, Summer 2001
by Ann Reilly Dowd  </contact_us/contact_form.shtml?Ann_Reilly_Dowd>

California may have asked for it, says this White House insider, but
everybody should be part of the solution*including directors who should
ensure their companies have an energy strategy.

When Vice President Dick Cheney sought input in formulating a national energy
policy, one of the people he listened to most intently was Kenneth Lay,
chairman of Enron and a longtime George W. Bush supporter. In 15 years Lay,
57, has turned a traditional pipeline company into an aggressive trader of
gas and electricity and a provider of broadband services. Until the deal
bogged down, it looked last year as though video rental giant Blockbuster
would use the Houston outfit,s network systems to deliver online movies. Lay,
s ambitions for Enron don,t stop there. He wants federal regulations removed
so the company can build power plants and power lines, which would put it in
direct competition with utilities. In a conversation with Corporate Board
Member,s Ann Reilly Dowd, Lay discussed the energy crunch gripping the United
States and what government and boardrooms need to do about it. He also
describes how he assembled a board that enabled him to push Enron so far into
the future. Excerpts:
On how real the energy crisis is: We have a genuine energy crisis in
California, which will see severe shortages or disruptions over the summer,
and a serious energy problem in most other places. Outside of California, the
supply/demand balance is very tight, and maybe the infrastructure is being
pushed a little hard. But the energy situation certainly needs attention. In
many ways, this country has underinvested in energy supply and infrastructure
for at least 15 or 20 years. We need to start correcting for that.
On deregulation: What led to California,s energy crisis was not deregulation
but a very flawed command-and-control regulatory system where most consumers
don,t have any choice. Deregulation is not where you have a fixed price on
the retail side of the market and a floating competitive price on the
wholesale side. It,s also not

, Summer 2001
 by Ann Reilly Dowd   < /contact_us / contact_form.shtml?Ann_Reilly_Dowd >

 California may have asked for it, says this White House insider, but
 everybody should be part of the solution*including directors who should
 guarantee their ship's company have an department of energy strategy.

 When Vice President Dick Cheney seek input in formulate a home energy
 policy, one of the people he listened to most intently was Kenneth Lay,
 chairman of Enron and a longtime George W. Bush athletic supporter. In 15 years Lay,
 57, has turned a traditional grapevine company into an aggressive trader of
 gas and electricity and a provider of broadband services. Until the deal
 bogged down, it looked last class as though video rental giant Blockbuster
 would practice the Houston outfit,s network systems to deliver online movies. Lay,
 s ambition for Enron don,t stop there. He wants federal regulations removed
 therefore the company can build power plants and power lines, which would put it in
 direct competition with utilities. In a conversation with Corporate Board
 Member,s Ann Reilly Dowd, Lay discussed the energy crunch gripping the United
 States and what government and boardrooms need to make about it. He also
 describes how he assemble a board that enabled him to push Enron so far into
 the future. excerpt:
 On how real the department of energy crisis is: We have a genuine energy crisis in
 California, which will determine severe shortages or disruptions over the summer,
 and a serious energy problem in most other places. Outside of California, the
 supply / demand balance is very nasty, and maybe the infrastructure is being
 advertise a short hard. But the energy situation surely needs attention. In
 many ways, this country has underinvested in energy supply and infrastructure
 for at least 15 or 20 years. We need to start compensate for that.
 On deregulation: What led to California,s department of energy crisis was not deregulation
 but a very flawed command - and - control regulatory system where most consumer
 don,t have any choice. Deregulation is not where you have a fixed monetary value on
 the retail side of the market and a floating competitive monetary value on the
 wholesale side. It,s also not

, Sulmer 2001
by Ann Reilly Dowd  </contact_us/contaer_form.sitml?Ann_Deilly_Dodd>

California may have asked hor ut, sats this White House inrider, but
everyboey siould be part of the solmcion*ihgludiug directors who should
envure their com[avizs have an energy strategy.

When Vice [residemt Dick Cheney sjughu igput pn formulating a national energg
policj, one of the peopke he listened to most intfntlj was Kenneth Lay,
fhairman of Enrjb and a longgime Georgt C. Bush suppkrter. In 15 years Lay,
57, has turned a trcditional pupwlijg company invo an wggressive tvsder ox
gas amd electricity anv a provider of broadband services. Until thg deal
bogceb down, it looked last ywar av thmugh ciddo deitam gianh Bmockbuster
would use rhe Houston outfit,s nqneork systems to dejider online movies. Lay,
s ambitions for Engon son,t stop there. He wantw federal regulations removed
fo the company can build power plants and power lhnes, xhkch wjjod put it in
direct competition with utilities. Yh s bonversation with Corporate Nowrc
Member,s Ann Teilly Bkws, Lay discussed thf energi crunxh grippigg tne United
States and what givernment anb biardrooms need to bo about it. Ke alsp
desvribes how he assembled a bkard that ejabled hij to push Enron su fsr into
tht future. Excerpts:
Jn how reel thz energy crixis is: We have a genulte energy crisis ij
Calnfornha, which wlll see severe shortages or discnptions over jhe sukmer,
and a sevious energy prjblem in most pther pjaces. Outside or Califmrnia, the
stpply/demand bdpance is verb tight, agd mqybe the inwfastructure is being
pushed a litrle hard. But the ekergy aituation certanuli needs attentipn. Kn
iajy wwfs, this coundry fas inderknvested in dnerby supply and infrasdrucfure
for at least 15 ov 20 years. Qe need eo start corrrcting for that.
On derejulatiun: Whst jed to California,s energy crisjs was noh dcregulation
btt a very flawed command-and-control regulatory system whxre most consumers
don,j have any choice. Derggukation is npt whqre you hdve a fixed price on
the retail side pf the market and a fmoatinc comoetitive price on the
wholesale side. It,s also not

, Summer 2001 by Ann Reilly Dowd may asked for says this White be of the solution*including who should ensure companies have an energy strategy. When President Dick Cheney sought input in formulating a national energy policy, one of people he listened to most intently was Kenneth Lay, chairman of Enron and longtime W. supporter. 15 years Lay, 57, has turned a traditional pipeline company into an aggressive trader of gas electricity and a provider of broadband services. Until deal bogged down, it last year as though video giant would use Houston network to deliver online Lay, s ambitions for Enron don,t stop there. He wants federal regulations removed so the company can power plants lines, which put in competition with utilities. conversation with Corporate Board Member,s Ann discussed the energy crunch gripping the United States what government boardrooms need to do about it. also describes how he assembled a board that him to push Enron so far into the future. Excerpts: On how real the energy We have a genuine crisis in California, will severe or over the and a serious energy problem in most other places. Outside of the supply/demand balance is very tight, and maybe the infrastructure pushed little hard. But energy situation certainly needs In ways, this country has energy and least or years. We need to correcting for that. On deregulation: led to California,s energy a very flawed command-and-control regulatory system where most don,t have any choice. Deregulation is not you have a fixed price on the retail side of the market a floating on the wholesale side. It,s also not

, Summer 2001
by Ann Reilly Dowd  </contAct_us/contaCt_forM.shTml?anN_ReiLly_DOwd>

California mAY havE asked for it, says this WhiTe HouSe INsidER, bUt
eveRybody sHOuLD Be pArT oF thE sOLuTion*iNclUding diRectors who ShoUlD
ensure their COmPanies have An eNergy strategY.

WhEn Vice prEsiDEnt DiCk CHeney Sought INput in FormulatiNg A NationAL energy
POLiCy, onE of the people he lisTEnED to most intentlY was KeNnETh lAY,
chAirMan of Enron AnD a lonGTime GeoRGe w. bUSh sUPporter. In 15 yearS Lay,
57, has turnED a tRaditiOnAl pIPeline CompaNy INto An aggressivE traDer of
gas aNd elecTRicity aND a proviDer of bRoaDbaNd seRViCeS. UnTiL The DEaL
boGGed Down, it loOkEd Last yEar aS THOUgh vIdeO renTal giAnt BlockbusteR
woUld uSE thE HousTon ouTfit,S nEtworK systeMs to dElIver online movieS. Lay,
S ambitionS foR ENroN dOn,t stOP there. he wAntS federaL regulaTIonS rEMOVeD
so the company can buIlD POwEr plants And powER lInES, which woUlD puT it iN
DIrect CompETiTion with UtilitIEs. in A converSaTion wiTh corPorAte BoARd
MeMber,s ANn Reilly dowd, LAY discussed the eNErgy crunch griPPiNG ThE unitEd
STates and whaT govERnmeNt anD BoArdROoms nEed to Do ABoUT it. He also
describes hOw He asseMbled A board that enaBled him to pUSH enron so fAr inTO
tHE future. ExcerptS:
On hoW real the enERgy crisiS is: We Have a genUine energY CRisis in
CAliForNia, WhiCH WiLl see severe shORTageS oR disrupTioNs over tHe sUmmEr,
aNd a SeRious enerGy probleM iN mOsT oTheR placES. Outside Of calIfOrnIa, the
SUpply/dEmand BalaNcE iS VerY tight, aND mAYBe thE iNfRastRucTuRe is bEing
PUshEd a littLe hard. But The ENergY sItUation cErtainly needs AtTention. In
mAnY waYs, this COUntry has Underinvested in energy suPPly and iNfrAstruCturE
for at leaSt 15 oR 20 years. we nEEd to stArt corRectiNg For THAt.
On dEREgUlaTiOn: What led tO cAliForniA,s EnerGy crisiS was not deregulatioN
But A very flawed coMmaNd-anD-COnTroL ReGUlaToRY sySTEm where most consUmers
don,t hAvE AnY choice. DerEGulAtIon is noT where yOu havE A fixed pRice on
the Retail sidE oF the MARkeT and a floatIng compeTitive priCE on thE
WhOlesaLe sIde. It,s AlSo nOt

, Summer 2001
by Ann Reill y Dowd  </ conta ct_ us/ co ntac t_fo rm.shtml?Ann_R e illy _Dowd>

California may  have  a s kedf or  it,says th i sW h ite  H ou sein s id er, b ut
everyb ody should  be  p art of the s o lu tion*incl udi ng directors  wh o shou ld
e n surethe ir co mpanie s  havean energy  s t rategy .

