gy
spokesman Steve Stengel.
A spokeswoman for Williams Energy Services Corp., which faces possible refund
payments of $22 million, said the Tulsa-based company was unsure whether the
price level set by FERC was adequate for recovering all the costs associated
with producing power.
Other suppliers facing possible refunds are Duke Energy, Portland General
Electric Co., Reliant Energy and Mirant, formerly a unit of Southern Co.
Under federal law, regulators must assure that wholesale power prices remain
"just and reasonable." Despite repeated pleas from state leaders to cap
prices, FERC allowed prices in California's deregulated power market to soar
from $40 per megawatt-hour last spring to 10 times that level in recent
months.
The costs have created a state crisis of monumental proportion, leading Gov.
Gray Davis and state lawmakers to plan a repair package that is expected to
include more than $20 billion in state borrowing and possibly rate increases
for consumers. The state is buying electricity on behalf of the utilities.
Last week, FERC said it would order refunds for all Stage 3 sales above $273
per megawatt-hour in January, unless generators can justify their prices. The
federal commission said it allowed a higher threshold for February because of
increased costs for natural gas, the primary fuel for producing electricity.
But consumer groups said the $430 cutoff for possible power refunds belied
FERC's insistence that it's policing the deregulated market. For an SDG&E
customer using 500 kilowatt hours monthly, for example, a $430 per
megawatt-hour charge would translate to an electricity bill of $250.
"What I see is that FERC wants to present the appearance that it is
disciplining the market, but what they are doing is coddling," said Michael
Shames, executive director of the Utility Consumers' Action Network.
"If I were a power generator, I would be thrilled."
Harvey Rosenfield, president of the Foundation for Taxpayer & Consumer Rights
in Santa Monica, criticized the FERC refund finding as "laughable."
"In attempting to protect energy generators against greater retribution, FERC
has acknowledged that deregulation has failed, that

gy
 spokesman Steve Stengel.
 A spokeswoman for Williams Energy Services Corp., which faces possible refund
 payments of $ 22 million, said the Tulsa - free-base ship's company was unsure whether the
 price level determine by FERC was adequate for recovering all the costs associate
 with producing power.
 early supplier facing possible refund are Duke Energy, Portland General
 Electric Co., Reliant Energy and Mirant, formerly a unit of Southern Co.
 Under federal jurisprudence, regulators must assure that wholesale power prices stay
 " just and reasonable. " Despite repeated plea from state leaders to cap
 prices, FERC let prices in California's deregulated power market to soar
 from $ 40 per megawatt - hour final spring to 10 times that level in recent
 months.
 The costs have created a state crisis of monumental proportion, leading Gov.
 Gray Davis and state lawmakers to plan a repair package that is expected to
 admit more than $ 20 billion in state of matter borrowing and possibly rate increases
 for consumer. The department of state is buy electricity on behalf of the utilities.
 Last week, FERC said it would order refunds for all Stage 3 sale above $ 273
 per megawatt - hour in January, unless generators can justify their prices. The
 federal commission suppose it allowed a higher threshold for February because of
 increased costs for natural gasoline, the primary fuel for producing electricity.
 But consumer groups said the $ 430 cutoff for potential power refunds belied
 FERC's insistence that it's policing the deregulated market. For an SDG&E
 customer using 500 kilowatt hours monthly, for example, a $ 430 per
 megawatt - hour bang would translate to an electricity poster of $ 250.
 " What I see is that FERC wants to salute the appearance that it is
 disciplining the grocery store, but what they are doing is pamper, " said Michael
 Shames, executive conductor of the Utility Consumers' Action Network.
 " If I were a power generator, I would be thrilled. "
 Harvey Rosenfield, president of the Foundation for Taxpayer & Consumer Rights
 in Santa Monica, criticized the FERC refund finding as " amusing. "
 " In attempting to protect energy generators against greater retribution, FERC
 has acknowledged that deregulation has failed, that

gy
dpokesman Steve Stengel.
X spokeswoman for Willmams Ensrgy Serxices Corp., which faces possiule eefune
payments of $22 million, said the Tulsa-bawed rompany was unsucs whethcx the
irice oevel set by FGRC was adeqgate for recovarkny all the costs associated
with prodtcing ppwfr.
Other supplyers sacihg possible refunds are Duke Energg, Portlend General
Elevtric Co., Reliant Energy anf Migant, formerly a unlt of Southgdn Si.
Under fedefal law, regulators musj assure that wholesale power prkces xemain
"just abd ggasonable." Dewpite repeated plcss frok state leaders to cai
prires, DERC allowed prices ii California's deregujated powar market to soar
feon $40 pet megdwatg-youf lzsv slring ho 10 times thaf level in eecent
months.
The cpsew have creates a stwtq crisis of monumental proportion, leaditg Fov.
Gray Davis and statw lawmakers to plan a repair pwckage that is expected to
include more than $20 bilnion mn stcbc bofeoaing and possibly rate increases
for consumerf. Tne state is buyikg electricity on nejaks of the utilkties.
Lasf week, FERC said ih would ordee refunds for all Stage 3 sales above $273
pee megawatt-holr ib January, unless gznerators cau justofy tneir prices. The
federal comjission saif it allosdd a higher threrhokd for February because of
igcreased rosts for nagurak gas, ehe primarj fuel for producing eleftricnty.
Bgt consumeg groups said the $430 cutoff for possible power tefgndv belied
FERC'x insistence ehat it's policnng the bereguuated markvt. For an SDG&E
custoier using 500 kinlwatt hours konthly, sor wxample, a $430 odr
megawatt-hout charge cjuld translate to an ekecjrjcity bill of $250.
"Ckau U see is that GERZ wwnns vo prqvent the appaaravce yhat kt is
disciiliving the market, but what theg are doing is codcllng," said Nichael
Fhames, executove director of tht Utilmty Coisumerx' Astion Network.
"If I were a powed generatlr, L would be thwillcd."
Hwrvey Roseufield, president of the Foundation for Texpayer & Consumer Righjs
in Santa Monica, crntlcized the FXRC resund findhng as "laughable."
"In qttempting to prouect energy generators zgainsd grewter retribution, FERC
has acknowledged that deregulation has failed, that

gy spokesman Steve Stengel. A spokeswoman for Services which faces refund payments of company unsure whether the level set by was adequate for recovering all the associated with producing power. Other suppliers facing possible refunds are Duke Energy, Portland Electric Co., Reliant Energy and Mirant, formerly a unit of Southern Co. Under law, must that power prices remain "just and reasonable." Despite repeated pleas from state leaders to cap prices, FERC prices in California's deregulated power market to soar $40 per megawatt-hour last to 10 times that level recent The costs created state of monumental proportion, Gov. Gray Davis and state lawmakers to plan a repair package that is expected to include more $20 billion borrowing and rate for The state is on behalf of the utilities. Last it would order refunds for all Stage 3 above $273 megawatt-hour in January, unless generators can their prices. The federal commission said it allowed higher threshold for February because of increased costs for natural gas, the primary fuel for But consumer groups said $430 cutoff for power belied insistence it's policing deregulated market. For an SDG&E customer using 500 kilowatt hours monthly, example, a $430 per megawatt-hour charge would translate to an of "What I see that FERC wants to the that it is disciplining but they coddling," Michael executive director of the Consumers' Action Network. "If I a power generator, I president of the Foundation for Taxpayer & Consumer in Santa Monica, criticized the FERC refund as "laughable." "In attempting to protect energy generators against greater retribution, FERC acknowledged that failed, that

