensus how respond. Here are the issues I see: Indemnity issues: They should indemnify us from claims by employees/subcontractors. Kay - Is your comment in connection GE's comment to Section (carve out of the 100% for acts" of subcontractors, ect.)? is in an outsource mode and needs to remain solely and totally responsible for the actions and liabilities for its and vendors. Section 20.2(a) written simple of GE's subcontractors and I would argue that we Section 27.1(iii) as written dealing with gross negligence GE's subcontractors vendors. Indemnity should be triggered by liability as well as negligence. Agree - Maybe could agree to GE's strike out in 20.2(a) provided the phrase "negligent or willfully wrongful" with "negligent, at fault strictly liable without (or variation What a cognizant Don't know! This was

_DEVELOPMENT@ENRON_DEVELOPMEnT, Martin W
      PEnkwiTz/Na/EnRoN@EnrOn, RoSeann Engeldorf/cOrp/ENron@ENRON, Sheila
      Tweed/HOu/ECT@EcT@enRON, bEn jacobY/HOU/ECT@ecT@enrON

suBjEct:  re: ge LAnguaGe  (DOcument Link: John ScHwaRtZenburg)

See my COmMents in bluE beLow.

To:   Scott DiEbaLl/ENROn_DeVEloPMENt@ENrON_DEvELOPMent, BriaN D
      Barto/ENrOn_dEVELOpmENT@ENRon_dEvELOpMENT, John
      SchwartzENbURg/ENRON_DEVELOPmENT@ENrOn_dEvelOPmENt, Martin W
      PeNkWitz/Na/enron@EnROn, rOSEanN engeldorf/Corp/enron@ENRON, SHEilA
      Tweed/hOu/ECt@eCT, Ben jacobY/Hou/ECt@ECT
cc:

SubjeCt:  GE language

I'M not paRTicularLY wild abOut manY of The ChanGEs PrOpoSeD By Ge.  agRee.
sEemS that it wOuLd Be a goOd idEA TO Get a ConSensUs on hOw to respond.
HeRe aRe thE IssUes I sEe:

IndEmniTy IssueS:
They sHould InDemnify us from clAims By their emPloYeEs/sUbContrACtors.
KAy - IS yoUr commeNt in conNEctIoN WITh gE's comment to SectioN 27.1(iII)
(CaRve out of The 100% LOL FOr "GrOSs acts" of ItS suBconTRActorS, venDOrS,
ect.)?  GE is In an agGReSsIve outsOuRce modE aNd nEedS to reMAin sOlely
aNd totallY respONsible for the acTIons and liabilITiES FoR Its
sUbcOntractors aNd veNDors.  i thiNK SEctIOn 20.2(a) as WrittEn COvERs
simple negligence oF Ge's subcOntraCtors and vendoRs and I woulD ARGue that
wE neeD To KEep Section 27.1(iii) aS writTen dealing WIth gross NegliGence
of Ge's subcontRACtors and VenDorS.
InDemNITy Should be triggEREd by StRict liaBilIty as weLl aS neGliGenCe.
agree - MaybE we could AgReE tO Ge's sTrike OUt in 20.2(a) proViDed ThE
phRase "nEGligenT or wiLlfuLlY wROngFul" is rePLaCED witH "nEgLigeNt, aT
fAult oR strICtlY liable Without faUlt" (OR somE vArIation tHereof).
What is a CoGnizant govErNmeNt?  Don't KNOw!  This waS

_DEVELOPMENT@ENRON_DEVELOP MENT, Mart in W    Pe nkwi tz/N A/Enron@Enron, Rose ann Engeldorf/Corp/Enr on@EN RO N , Sh e il a
     Twee d /H O U /EC T@ EC T@E NR O N,  BenJac oby/HOU /ECT@ECT@E NRO N
Subject:  R e :GE Languag e (Document li nk:  JohnSc hwa r tzenb urg )

Se e my c o mments  in bluebe l ow.