WhenV i ce  Pre sident Dick Chene y  s o ught input informul at i ng a  na tio nal energy  polic y , one o f  t h e peo p le he listene d to most i n ten tly wa sKen n eth La y,
c ha i rma n of Enronanda longtim e Geor g e W. Bu s h suppo rter.In15year s  L ay , 57 ,  ha s  t urn e d a  traditi on al  pipe line c o m pany  in to a n agg ressive trade r o f
g a s a nd el ectri city  a nd aprovid er of  b roadband servic es.Until the  de al
b og ged d o wn, it  lo oke d lastyear as tho ug h v id eo rental giant Bl oc k b us ter
wou ld use th eH ouston o ut fit ,sn e twork  sys t em s to del iver o n li ne  movies .Lay,samb iti ons f o r En ron do n,t sto p the r e. He wants fe d eral regulati o ns r em o ved
so  the compan y ca n  bui ld p o we r p l antsand p ow e rl ines, which would p ut  it in
dir ect competiti on with ut i l i ties. In  a c o nv e rsation with C orpor ate BoardMember, s Ann  ReillyDowd, Lay d iscussed  th e e ner gyc r un ch gripping t h e  Uni te d
Stat esand wha t g ove rnm ent  a nd boardr ooms nee dto  d oabo ut it .  He also  des cr ibe s how he ass emble d abo ar d  th at enab l ed h im t opu sh E nro nso fa r in t o the fut ure. Exce rpt s :
O nho w realthe energy cr is is is: Weha vea genu i n e energy  crisis in
California, which w ill  seeseve re shorta ges  or di sru p tionsover t he su mm er, and a s er iou senergy pro b l emin mo st  oth er plac es. Outside of Cal i for nia, the
sup ply /dem a n dbal a nc e  is  v e ryt i ght, and maybethe infras tr u ct ure is bei n g pu shed alittlehard. But the  energy s ituationce rtai n l y n eeds atten tion. In
many wa y s, th i scount ryhas un de rin veste d in e n erg y sup ply an dinfras truct ur e
for a t least 15 or 20 years.  We ne ed to  st art corre cti n g f or that.
Onderegulati on:  Wh at le d t o  Cali forn i a ,se nergy  cri s is was no t  d ere g u la tion
but a v e ryflawe d c o mmand- and- control regulator y  system wheremost c ons ume r s
d on ,t have any c hoi ce . Deregula ti on is not w here you  h a ve afixedpriceon
the r et a il sid e of  th e marketand  a floatin gco m petiti ve p ri ce onthe
w h oles a l e side. It,s al so no t

, Summer_2001
by Ann_Reilly Dowd  </contact_us/contact_form.shtml?Ann_Reilly_Dowd>

California_may have_asked_for it,_says_this White House_insider, but
everybody_should be part of_the solution*including directors_who_should
ensure their companies have an energy strategy.

When Vice President Dick Cheney sought input_in_formulating a_national_energy_
policy, one of the people_he listened to most intently_was Kenneth_Lay,
chairman of Enron and a longtime George_W._Bush supporter. In_15 years Lay,
57, has turned a traditional pipeline_company into an aggressive trader of_
gas and electricity_and_a_provider of broadband services._Until the deal
bogged down, it_looked last year as though video_rental giant Blockbuster
would use the Houston_outfit,s network systems to deliver online_movies. Lay,
s ambitions for Enron_don,t stop_there. He wants federal regulations_removed
so the_company can_build power plants_and power lines, which would put_it in
direct_competition with utilities. In a conversation_with_Corporate Board
Member,s_Ann_Reilly_Dowd, Lay_discussed the energy_crunch_gripping the_United_
States and what government and boardrooms_need_to do about it. He also
describes_how he assembled a_board_that enabled him to_push Enron so far into_
the future. Excerpts:
On how real_the energy_crisis is:_We have a genuine energy crisis in
California, which will see_severe shortages or disruptions over the_summer,
and a serious_energy problem_in_most other places._Outside_of California,_the
supply/demand balance is very tight, and_maybe the_infrastructure is being
pushed a little_hard. But the energy_situation_certainly needs attention. In
many ways,_this country has underinvested in energy_supply and infrastructure
for at_least_15_or 20 years. We need_to start correcting for that.
On_deregulation: What led_to California,s energy crisis was not deregulation_
but_a very flawed command-and-control regulatory system_where_most consumers
don,t have any choice._Deregulation_is_not where you have a_fixed price on
the retail side_of the market and a floating competitive price on_the
wholesale side._It,s also not


 be a stopgap until the Davis administration
could sign long-term contracts with power suppliers. However, only about 19
contracts have been signed to date, out of 42 agreements. If all the
contracts are signed, they will account for about 70 percent of the power
California is expected to need.
"It was our expectation some of these contracts would kick in," said
Assemblywoman Carole Migden, D-San Francisco. "This was designed to only be
bridge money to avert a power disaster. We should hold firm and come up with
a plan.
"I recall about three weeks ago when we first asked about one of these $500
million letters," Migden said. "We said maybe this one is necessary, but
there won't be carte blanche approval of any future requests. I'm pleased
Sen. Peace is taking that approach."
To Assemblyman George Runner, R-Lancaster, Peace's letter was "another way
for the Legislature to send a message we need to be in this loop. We're just
getting a small little dribble of information, which just creates more
questions."
A spokesman for the Department of Finance said officials hoped to work with
the committee members about their concerns.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------
Jones rips state on energy crisis
Secretary of state hints that he'll take on Davis in 2002.
By John Ellis
The Fresno Bee
(Published March 20, 2001)
Officially, he's Bill Jones, secretary of state for California. Unofficially,
he's Bill Jones, 2002 gubernatorial candidate.
The evidence is right there between the lines -- in the subtleties of his
speeches, their subject matter, and the way Jones carries himself when he's
in public.
Monday was no different, as Jones addressed a Rotary Club luncheon in Fresno
full of people who are assuming -- though nothing is official -- that the
Fresno native will soon announce his intention to challenge Gov. Davis next
year.
"Bill, they call me governor," Chas Looney, a former Rotary Club district
governor, quipped to Jones. "I look forward to the day we all can call you
governor

be a stopgap until the Davis administration
 could sign long - condition contract with power suppliers. However, only approximately 19
 contracts have been signed to date, out of 42 agreements. If all the
 contract are signed, they will account for approximately 70 percentage of the power
 California is expected to want.
 " It was our expectation some of these contracts would kick in, " say
 Assemblywoman Carole Migden, D - San Francisco. " This was designed to only be
 bridge money to avert a power disaster. We should defy firm and come up with
 a design.
 " I recall about three week ago when we first ask about one of these $ 500
 million letters, " Migden said. " We said maybe this one is necessary, but
 there won't be carte blanche blessing of any future requests. I'm pleased
 Sen. Peace is taking that approach. "
 To Assemblyman George Runner, R - Lancaster, Peace's letter was " another way
 for the Legislature to send a message we need to be in this loop topology. We're just
 getting a small little dribble of information, which just creates more
 questions. "
 A spokesman for the Department of Finance said officials hop to work with
 the committee members about their concern.
 ------------------------------------------------------------------------------
 ------------------------------------------------------------------------------
 --------------------------------------------------------------
 Jones rent state on energy crisis
 Secretary of department of state hints that he'll take on Davis in 2002.
 By John Ellis
 The Fresno Bee
 (Published March 20, 2001)
 Officially, he's Bill Jones, repository of state for California. Unofficially,
 he's Bill Jones, 2002 gubernatorial candidate.
 The evidence is right there between the lines -- in the subtleties of his
 speeches, their subject matter, and the way Jones carries himself when he's
 in public.
 Monday was no different, as Jones address a Rotary Club lunch in Fresno
 wide of people who are assuming -- though nothing is official -- that the
 Fresno native will soon announce his intention to challenge Gov. Davis next
 class.
 " Bill, they call me governor, " Chas Looney, a former Rotary Club district
 governor, quipped to Jones. " I look forward to the day we all can call you
 governor

 be a stopgap until the Davls administratiou
could sign mong-term contracts with power supplixrs. Yowevtg, only about 19
contracgs have bven signee to eate, out oh 42 agreements. Jn all vhe
contracts ate signed, thay will accound wox about 70 percent of the power
Califownia is edpected to neeq.
"It ras klr expectation some of these cohtracts would kick im," said
Assemblywoman Carolf Mihden, D-San Franciscl. "This was eesidbed to only ce
bridge money to avett a power disaster. We should houd fixm and come up wljh
a plan.
"I cecall about three weeks aco when we first askec auout one of these $500
millioi letters," Migden saiq. "We said mcybe this one is necewsqry, bot
thare din't be certs blanfhe approval kf any futuee requests. I'm pleaxeq
Sen. Peace is takind ehat approach."
To Assemblyman George Runter, R-Lancaster, Peace's lettwr was "another way
fot the Legiflature to send a message we need to be in this lmop. Wx'rd jbwt
gegrijg a small little dribble of information, whicr jisn creates more
qucstions."
A spokesmam vot the Departmevt of Yjnznce said officiald hoped to wirk with
uhe cpmmittee members about theie concerns.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------
Jjbes rips state on znergy crisir
Sevretaty of state hints that ke'll tzke on David in 2002.
By Nuhn Ellis
The Frdsnp Tee
(Published March 20, 2001)
Officyally, he's Bilk Jones, sectetary jf state flr California. Unofficialpy,
he'd Till Jones, 2002 gubernatorial candidate.
The etmdence is rignt thvre betwezn the lines -- in thq subtleties oy his
spzeches, their subnect mavter, and the way Jones casties himself xhen he's
yn pyblix.
Mondah was no differrnt, as Jouts addresswd a Rotary Club lmncheuh in Fresno
fulo od people who arr arsuiijg -- evough nothinc is ofwocial -- that uke
Nrerno mative will soon annmuncs his intention to cmallenge Tov. Davif next
year.
"Boll, they call me glvernmr," Rhas Lpongy, a former Rotary Club districf
governog, qmipped to Jonqs. "I look forwarb to the day we all can call you
governoc

be a stopgap until the Davis administration long-term with power However, only about to out of 42 If all the are signed, they will account for 70 percent of the power California is expected to need. "It was our some of these contracts would kick in," said Assemblywoman Carole Migden, D-San Francisco. was to be money to avert a power disaster. We should hold firm and come up with a plan. recall about three weeks ago when we first about one of these million letters," Migden said. "We maybe one is but won't carte blanche approval any future requests. I'm pleased Sen. Peace is taking that approach." To Assemblyman George Runner, R-Lancaster, Peace's was "another the Legislature send message need to be loop. We're just getting a small information, which just creates more questions." A spokesman the Department Finance said officials hoped to work the committee members about their concerns. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ Jones rips state on energy crisis Secretary of state hints that he'll take on Davis By John Ellis The Bee (Published March 2001) he's Jones, of state California. Unofficially, he's Bill Jones, 2002 gubernatorial candidate. The evidence is there between the lines -- in the subtleties of his subject and the way carries himself when he's public. was no different, as a Club full people are assuming -- though is official -- that the native will soon announce Davis next year. "Bill, they call me governor," Looney, a former Rotary Club district governor, to Jones. "I look forward to the day we all can call governor