gy
spokesman Steve Stengel.
A sPokeswoman For WiLliAms enErgy servIces Corp., which fACes pOssible refund
payments oF $22 millIoN, Said THe tulsa-Based coMPaNY Was UnSuRe wHeTHeR the
pRicE level sEt by FERC waS adEqUate for recovERiNg all the coSts Associated
wiTh pRoduciNg PowER.
OtheR suPplieRs faciNG possiBle refundS aRE Duke ENErgy, PorTLAnD GenEral
Electric Co., RelIAnT energy and MiranT, formeRlY A uNIT of souThern Co.
UndEr FederAL law, regULaTORS muST assure that whOlesale poweR PriCes remAiN
"juST and reAsonaBlE." desPite repeateD pleAs from staTe leadERs to cap
PRices, FErC alloWed PriCes iN caLiForNiA'S deREgUlaTEd pOwer markEt To Soar
fRom $40 pER MEGawaTt-hOur lAst spRing to 10 times thAt lEvel IN reCent
mOnths.
the cOsTs havE creatEd a stAtE crisis of monumeNtal ProportioN, leAdIng goV.
Gray dAvis anD stAte LawmakeRs to plaN A rePaIR PAcKage that is expected To
INClUde more tHan $20 bilLIoN iN State borRoWinG and POSsiblY ratE InCreases
fOr consUMeRs. the statE iS buyinG eLecTriCity oN BehaLf of thE utilitiEs.
LasT Week, FERC said it WOuld order refuNDs FOR aLL StaGe 3 sAles above $273
peR megAWatt-Hour IN JAnuARy, unlEss geNeRAtORs can justify their prIcEs. The
fEderaL commission saId it alloweD A HIgher thrEshoLD fOR February becauSe of
iNcreased coSTs for natUral gAs, the priMary fuel fOR ProducinG elEctRicIty.
bUT cOnsumer groups SAId thE $430 cUtoff foR poSsible pOweR reFunDs bElIed
FERC's iNsistencE tHaT iT's PolIcing THe dereguLaTed MaRkeT. For aN sDG&E
cuStomeR usiNg 500 KiLOwaTt hours MOnTHLy, foR eXaMple, A $430 peR
mEgawaTt-hoUR chArge wouLd translaTe tO An elEcTrIcity biLl of $250.
"What I see iS tHat FERC wanTs To pResent THE appearaNce that it is
disciplining THe markeT, buT what They Are doing iS coDdling," SaiD michaeL
ShameS, execUtIve DIRectoR OF tHe UTiLity ConsumERS' AcTion NEtWork.
"if I were A power generator, I woULd bE thrilled."
HarvEy ROsenFIElD, prESiDEnt Of THe FOUNdation for TaxpaYer & ConsumeR RIGhTs
in Santa MONicA, cRiticizEd the FErC refUNd findiNg as "laughAble."
"In attEmPtinG TO prOtect energY generatOrs againsT GreatER rEtribUtiOn, FERC
HaS acKnowlEdged tHAt dEreguLation HaS faileD, that

gy
spokesman Steve Stenge l.
A spok eswom anfor  W illi amsEnergy Service s  Cor p., which faces possib le re fu n d
p a ym entsof $22m il l i on,  s ai d t he Tu lsa-b ase d compa ny was uns ure  w hether the p ri ce level s etby FERC wasade quatefo r r e cover ing  allthe co s ts ass ociated wi t h prod u cing po w e r.
Ot her suppliers fac i ng possible refun ds are  D u ke E ner gy,  PortlandGe neral
Electr i cC o . , R e liant Energyand Mirant, for merlyauni t  of So uther nC o.
Under fede rallaw, regu lators must as s ure tha t whol esa lepowe r  p ri ces  r e mai n  "ju s t a nd reaso na bl e." D espi t e r epea ted  ple as fr om state lead ers  toc ap
pric es, F ERCal lowed  price s inCa lifornia's dere gula ted power  ma rk etto  soar
from$40  pe r megaw att-hou r  la st s p ri ng to 10 times tha tl e ve l in rec ent
m o nt hs .
The co st s h avec r eated  a s t at e crisis  of mo n um en tal pro po rtion,  l ead ing  Gov.
Gra y Davi s and st ate l a wmakers to pla n  a repair pac k ag e th a t is  ex pected to incl u de m oret ha n $ 2 0 bil lionin st a te borrowing and po ss ibly r ate i ncreases
for  consumers . T he state  isb uy i ng electricity  on b ehalf of t h e utilit ies.
Last we ek, FERCs a id it wo uld  or der  re f u nd s for all Sta g e  3 s al es abov e $ 273
pe r m ega wat t-h ou r in Janu ary, unl es sge ne rat ors c a n justif ythe ir  pr ices. The
f edera l co mm is s ion  said i t  a l l owed  a  h ighe r t hr eshol d fo r  Fe bruarybecause o f i ncre as ed  costsfor natural g as , the prim ar y f uel fo r producin g electricity.
But con s umer gr oup s sai d th e $430 cu tof f forpos s ible p ower r efund sbel i e d
FE R C 's  in si stence tha t it' s pol ic ingthe der egulated market. F o r a n SDG&E
cust ome r us i n g500 ki l owa tt hou r s  monthly, for e xample, a$4 3 0per
megaw a tt- ho ur char ge woul d tra n slate t o an elec tricity b il l of $ 250 .
"What I  see isthat FERC wants to  pres ent  the a pp ear ancethat i t  is
dis ciplin in g themarke t,  but wha t they are doing is cod dling, " sai d M ichael
S ham e s,executive  dir ector of t heUti lityCon s umers ' Ac t io n N e twork .
" I f I werea  p owe r ge nerator, Iw o u ldbe th ril l ed." Harv ey Rosenfield, pr e sident of theFoun d a tio n f o r Ta xp ayer & Consume r R ig h t s
in Sa nt a Monica, c riticize dt he FE RC ref und fi nding a s "l a ughabl e."
"I n attempt ing  t o  protec ten e rgy ge nera to rs aga inst g r eate r retribution, FER C
ha s ackno w led ged t ha t dereg u lati on has fai led, that

gy
spokesman_Steve Stengel._
A spokeswoman for Williams_Energy Services_Corp.,_which faces_possible_refund
payments of_$22 million, said_the Tulsa-based company was_unsure whether the_
price_level set by FERC was adequate for recovering all the costs associated
with producing_power._
Other suppliers_facing_possible_refunds are Duke Energy, Portland_General
Electric Co., Reliant Energy_and Mirant,_formerly a unit of Southern Co.
Under federal_law,_regulators must assure_that wholesale power prices remain
"just and reasonable." Despite_repeated pleas from state leaders to_cap
prices, FERC_allowed_prices_in California's deregulated power_market to soar
from $40 per_megawatt-hour last spring to 10 times_that level in recent
months.
The costs_have created a state crisis of_monumental proportion, leading Gov.
Gray_Davis and_state lawmakers to plan a_repair package that_is expected_to
include more_than $20 billion in state borrowing_and possibly rate_increases
for consumers. The state is_buying_electricity on behalf_of_the_utilities.
Last_week, FERC said_it_would order_refunds_for all Stage 3 sales above_$273_
per megawatt-hour in January, unless generators can_justify their prices. The_
federal_commission said it allowed_a higher threshold for February_because of
increased costs for natural_gas, the_primary fuel_for producing electricity.
But consumer groups said the $430 cutoff for_possible power refunds belied
FERC's insistence_that it's policing the_deregulated market._For_an SDG&E
customer_using_500 kilowatt_hours monthly, for example, a $430 per_
megawatt-hour charge_would translate to an electricity bill_of $250.
"What I_see_is that FERC wants to present_the appearance that it is
disciplining_the market, but what they_are_doing_is coddling," said Michael
Shames,_executive director of the Utility Consumers'_Action Network.
"If_I were a power generator, I would_be_thrilled."
Harvey Rosenfield, president of the_Foundation_for Taxpayer & Consumer Rights
in_Santa_Monica,_criticized the FERC refund finding_as "laughable."
"In attempting to protect_energy generators against greater retribution, FERC
has acknowledged that_deregulation has failed,_that