To: S co tt D ieball/ENRON_DEVE L OP M ENT@ENRON_DEVE LOPMEN t, Br i a n D
     Barto/ EN RON_D E VELOPME N T@ E N R ON_ D EVELOPMENT, J ohn
      S c hwa rtzenb ur g/E N RON_DE VELOP ME N T@E NRON_DEVELO PMEN T, Martin  W
    Penkw i tz/NA/E nron@E nro n,Rose a nn  E nge ld o rf/ C or p/E n ron @ENRON,Sh ei la
    T w e e d/HO U/E CT@E CT, B en Jacoby/HOU /EC T@EC T
cc :

Su bject :  G ELangu age

I 'm no tparticularly wi ld a bout many  of  t hech anges propos edbyGE.  Ag ree.
Se e msth a t it  would be a good i de a to  get a c onsens u son how to r es pon d.
H e r e are  the is sues I s ee:

I n de mn ity iss ue s:
The ysho uld  inde m nify  us fr om claim s byt heir employees / subcontractor s .K a y-  Isyou r comment i n co n nect ionw it h G E 's co mment  t o  S e ction 27.1(iii)
(ca rv e outof th e 100% LOL fo r "gross a c t s " of its  sub c on t ractors, vendo rs,
e ct.)?  GEi s in anaggre ssive ou tsource m o d e and ne eds  to  re mai n so lely
and tota l l y re sp onsible  fo r the a cti ons  an d l ia bilitiesfor itssu bc on tr act ors a n d vendor s.   I  t hin k Sec t ion 20 .2(a)  aswr it t encoverss im p l e ne gl ig ence  of  G E's s ubco n tra ctors a nd vendor s a n d Iwo ul d argue  that
we need  t o keep Sec ti on27.1(i i i ) as wri tten dealing with gross neglige nce
of G E'ssubcontra cto rs and  ve n dors.Indemn ity s ho uld b e tri g g er edby  strict li a b ili ty as  w ellas negl igence.
Agree - Ma y bewe could agre e t o GE ' s  s tri k eo utin 20. 2 ( a) provided the
phrase "n eg l ig ent or wil l ful ly  wrongf ul" isrepla c ed with  "neglige nt, at
fa ul t or s tri ctly liabl e withou t fault"( or so m evaria tio n ther eo f).
What  is ac ogn izant  gover nm ent? Don't  k now!  Th is was

_DEVELOPMENT@ENRON_DEVELOPMENT, Martin_W
 _   _Penkwitz/NA/Enron@Enron, Roseann_Engeldorf/Corp/Enron@ENRON,_Sheila
 __  _Tweed/HOU/ECT@ECT@ENRON, Ben Jacoby/HOU/ECT@ECT@ENRON

Subject:_ Re: GE Language_ (Document link:_John_Schwartzenburg)

See my comments in blue below.

To:   Scott Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Brian D
  __ _Barto/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,_John
_    _Schwartzenburg/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Martin W
  _ _ Penkwitz/NA/Enron@Enron, Roseann Engeldorf/Corp/Enron@ENRON, Sheila
   __ Tweed/HOU/ECT@ECT, Ben_Jacoby/HOU/ECT@ECT
cc:

Subject:  GE Language

I'm not particularly wild about many_of the changes proposed by GE._ Agree.
Seems that_it_would_be a good idea_to get a consensus on how_to respond.
Here are the issues I_see:

Indemnity issues:
They should indemnify us from claims_by their employees/subcontractors.
Kay - Is your_comment in connection with GE's_comment to_Section 27.1(iii)
(carve out of the_100% LOL for_"gross acts"_of its subcontractors,_vendors,
ect.)?  GE is in an_aggressive outsource mode_and needs to remain solely
and totally_responsible_for the actions_and_liabilities_for its
subcontractors_and vendors. _I_think Section_20.2(a)_as written covers
simple negligence of GE's_subcontractors_and vendors and I would argue that
we_need to keep Section_27.1(iii)_as written dealing with_gross negligence
of GE's subcontractors and_vendors.
Indemnity should be triggered by strict_liability as_well as_negligence.
Agree - Maybe we could agree to GE's strike out in_20.2(a) provided the
phrase "negligent or willfully_wrongful" is replaced with_"negligent, at
fault_or_strictly liable without_fault"_(or some_variation thereof).
What is a cognizant government? _Don't know!_ This was