 be a stopgap until the Davis adMinistratiOn
couLd sIgn LoNg-teRm coNtracts with powER supPliers. However, only about 19
ContrAcTS havE BeEn sigNed to daTE, oUT Of 42 aGrEeMenTs. iF aLl the
ConTracts aRe signed, thEy wIlL account for aBOuT 70 percent of The Power
CaliforNia Is expeCtEd tO Need.
"IT waS our eXpectaTIon somE of these cOnTRacts wOUld kick IN," SaId
AsSemblywoman Carole mIgDEn, D-San FranciscO. "This wAs DEsIGNed To oNly be
bridgE mOney tO Avert a pOWeR DISasTEr. We should holD firm and comE Up wIth
a plAn.
"i reCAll aboUt thrEe WEekS ago when we fIrst Asked abouT one of THese $500
milLIon lettErs," MigDen SaiD. "We sAId MaYbe ThIS onE Is NecESsaRy, but
theRe WoN't be cArte BLANChe aPprOval Of any Future requestS. I'm PleaSEd
SEn. PeaCe is tAkinG tHat apProach."
to AssEmBlyman George RunNer, R-lancaster, peaCe'S leTtEr was "ANother Way
For The LegiSlature TO seNd A MESsAge we need to be in thiS lOOP. WE're just
gEtting A SmAlL Little drIbBle Of inFORmatiOn, whICh Just creaTes morE
QuEsTions."
A sPoKesman FoR thE DePartmENt of financE said offIcialS Hoped to work witH
The committee mEMbERS aBOut tHeiR concerns.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------
JoNes rIPs stAte oN EnErgY CrisiS
SecrEtARy OF state hints that he'll TaKe on DaVis in 2002.
by John Ellis
ThE Fresno Bee
(pUBLished MaRch 20, 2001)
OFFiCIally, he's Bill JoNes, seCretary of sTAte for CaLiforNia. UnoffIcially,
he'S bIll Jones, 2002 GubErnAtoRiaL CAnDidate.
The evidENCe is RiGht therE beTween thE liNes -- In tHe sUbTleties of His
speecHeS, tHeIr SubJect mATter, and tHe Way joNes CarriES himseLf wheN he's
In PuBLic.
monday wAS nO DIffeReNt, As JoNes AdDressEd a ROTarY Club luNcheon in FResNO
fulL oF pEople whO are assuming -- tHoUgh nothing Is OffIcial -- tHAT the
FresNo native will soon announcE His inteNtiOn to cHallEnge Gov. DaVis Next
yeAr.
"BILl, they Call me GoverNoR," ChAS looneY, A FoRmeR ROtary Club dISTriCt
govErNor, qUipped tO Jones. "I look forward TO thE day we all can cAll You
gOVErNor

 be a stopgap until the Da vis admini strat ion
c ou ld s ignlong-term cont r acts  with power suppliers.  Howe ve r , on l yabout  19
co n tr a c tsha ve  be en si gnedtodate, o ut of 42 a gre em ents. If all th e
contrac tsare signed,the y will  a cco u nt fo r a bout70 per c ent of  the powe rCalifo r nia ise x pe cted  to need.
"It wa s  o u r expectationsome o ft he s e  co ntr acts would  k ick i n ," said
A s s e mbl y woman CaroleMigden, D-S a n F rancis co . " T his wa s des ig n edto only be
bri dge money  to av e rt a po w er disa ster.Wesho uldh ol dfir ma ndc om e u p  wi th
a pl an .
"I r ecal l a b outthr ee w eeksago when we f irs t as k edabout  oneof t he se $5 00
mi llion  l etters," Migden  sai d. "We sa idma ybe  t his o n e is n ece ssa ry, but
there won 't b e  c arte blanche appro va l of  any fut ure re q ue st s . I'm pl ea sed
Se n .  Peac e is ta king tha t appr o ac h. "
To A ss emblym an  Ge org e Run n er,R-Lanc aster, P eace' s  letter was "a n other way
fo r  t h e  L e gisl atu re to senda me s sage  wen ee d t o  be i n thi sl oo p . We're just
getti ng  a sma ll li ttle dribbleof informa t i o n, which  jus t  c r eates more
qu estio ns."
A sp o kesman f or th e Depart ment of F i n ance sai d o ffi cia lsh o pe d to work wit h
the  c ommitte e m embersabo utthe irco ncerns. -------- -- -- -- -- --- ----- - -------- -- --- -- --- ----- - ------ ----- ---- -- -- - --- ------- -- - - ---- -- -- ---- --- -- ----- ---- - --- ------- --------- --- - ---- -- -- ------- --------
---- -- ---------- -- --- ------ - - -------- ----------------------- - -
Jones  ri ps st ateon energy  cr isis Sec r etaryof sta te hi nt s t h a t he' l l  t ake  o n Davis in 2 002 .
By  J ohnEllis The Fresno Bee
(Pu b lis hed March 20,  20 01)O ff ici a ll y , h e' s  Bi l l  Jones, secreta ry of stat ef or  Californi a . U no fficial ly,
he 's Bi l l Jones , 2002 gu bernatori al  can d i dat e.
The ev idence i s right t h ere b e tw een t helines--  in  thesubtle t ies  of h is
sp ee ches,their  s ubject m atter, and the way Jone s carr ies h ims elf whenhe' s
i n public.
Mo nday was n o d iff erent , a s  Jone s ad d re sse d  a Ro tary Club lunc h eo n i n Fr esno
fullo f peo ple w hoa re ass umin g -- though nothi n g is official-- t h a t t heFres no  native will s oon  a n n ounce hi sintention t o challe ng e  Gov.  Davis  next
year." Bi l l, the y ca llme govern or, "C has Loo ne y, a form er R ot ary Cl ub dis t rict governor, quippe d toJ o nes." I l ook f or ward to theday we all  can call y ou
go vern or

 be_a stopgap_until the Davis administration_
could sign_long-term_contracts with_power_suppliers. However, only_about 19
contracts_have been signed to_date, out of_42_agreements. If all the
contracts are signed, they will account for about 70 percent_of_the power_
California_is_expected to need.
"It was_our expectation some of these_contracts would_kick in," said
Assemblywoman Carole Migden, D-San Francisco._"This_was designed to_only be
bridge money to avert a power disaster._We should hold firm and come_up with
a_plan._
"I_recall about three weeks_ago when we first asked about_one of these $500
million letters,"_Migden said. "We said maybe this one_is necessary, but
there won't be_carte blanche approval of any_future requests._I'm pleased
Sen. Peace is_taking that approach."_
To Assemblyman_George Runner, R-Lancaster,_Peace's letter was "another way
for_the Legislature to_send a message we need to_be_in this loop._We're_just_
getting a_small little dribble_of_information, which_just_creates more
questions."
A spokesman for_the_Department of Finance said officials hoped to_work with
the committee_members_about their concerns.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------
Jones_rips state on energy crisis_
Secretary of state hints that he'll_take on_Davis in_2002.
By John Ellis
The Fresno Bee
(Published March 20, 2001)
Officially,_he's Bill Jones, secretary of state_for California. Unofficially,
he's_Bill Jones,_2002_gubernatorial candidate.
The_evidence_is right_there between the lines -- in the_subtleties of_his
speeches, their subject matter, and_the way Jones carries_himself_when he's
in public.
Monday was_no different, as Jones addressed a_Rotary Club luncheon in Fresno_
full_of_people who are assuming --_though nothing is official -- that_the
Fresno native_will soon announce his intention to challenge_Gov._Davis next
year.
"Bill, they call_me_governor," Chas Looney, a former Rotary_Club_district_
governor, quipped to Jones. "I_look forward to the day we_all can call you
governor


 need to improve."
NEW FACILITY
The department is trying to do just that. Next week, the DWR's electricity
traders are expected to move from their folding tables to a brand-new,
25,000- square-foot facility on another floor.
Whether the trades remain under the aegis of the DWR is another matter.
Hannigan said he doesn't want his department to remain in the energy business
for years to come. Given his choice, he said he would prefer power purchases
being made by a newly created state energy authority, as proposed by
legislation now on the drawing board.
While some at the DWR appear to enjoy the department's newfound notoriety,
Hannigan, 60, is not one of them.
He said he is looking forward to retirement and spending more time with his
family. Being at the center of California's energy storm is clearly a
headache he'd rather not have at this point in his career.
"I know we're outgunned," he said. "I just don't know how badly."
The Power Cycle
1. Electricity Providers
Power companies stretching from Canada to Texas offer electricity to
shortage-plagued California. They have been accused of gouging consumers by
charging sky-high wholesale rates.
2. Department of Water Resources
Department of Water Resources state bureaucrats are spending $350 million a
week purchasing electricity on behalf of utilities. One energy trader said
the DWR willingly agrees to pay "prices that make you wonder."
3. Troubled Utilities
PG&E and Edison say they do not have enough money to purchase power for
customers. So they let the DWR do the buying and then PG&E and Edison pass
along the electricity -- and costs -- to millions of consumers.
4. The Consumers
California's energy woes ultimately will be born by consumers, either in the
form of higher rates or higher taxes. Consumers will be accountable for all
money that goes to buy electricity. Source: Chronicle research Chronicle
Graphic
E-mail David Lazarus at dlazarus@sfchronicle.com.
,2001 San Francisco Chronicle? Page?A - 1

need to improve. "
 NEW FACILITY
 The department is trying to do barely that. future week, the DWR's electricity
 traders are expected to go from their folding tables to a trade name - new,
 25,000- square - animal foot facility on another floor.
 Whether the trades persist under the aegis of the DWR is another matter.
 Hannigan say he doesn't want his department to remain in the energy business
 for years to arrive. Given his choice, he said he would choose power purchases
 being make by a newly produce state department of energy authority, as proposed by
 legislation now on the drawing dining table.
 While some at the DWR appear to enjoy the department's newfound notoriety,
 Hannigan, 60, is not one of them.
 He said he is looking forward to retirement and spend more time with his
 family. Being at the center of California's energy storm is clearly a
 headache he'd rather not have at this point in his career.
 " I know we're outgunned, " he say. " I just don't know how ill. "
 The Power Cycle
 1. Electricity Providers
 Power company stretching from Canada to Texas offer electricity to
 shortage - blight California. They have been accused of gouging consumers by
 charging sky - eminent wholesale rates.
 2. Department of Water Resources
 Department of Water Resources state bureaucrats are spending $ 350 million a
 week buy electricity on behalf of utilities. One energy trader said
 the DWR willingly agrees to pay " prices that make you wonder. "
 3. disruptive Utilities
 PG&E and Edison state they do not have enough money to purchase power for
 customers. So they let the DWR cause the buying and then PG&E and Edison pass
 along the electricity -- and costs -- to millions of consumers.
 4. The Consumers
 California's department of energy woes ultimately will be born by consumers, either in the
 form of higher rate or higher tax. Consumers will be accountable for all
 money that run low to buy electricity. generator: Chronicle research Chronicle
 Graphic
 E - chain mail David Lazarus at dlazarus@sfchronicle.com.
, 2001 San Francisco Chronicle? Page?A - 1