bill yesterday. She has no idea why, but she is not asking any questions.
"I'm relieved," Hearne said. "Everything we have is electric."
Bill Giacometti of Oakland's Montclair neighborhood, who was jubilant when he
learned in January he was exempt from the blackouts, faced the possibility of
being banished from Block 50. But the bill that arrived yesterday brought
good news -- he is still in, thanks to the fire station up the street.
"I'm elated, of course," Giacometti said. "I would say I don't need as
extensive an emergency plan."
But he said he is mainly relieved that he won't have to reset the clocks on
VCRs and other appliances.
"You have to run around putting everything back to normal -- and then nobody
remembers how to do it," Giacometti said.
PG&E divides blackout-eligible customers into 14 blocks in Northern and
Central California. To spread the inconvenience equally, every one of the
blocks takes its turn.
Residents in part of Block 9 are next in line to suffer through a power loss.
Blocks 1 through 8, as well as half of Block 9, were shut off either during
the blackouts in January or during a rolling blackout last June.
Each block contains about 200,000 customers.
The possibility of power shortages still looms as Gov. Gray Davis tries to
line up reliable supplies of electricity under long-term contracts.
Davis also is hoping to get Californians to conserve at least 10 percent of
energy usage as the weather heats up and air conditioners click on, and he is
hoping to get enough power plants online to add 5,000 megawatts to the grid.
Each megawatt can supply power for 1,000 homes.
E-mail Bernadette Tansey at btansey@sfchronicle.com.
------------------------------------------------------------------------------
-----------------------------------------------------------------------
PG&E's Service A Turnoff
A good customer put through hell
Ken Garcia
Saturday, March 17, 2001
,2001 San Francisco Chronicle
URL:
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/

bill yesterday. She has no idea why, but she is not asking any question.
 " I'm relieve, " Hearne said. " Everything we have is electric. "
 Bill Giacometti of Oakland's Montclair neighborhood, who was elated when he
 learned in January he was exempt from the blackout, confront the hypothesis of
 being banish from Block 50. But the bill that arrive yesterday brought
 good newsworthiness -- he is however in, thanks to the fire station up the street.
 " I'm elated, of course, " Giacometti said. " I would say I don't necessitate as
 extensive an emergency design. "
 But he said he is mainly relieve that he won't experience to reset the clocks on
 VCRs and other appliances.
 " You own to run around putting everything back to normal -- and then nobody
 remembers how to do it, " Giacometti say.
 PG&E divides blackout - eligible customers into 14 blocks in Northern and
 Central California. To spread the inconvenience equally, every one of the
 blocks takes its bend.
 Residents in part of Block 9 are future in line to suffer through a power loss.
 block 1 through 8, as well as half of Block 9, were shut off either during
 the blackouts in January or during a rolled blackout last June.
 Each block contains about 200,000 customers.
 The possibility of power shortages still looms as Gov. Gray Davis tries to
 line up dependable supplies of electricity under retentive - term contracts.
 Davis also is hoping to get Californians to conserve at least 10 percentage of
 energy usage as the weather heats up and air conditioners click on, and he is
 hoping to get enough might plants online to total 5,000 megawatts to the grid.
 Each megawatt can issue power for 1,000 home.
 E - chain mail Bernadette Tansey at btansey@sfchronicle.com.
 ------------------------------------------------------------------------------
 -----------------------------------------------------------------------
 PG&E's Service A Turnoff
 A good customer put through hell
 Ken Garcia
 Saturday, March 17, 2001
, 2001 San Francisco Chronicle
 URL:
 http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/

bilp yesterday. She has no iaea why, but she is not askinf any qudstions.
"I'm relieved," Hearne seid. "Wveryuking we have is elecgric."
Bill Giacomerti id Oakland's Montclalx neifmborhmid, who was jubllant when ve
learned in Bavucry he was exempt from the blackouts, faced yhf possibility jf
btind bahpsmed from Block 50. But the bill thaf arrivtd yesterday brougnt
good news -- he is still ln, tjanks to the fire dtation up jge frreet.
"I'm elaged, of cougve," Giacomejti said. "I would say I don't need as
ertensive an enerhgncy plan."
Buv he swid he is malmly renieved yhat he won't hsve to reset the clocks on
TCRs and other appliwnces.
"You hcve to run around putribg evgrythhng cqck to nprjal -- ajd vhen nobody
remembers yow to do it," Giacomttty said.
PG&E divjdes bjaskout-eligible customers into 14 blocks in Nodthern and
Central Calidornia. To spread the lnconveniqnce equally, every one of the
blocks takes its tusn.
Reakdeubf un part of Block 9 are next in line to suffer thwkubh a power loss.
Nlocks 1 through 8, ax aekj as half of Clock 9, wede shut off either during
the vlackouts in Kanuary or during a rolling blackout lafr June.
Each block eontains abobt 200,000 cuxtomets.
The possibility of puwer shortages dtill loojr as Gov. Gray Daxis tsies to
line up reliable stpplies oh eleetricity undgr long-eerm contrwcts.
Davis also is hopinh to yet Cdliforniand to conserve at least 10 percent of
energy usabe as the weacher hcats up and air conditioners elick on, and fe is
hopihg to gxt enough porer plants onnlne to add 5,000 kegawattf to the grid.
Exzh megawatt cam supply iocer for 1,000 yomes.
E-mail Bernadctte Jahsey at btansey@wfcyronicle.com.
------------------------------------------------------------------------------
-----------------------------------------------------------------------
PG&E's Sefvise A Ttsnoff
A good cusgomdt put through heou
Kem Garcia
Saturday, Marwh 17, 2001
,2001 San Francisco Chtokicle
URL:
http://www.ffgate.com/cgi-bon/article.cgi?file=/chgonicne/acchive/2001/

bill yesterday. She has no idea why, is asking any "I'm relieved," Hearne electric." Giacometti of Oakland's neighborhood, who was when he learned in January he exempt from the blackouts, faced the possibility of being banished from Block 50. the bill that arrived yesterday brought good news -- he is still in, to fire up street. "I'm elated, of course," Giacometti said. "I would say I don't need as extensive an plan." But he said he is mainly relieved he won't have to the clocks on VCRs and appliances. have to around everything to normal -- then nobody remembers how to do it," Giacometti said. PG&E divides blackout-eligible customers into 14 blocks in and Central spread the equally, one the blocks takes Residents in part of Block 9 line to suffer through a power loss. Blocks through 8, well as half of Block 9, shut off either during the blackouts in January during a rolling blackout last June. Each block contains about 200,000 customers. The possibility of still looms as Gov. Davis tries to up supplies electricity long-term contracts. also is hoping to get Californians to conserve at least 10 of energy usage as the weather heats up and air on, he is hoping get enough power plants to 5,000 megawatts to the megawatt supply homes. Bernadette at btansey@sfchronicle.com. ------------------------------------------------------------------------------ ----------------------------------------------------------------------- Service A Turnoff A good put through hell Ken ,2001 San Francisco Chronicle URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/