Henry Samueli, "spent the hour before the meeting using a letter opener to
open his paper mail and sitting by the window so he could get some sunlight
to read."
Cox, R-Newport Beach, told the panel, which was holding a hearing on
California's electricity crisis, that "the entire company could not function
during this period of time and the same was true for more than a million
people," he said. "It's a Third World experience in California."
Register reporters Chris Farnsworth, Dena Bunis, Bernard Wolfson, Nancy Luna,
Eric Johnson, Elizabeth Aguilera and Jennifer Hieger contributed to this
story.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
-----------------------------------------------
Calif To Order Utils To Pay Small Generators Up Front-Gov

03/21/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
SACRAMENTO, Calif. (AP)-- California regulators will order the state's two
largest utilities to pay small, independent power generators in advance, a
move Gov. Gray Davis hopes will bring a quick end to the blackouts that
darkened California this week.
Davis accused PG&E Corp. (PCG) unit Pacific Gas & Electric Co. and Edison
International (EIX) unit Southern California Edison of taking in money from
customers while failing to pay the generators, known as qualifying
facilities, which produce up to one-third of the state's power. As a result,
he said, the utilities are partly responsible for this week's blackouts.
"It's wrong and irresponsible of the utilities to pocket this money and not
pay the generators," the governor said at a Capitol news conference Tuesday
evening. "They've acted irresponsibly and immorally and it has to stop."
The state lost about 3,100 megawatts, or enough electricity to power 3.1
million homes, on Tuesday from alternative energy plants that say they can't
afford to keep operating because the utilities haven't paid their bills in
weeks. The utilities, which are near bankruptcy, owe the QFs about $1
billion. Pacific Gas & Electric has made partial payments.
As reported by Dow Jones Newswires,

Henry Samueli, " spent the hour before the meeting using a letter opener to
 unfold his newspaper mail and sitting by the window so he could receive some sunlight
 to read. "
 Cox, R - Newport Beach, told the control panel, which was accommodate a hearing on
 California's electricity crisis, that " the integral ship's company could not function
 during this menstruation of time and the same was dependable for more than a million
 citizenry, " he said. " It's a Third World experience in California. "
 Register reporters Chris Farnsworth, Dena Bunis, Bernard Wolfson, Nancy Luna,
 Eric Johnson, Elizabeth Aguilera and Jennifer Hieger contributed to this
 story.
 ------------------------------------------------------------------------------
 ------------------------------------------------------------------------------
 -----------------------------------------------
 Calif To Order Utils To give Small Generators Up Front - Gov

 03/21/2001
 Dow Jones Energy Service
 (Copyright (c) 2001, Dow Jones & Company, Inc.)
 SACRAMENTO, Calif. (AP)-- California regulators will order the department of state's two
 largest utilities to pay minor, independent power generators in advance, a
 move Gov. Gray Davis hope will bring a quick end to the blackouts that
 darkened California this workweek.
 Davis accuse PG&E Corp. (PCG) unit Pacific Gas & Electric Co. and Edison
 International (EIX) unit Southern California Edison of taking in money from
 customers while failing to pay the generators, known as qualifying
 facility, which produce up to one - third of the department of state's power. As a result,
 he said, the utilities are partially responsible for this workweek's blackouts.
 " It's wrong and irresponsible of the utilities to pocket this money and not
 yield the generators, " the governor said at a Capitol news conference Tuesday
 evening. " They've acted irresponsibly and immorally and it has to stop. "
 The state lost about 3,100 megawatts, or adequate electricity to power 3.1
 million home, on Tuesday from alternate energy plants that say they can't
 afford to keep operating because the utilities haven't paid their bill in
 workweek. The utilities, which are near bankruptcy, owe the QFs about $ 1
 billion. Pacific Gas & Electric has take partial payment.
 As reported by Dow Jones Newswires,

Hengy Samueli, "spent the houv before the meejibg usiig a lefter opever to
open his paper mail aid suttint by the window so he zould get some subligit
to read."
Cox, R-Iswport Nzach, flld chx panel, which wss holding a hearing on
Wauiyornia's electricity crisis, that "the qntire volpany could noj funbtyon
slrlng this period of time and the aame wav true for mote than a million
people," hf sald. "It's a Third Worpd experienxe ig California."
Fegister rtpmrters Chrjs Farnsworth, Dena Bunis, Bernara Wolyson, Nancy Ouba,
Ftic Johnson, Xlizabvth Aguilera and Jennhfer Hirger contributcd to thus
story.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
-----------------------------------------------
Calif To Ordxr Utils To Pay Smalj Generatmra Up Front-Gov