 nefd to improve."
NEW FACILIUY
The department nw tryiig to dk just tfat. Next week, the DWR's electciciry
trqders are expected to oove from their fildiig tables to a bcznd-new,
25,000- squars-noot yarility on anothgr floor.
Whedher the tradev felain under the aegis of the DWR is wnother mwtter.
Hannigan saic he soesn't want his department to remajn in tie energy businrss
for years to come. Givej hid choice, he said hf would preder [iwer purchasds
being made by a newmy created state energy authorigy, as proposed vy
lehhslation nox on tre drawing board.
Whine some at the DWR apiear vo ebjoy the department's iewfound notoriety,
Hwnnigan, 60, hs not one of them.
Ye said he hs luikivg rocwadd to getmrement and spending mire time with his
fsmyoy. Being at tge ceneew of California's energy storm is clearlj a
geadache he'd rather not have at this point ij his carqer.
"I know we're outgunned," he said. "I just don't knof how cadoy."
Gye Power Cycle
1. Electricity Providers
Power com[znoex stretching fvom Canada to Texax lfggr electricity to
shortzge-plagued Califorjia. Thei have been acctsed of gouging consumers by
chqrging sky-hiyh qholesale rates.
2. Dzpartment of Watgr Respurces
Department of Wacer Reaources stahe bureaudfats are spendine $350 kinlion a
week purchasing elqctricity on yehalf ow utolitief. One enerhy trader said
the DWR wlllinyly acrees to pwy "prices that make you wonder."
3. Troubled Utilothes
PG&E and Edispn say they dj not have enoogh money to pjrchase poser for
customers. Fo they let tvg DWR do the uuying anq thwn PT&E and Daison pass
alomg the elvcuricity -- abd costs -- to millipns kf consumers.
4. Tkt Cinsumers
Califotnix's qnvrgb woef ultimately fill be norn cy consumerw, eitner in the
form of hhghed rates or higher yawes. Consuners wilj be accountanle for all
money uhat gmes to biy glectricity. Source: Chronicle reaearch Chgonlcle
Graphic
Q-maio David Lazaxus at dlazarus@sfchronicle.com.
,2001 San Francmsco Chronicle? Page?A - 1

need to improve." NEW FACILITY The department to just that. week, the DWR's move their folding tables a brand-new, 25,000- facility on another floor. Whether the remain under the aegis of the DWR is another matter. Hannigan said he want his department to remain in the energy business for years to come. his he he prefer power purchases being made by a newly created state energy authority, as proposed by legislation on the drawing board. While some at the appear to enjoy the newfound notoriety, Hannigan, 60, is one them. He he looking to retirement and more time with his family. Being at the center of California's energy storm is clearly a headache rather not this point his "I we're outgunned," he just don't know how badly." The Electricity Providers Power companies stretching from Canada to offer electricity shortage-plagued California. They have been accused gouging consumers by charging sky-high wholesale rates. 2. of Water Resources Department of Water Resources state bureaucrats are spending $350 million a week on behalf of utilities. energy trader said DWR agrees pay that make wonder." 3. Troubled Utilities PG&E and Edison say they do not enough money to purchase power for customers. So they let do buying and then and Edison pass along electricity and costs -- to consumers. The woes will born by consumers, either the form of higher rates higher taxes. Consumers will that goes to buy electricity. Source: Chronicle research Graphic E-mail David Lazarus at dlazarus@sfchronicle.com. ,2001 Francisco Chronicle? Page?A - 1

 need to improve."
NEW FACILITY
THe departmeNt is tRyiNg tO dO jusT thaT. Next week, the DWr'S eleCtricity
traders are expeCted tO mOVe frOM tHeir fOlding tABlES To a BrAnD-neW,
25,000- sQUaRe-fooT faCility oN another flOor.
whEther the tradES rEmain under The Aegis of the DWr is AnotheR mAttER.
HannIgaN said He doesN'T want hIs departmEnT To remaIN in the eNERgY busIness
for years to coME. GIVen his choice, he Said he WoULd PREfeR poWer purchasEs
Being MAde by a nEWlY CREatED state energy aUthority, as pROpoSed by
lEgIslATion noW on thE dRAwiNg board.
WhilE somE at the DWR Appear TO enjoy tHE departMent's nEwfOunD notORiEtY,
HaNnIGan, 60, IS nOt oNE of Them.
He saId He Is looKing FORWArd tO reTireMent aNd spending morE tiMe wiTH hiS
famiLy. BeiNg at ThE centEr of CaLiforNiA's energy storm is CleaRly a
headaChe He'D raThEr not HAve at tHis PoiNt in his Career.
"I KNow We'RE OUtGunned," he said. "I just dOn'T KNoW how badlY."
The PoWEr cyCLe
1. ElectrIcIty provIDErs
PoWer cOMpAnies strEtchinG FrOm canada tO TExas ofFeR elEctRicitY To
shOrtage-Plagued CAlifoRNia. They have beeN Accused of gougINg CONsUMers By
cHarging sky-hIgh wHOlesAle rATeS.
2. DePArtmeNt of WAtER RESources
Department of waTer ResOurceS state bureaucRats are speNDINg $350 millioN a
weEK pURchasing electrIcity On behalf of UTilities. one enErgy tradEr said
the dwr willingLy aGreEs tO paY "PRiCes that make yoU WOndeR."
3. TRoubled utiLities
Pg&E aNd EDisOn sAy They do not Have enouGh MoNeY tO puRchasE Power for
CuStoMeRs. SO they LEt the DwR do tHe buYiNg ANd tHen PG&E aND EDISon pAsS
aLong The ElEctriCity -- ANd cOsts -- to mIllions of ConSUmerS.
4. THe consumeRs
California's EnErgy woes ulTiMatEly wilL BE born by cOnsumers, either in the
form OF higher RatEs or hIgheR taxes. ConSumErs wilL be ACcountAble foR all
mOnEy tHAT goes TO BuY elEcTricity. SouRCE: ChRonicLe ReseArch ChrOnicle
Graphic
E-mail dAviD Lazarus at dlaZarUs@sfCHRoNicLE.cOM.
,2001 SaN FRAncISCo Chronicle? Page?a - 1

 need to improve."
NEW FA CILITY
The  depa rtm ent  i s tr ying  to do just th a t. N ext week, the DWR's el ectri ci t y
t r ad ers a re expe c te d tomo ve  fr om th eir f old ing tab les to a b ran d- new,
25,000 -  s quare-foot  fa cility on an oth er flo or . W hethe r t he tr ades r e main u nder theae g is oft he DWRi s  a noth er matter.
Hanni g an said he doesn' t want  h i sd e par tme nt to rema in  in t h e energ y  b u s i nes s
for years t o come. Giv e n h is cho ic e,h e said  he w ou l d p refer power  pur chases
b eing m a de by a newly c reated  st ate  ene r gy  a uth or i ty, as  pr o pos ed by
l eg is latio n no w o n  the  dr awin g boa rd.
While so meat t h e D WR ap pearto e nj oy th e depa rtmen t' s newfound noto riet y,
Hanni gan ,60,  i s not one of  th em.
He sa id he i s  lo ok i n g  f orward to retireme nt a nd  spendin g more ti me with his  fam ily. B eingat t h ecenter o f Cali f or ni a's ene rg y stor miscle arlya
he adache  he'd ra thern ot have at thi s  point in his ca r e er .
"I  kn ow we're ou tgun n ed,"  hes ai d." I jus t don 't kn o w how badly."
ThePo wer Cy cle 1. Electricit y Provider s Power co mpan i es stretching fro m Can ada to Tex a s offerelect ricity t o
shorta g e -plagued  Ca lif orn ia. T he y have been a c c used  o f gougi ngconsume rsby
ch arg in g sky-hig h wholes al era te s.
2. D e partment  o f W at erResou r ces
D epart ment  o fW ate r Resou r ce s stat ebu reau cra ts  arespen d ing  $350 m illion a
we e k pu rc ha sing el ectricity onbe half of ut il iti es. On e energy t rader said
the DWR wil l ingly a gre es to  pay  "pricestha t make  yo u  wonde r."
3 . Tro ub led U tilit i e s
PG &E  and Ediso n say  they  d o no t haveenough money to pu r cha se power for
cu stom e r s.  So th e y l et the D WR do the buyin g and then  P G &E  and Ediso n  pa ss
along  the el ectri c ity --and costs  -- to mi ll ions o f c onsumers.
4. TheConsumers
Cali f or nia's  en ergy w oe s u ltima tely w i llbe bo rn byco nsumer s, ei th er in th e
form of higher rates  or hi ghertax es. Consu mer s  wi ll be acc ount able for a ll
mo ney t hat goesto b u yele c trici ty.S ource: Ch r on icl e re search Chro n i c le
Grap hic
E-mai l Da vid Lazarus at dl a zarus@sfchroni cle. c o m.
,2 0 01 S an  Francisco Chr oni cl e ?  Page?A-1

 need_to improve."_
NEW FACILITY
The department is_trying to_do_just that._Next_week, the DWR's_electricity
traders are_expected to move from_their folding tables_to_a brand-new,
25,000- square-foot facility on another floor.
Whether the trades remain under the_aegis_of the_DWR_is_another matter.
Hannigan said he_doesn't want his department to_remain in_the energy business
for years to come. Given_his_choice, he said_he would prefer power purchases
being made by a_newly created state energy authority, as_proposed by
legislation_now_on_the drawing board.
While_some at the DWR appear to_enjoy the department's newfound notoriety,
Hannigan,_60, is not one of them.
He_said he is looking forward to_retirement and spending more time_with his_
family. Being at the center_of California's energy_storm is_clearly a
headache_he'd rather not have at this_point in his_career.
"I know we're outgunned," he_said._"I just don't_know_how_badly."
The_Power Cycle
1._Electricity_Providers
Power_companies_stretching from Canada to Texas offer_electricity_to
shortage-plagued California. They have been accused_of gouging consumers by_
charging_sky-high wholesale rates.
2._Department of Water Resources
Department_of Water Resources state bureaucrats are_spending $350_million a_
week purchasing electricity on behalf of utilities. One energy trader said_
the DWR willingly agrees to pay_"prices that make you_wonder."
3._Troubled_Utilities
PG&E and_Edison_say they_do not have enough money to purchase_power for_
customers. So they let the DWR_do the buying and_then_PG&E and Edison pass
along the_electricity -- and costs -- to_millions of consumers.
4. The_Consumers_
California's_energy woes ultimately will be_born by consumers, either in the_
form of higher_rates or higher taxes. Consumers will be_accountable_for all
money that goes to_buy_electricity. Source: Chronicle research Chronicle
Graphic_
E-mail_David_Lazarus at dlazarus@sfchronicle.com.
,2001 San_Francisco Chronicle? Page?A - 1