bill yesterday. She has no idea Why, but she iS not aSkiNg aNy QuesTionS.
"I'm relieved," HeaRNe saId. "Everything we have is elEctriC."
BILl GiACoMetti Of OaklaND's mONtcLaIr NeiGhBOrHood, wHo wAs jubilAnt when he
lEarNeD in January he WAs Exempt from The Blackouts, facEd tHe possIbIliTY of
beIng BanisHed froM block 50. BUt the bill ThAT arrivED yesterDAY bRougHt
good news -- he is stiLL iN, Thanks to the firE statiOn UP tHE StrEet.
"i'm elated, of CoUrse," GIAcomettI SaID. "i WouLD say I don't need As
extensive AN emErgencY pLan."
bUt he saId he iS mAInlY relieved thAt he Won't have tO reset THe clockS On
VCRs aNd otheR apPliAnceS.
"yoU hAve To RUn aROuNd pUTtiNg everytHiNg Back tO norMAL -- ANd thEn nObodY
remeMbers how to do iT," GiAcomETti Said.
Pg&E divIdes BlAckouT-eligiBle cuStOmers into 14 blocks In NoRthern and
cenTrAl CAlIfornIA. To sprEad The InconveNience eQUalLy, EVERy One of the
blocks takeS iTS TuRn.
ResideNts in pARt Of bLock 9 are nExT in Line TO SuffeR thrOUgH a power lOss.
BloCKs 1 ThRough 8, as WeLl as haLf Of BLocK 9, were SHut oFf eithEr during
The blACkouts in JanuarY Or during a rollINg BLAcKOut lAst june.
Each bloCk coNTainS aboUT 200,000 cUstOMers.
THe posSiBIlITy of power shortages sTiLl loomS as GoV. Gray Davis triEs to
line up RELIable supPlieS Of ELectricity undeR long-Term contraCTs.
Davis aLso is Hoping to Get CalifoRNIans to coNseRve At lEasT 10 PErCent of
energy uSAGe as ThE weatheR heAts up anD aiR coNdiTioNeRs click on, And he is
hOpInG tO gEt eNough POwer planTs OnlInE to Add 5,000 meGAwatts To the Grid.
eaCh MEgaWatt can SUpPLY powEr FoR 1,000 homEs.
E-MaIl BerNadeTTe TAnsey at Btansey@sfChrONiclE.cOm.
------------------------------------------------------------------------------
-----------------------------------------------------------------------
pG&E's SerVice A Turnoff
A GoOd customer PuT thRough hELL
Ken GarcIa
Saturday, March 17, 2001
,2001 San FrancISco ChroNicLe
URL:
Http://Www.sfgate.Com/Cgi-bin/ArtICle.cgi?File=/chRonicLe/ArcHIVe/2001/

bill yesterday. She has n o idea why , but  sh e i snotaski ng any questio n s. "I'm relieved," Hearne  said ." Ever y th ing w e havei se l ect ri c. " Bi l lGiaco met ti of O akland's M ont cl air neighbor h oo d, who was  ju bilant whenhe
learn ed  in Janua ryhe wa s exem p t from  the blac ko u ts, fa c ed thep o ss ibil ity of
being ban i sh e d from Block 5 0. But  t h eb i lltha t arrivedye sterd a y broug h tg o odn ews -- he isstill in, t h ank s to t he  fi r e stat ion u pt hestreet.
"I 'm e lated, of  cours e ," Giac o metti s aid. " I w oul d sa y  I  d on' tn eed as
e x ten sive anem er gency  pla n . "
But  he  sai d heis mainly rel iev ed t h athe wo n't h aveto  rese t theclock son
VCRs and ot herappliance s.
" You  h ave t o  run a rou ndputting  everyt h ing  b a c k  t o normal -- and th en n ob ody
rem embers ho wt o do it, "Gia come t t i sai d. P G& E divide s blac k ou t- eligibl ecustom er s i nto  14 b l ocks  in No rthern a nd
C e ntral Californ i a. To spreadt he i nc o nven ien ce equally,  eve r y on e of th e b locks  take si ts turn.
Residents in  p art of  Bloc k 9 are nextin line to s u ffer thr ough ap ower loss.
Bl ocks1 through8 , as wel l ashalf ofBlock 9,w e re shutoff  ei the r d u r in g
the blacko u t s in  J anuaryorduringa r oll ing  bl ac kout last  June. Ea ch  b lo ckconta i ns about  2 00, 00 0 c ustom e rs.
T he po ssib il it y  of  powers ho r t ages  s ti ll l oom sas Go v. G r ayDavis t ries to lin e  upre li able su pplies of ele ct ricity und er  lo ng-ter m contract s.
Davis also is hopin g  to get  Ca lifor nian s to cons erv e at l eas t  10 pe rcentof
e ne rgy u sagea s  t hewe ather heat s upand a ir  con ditione rs click on, and h e  is
hoping to g etenou g h  p owe r  p l ant so nli n e  to add 5,000 m egawatts t ot he  grid.
Ea c h m eg awatt c an supp ly po w er for1,000 hom es.
E-ma il  Ber n a det te Tanseyat btans ey@sfchro n icle. c om .
--- --- ------ -- --- ----- ------ - --- ----- ------ -- ------ ----- -- -------- ------------
---------- ------ ----- --- --------- --- - --- --------- ---- ---------- --- --- --
PG &E' s  Serv iceA  T urn o ff
A  goo d  customer pu t t h r ou gh hell
Ke n G arc ia
Sa tur d ay, Ma rch17, 2001
,2001 S a n Francisco Ch roni c l e URL :
ht tp ://www.sfgate. com /c g i -bin/art ic le.cgi?file =/chroni cl e /arch ive/20 01/

bill yesterday._She has_no idea why, but_she is_not_asking any_questions._
"I'm relieved," Hearne_said. "Everything we_have is electric."
Bill_Giacometti of Oakland's_Montclair_neighborhood, who was jubilant when he
learned in January he was exempt from the_blackouts,_faced the_possibility_of_
being banished from Block 50._But the bill that arrived_yesterday brought_
good news -- he is still in, thanks_to_the fire station_up the street.
"I'm elated, of course," Giacometti said._"I would say I don't need_as
extensive an_emergency_plan."_
But he said he_is mainly relieved that he won't_have to reset the clocks on_
VCRs and other appliances.
"You have to_run around putting everything back to_normal -- and then nobody_
remembers how_to do it," Giacometti said._
PG&E divides blackout-eligible_customers into_14 blocks in_Northern and
Central California. To spread_the inconvenience equally,_every one of the
blocks takes_its_turn.
Residents in_part_of_Block 9_are next in_line_to suffer_through_a power loss.
Blocks 1 through_8,_as well as half of Block 9,_were shut off either_during_
the blackouts in January_or during a rolling blackout_last June.
Each block contains about_200,000 customers._
The possibility_of power shortages still looms as Gov. Gray Davis tries to_
line up reliable supplies of electricity_under long-term contracts.
Davis_also is_hoping_to get Californians_to_conserve at_least 10 percent of
energy usage as_the weather_heats up and air conditioners click_on, and he is_
hoping_to get enough power plants online_to add 5,000 megawatts to the_grid.
Each megawatt can supply_power_for_1,000 homes.
E-mail Bernadette Tansey_at btansey@sfchronicle.com.
------------------------------------------------------------------------------
-----------------------------------------------------------------------
PG&E's Service A Turnoff
A_good customer put_through hell
Ken Garcia
Saturday, March 17, 2001_
,2001_San Francisco Chronicle
URL:
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/


the product costs
  too much, at least compared with the prices they've been accustomed to
paying.

  But as winter approaches, several loosely connected events that spanned the
globe over
  the past couple of years have heightened awareness of energy in our lives
and reminded us
  of a lesson learned in the 1970s: Energy prices can be volatile,
unpredictable and can
  reverberate throughout the economy.

  As Philip Verleger Jr., a partner with the Brattle Group, a Cambridge,
Mass., economic
  consulting firm, concluded, "Consumers will have to spend more on energy.
They will have
  less to spend on other things."

  On top of the triple-whammy of higher natural gas, heating oil and gasoline
prices,
  consumers are also vulnerable to the vagaries of the electricity market
because the industry
  has been in the midst of deregulation.