03/21/2001
Dow Jines Gnergf Sefcicd
(Ckpbrifht (c) 2001, Dox Jones & Cojpany, Inc.)
SQCRAMENTO, Calif. (AP)-- Vajpgornia regulztors rijl order the state's two
largest utilitits to pay small, independent power generators in afvance, a
iove Gov. Gray Davis hopes will bring a quick end do thx claejouts rhwt
darkened California this week.
Davis accuseq PB&E Corp. (PCG) unit Pacific Gax & Ekgctric Co. and Gdison
Nhtsrnational (EIX) unih Southgrn Caoifornia Tdisom of taking in money from
cystomers whijw failing to pay tke generatorr, knpwn ax qualifying
facilities, whidh produce kp to one-ffird of the statd's iowes. As a rtrult,
he said, the ttilities are partly reskonsiblq for this week's blackouts.
"It's wrojg anb irrasponsible of the utilities to pocket this money and noj
pdy nhe generctors," bhe governor sayd at a Capitok news eonferdnce Tuesdzy
evenmng. "They've asted irresponvlbly and immmrally agd ir haw to stuo."
The state loxt about 3,100 megawatts, or enough electrigity jo power 3.1
million hones, on Tuesday groo ajtvrnetive anergy plantv thxt rsy thdy can't
affifd tp keep operating becduse the utilities havrn'b paid thgir bills in
weeks. The utilities, which age neer banyruptvy, jwe the QFs about $1
billion. Pacjfic Gas & Elcctric has maqe pqrtial paymeuts.
As reported by Dow Jones Newswires,

Henry Samueli, "spent the hour before the a opener to his paper mail so could get some to read." Cox, Beach, told the panel, which was a hearing on California's electricity crisis, that "the entire company could not function this period of time and the same was true for more than a people," said. a World experience in California." Register reporters Chris Farnsworth, Dena Bunis, Bernard Wolfson, Nancy Luna, Eric Johnson, Aguilera and Jennifer Hieger contributed to this story. ------------------------------------------------------------------------------ ----------------------------------------------- Calif To Utils To Pay Small Generators Front-Gov Dow Jones Service (c) Dow Jones & Inc.) SACRAMENTO, Calif. (AP)-- California regulators will order the state's two largest utilities to pay small, independent generators in move Gov. Davis will a quick end blackouts that darkened California this week. Corp. (PCG) unit Pacific Gas & Electric Co. Edison International unit Southern California Edison of taking money from customers while failing to pay the known as qualifying facilities, which produce up to one-third of the state's power. As a said, the utilities are responsible for this blackouts. wrong irresponsible the utilities pocket this money and not pay the generators," the governor said a Capitol news conference Tuesday evening. "They've acted irresponsibly and it to stop." The lost about 3,100 megawatts, enough to power 3.1 million Tuesday alternative say can't to keep operating because utilities haven't paid their bills weeks. The utilities, which QFs about $1 billion. Pacific Gas & Electric made partial payments. As reported by Dow Newswires,

Henry Samueli, "spent the hour bEfore the meEting UsiNg a LeTter OpenEr to
open his papER maiL and sitting by the window So he cOuLD get SOmE sunlIght
to rEAd."
cOX, R-NEwPoRt BEaCH, tOld thE paNel, whicH was holdinG a hEaRing on
CalifoRNiA's electricIty Crisis, that "thE enTire coMpAny COuld nOt fUnctiOn
duriNG this pEriod of tiMe ANd the sAMe was trUE FoR morE than a million
peopLE," hE Said. "It's a Third WOrld exPeRIeNCE in calIfornia."
RegIsTer rePOrters CHRiS fARnsWOrth, Dena Bunis, bernard WolfSOn, NAncy LuNa,
eriC johnsoN, ElizAbETh AGuilera and JEnniFer Hieger ContriBUted to tHIs
story.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
-----------------------------------------------
calif TO OrDer utilS to paY SmAlL genERaTorS up FRont-Gov