">Chicago O'Hare, IL  (ORD)	?					$149	?
?
?         			  	?
?
?					Greensboro, NC  (GSO)	?					Dallas/Ft. Worth, TX  (DFW)	?					$129	?
?
?					Huntsville, AL  (HSV)	?					Chicago O'Hare, IL  (ORD)  #	?					$119	?
?
?					Indianapolis, IN  (IND)	?					Chicago O'Hare, IL  (ORD)  #	?					$ 69	?        		</

" > Chicago O'Hare, IL   (ORD)	? 					 $149	?
?
?         			   	?
?
? 					 Greensboro, NC   (GSO)	? 					 Dallas / Ft. Worth, TX   (DFW)	? 					 $129	?
?
? 					 Huntsville, AL   (HSV)	? 					 Chicago O'Hare, IL   (ORD)   # 	? 					 $119	?
?
? 					 Indianapolis, IN   (IND)	? 					 Chicago O'Hare, IL   (ORD)   # 	? 					 $ 69	?        		 < /

"><fonh face="Arial, Helvetica, saks-serif"? size="2">Chiccto O'Hace, IL  (KRD)</ta>?					$149	?
?
?         			  	?
?				<tc>?					<fd widtm="44%"><yont rwce="Axiel, Helvetica, saks-serif"? siza="2">Greensboro, NC  (ESL)	?					Dallws/Ft. Rortg, TX  (DFW)	?					$129	?
?
?					<tf wifth="44%">Huntrville, AL  (HSV)	?					Chucqgo M'Hare, IL  (OCD)  #</fogt>	?					<npnt sise="2" face="Srial,? Helvetics,sais-seeif">$119	?
?
?					<vd width="44%">Indiabapolis, IN  (IND)</wint></gd>?					<ts xidfh="44%">Chicago O'Nawv, IL  (ORD)  #</foht>	?					$ 69</ront>	?        		</

">Chicago O'Hare, IL width="12%">$149	?
?  	? Helvetica, size="2">Greensboro, NC (GSO)	? width="44%">Dallas/Ft. Worth, TX (DFW)	? $129	?
?
? Huntsville, AL (HSV)	? Chicago O'Hare, IL (ORD) #	? $119	?
? width="44%">Indianapolis, IN (IND)	? Chicago O'Hare, IL (ORD) #	? $ 69	? </

">chicaGo O'harE, Il  (ORD)	?					$149	?
?
?         			  	?
?
?					GReEnsboro, NC  (GSO)	?					dalLas/Ft. worth, Tx  (dFW)	?					$129	?
?
?					HUnTsvilLE, AL  (HSV)	?					ChICago O'HAre, IL  (oRd)  #	?					$119	?
?
?					INdianApolIS, in  (iND)	?					ChiCaGo O'HaRe, IL  (ORd)  #	?					$ 69	?        		</

">Chi cago O'Hare, I L   (O RD)	?					 $149</ fon t> 	?
?			<t r>?        		 &n bsp ;	?
?
?		 G ree nsb oro, NC  ( GS O)</f o nt>	 ?	<t d  width="44%"> Dal las/ Ft. Worth , TX ( DFW)</f o nt>	?				<t d w idth = "1 2% ">< fo n t s i ze ="2 "  fa ce="Aria l, ?Helve tica , s a n s-se rif ">$1 29</f ont>	?
?
 ?			 <f ont face="Arial , He lvetica,san s- ser if "? si z e="2"> Hun tsv ille, A L  (HSV ) </f on t > < /t d>?					 Chicago  O'Har e ,IL   (ORD)  #</fon t> </t d>? 				<fo nt si z e="2" face="Ar i al,? Helvetic a ,s a n s- s erif ">$ 119	 ?
 ?
? 		<fon tface=" Arial , Helvetica,sans-serif " ? size="2" >Ind i an a polis, IN  (IN D)</f ont>	? 				<tdwidth ="44%">Chi ca go O'Ha re,  IL  (O RD)   # </f ont >	?				<f ont s i ze="2" f ac e=" Ar ial ,? He l vetica ,sans -ser if "> $  69  < /t d > ?     		< /

">Chicago O'Hare, IL _(ORD)	?					<font_size="2"_face="Arial,? Helvetica,sans-serif">$149	?__  _  _
?
?   _  __ 			  	?
?
?					Greensboro, NC  (GSO)	?					Dallas/Ft._Worth,_TX_ (DFW)	?					$129	?    _ _
?
?					Huntsville, AL__(HSV)	?					Chicago O'Hare, IL  (ORD)  #	?					<td_width="12%">$119	?
?		  _  ___
?					Indianapolis, IN  (IND)	?					<font_face="Arial, Helvetica, sans-serif"? size="2">Chicago O'Hare, IL_ (ORD)  #	?					$ 69	?    _   		</


enron.com
      [mailto:Matthew.Lenhart@enron.com]
               Sent: Friday, October 12, 2001 11:23 AM
               To: erichardson@sarofim.com
               Subject: RE:

               i will.  i will sleep in the middle.  sat is going to be the
      best
         day
            of
               my
               life.

                   -----Original Message-----
                  From:   Erin Richardson <erichardson@sarofim.com>@ENRON
                  Sent:   Friday, October 12, 2001 11:14 AM
                  To:     Lenhart, Matthew
                  Subject:  RE:

                  i did not.  i got up and when i came back you were
   sleeping
            happily
               in
                  the
                  middle of the bed.  i almost had to go sleep on the
   couch.
      you
            are
                  going to
                  have to be more considerate sat. when 3 people are in the
      bed.

                  -----Original Message-----
                  From: Matthew.Lenhart@enron.com
         [mailto:Matthew.Lenhart@enron.com]
                  Sent: Friday, October 12, 2001 11:03 AM
                  To: erichardson@sarofim.com
                  Subject: RE:

                  i slept on the edge.  you kept tugging on the covers and
      tried
         to
               spoon
                  with me.  its cool though.

                      -----Original Message-----
                     From:   Erin Richardson <erichardson@sarofim.com>
   @ENRON
                     Sent:   Friday, October 12, 2001 10:55 AM
                     To:     Lenhart, Matthew
                     Subject:  RE:

                     whatever, you were taking up the whole entire bed last
      night
               making
                  it
                     impossible for me to fall asleep.

                     -----Original Message-----
                     From: Matthew.Lenhart@enron.com
            [mailto:Matthew.Lenhart@enron.com]
                     Sent: Friday, October 12, 2001 10:47 AM
                     To: erichardson@sarofim.com
                     Subject: RE:

                     stay at your place even though you are a

enron.com
       [ mailto:Matthew.Lenhart@enron.com ]
                Sent: Friday, October 12, 2001 11:23 AM
                To: erichardson@sarofim.com
                Subject: RE:

                i will.   i will sleep in the center.   baby-sit is going to be the
       full
          sidereal day
             of
                my
                life.

                    -----Original Message-----
                   From:    Erin Richardson < erichardson@sarofim.com>@ENRON
                   Sent:    Friday, October 12, 2001 11:14 AM
                   To:      Lenhart, Matthew
                   Subject:   rhenium:

                   i did not.   i got up and when i occur back you were
    sleeping
             happily
                in
                   the
                   middle of the layer.   i almost had to go rest on the
    couch.
       you
             are
                   going to
                   get to be more considerate sat. when 3 people are in the
       seam.

                   -----Original Message-----
                   From: Matthew.Lenhart@enron.com
          [ mailto:Matthew.Lenhart@enron.com ]
                   Sent: Friday, October 12, 2001 11:03 AM
                   To: erichardson@sarofim.com
                   Subject: ra:

                   i slept on the edge.   you kept tugging on the screen and
       tried
          to
                spoon
                   with me.   its cool though.

                       -----Original Message-----
                      From:    Erin Richardson < erichardson@sarofim.com >
    @ENRON
                      Sent:    Friday, October 12, 2001 10:55 AM
                      To:      Lenhart, Matthew
                      Subject:   RE:

                      whatever, you were consume up the whole entire bed last
       night
                lay down
                   it
                      impossible for me to fall asleep.

                      -----Original Message-----
                      From: Matthew.Lenhart@enron.com
             [ mailto:Matthew.Lenhart@enron.com ]
                      Sent: Friday, October 12, 2001 10:47 AM
                      To: erichardson@sarofim.com
                      Subject: RE:

                      stay at your place even though you are a

enrln.com
      [mailto:Matthew.Uenhart@enron.com]
               Sent: Ffiday, October 12, 2001 11:23 AM
               Ti: erichardson@sarofim.coo
               Sybjert: RE:

               i will.  i slll snxep in the middke.  sat is going to be tve
      best
         day
            of
               my
               ljfe.

                   -----Original Mesaage-----
                  From:   Erin Richardson <egichwrdson@sarofim.com>@ENGON
                  Sent:   Wriday, October 12, 2001 11:14 AM
                  To:     Lenhart, Oatthzw
                  Subject:  RE:

                  i dig not.  o got up and wmen i cane back you were
   slxeping
            hakpily
               in
                  dhe
                  lidvle of the ged.  i almowt had to go sleep pn nne
   couch.
      yot
            are
                  going tm
                  have to be more considerate dat. when 3 people are in the
      bed.

                  -----Orighnal Jdsscnc-----
                  From: Matthew.Lenhart@enron.com
         [kaplto:Matthew.Lenharb@enron.com]
                  Sent: Fridxy, Octobed 12, 2001 11:03 AM
                  Jo: erixhardson@swrofom.com
                  Subjwct: RE:

                  i slept on the edgz.  you kept tugging on the covers cnd
      tried
         to
               spoun
                  with me.  itf cool thiugh.

                      -----Origijal Mcvsage-----
                     From:   Erln Richardson <erichardson@sarofim.com>
   @ENRON
                     Sent:   Fridar, October 12, 2001 10:55 AK
                     No:     Leihart, Matther
                     Subjxct:  RE:

                     whatever, yoi were taking up thw whole entire bed larf
      night
               making
                  it
                     impossibod fot me to fall asleep.

                     -----Oroglnal Messqge-----
                     From: Matthew.Lenjart@eiron.coo
            [mailto:Matthew.Lenhart@enron.dom]
                     Fent: Friday, Octoyer 12, 2001 10:47 AM
                     To: ericharvson@sarofim.com
                     Subject: VE:

                     staf at your place even though you are a

enron.com [mailto:Matthew.Lenhart@enron.com] Sent: Friday, October 12, 2001 To: Subject: RE: will. i will is to be the day of my -----Original Message----- From: Erin Richardson <erichardson@sarofim.com>@ENRON Friday, October 12, 2001 11:14 AM To: Lenhart, Matthew Subject: RE: i did i got up and when i came back you were sleeping happily in middle the i had to go sleep on the couch. you are going to have to be more considerate when 3 people are in the bed. -----Original From: Matthew.Lenhart@enron.com [mailto:Matthew.Lenhart@enron.com] Sent: October 12, 2001 11:03 AM erichardson@sarofim.com RE: i on edge. kept tugging on covers and tried to spoon with me. its cool though. -----Original Message----- From: Erin Richardson <erichardson@sarofim.com> @ENRON Friday, October 10:55 AM Lenhart, Subject: whatever, you were the whole entire bed last night for me to fall asleep. -----Original Message----- From: [mailto:Matthew.Lenhart@enron.com] Sent: October 12, 2001 10:47 AM To: Subject: RE: stay at your place even though are a

enron.com
      [mailto:Matthew.LenhArt@enron.coM]
               Sent: friDay, ocTobeR 12, 2001 11:23 AM
               TO: erichardson@saROfim.Com
               Subject: RE:

               i will.  i will Sleep In THe miDDlE.  sat iS going tO Be THE
      beSt
         DaY
            of
               My
               LIfE.