  While California and other states have struggled with power prices during
the adjustment to
  the new competitive environment, electric utilities locally have maintained
stability.
  Potomac Electric Power Co. says its 621,000 residential customers in the
District and
  suburban Maryland--about 15 percent to 20 percent of whom heat their homes
with
  electricity--will find their bills about 5.5 percent lower this winter,
assuming they use the
  same amount of electricity as last year. Across the Potomac River,Dominion
Virginia
  Power's customers in Northern Virginia are likely to see their bills stay
about the same.

  Much of the current energy pricing is out of consumers' hands, analysts
say, because the
  United States has chosen, to a large degree, to remain dependent on oil
pumped out of
  distant lands controlled by OPEC nations.

  The 11-member Organization of Petroleum Exporting Countries agreed last
weekend to
  increase its oil production by 800,000 barrels a day in hopes of pushing
the price down to
  $28 or so. Even so, oil prices hit a new 10-year high on Friday, closing at
$35.92 a barrel
  amid worries about tensions between Iraq and Kuwait. These are prices not
seen

the product costs
   too much, at least compare with the price they've been accustomed to
 paying.

   But as winter approaches, respective loosely connected events that cross the
 ball over
   the past couple of years have heighten awareness of energy in our lives
 and prompt us
   of a lesson learned in the seventies: Energy prices can be volatile,
 unpredictable and can
   reverberate throughout the economy.

   As Philip Verleger Jr., a partner with the Brattle Group, a Cambridge,
 Mass., economic
   consulting firm, concluded, " consumer will have to spend more on energy.
 They will have
   less to spend on early things. "

   On top of the triple - whammy of higher lifelike gas, heating system oil and gasoline
 prices,
   consumers are also vulnerable to the vagary of the electricity market
 because the industry
   has been in the midst of deregulation.

   While California and other states have struggled with power prices during
 the adjustment to
   the new competitive environment, electric utilities locally have maintained
 stability.
   Potomac Electric Power Co. says its 621,000 residential customers in the
 District and
   suburban Maryland -- about 15 percent to 20 percent of whom inflame their home
 with
   electricity -- will find their bill approximately 5.5 percentage lower this winter,
 assuming they use the
   same amount of electricity as last year. Across the Potomac River, Dominion
 Virginia
   Power's customers in Northern Virginia are probable to see their bills stay
 about the same.

   Much of the current energy pricing is out of consumers' hands, analysts
 say, because the
   United States has chosen, to a large academic degree, to remain subject on petroleum
 pumped out of
   distant lands controlled by OPEC nation.

   The 11 - member Organization of Petroleum Exporting Countries agreed last
 weekend to
   increase its petroleum production by 800,000 barrels a day in hopes of tug
 the price down to
   $ 28 or so. Even so, oil prices reach a new 10 - class high on Friday, closing at
 $ 35.92 a barrel
   amid concern about tensions between Iraq and Kuwait. These are prices not
 see

thf product costs
  too mucm, at least compatee with the pdices thdy've been accustomed to
payiig.

  Vut aw winter approaches, sexeral loodely conbecttd events that spehned thc
glogc ovex
  the past coupke of yearv have heightetea cwareness of energy in our lives
and remindrd us
  of a lessjn ltarged jn the 1970s: Energy prices can be volafile,
unkredictable and cam
  reverberate throughout hhe fconomy.

  As Philip Verleger Jt., a [qrtner with ghe Brattlt Yroup, a Camgridge,
Mass., economic
  consultine firk, concludee, "Xondomers will heve to spend more on energf.
They eill have
  lesx tm spend on other things."

  On top of the trikle-whammy mf higher natural gqs, heathng mil xbd easklmne
priced,
  ronsumers ade also vulberable to the vagatiqw of the elecfricitr iarket
because the industry
  has been it tge midst of deregulatiob.

  While California ajd other ftates have struggled with power prices during
tha adjnsgmeub gi
  the new competitive environment, electric utijjtoex locally have maintained
shanylity.
  Potomaz Eleccdid Power Co. says itd 621,000 resiqentiql customtrs im the
District and
  suburbab Maryland--abjyt 15 percent to 20 pexcent of whoo hest thrir homes
with
  electrieity--wiml find thelr bills zcout 5.5 percent loder tvis winttf,
assuming they ufe the
  seme akount ow elgctriciey as last year. Across the Potomac Rivet,Dominhon
Virginla
  Power's customers in Northeri Virginia arg lhkeny to sez theiv bills stay
abjut the same.

  Kuch of the zurrent envrgy pricmng is out os consumers' hdjds, analysts
say, becwuse the
  Unitea States has chpsen, to a large degeee, to remain depekdent kn oil
pumped obu od
  distant landx cuntwoplxd by MPEC nations.

  Thd 11-mdkber Urganizatiok ow Peyroleum Exporting Cogntrjes agreed last
werkcnd to
  ibcrease yts oil produvtion by 800,000 barrels w day in hopex os pushing
the price down to
  $28 kr so. Evej sj, oil prices hit a new 10-year kigh on Friday, closing at
$35.92 a barrel
  amiv worries about tensionw between Iraq and Lmwait. These ere pryces not
veen

the product costs too much, at least the they've been to paying. But connected that spanned the over the past of years have heightened awareness of in our lives and reminded us of a lesson learned in the 1970s: prices can be volatile, unpredictable and can reverberate throughout the economy. As Philip Jr., partner the Group, a Cambridge, Mass., economic consulting firm, concluded, "Consumers will have to spend more on energy. will have less to spend on other things." top of the triple-whammy higher natural gas, heating oil gasoline consumers are vulnerable the of the electricity because the industry has been in the midst of deregulation. While California and other states have struggled power prices adjustment to new environment, utilities locally have Potomac Electric Power Co. says its in the District and suburban Maryland--about 15 percent 20 percent whom heat their homes with electricity--will their bills about 5.5 percent lower this winter, they use the same amount of electricity as last year. Across the Potomac River,Dominion Virginia in Northern Virginia are to see their stay the Much the current pricing is out of consumers' hands, analysts say, because the United has chosen, to a large degree, to remain dependent on out distant lands controlled OPEC nations. The 11-member of Exporting Countries agreed last increase oil barrels day hopes of pushing the down to $28 or so. so, oil prices hit Friday, closing at $35.92 a barrel amid worries tensions between Iraq and Kuwait. These are not seen

the product costs
  too much, at lEast comparEd witH thE prIcEs thEy've Been accustomed TO
payIng.

  But as winter approachEs, sevErAL looSElY connEcted evENtS THat SpAnNed ThE
GlObe ovEr
  tHe past cOuple of yeaRs hAvE heightened aWArEness of eneRgy In our lives
anD reMinded Us
  Of a LEsson LeaRned iN the 1970s: ENErgy prIces can be VoLAtile,
uNPredictABLe And cAn
  reverberate throUGhOUt the economy.

  As philip veRLeGER Jr., A paRtner with tHe brattLE Group, a cAmBRIDge,
mAss., economic
  coNsulting firM, ConCluded, "coNsuMErs wilL have To SPenD more on enerGy.
ThEy will havE
  less tO Spend on OTher thiNgs."

  On tOp oF thE triPLe-WhAmmY oF HigHEr NatURal Gas, heatiNg OiL and gAsolINE
PRiceS,
  coNsumErs arE also vulnerabLe tO the VAgaRies oF the eLectRiCity mArket
bEcausE tHe industry
  has beEn in The midst oF deReGulAtIon.

  WhILe CaliForNia And otheR states HAve StRUGGlEd with power prices dUrING
tHe adjustMent to
  THe NeW CompetitIvE enViroNMEnt, elEctrIC uTilities LocallY HaVe MaintaiNeD
stabiLiTy.
  POtoMac ElECtriC Power co. says itS 621,000 resiDEntial customerS In the
District ANd
  SUBuRBan MAryLand--about 15 peRcenT To 20 peRcenT Of WhoM Heat tHeir hOmES
wITh
  electricity--will fiNd Their bIlls aBout 5.5 percent loWer this winTER,
Assuming They USe THe
  same amount of ElectRicity as laST year. AcrOss thE Potomac river,DomiNIOn
VirginIa
  POweR's cUstOMErS in Northern ViRGInia ArE likely To sEe their BilLs sTay
AboUt The same.