03/21/2001
DOw joNes EnErgy sERVIce
(COpyRighT (c) 2001, Dow jones & Company, INc.)
SaCRAmeNTo, CaliF. (AP)-- CaLifoRnIa regUlatorS will OrDer the state's two
LargEst utilitIes To Pay SmAll, inDEpendeNt pOweR generaTors in aDVanCe, A
MOVe gov. Gray Davis hopes wIlL BRiNg a quick End to tHE bLaCKouts thaT
dArkEned cALiforNia tHIs Week.
DaviS accusED Pg&E corp. (PCG) UnIt PaciFiC GaS & ElEctriC co. anD EdisoN
InternaTionaL (eIX) unit SoutherN california EdiSOn OF TaKIng iN moNey from
custOmerS WhilE faiLInG to PAy the GenerAtORs, KNown as qualifying
facIlIties, wHich pRoduce up to one-Third of the STATe's power. as a rESuLT,
he said, the utilIties Are partly rESponsiblE for tHis week's Blackouts.
"iT'S wrong anD irResPonSibLE Of The utilities tO POckeT tHis moneY anD not
pay The GenEraTorS," tHe governoR said at a caPiToL nEws ConfeREnce TuesDaY
evEnIng. "they'vE Acted iRrespOnsiBlY aND imMorally ANd IT Has tO sToP."
The StaTe Lost aBout 3,100 MEgaWatts, or Enough eleCtrICity To PoWer 3.1
millIon homes, on TueSdAy from alteRnAtiVe enerGY Plants thAt say they can't
afford to keEP operatIng BecauSe thE utilitieS haVen't paId tHEir bilLs in
weEks. ThE uTilITIes, whICH aRe nEaR bankruptcY, OWe tHe QFs AbOut $1
bIllion. PAcific Gas & Electric hAS maDe partial paymEntS.
As rEPOrTed BY DOW JoNeS newSWIres,

Henry Samueli, "spent thehour befor e the  me eti ng  usi ng a  letter opener to open his paper mail an d sit ti n g by th e win dow soh ec o uld  g et  so me su nligh t to read ."
Cox, R -Ne wp ort Beach, t o ld  the panel , w hich was hol din g a he ar ing on
C ali forni a's el e ctrici ty crisis ,t hat "t h e entir e co mpan y could not funct i on
during this p eriodof ti m e  an d t he same wa struef or more th a n a m i llion
people ," he said. "It 's a T hi rdW orld e xperi en c e i n Californi a."
Register  repor t ers Chr i s Farns worth,  De naBuni s ,Be rna rd Wol f so n,N anc y Luna,
E ri c Joh nson , E l izab eth  Agu ilera  and Jennifer  Hi eger con tribu ted t o th is
sto ry.
- ----- -- --------------- ---- --------- --- -- --- -- ----- - ------ --- --- ------- ------- --- -- - - - -- ------------------ -- - - -- -------- ------ - -- -- - -------- -- --- ---- - - -----
--- - -- -------- ------ - -- -- ------- -- ------ -- --- --Calif To O rder U tils ToPay S m all Generators Up Front-Gov03 / 2 1/ 2 001
Do w Jones Ene rgyS ervi ce ( Co pyr i ght ( c) 20 01 ,  D o w Jones & Company,In c.)
S ACRAM ENTO, Calif.(AP)-- Cal i f o rnia reg ulat o rs will order the  stat e's two
l a rgest ut iliti es to pa y small,i n dependen t p owe r g ene r a to rs in advance , a
m ov e Gov.Gra y Davis  ho pes  wi llbr ing a qui ck end t oth ebl ack outst hat
dar ke ned  C ali forni a  thisweek.
Da vi sa ccu sed PG& E  C o r p. ( PC G)  uni t P ac ificGas&  El ectricCo. and E dis o n
I nt er nationa l (EIX) unitSo uthern Cal if orn ia Edi s o n of tak ing in money from
cust o mers wh ile  fail ingto pay th e g enerat ors ,  known  as qu alify in g f a cilit i e s,  wh ic h produceu p  to  one- th irdof thestate's power. Asa  re sult,
he sai d,theu t il iti e sa repa r tly r esponsible forthis week' sb la ckouts.
" I t's  w rong an d irres ponsi b le of t he utilit ies to po ck et t h i s m oney and n ot
paythe gener a tors, "  t he go ver nor sa id  at  a Ca pitoln ews  conf erence  T uesday
eve ni ng. "The y've acted irresponsibl y andimmor all y and ithas tostop."
T he s tate lostabo ut3,100  me g awatt s, o r  e nou g h ele ctri c ity to po w er  3. 1
m illion home s , onTuesd ayf rom al tern ative energy plan t s that say the y ca n ' t aff o rd t okeep operating  be ca u s e the ut il ities haven 't paidth e ir bi lls in
week s. Theu t il i ties,whic h a re near b ank ru p tcy, ow eth e  QFs a bout  $ 1
bil lion.P acif i c  Gas & Electrichas m a d e par t ial  paym en ts.
As repo rted by Do w Jones New swires ,