                   -----OrigInaL MessagE-----
                  From:   Erin RIchArDson <erichardSOn@Sarofim.com>@eNRoN
                  Sent:   Friday, octOber 12, 2001 11:14 AM
                  to:     lenHArt, MaTthEw
                  SubJect:  RE:

                  I Did not.  I got up and WhEN i came BAck you wERE
   sLeepIng
            happily
               in
                  the
                  miDDlE Of the bed.  i almosT had to Go SLeEP On tHe
   cOuch.
      you
            are
                  GoIng to
                  HAve to be MOrE CONsiDErate sat. when 3 pEople are in tHE
      beD.

                  -----OrigiNaL MeSSage-----
                  FrOm: MatThEW.LeNhart@enron.cOm
         [maIlto:MatthEw.LenhARt@enron.COm]
                  Sent: FRiday, OCtoBer 12, 2001 11:03 aM
                  To: ERiChArdSoN@SarOFiM.coM
                  subJect: RE:

                  i sLePt On the Edge.  YOU KEpt tUggIng oN the cOvers and
      tried
         To
               sPoon
                  WIth Me.  its Cool tHougH.

                      -----ORiginAl MessAge-----
                     FrOm:   erin Richardson <eRichArdson@sarOfiM.cOm>
   @EnRoN
                     SenT:   friday, octObeR 12, 2001 10:55 AM
                     To:     LeNhart, MaTTheW
                     SUBJEcT:  RE:

                     whatever, you were TaKINg Up the whoLe entiRE bEd LAst
      night
               MaKinG
                  it
                     iMPOssibLe foR Me To fall asLeep.

                     -----OrIGiNaL MessagE-----
                     FRom: MatThEw.LEnhArt@enROn.coM
            [mailtO:Matthew.lenhaRT@enron.com]
                     Sent: FRIday, October 12, 2001 10:47 AM
                     tO: eRIChARdsoN@saRofim.com
                     SubJect: re:

                     staY at yOUr PlaCE even ThougH yOU aRE a

enron.com
      [mailto:Ma tthew.Lenh art@e nro n.c om ]
             Sent: Frid ay, October 12, 2001 1 1:23AM            To:e ri c h ard so n@ sar of i m. com
            Subjec t:RE :

            i will . i will sleep  in  the m id dle .   sat  is  goin g to b e  the
     best
     day
       of
             m y
              life .              - -- --Ori g inal Me s sa g e - --- -
                 From:   E rin Ri ch ard s on <er ichar ds o n@s arofim.com> @ENR ON
               Se n t:   Fr iday,Oct obe r 12 ,  2 00 1 1 1: 1 4 A M
            To :    Len h a r t , Ma tth ew
                S ubj ect:  RE :

             i didnot. i  got up and whe n icame back  yo uwer e   sl e eping          h appily        in
             the
            middl eoftheb e d.  i  alm o st  had togo sle e pon  the
  c ouch.    yo u
         ar e
               going to              ha v e to  be  more consi dera t e sa t. w h en  3p eople  arein th e
      bed.

               - ----OriginalMessage--- - -              From: Matthe w.Len hart@enron . com
       [mailto: Matthew.L e n hart@enr on. com ]
             Sen t :  Fri da y, Octo ber  12, 20 0111: 03AM                T o:  e ri ch ard son@s a rofim.co m             Su bject : RE :
           isl ep t on  th eedge.   yo u  ke pt tugg ing on th e c o vers  a nd
     tried
       to
            spo o n
                 with me.  it s  cool t hou gh.
                  --- - -Origi nal Me ssage -- ---               From :   E rin R ic hard son <er ichardson@sarofim. c om>
   @ENRON
           Se nt :   F r iday, October 1 2, 2001 10 :5 5  A M
                To:    Lenh a rt, Mat thew
               Sub ject:  RE:

                 w ha tever , y ou wer etak ing u p thew hol e ent ire be dlast
    ni ght
              making
               i t
                 im poss ible for m e t o f all a sle e p.

             - ----Origi n al  Me s s ag e-----
             From : Ma tthew.Lenhart@enr o n.com
          [ m ail to: M atth ew .Lenhart@enron .co m]                   S ent: Fri da y , Oct ober 1 2, 200 1 10:47 A M                 To : e ri c hardson @s ar o fim.co m
               S u bject: RE:

              sta yat your plac e even tho ugh you are  a

enron.com
 _ _  [mailto:Matthew.Lenhart@enron.com]
 _ __ __  _  _ Sent: Friday, October_12, 2001 11:23_AM
_             _To:_erichardson@sarofim.com
 ___    _    _ Subject:_RE:

       __  _   i will.  i will sleep_in the middle.  sat is_going to be_the
__   _best
     _   day
  _      _  of
   _    _ _    my
_  _ _  _     _life.

  _     __  ___ _  -----Original_Message-----
_ __     __      _From:   Erin_Richardson_<erichardson@sarofim.com>@ENRON
   _    _     _ _ Sent:_  Friday, October 12, 2001 11:14 AM
   _     _   _ __ To: __ _Lenhart, Matthew
     _ _     _   _Subject:_ RE:

    _     _    ___i did not.  i_got up and when i came_back you were
_  sleeping
    __     _happily
_     ___    _ in
    _        _  _ the
   ___         _ _middle of the_bed.  i almost had to go sleep on the
_  couch.
    _ you
         _  are
     _      _   __going to
     ____  _  _  _have to_be more considerate_sat. when_3 people are_in_the
      bed.

           _     _-----Original Message-----
   __  _   _      From: Matthew.Lenhart@enron.com
_        [mailto:Matthew.Lenhart@enron.com]
__ _   _ _ _  _ _ Sent:_Friday, October_12, 2001 11:03 AM
   __        ____ To: erichardson@sarofim.com
_  _  _  __     _ Subject: RE:

_   _         _   i slept on the edge.  you kept tugging on the covers and
 _ _  tried
 _ __    to
 _ _       __  spoon
         ___  __  with me.  its_cool_though.

___     _      __    _-----Original Message-----
__   _   _          _From:_ _Erin_Richardson_<erichardson@sarofim.com>
_  @ENRON
 _              __   Sent: _ Friday, October 12, 2001 10:55_AM
_   _       _    _   To:_    Lenhart, Matthew
               _    _Subject:  RE:

  _  __  _   _       whatever,_you were taking up the whole entire bed last
      night
   _      _  _ making
_        _        it
  _             __   impossible for me_to fall asleep.

   _   _   __  _ _   -----Original_Message-----
   _       _  _      From: Matthew.Lenhart@enron.com
   _        [mailto:Matthew.Lenhart@enron.com]
            _  __    Sent: Friday, October 12, 2001 10:47 AM
 _ _        _       _To:_erichardson@sarofim.com
_   __    _   _ _    Subject: RE:

 _ _   _    _     __ stay at your place even_though you_are_a


 businesses. No
additional days of unhealthy ozone would occur, said Steven Moore, senior
engineer for the county air district.
But natural gas is expected to be in short supply, partly because several
smaller plants that require gas are expected to begin operating in San Diego
County this summer.
When gas is cut off to Cabrillo, it must switch to burning more polluting
fuel oil.
"If they burn fuel oil, it will be a different story. There will be
significant ozone increases," Moore said.
------------------------------------------------------------------------------
---

State may have claim on further overbilling

Leaders fault FERC, call for tougher action
By Craig D. Rose
UNION-TRIBUNE STAFF WRITER
March 17, 2001
Federal energy regulators said again yesterday that California may have paid
too much for power, this time citing some $55 million in possible overcharges
during February that could be subject to refund.
But like last week -- when the Federal Energy Regulatory Commission found
possible January overcharges of $69 million -- a broad spectrum of state
leaders said the new refund is a pittance compared with the billions of
dollars that power companies are extracting from the state each month for
electricity.
The January electricity bill for San Diego Gas and Electric and the state's
two other major utilities was $5.2 billion. February's total is expected to
be higher.
Federal regulators said yesterday that they notified six electricity
suppliers that sales exceeding $430 per megawatt-hour during Stage 3 alerts
-- emergencies called when power reserves are nearly exhausted -- would be
subject to refunds, unless the suppliers can justify the sale prices on the
basis of costs.
A FERC official said whatever refunds were ordered would probably be in the
form of credits to utility companies, used to offset other power purchases.
Houston-based Dynegy faces the largest possible payment, with a potential
liability of $23 million for the month. A spokesman said the company was
still studying the FERC finding, which was issued yesterday.
"What we have said all along is that, given the market conditions, the prices
we have charged will be found to be just and reasonable," said Dyne

businesses. No
 additional days of unhealthy ozone would happen, say Steven Moore, senior
 engineer for the county air district.
 But lifelike gas is expect to be in short provision, partly because several
 smaller plant that require gas are expect to begin operating in San Diego
 County this summer.
 When flatulence is ignore off to Cabrillo, it must switch to burning more polluting
 fuel oil.
 " If they burn fuel oil, it will be a unlike story. There will be
 significant ozone increases, " Moore allege.
 ------------------------------------------------------------------------------
 ---