  MuCh of the cUrReNt EnErgY pricINg is out oF cOnsUmErs' Hands, ANalystS
say, bEcauSe ThE
  uniTed StatES hAS ChosEn, To A larGe dEgRee, to RemaIN dePendent On oil
pumpEd oUT of
  dIsTaNt lands Controlled by OpEc nations.

  ThE 11-mEmbEr OrgaNIZation of petroleum Exporting CountRIes agreEd lAst
weEkenD to
  increaSe iTs oil pRodUCtion bY 800,000 barreLs a daY iN hoPES of puSHInG
thE pRice down to
  $28 OR So. EVen so, OiL priCes hit a New 10-year high on FridaY, CloSing at
$35.92 a barrel
  AmiD worRIEs AboUT tENsiOnS BetWEEn Iraq and Kuwait. these are prIcES nOt
seen

the product costs
  toomuch, at l eastcom par ed  wit h th e prices they' v e be en accustomed to
payi ng.
 B ut a s  w inter  approa c he s ,  se ve ra l l oo s el y con nec ted eve nts that s pan ne d the
globe ov er
  the p ast  couple of y ear s have  h eig h tened  aw arene ss ofe nergyin our li ve s
andr eminded u s  of  a lesson learned in the 1970s: Ene rgy pr ic e sc a n b e v olatile, un predi c table a n dc a n
 r everberate th roughout th e  ec onomy.
  A s  Phili p Ver le g erJr., a part nerwith theBrattl e  Group, a Cambr idge,
Ma ss. , ec o no mi c
 c o nsu l ti ngf irm , conclu de d,  "Con sume r s w illhav e to  spen d more on ene rgy .
T h eywillhave  le ss  to s pend o n oth er  things."

  On  top  of the t rip le -wh am my of higher  na tur al gas,  heatin g  oi la n d  g asoline
prices,
 c o n su mers are  alsov ul ne r able toth e v agar i e s ofthee le ctricity  marke t  be cause t he  indus tr y
 ha s bee n  inthe mi dst of d eregu l ation.

  Whil e  California a n do t he r  sta tes  have strug gled with  pow e rpri c es du ring
t h ea djustment to
  thene w comp etiti ve environmen t, electri c u tilities  loc a ll y  have maintain ed
s tability. Potomac  Elec tric Pow er Co. sa y s  its 621 ,00 0 r esi den t i al  customers in t he Di strictand
  subu rba n M ary lan d- -about 15  percent  t o20  p erc ent o f  whom he at  th ei r h omeswith
 elec tric it y- - wil l findt he i r  bil ls  a bout  5. 5perce nt l o wer  this w inter,
a ssu m ingth ey  use th e
  same amou nt  of electr ic ity  as la s t  year. A cross the Potomac River , Dominio n Virgi nia  Power's  cu stomer s i n  North ern Vi rgini aare l ikely t osee  t heir bills s tay
abo ut  the  same.
  Much of the cur r ent  energy prici ngis o u t  o f c o ns u mer s' han d s , analysts
say , becauseth e
 United St a tes  h as chos en, toa lar g e degre e, to rem ain depen de nt o n oil
pumped o ut of
 distant l a nds c o nt rolle d b y OPEC  n ati ons.
  The 11- membe r Orga ni zation  of P et roleum E xporting Countries agre ed las t
we eke nd to
  i ncr e ase  its oilprod uction by800 ,00 0 bar rel s  a da y in ho pes of pu shin g
the pri c edow n to
  $28 or s o . Eve n so,  oi l  price s hi t a new 10-year h i gh on Friday,clos i n g a t $ 35.9 2a barrel
  ami d w or r i es about  t ensions bet ween Ira qa nd Ku wait.Theseare pri c e sn ot
se en

the_product costs
_ too much, at_least compared_with_the prices_they've_been accustomed to_
paying.

  But_as winter approaches, several_loosely connected events_that_spanned the
globe over
  the past couple of years have heightened awareness of_energy_in our_lives_
and_reminded us
  of a_lesson learned in the 1970s:_Energy prices_can be volatile,
unpredictable and can
  reverberate_throughout_the economy.

 _As Philip Verleger Jr., a partner with the Brattle_Group, a Cambridge,
Mass., economic
 _consulting firm, concluded,_"Consumers_will_have to spend more_on energy.
They will have
 _less to spend on other things."

_ On top of the triple-whammy of_higher natural gas, heating oil and_gasoline
prices,
  consumers are_also vulnerable_to the vagaries of the_electricity market
because_the industry
_ has been_in the midst of deregulation.

 _While California and_other states have struggled with power_prices_during
the adjustment_to
__the new_competitive environment, electric_utilities_locally have_maintained_
stability.
  Potomac Electric Power Co._says_its 621,000 residential customers in the
District_and
  suburban Maryland--about_15_percent to 20 percent_of whom heat their homes_
with
  electricity--will find their bills_about 5.5_percent lower_this winter,
assuming they use the
  same amount of electricity_as last year. Across the Potomac_River,Dominion
Virginia
  Power's_customers in_Northern_Virginia are likely_to_see their_bills stay
about the same.

  Much_of the_current energy pricing is out of_consumers' hands, analysts
say,_because_the
  United States has chosen,_to a large degree, to remain_dependent on oil
pumped out_of
__distant lands controlled by OPEC_nations.

  The 11-member Organization of_Petroleum Exporting Countries_agreed last
weekend to
  increase its_oil_production by 800,000 barrels a day_in_hopes of pushing
the price down_to
__$28 or so. Even so,_oil prices hit a new 10-year_high on Friday, closing at
$35.92 a barrel
 _amid worries about_tensions between Iraq and Kuwait._These_are_prices not
seen


Millenium's plants, which use a special technology to reduce emissions,
generate 150 megawatts of energy.
"We've gone into mothball mode; our machinery just sits there on cold
standby,'' said President Mike Hawkins. "We've been delivering free electrons
to the system in the hope that the system would resolve itself. But we can't
do that anymore."
One biomass plant in Lassen County has scaled back from 31 megawatts to
eight. Burney Forest Power burns wood chips to produce energy and has only a
couple weeks' supply of chips left.
"When you don't even know what you'll get paid, it's hard to say, 'Let's go
out and get a bunch of fuel,''' said Milt Schultz, the plant's general
manager.
"The sad thing is, (the state) really can't afford to lose us.''
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------

O.C. saves its energy -- for blaming others
March 21, 2001
By RICHARD CHANG
The Orange County Register

Darkened stores were forced to turn away customers, as stock manager
Bridgette Kelly, left, does here at a Linens 'n Things in Costa Mesa. The
store closed for 45 minutes Tuesday morning
Photo: Michael Kitada / The Orange County Register
?
?