Henry Samueli,_"spent the_hour before the meeting_using a_letter_opener to_
open_his paper mail_and sitting by_the window so he_could get some_sunlight_
to read."
Cox, R-Newport Beach, told the panel, which was holding a hearing on_
California's_electricity crisis,_that_"the_entire company could not function_
during this period of time_and the_same was true for more than a million_
people,"_he said. "It's_a Third World experience in California."
Register reporters Chris_Farnsworth, Dena Bunis, Bernard Wolfson, Nancy_Luna,
Eric Johnson,_Elizabeth_Aguilera_and Jennifer Hieger contributed_to this
story.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
-----------------------------------------------
Calif To Order_Utils To Pay Small Generators Up_Front-Gov

03/21/2001
Dow Jones Energy Service
(Copyright (c)_2001, Dow Jones & Company, Inc.)_
SACRAMENTO, Calif. (AP)-- California regulators_will order_the state's two
largest utilities_to pay small,_independent power_generators in advance,_a
move Gov. Gray Davis hopes_will bring a_quick end to the blackouts that_
darkened_California this week._
Davis_accused_PG&E Corp._(PCG) unit Pacific_Gas_& Electric_Co._and Edison
International (EIX) unit Southern_California_Edison of taking in money from
customers_while failing to pay_the_generators, known as qualifying_
facilities, which produce up to_one-third of the state's power. As_a result,_
he said,_the utilities are partly responsible for this week's blackouts.
"It's wrong_and irresponsible of the utilities to_pocket this money and_not
pay_the_generators," the governor_said_at a_Capitol news conference Tuesday
evening. "They've acted_irresponsibly and_immorally and it has to stop."_
The state lost about_3,100_megawatts, or enough electricity to power_3.1
million homes, on Tuesday from_alternative energy plants that say_they_can't_
afford to keep operating because_the utilities haven't paid their bills_in
weeks. The_utilities, which are near bankruptcy, owe the_QFs_about $1
billion. Pacific Gas &_Electric_has made partial payments.
As reported_by_Dow_Jones Newswires,


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TO:
All NYMEX Division Members and Member Firms

FROM:
Neal L. Wolkoff, Executive Vice President

RE:
Implementation of New NYMEX Rule 9.11A ("Give-Up Trades")

DATE:
May 7, 2001
===========================================================
Please be advised that beginning on the trade date of Friday, June 1, 2001,
new NYMEX Rule 9.11A ("Give

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 Have newsworthiness to Share?
 To post news or events in Enron In Action, please e - mail your data to
 EIA@enron.com
 no subsequently than 12:00 noon the Thursday prior to the next Monday,s mailing. Notice # 01 - 154
 May 7, 2001

 TO:
 All NYMEX Division Members and Member Firms

 FROM:
 Neal L. Wolkoff, Executive Vice President

 RE:
 Implementation of New NYMEX Rule 9.11A (" Give - Up Trades ")

 DATE:
 May 7, 2001
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 Please be advised that beginning on the deal date of Friday, June 1, 2001,
 new NYMEX Rule 9.11A (" Give

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May 7, 2001

TO:
All NYMEX Qivisuon Membews amd Member Firms

FROM:
Neal L. Wilkoff, Execunive Vice President

RE:
Ilplementatiun og New NYMEX Rule 9.11A ("Give-Up Trcdes")