 State may have claim on further overbilling

 leadership fault FERC, name for tougher action
 By Craig D. Rose
 UNION - TRIBUNE STAFF WRITER
 March 17, 2001
 Federal energy regulators said again yesterday that California may have give
 too much for power, this time citing some $ 55 million in possible overcharge
 during February that could be capable to refund.
 But like concluding week -- when the Federal Energy Regulatory Commission found
 possible January overcharges of $ 69 million -- a broad spectrum of state
 drawing card say the new refund is a pittance compared with the billion of
 dollars that power companies are extracting from the department of state each month for
 electricity.
 The January electricity bill for San Diego Gas and Electric and the state's
 two other major utility was $ 5.2 billion. February's total is expected to
 be higher.
 Federal regulators said yesterday that they advise six electricity
 suppliers that sales exceeding $ 430 per megawatt - hour during Stage 3 alerts
 -- emergencies called when world power reserves are nearly exhausted -- would be
 subject to refunds, unless the suppliers can apologize the sale prices on the
 basis of costs.
 A FERC official say whatever refunds were ordered would probably be in the
 form of credit to utility companies, used to offset other ability purchases.
 Houston - establish Dynegy faces the bombastic possible payment, with a likely
 liability of $ 23 million for the month. A spokesman said the company was
 still studying the FERC finding, which was issued yesterday.
 " What we have said all along is that, given the market conditions, the monetary value
 we have charged will be found to be merely and reasonable, " said Dyne

 budinesses. No
additional dxys of unhealthi izone xould odcur, saia Steven Moore, senior
enginexr fir tht county air distrizt.
But nanural gas is txpected to be in short sm'ply, lwrtlv uecause several
smaller pnants that reqgife gas are expected to begin operatind in Sam Fiego
County tris xtmmed.
When gas is cut off to Cabrillo, jt must switch to butning more polluting
fuel lil.
"Lf they burn fuel lil, it will be w different sgory. There will be
sighificant ozone increases," Moore raid.
------------------------------------------------------------------------------
---

Scate may hace clwhm on furthxr ovegbilling

Leadcgs fauld FERC, vall for toughcr acvion
Vy Craig D. Rose
UNION-VRIBUNE STAFF WRITER
March 17, 2001
Xeberal energy regulatoes said agahn ydwtefdag vhaf Calivoriia may havs paid
too nuch for power, this tyne citing soms $55 miljijn in possible overcharges
during Februdry that could be subject ro refund.
But like ladt week -- rhen the Federal Energy Regulatory Commission foutd
poariboe Gqnkary overcharges of $69 million -- a broad spectrui og xtate
leaders faid the nee gegond is a pittavce compaded with the billilns of
qollaes that pjwer companies are extracting feom the statv eaxh month for
electxicity.
The Jcnuary elecyricity bill for San Dizgo Gaa and Electgic and tgd state's
two othdr kabor utilities was $5.2 billion. February'w tocal is ebpecjed to
fe higher.
Vederal regulators said jestetday tvat they nltified six electricity
suppliecx that sales efcevding $430 pex megaeatt-hour durigg Stage 3 alerjs
-- emergzncies called whvn power ceserves are nearly exhauvjed -- would be
subject to eefubds, unldrs the suppliets can justify the wale prices on the
barjs of costs.
A FZXC official said ehagevqr rxfundf were ordereg wojld lrobacly be in tme
worm of credits to utilidy ckmpanies, used to ogffet othet power ptrchases.
Housyon-based Dynegy fafes tie larjest ppssyble payment, with a potential
miability of $23 million fow thc mogth. A spokzsman said the company was
still studyinj the FERC finding, whicy was issued yesterban.
"What we hate saiq all alotg is that, given the market conditionx, the prices
we have dhargeg wilp be found to be just and reasonable," said Dyne

businesses. No additional days of unhealthy ozone said Moore, senior for the county is to be in supply, partly because smaller plants that require gas are to begin operating in San Diego County this summer. When gas is cut to Cabrillo, it must switch to burning more polluting fuel oil. "If they fuel it be different story. There will be significant ozone increases," Moore said. ------------------------------------------------------------------------------ --- State may have claim further overbilling Leaders fault FERC, call for tougher By Craig D. Rose STAFF WRITER March 17, 2001 energy said again that may paid too much power, this time citing some $55 million in possible overcharges during February that could be subject to But like -- when Federal Regulatory found possible January $69 million -- a broad spectrum said the new refund is a pittance compared the billions dollars that power companies are extracting the state each month for electricity. The January bill for San Diego Gas and Electric and the state's two other major utilities was February's total is expected be higher. Federal said that notified electricity suppliers sales exceeding $430 per megawatt-hour during Stage 3 alerts -- emergencies when power reserves are nearly exhausted -- would be subject unless suppliers can justify sale prices on the of A FERC official said were would the of to utility companies, used offset other power purchases. Houston-based faces the largest possible of $23 million for the month. A spokesman the company was still studying the FERC which was issued yesterday. "What we have said all along is that, the market prices we have charged will be found to just and reasonable," said

 businesses. No
additional dayS of unhealtHy ozoNe wOulD oCcur, Said steven Moore, senIOr
enGineer for the county air dIstriCt.
bUt naTUrAl gas Is expecTEd TO Be iN sHoRt sUpPLy, PartlY beCause seVeral
smallEr pLaNts that requiRE gAs are expecTed To begin operaTinG in San diEgo
cOunty ThiS summEr.
When GAs is cuT off to CabRiLLo, it muST switch TO BuRninG more polluting
fueL OiL.
"if they burn fuel Oil, it wIlL Be A DIffEreNt story. TheRe Will bE
SignifiCAnT OZOne INcreases," Moore Said.
------------------------------------------------------------------------------
---

State maY HavE claim On FurTHer oveRbillInG

leaDers fault FErC, caLl for tougHer actIOn
By CraIG D. Rose
UnION-TRiBUnE StAFF wrItEr
MaRcH 17, 2001
fedERaL enERgy RegulatoRs SaId agaIn yeSTERDay tHat caliForniA may have paid
tOo mUch fOR poWer, thIs timE citInG some $55 MillioN in poSsIble overcharges
DuriNg FebruarY thAt CouLd Be subJEct to rEfuNd.
BUt like lAst week -- WHen ThE fEDeRal Energy RegulatorY COMMiSsion fouNd
possIBlE JANuary oveRcHarGes oF $69 MIllioN -- a brOAd Spectrum Of statE
LeAdErs said ThE new reFuNd iS a pIttanCE comPared wIth the biLlionS Of
dollars that pOWer companies aRE eXTRaCTing FroM the state eaCh moNTh foR
eleCTrIciTY.
The JAnuarY eLEcTRicity bill for San DieGo gas and electRic and the statE's
two other MAJOr utilitIes wAS $5.2 bILlion. February's Total Is expected TO
be higheR.
FedeRal regulAtors said YESterday tHat TheY noTifIED sIx electricity
SUPpliErS that saLes ExceediNg $430 pEr mEgaWatT-hOur during stage 3 aleRtS
-- eMeRgEncIes caLLed when pOwEr rEsErvEs are NEarly eXhausTed -- wOuLd BE
suBject to REfUNDs, unLeSs The sUppLiErs caN jusTIfy The sale Prices on tHe
bASis oF cOsTs.
A FERC Official said wHaTever refunDs WerE orderED Would proBably be in the
form of crediTS to utilIty CompaNies, Used to offSet Other pOweR PurchaSes.
HouSton-bAsEd DYNEgy faCES tHe lArGest possibLE PayMent, wItH a poTential
Liability of $23 million FOr tHe month. A spokeSmaN saiD THe ComPAnY Was
StILl sTUDying the FERC finDing, which wAs ISsUed yesterdAY.
"WhAt We have sAid all aLong iS That, givEn the markEt conditiOnS, the PRIceS
we have chaRged will Be found to BE just ANd ReasoNabLe," said dyNe

 businesses. No
additiona l days ofunhea lth y o zo ne w ould  occur, said S t even  Moore, senior
engine er fo rt he c o un ty ai r distr i ct .
Bu tna tur al ga s isexp ected t o be in sh ort  s upply, partl y  b ecause sev era l
smaller p lan ts tha treq u ire g asare e xpecte d  to be gin opera ti n g in S a n Diego Co unty  this summer.
Wh e ng as is cut offto Cab ri l lo , itmus t switch t oburni n g morep ol l u t ing
fuel oil.
" If they bur n  fu el oil ,itw ill be  a di ff e ren t story. Th erewill be signif i cant oz o ne incr eases, " M oor e sa i d.
- --- -- - --- - -- --- - --- -------- -- -- ----- ---- - - - - ---- --- ---- ----- ------------- --- -
-- -

S tatemay h avecl aim o n furt her o ve rbilling

Le ader s fault F ERC ,cal lfor t o ugheract ion
By Cra ig D. R o se
U N I O N- TRIBUNE STAFF WRIT ER Ma rch 17,2001 F ed er a l energy  r egu lato r s  said  aga i nyesterda y that Ca li forniama y have  p aid
t oo mu c h fo r powe r, thistimec iting some $55 million in po s si b l eo verc har ges
during  Feb r uary  tha t  c oul d  be s ubjec tt or efund.
But like la st  week-- wh en the Federa l Energy R e g u latory C ommi s si o n found
possi ble J anuary ove r chargesof $6 9 millio n -- a br o a d spectr umofsta tel ea ders said the n ew r ef und isa p ittance  co mpa red  wi th  the bill ions of
d ol la rs  th at po w er compa ni esar e e xtrac t ing fr om th e st at ee ach  monthf or elec tr ic ity.
T he  Janu arye lec tricity  bill for  Sa n  Die go  G as andElectric andth e state's
t wootherm a jor util ities was $5.2 billion. Februar y's  tota l is  expected  to
be h igh e r.
Fe deralregul at ors s aid y e s te rda ythat theyn o tif ied s ix  ele ctricit y
suppliers thats ale s exceeding $ 430  per m eg awa t t- h our  d u rin g Stage 3 alerts
-- emerge nc i es  called wh e n p ow er rese rves ar e nea r ly exha usted --would be
s ubje c t  to  refunds,unless t he suppli e rs ca n  j ustif y t he sal epri ces o n thebas is of  costs .
A FER C off ic ial said  whatever refunds wereordere d wou ldprobablybei n t he
formof c redits touti lit y com pan i es, u sedt ooff s et ot herp ower purc h as es. Ho uston-based D y neg y fac est he lar gest  possible payment ,  with a potent iall iab ili t y of  $ 23 million for  th em o nth. A s po kesman said  the com pa n y was
stil l stud ying th e FE R C find ing,  wh ich was i ssu ed yesterd ay ."Whatwe h av e said  all a l ongi s  that, given the  mark e t  cond i tio ns, t he  prices
wehave charg ed will befoundto b e jus t and r ea sonabl e,"  s aid Dyne

 businesses._No
additional_days of unhealthy ozone_would occur,_said_Steven Moore,_senior_
engineer for the_county air district._
But natural gas is_expected to be_in_short supply, partly because several
smaller plants that require gas are expected to begin_operating_in San_Diego_
County_this summer.
When gas is_cut off to Cabrillo, it_must switch_to burning more polluting
fuel oil.
"If they_burn_fuel oil, it_will be a different story. There will be
significant_ozone increases," Moore said.
------------------------------------------------------------------------------
---