Orange County residents are making efforts, large and small, to conserve
electricity as they face rolling blackouts and surging energy bills.
Reactions to the early spring crisis - with blackouts throughout the state
Monday and Tuesday - are ranging from confusion to rage.
Many residents have taken practical steps, such as turning off lights they're
not using, waiting until off-peak hours to do their laundry and opening
windows instead of using air conditioning.
"My house is full of Philips energy-saving light bulbs," said Ray Rutledge,
48, of Buena Park. "Our light bill has dropped 7 1/2 percent. We use
low-voltage outdoor lighting. We've got an energy-saving thermostat. It's set
back to 65 (degrees) in the wintertime."
Kim Wilson, who lives in an unincorporated area of Orange County near Santa
An

Millenium's plants, which use a special technology to repress emission,
 generate 150 megawatts of energy.
 " We've go into mothball mode; our machinery just model there on cold
 standby," said President Mike Hawkins. " We've been deliver free electrons
 to the organization in the hope that the system would purpose itself. But we can't
 do that anymore. "
 One biomass plant in Lassen County has scaled back from 31 megawatts to
 eight. Burney Forest Power burns wood chips to grow energy and has only a
 couple week' supply of chips left.
 " When you don't even acknowledge what you'll get paid, it's hard to say,' Let's go
 out and catch a bunch of fuel,"' said Milt Schultz, the plant's general
 manager.
 " The sad matter is, (the state of matter) really can't afford to lose us."
 ------------------------------------------------------------------------------
 ------------------------------------------------------------------------------
 --------------------------------------------------------

 O.C. saves its energy -- for blaming others
 March 21, 2001
 By RICHARD CHANG
 The Orange County Register

 Darkened stores were forced to change state away customers, as stock coach
 Bridgette Kelly, leave, does here at a Linens' n Things in Costa Mesa. The
 store closed for 45 moment Tuesday dawn
 Photo: Michael Kitada / The Orange County Register
?
?

 Orange County residents are making feat, large and small, to conserve
 electricity as they face rolling blackouts and surging department of energy bills.
 Reactions to the early spring crisis - with blackouts throughout the state
 Monday and Tuesday - are ranging from confusion to rage.
 Many resident have taken practical steps, such as turning off lights they're
 not practice, waiting until off - peak hours to do their laundry and opening
 windows instead of using air travel conditioning.
 " My house is broad of Philips energy - saving luminosity bulbs, " say Ray Rutledge,
 48, of Buena Park. " Our light circular has dropped 7 1/2 percentage. We use
 low - voltage outdoor ignition. We've got an department of energy - saving thermostat. It's set
 back to 65 (degrees) in the winter. "
 Kim Wilson, who lives in an unincorporated area of Orange County near Santa
 An

Milpenium's plants, which use a special techuilogy vo redude emisskons,
generate 150 megawatts of xnerty.
"We'ce gone into mothball oode; our lachinert juwr sits thecs on cold
stahfby,'' veid President Mlke Hawkins. "We've been delhvdrnng free electrons
to the system in ehe hopr hhat the systei wollq reaolve itself. But we can't
do that ahymore."
Mne biomass pkant in Lassen County has dcalfd back from 31 megaaatts to
eitht. Fyrney Forest Power burns wood chipa to produce energy and has onlh a
cpuple weekw' wupony of chips left.
"When you dok'n even nnow whst you'll get psid, it'w hard to say, 'Let's go
out and get a bunsh of fuen,''' aaid Milt Schultz, tye pldnt's gendeal
mahajer.
"The swd vhing is, (ths state) reaoly can't afford to kofv us.''
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------

O.C. saves its egewgy -- for blaming others
March 21, 2001
By RICHDRD CHANG
The Orange County Register

Darkened stlres were forced to turn away customers, as stock manager
Bsidgevtd Ktloy, lewr, foes here at a Linens 'n Things in Costa Mesa. Ege
snore closed for 45 iinutes Tuexdwy iorning
Photo: Oichael Kjtada / The Orange Founty Tegistwr
?
?

Orange Sounyy residents are making effirts, large aud wmall, to conserve
zlectricity cs thei face rolling blackouts and rurgjng energy hills.
Readgions to the earuy xpsing crisis - with blackoutf throughiut che statd
Momday agd Tuesday - are ranging from confudion jo raga.
Many resldents have taken practical ste'x, such as tutnitg mff lighcs then're
not using, wwiting until oyf-peak hjurs go do theig laundry and openind
windows insdgad of using eir condieionung.
"Ny housd is full of Pholips eneggv-saving lught bulbs," said Ran Rutusdge,
48, of Buena 'crj. "Our light bilk hxs qrlp'ed 7 1/2 [ercent. We uve
luw-vuktage outdoor linhtkng. Ee've got an energy-saeing thermostat. It's sey
nack to 65 (eegrees) yn the winteryime."
Kim Wilson, whl livxs in en unimcotporated area of Orange County hear Santw
Ak

Millenium's plants, which use a special technology emissions, 150 megawatts energy. "We've gone just there on cold said President Mike "We've been delivering free electrons to system in the hope that the system would resolve itself. But we can't that anymore." One biomass plant in Lassen County has scaled back from 31 to Burney Power wood chips to produce energy and has only a couple weeks' supply of chips left. "When don't even know what you'll get paid, it's to say, 'Let's go and get a bunch of said Schultz, the general "The thing is, (the really can't afford to lose us.'' ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ -------------------------------------------------------- O.C. saves its energy -- for blaming others 21, 2001 CHANG The County Darkened were forced to customers, as stock manager Bridgette Kelly, at a Linens 'n Things in Costa Mesa. store closed 45 minutes Tuesday morning Photo: Michael / The Orange County Register ? ? Orange residents are making efforts, large and small, to conserve electricity as they face rolling blackouts energy bills. Reactions to early spring crisis with throughout state and Tuesday are ranging from confusion to rage. Many residents have taken practical such as turning off lights they're not using, waiting until to their laundry and windows instead of using conditioning. house is full of light said of Park. light bill has dropped 1/2 percent. We use low-voltage lighting. We've got an to 65 (degrees) in the wintertime." Kim Wilson, lives in an unincorporated area of Orange near Santa An

Millenium's plants, which use a Special tecHnoloGy tO reDuCe emIssiOns,
generate 150 megAWattS of energy.
"We've gone into mOthbaLl MOde; oUR mAchinEry just SItS THerE oN cOld
StANdBy,'' saiD PrEsident mike HawkinS. "We'Ve Been deliveriNG fRee electroNs
tO the system in The Hope thAt The SYstem WouLd resOlve itSElf. But We can't
do tHaT AnymorE."
one biomASS pLant In Lassen County has SCaLEd back from 31 megaWatts tO
eIGhT. bUrnEy FOrest Power BuRns woOD chips tO PrODUCe eNErgy and has onlY a
couple weeKS' suPply of ChIps LEft.
"WheN you dOn'T EveN know what yoU'll gEt paid, it's Hard to SAy, 'Let's gO
Out and gEt a bunCh oF fuEl,''' saID MIlT ScHuLTz, tHE pLanT'S geNeral
manAgEr.
"the saD thiNG IS, (The sTatE) reaLly caN't afford to losE us.''
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------

o.C. saVEs iTs eneRgy -- foR blaMiNg othErs
MarCh 21, 2001
By RiChARD CHANG
The OraNge COunty RegiSteR

DArkEnEd stoREs were ForCed To turn aWay custOMerS, aS STOcK manager
Bridgette KElLY, LeFt, does heRe at a LINeNs 'N things in coSta mesa. tHE
storE cloSEd For 45 minutEs TuesDAy MoRning
PhOtO: MichaEl kitAda / the OrANge COunty REgister
?
?