DAFE:
May 7, 2001
===========================================================
Pleade be advjred that beginnivg pn the trade date of Friday, Tune 1, 2001,
new NYMZX Rule 9.11X ("Gife

willing to spend the day benefiting a Please Cindy Richardson, or Kelly Lombardi, run http://home.enron.com:84/erc/index.html VOLUNTEERS NEEDED 15TH ANNUAL HOUSTON MAY 5-6! The best way to yourself jump-started for a full year of Hoops. Become a part of this scene with over 1,200 teams & 4,800 players. Join us at Greenspoint Mall a atmosphere. and events being played simultaneously on 110 courts so the basketballs will be flying HOOP-IT-UP is where play for FUN. EVENT BENEFITS THE &ESCAPE FAMILY CENTER8 SATURDAY ) MAY 8:00 ) 6:00 PM SUNDAY MAY 8:00 ) PM more please call &Hoop-It-Up 713-521-4535 or E-Mail: Hoopitup@Texas.Net Double click on the icon below to learn more about the new Enron Center. http://home.enron.com:84/messaging/e_kids_announce423.pdf to Share? post or in Enron In e-mail your information to EIA@enron.com no noon the Thursday prior to the next Monday,s Notice # May 7, 2001 TO: All NYMEX Members and Member Firms FROM: Neal L. Wolkoff, Vice President RE: Implementation of New NYMEX Rule 9.11A ("Give-Up Trades") DATE: May 7, 2001 be advised that beginning the trade date Friday, 1, new Rule 9.11A

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May 7, 2001

tO:
All nyMEX Division MeMBers and Member fIrMS

fRom:
NeaL L. WOlkoff, ExecuTive vIce PResiDEnT

RE:
iMplemEntatIoN Of nEw NYMEX Rule 9.11A ("Give-Up TRaDes")

DATe:
May 7, 2001
===========================================================
PLease be adviseD that beginNING on the trAde dATe OF Friday, June 1, 2001,
new nYMEX rule 9.11A ("Give

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E I A @e nron.com
nol a terth an 12:0 0 n oon the  Th urs day  pr io r to thenext Mon da y ,s  m ail ing.N otice #01 -15 4May  7, 2 0 01

TO :
All  NYM EX  D i vis ion Mem b er s andMe mb er F irm s
FROM :
Ne a l L . Wolko ff, Execu tiv e  Vic ePr esident

RE:
Impleme nt ation of N ew  NY MEX Ru l e  9.11A ( "Give-Up Trades")

DATE :
May 7,  20 01
== ==== ========= === ====== === = ====== ====== ===== == === = = ===== = =
P lea se  be advise d tha t beg in ning  on the  trade date of Fri d ay,  June 1, 2001 ,
n ew N Y M EX  Ru l e9 .11 A( "Gi v e

 willing_to
spend_the day benefiting a_great cause.__Please contact_Cindy_Richardson,
x3-4770 or_Kelly Lombardi, x3-8491_for more information or_run to: _
http://home.enron.com:84/erc/index.html

VOLUNTEERS_NEEDED FOR 15TH  ANNUAL HOUSTON HOOP-IT-UP MAY 5-6!

The best way to get yourself_jump-started_for a_full_year_of Hoops.  Become a_
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us_at_Greenspoint Mall for_a basketball-crazed atmosphere.  Games and special
events being_played simultaneously on 110 courts so_the basketballs will_be_
flying_HOOP-IT-UP is where you_play for FUN.  EVENT BENEFITS_THE &ESCAPE
FAMILY RESOURCE CENTER8

SATURDAY )_ MAY 5TH 8:00 ) 6:00 PM
SUNDAY_)  MAY 6TH 8:00 )_5:00 PM

For more information please_call &Hoop-It-Up_Hotline8: 713-521-4535 or
E-Mail: Hoopitup@Texas.Net

Double_click on the_icon below_to learn more_about the new Enron Kids'
Center._

http://home.enron.com:84/messaging/e_kids_announce423.pdf

Have News_to Share?
To post news or events_in_Enron In Action,_please_e-mail_your information_to
EIA@enron.com
no_later_than 12:00_noon_the Thursday prior to the next_Monday,s_mailing. Notice # 01-154
May 7, 2001

TO:
All NYMEX_Division Members and Member_Firms

FROM:
Neal_L. Wolkoff, Executive Vice_President

RE:
Implementation of New NYMEX Rule_9.11A ("Give-Up Trades")

DATE:
May 7, 2001
===========================================================
Please be_advised that_beginning on_the trade date of Friday, June 1, 2001,
new NYMEX Rule 9.11A_("Give