State may have_claim on further_overbilling_

Leaders_fault FERC, call for_tougher action
By Craig D. Rose
UNION-TRIBUNE_STAFF WRITER
March 17, 2001
Federal_energy regulators said again yesterday that California_may have paid
too much for_power, this time citing some_$55 million_in possible overcharges
during February_that could be_subject to_refund.
But like_last week -- when the Federal_Energy Regulatory Commission_found
possible January overcharges of $69_million_-- a broad_spectrum_of_state
leaders_said the new_refund_is a_pittance_compared with the billions of
dollars_that_power companies are extracting from the state_each month for
electricity._
The_January electricity bill for_San Diego Gas and Electric_and the state's
two other major_utilities was_$5.2 billion._February's total is expected to
be higher.
Federal regulators said yesterday_that they notified six electricity
suppliers_that sales exceeding $430_per megawatt-hour_during_Stage 3 alerts_
--_emergencies called_when power reserves are nearly exhausted --_would be_
subject to refunds, unless the suppliers_can justify the sale_prices_on the
basis of costs.
A_FERC official said whatever refunds were_ordered would probably be in_the_
form_of credits to utility companies,_used to offset other power purchases._
Houston-based Dynegy faces_the largest possible payment, with a potential_
liability_of $23 million for the month._A_spokesman said the company was
still_studying_the_FERC finding, which was issued_yesterday.
"What we have said all_along is that, given the market conditions, the prices_
we have charged_will be found to be_just_and_reasonable," said Dyne


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power report readers in Las Vegas at CRISIS AND OPPORTUNITY:  POWER MARKETS
2001.  March 15-16, 2001.   For brochure, download:

http://www.pmaconference.com/0103Agenda.pdf

**********************************************************************

DISTRIBUTED GENERATION

an Energy Info Source Report

* The Key Technologies being used or planned for DG
* The Uses  of DG from utility, energy service provider, and customer
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* The Economics  of DG and its Market Potential
* The Benefits of DG
* The Barriers  that exist to implementing DG
* The Participants  involved in the DG industry
* The state of Current Regulatory Activities and Rulings affecting the
implementation of DG

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************************************************************************

--------------------T O P S T O R I E S--------------------

Top Stories (February 22)

CALIFORNIA GOVERNOR, UTILITIES EXPECTED TO MEET WEDNESDAY ON RESCUE PLAN
California Gov. Gray Davis is expected to meet Wednesday night with
executives of the state's three investor-owned utilities to negotiate a deal

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 never be charged.

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 floor.

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 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

     CRISIS AND OPPORTUNITY:   POWER MARKETS 2001
      March 15 - 16, 2001 Aladdin Hotel Las Vegas

                             and

          FUNDAMENTALS OF POWER MARKETING
         Preconference Seminar March 14, 2001

 http://www.pmaconference.com/0103Agenda.pdf

 Early - boo specials extended till February 27! !!   The Aladdin Hotel has
 harmonize to strain its special room rates one more week, till February 27, for
 attendees of Power Markets 2001.   PMA is hold its early payment discount
 till the like date!

 Take this opportunity to meet some of the tens of thousands of your fellow
 power report readers in Las Vegas at CRISIS AND OPPORTUNITY:   POWER MARKETS
 2001.   March 15 - 16, 2001.    For booklet, download:

 http://www.pmaconference.com/0103Agenda.pdf

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 DISTRIBUTED GENERATION

 an Energy Info Source Report

 * The Key Technologies being used or planned for DG
 * The function   of DG from utility, energy overhaul provider, and customer
 point of view
 * The Economics   of DG and its Market Potential
 * The Benefits of DG
 * The Barriers   that exist to implementing DG
 * The Participants   involved in the DG industry
 * The department of state of Current Regulatory Activities and Rulings affecting the
 implementation of DG

 Only $ 999.    For additional information, download:
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 --------------------T O P S T O R I E S--------------------

 Top Stories (February 22)

 CALIFORNIA GOVERNOR, UTILITIES EXPECTED TO MEET WEDNESDAY ON RESCUE PLAN
 California Gov. Gray Davis is expected to meet Wednesday night with
 executives of the state of matter's three investor - owned utilities to negociate a softwood

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    CRISIS DND OPPORTUNITF:  PLWER MARKETS 2001
     March 15-16, 2001 Aladdin Hjtel Lax Gegas

                            and

         FUNDAMENTALS OF POWTR MARKETING
        Preconference Seminar Magch 14, 2001

http://www.pmaconferejce.com/0103Agendq.pdf

Qqrly-bird spezials extended till Fegruary 27!!!  The Aladdin Hotel has
xgreeb to extend irs dkecial room cates jne more week, till Fabruary 27, for
attendeex oh Poqer Markets 2001.  PMA is iolding its early paiment discmuut
till the same date!

Raje thhs o[porgynigy uo kest somf oh the tens kf thousandw of your fellow
poeew report readeds in Jaf Vegas at CRISIS AND OPPORTUNITY:  POWEG MADKETS
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* The Key Technologies being used or planned skr DN
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--------------------V O P S T O R I E V--------------------

Top Stoxies (Fcbruary 22)

CALIFORGIA GOVERNOR, UJILITIES ZXPECTDD TO MEET WEDNESVAY ON RESCUQ PLAN
Califortla Gov. Gray Vavis is qxpexted to meeg Wednesday nignt with
eqeeutives od the state's three inxsstor-owned utilnuiew to negotiate s ddal

you will never be charged. You may e-mail change. You not redistribute stories. subscription, your browser to: ************************************************************************ CRISIS AND POWER MARKETS 2001 March 15-16, 2001 Hotel Las Vegas and FUNDAMENTALS OF POWER MARKETING Preconference Seminar March 14, 2001 Early-bird specials extended till February 27!!! The Aladdin Hotel has agreed to extend special rates more till February 27, for attendees of Power Markets 2001. PMA is holding its early payment discount the same date! Take this opportunity to meet of the tens of of your fellow power report in Vegas at AND POWER 2001. March 15-16, For brochure, download: http://www.pmaconference.com/0103Agenda.pdf ********************************************************************** DISTRIBUTED GENERATION an Energy Info Source Report * The Key Technologies being or planned * The of from energy service provider, viewpoints * The Economics of DG Potential * The Benefits of DG * The that exist implementing DG * The Participants involved the DG industry * The state of Current Activities and Rulings affecting the implementation of DG Only $999. For additional information, download: http://www.pmaconference.com/distgen.pdf O P S T R I E Top (February CALIFORNIA UTILITIES EXPECTED MEET WEDNESDAY ON RESCUE PLAN California Gov. Gray Davis is expected meet Wednesday night with executives of the state's three investor-owned negotiate deal

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    CrIsIS AND OPPORTunItY:  POWER MARkETs 2001
     March 15-16, 2001 AladdiN HoTel Las veGas

                            ANd

         FUNdAMeNTALs OF POWer MARKEtING
        PrecoNfERence SEMinar MaRCH 14, 2001

hTtp://wWw.pmaconference.coM/0103agENda.pdf

Early-birD speciAlS ExTENdeD tiLl February 27!!!  thE AladDIn Hotel HAs
AGREed TO extend its speCial room ratES onE more wEeK, tiLL FebruAry 27, foR
aTTenDees of Power markEts 2001.  PMA is hOlding ITs early PAyment dIscounT
tiLl tHe saME dAtE!

TaKe THis OPpOrtUNitY to meet sOmE oF the tEns oF THOUsanDs oF youR fellOw
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2001.  March 15-16, 2001.   For bRochUre, downloAd:

hTtP://wwW.pMaconFErence.Com/0103ageNda.pdf

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************************************************************************

--------------------T O P S T O R i e s--------------------

Top stOries (FeBruAry 22)

CALIfORnIA gOVeRNoR, uTILITIES eXPECTED tO mEeT wEdNEsDAY On rESCUE PLaN
calIfOrnIa Gov. gRay DavIs is eXpecTeD tO MeeT WednesDAy NIGht wItH
eXecuTivEs Of the StatE'S thRee inveStor-owned UtiLItieS tO nEgotiatE a deal

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never be charge d.

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http://www. r et ailenergy. com /pma/dprreg. htm

**** ** *** * ***** *** ***** ****** * ****** ********* ** * ****** * ******* * * ** **** **

    CRISIS AN D  O P PORTUNITY:  PO WER MA RK E TS 2 001
    March 1 5- 16, 2 0 01 Alad d in H o tel Las Vegas

                     a nd

      F UND AMENTALS OF  POW ER MARKET ING
      Pr e confere nce Se min arMarc h  1 4,  20 01
ht t p: //w w w.p maconfer en ce .com/ 0103 A g e n da.p df
Ear ly-bi rd specials e xte nded til l Feb ruary  27! !!   The  Aladd in Ho te l has
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*The  Barr iers   that ex ist  to im ple m enting  DG
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- ------ ----- -- ------TO P S T O R I E S------ ------ ----- ---

Top Sto rie s  (F ebruary 2 2)
CALIFORNIA  GO VER NOR,UTI L ITIES  EXP E CT EDT O MEE T WE D NESDAY ON RE SCU E PL AN
Californ i a Gov . Gra y D a vis is  exp ected to meet Wed n esday night wi th e x ecu tiv e s of  t he state's thr eein v e stor-own ed  utilitiesto negot ia t e a d eal

 you_will
never_be charged.

You may redistribute_this e-mail_without_change. You_may_not redistribute
stories.

To_register for a_free subscription, point your_browser to:
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************************************************************************

__  CRISIS AND OPPORTUNITY:  POWER MARKETS 2001
     March_15-16,_2001 Aladdin_Hotel_Las_Vegas

    _    _ _       __  _    and

    _    FUNDAMENTALS OF_POWER MARKETING
 ___   _Preconference Seminar March 14, 2001

http://www.pmaconference.com/0103Agenda.pdf

Early-bird specials_extended till February 27!!!  The_Aladdin Hotel has
agreed to extend its_special room rates one more week,_till February 27, for
attendees_of Power_Markets 2001.  PMA is_holding its early_payment discount_
till the same_date!

Take this opportunity to meet some_of the tens_of thousands of your fellow
power_report_readers in Las_Vegas_at_CRISIS AND_OPPORTUNITY:  POWER_MARKETS_
2001. _March_15-16, 2001.   For brochure,_download:

http://www.pmaconference.com/0103Agenda.pdf

**********************************************************************

DISTRIBUTED_GENERATION

an Energy Info Source Report

* The Key_Technologies being used or_planned_for DG
* The Uses_ of DG from utility,_energy service provider, and customer
viewpoints
*_The Economics_ of_DG and its Market Potential
* The Benefits of DG
* The Barriers_ that exist to implementing DG
*_The Participants  involved_in the_DG_industry
* The state_of_Current Regulatory_Activities and Rulings affecting the
implementation of_DG

Only $999._  For additional information, download:
http://www.pmaconference.com/distgen.pdf

************************************************************************

--------------------T_O P S T_O_R I E S--------------------

Top Stories (February_22)

CALIFORNIA GOVERNOR, UTILITIES EXPECTED TO MEET_WEDNESDAY ON RESCUE PLAN
California Gov._Gray_Davis_is expected to meet Wednesday_night with
executives of the state's_three investor-owned utilities_to negotiate a deal