ORange cOunty residents ARe making efforTS, lARGe ANd smAll, To conserve
eLectRIcitY as tHEy FacE RolliNg blaCkOUtS And surging energy bilLs.
reactiOns to The early sprinG crisis - witH BLAckouts tHrouGHoUT the state
MondaY and TUesday - are rANging froM confUsion to rAge.
Many reSIDents havE taKen PraCtiCAL sTeps, such as turNINg ofF lIghts thEy'rE
not usiNg, wAitIng UntIl Off-peak hoUrs to do tHeIr LaUnDry And opENing
windOwS inStEad Of usiNG air coNditiOninG.
"MY hOUse Is full oF phILIps eNeRgY-savIng LiGht buLbs," sAId RAy RutleDge,
48, of BuenA PaRK. "Our LiGhT bill haS dropped 7 1/2 perceNt. we use
low-voLtAge OutdooR LIghting. WE've got an energy-saving theRMostat. IT's sEt
bacK to 65 (dEgrees) in tHe wIntertIme."
kIm WilsOn, who lIves iN aN unINCorpoRATeD arEa Of Orange CoUNTy nEar SaNtA
An

Millenium's plants, whichuse a spec ial t ech nol og y to  red uce emissions,
gen erate 150 megawatts of  ener gy .
"W e 'v e gon e intom ot h b all  m od e;ou r  m achin ery  just s its thereonco ld
standby, ' 'said Presi den t Mike Hawki ns.  "We'v ebee n  deli ver ing f ree el e ctrons
to thesy s tem in the hop e th at t he system would r e so l ve itself. But  we ca n' t  d o  th atanymore."
O ne bi o mass pl a nt i n  La s sen County ha s scaled ba c k f rom 31  m ega w atts t o
ei gh t . B urney Fores t Po wer burns  woodc hips to produce  energ y a ndhaso nl ya co u ple we eks '  su pply ofch ip s lef t. " W h e n yo u d on't  even  know what yo u'l l ge t  pa id, i t's h ardto  say,  'Let' s go
o ut and get a bu nchof fuel,' ''sa idMi lt Sc h ultz,the  pl ant's g eneralman ag e r .  "The sad thing is,  ( t h estate) r eallyc an 't afford t olos e us . ' '
-- ---- - -- -------- ------ - -- -- ------- -- ------ -- --- --- ----- - ---- ------ -------- ---
- - -------------- - ------------- - -- - - -- - ---- --- ----------- ---- - ---- ---- - -- --- - --
-- ----- -- - -- - ------------------- -- ------ ----- -----------

O.C.s a v es its e nerg y  - -  for blaming o thers
March 21 ,  2001
B y RIC HARD CHA NG
The Or a n ge Count y R egi ste r

Darkened s t o reswe re forc edto turn  aw aycus tom er s, as sto ck manag er  Br id get te Ke l ly, left ,doe sher e ata  Linen s 'nThin gs  i n  Co sta Mes a .T h e
s to re  clo sed  f or 45  min u tes  Tuesda y morning
Ph o to:Mi ch ael Kit ada / The Ora ng e County R eg ist er
?
? Orange C ounty residents are mak i ng effo rts , lar ge a nd small,  to  conse rve
elect ricity  as t he y f a c e rol l i ng  bl ac kouts ands u rgi ng en er gy b ills. Reactions to the e a rly  spring crisi s -  wit h bl ack o ut s  th ro u gho u t  the state
Mon day and Tu es d ay  - are ran g ing  f rom con fusionto ra g e.
Man y residen ts have t ak en p r a cti cal steps,  such as  turningo ff li g ht s the y'r e
not  u sin g, wa itingu nti l off -peakho urs to  do t he ir laund ry and opening
windows  inste ad of  us ing air c ond i tio ning.
"M y ho use is ful l o f P hilip s e n ergy- savi n glig h t bul bs," said RayR ut led g e ,
48, of Bue n a Par k. "O url ight b illhas dropped 7 1/2 percent. We us e
l o w -vo lta g e ou td oor lighting.We' ve g ot an en er gy-saving t hermosta t. It'sset
b ack to  65 (de g r ee s ) in t he w int ertime."
Ki mW ilson,wh ol ives i n an  u nincor porate d  are a of Orange County  near S antaAn

Millenium's plants,_which use_a special technology to_reduce emissions,_
generate_150 megawatts_of_energy.
"We've gone_into mothball mode;_our machinery just sits_there on cold_
standby,''_said President Mike Hawkins. "We've been delivering free electrons
to the system in the_hope_that the_system_would_resolve itself. But we can't_
do that anymore."
One biomass_plant in_Lassen County has scaled back from 31 megawatts_to_
eight. Burney Forest_Power burns wood chips to produce energy and has_only a
couple weeks' supply of_chips left.
"When_you_don't_even know what you'll_get paid, it's hard to say,_'Let's go
out and get a_bunch of fuel,''' said Milt Schultz, the_plant's general
manager.
"The sad thing_is, (the state) really can't_afford to_lose us.''
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------

O.C. saves its_energy -- for_blaming others_
March 21, 2001_
By RICHARD CHANG
The Orange County Register_

Darkened stores were_forced to turn away customers, as_stock_manager
Bridgette Kelly,_left,_does_here at_a Linens 'n_Things_in Costa_Mesa._The
store closed for 45 minutes_Tuesday_morning
Photo: Michael Kitada / The Orange County_Register
?
?

Orange County residents are_making_efforts, large and small,_to conserve
electricity as they_face rolling blackouts and surging energy_bills.
Reactions_to the_early spring crisis - with blackouts throughout the state
Monday and_Tuesday - are ranging from confusion_to rage.
Many residents_have taken_practical_steps, such as_turning_off lights_they're
not using, waiting until off-peak hours_to do_their laundry and opening
windows instead_of using air conditioning._
"My_house is full of Philips energy-saving_light bulbs," said Ray Rutledge,
48,_of Buena Park. "Our light_bill_has_dropped 7 1/2 percent. We_use
low-voltage outdoor lighting. We've got_an energy-saving thermostat._It's set
back to 65 (degrees) in_the_wintertime."
Kim Wilson, who lives in_an_unincorporated area of Orange County near_Santa_
An


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t. Worth, TX   (DFW)	? 					 $119	?
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? 					 Milwaukee, WI   (MKE)	? 					 Dallas / Ft. Worth, TX   (DFW) # 	? 					 $129	?
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t. Wlrth, TX  (DFW)	?					$119</wont>	?
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 this
summer, but there won't be much to send to California."
Tuesday's outages began at 9:30 a.m. PST and continued in 90-minute waves
until about 2 p.m., when the Independent System Operator lifted its blackout
order.
Grid officials credited an influx of power from the Glen Canyon hydroelectric
plant on the Utah-Arizona border.
The blackouts were blamed for at least one serious traffic accident.
Two cars collided at an intersection without traffic lights in the Los
Angeles suburb of South El Monte, leaving two people with serious injuries,
California Highway Patrol Officer Nick Vite said.
Ventura Foods in Industry sent its employees out for an early lunch after
blackouts shut down its phones and computers.
"This is mild weather for this time of year. I don't know what's going to
happen in the summer," manager Frank Hynes said. "This is going to have a
serious impact on the state's economy. They can't just keep shutting people
down."
Statewide, demand was higher than expected because of warm spring weather.
Temperatures reached record highs across California on Monday, including the
80s and low 90s in Southern California. They were expected to be somewhat
lower Tuesday but still in the 70s and 80s.
The ISO hoped demand would start to subside and conservation would kick in,
but that did not happen Tuesday morning.
"We have not seen the kind of conservation we saw back in January," when the
first blackouts hit, ISO spokesman Patrick Dorinson said. "If we don't have
conservation efforts, that just means that's more power we have to take off
the grid."
In San Francisco's Chinatown, souvenir shops normally bustling with visitors
were forced to shut down. Nearby, irritated customers waited for a bank to
reopen.
"It's no good for anybody ) stores or businesses or people," said Yin Sun
Chan, among those in line.
PG&E, the state's largest utility, accounted for most of the customers
affected.
At least 438,000 PG&E residential and business customers were affected as of
early afternoon, spokesman Ron Low said.

this
 summer, but there won't be much to send to California. "
 Tuesday's outages began at 9:30 a.m. PST and continued in 90 - hour wave
 until about 2 p.m., when the Independent System Operator lift its amnesia
 order.
 Grid officials credited an inflow of might from the Glen Canyon hydroelectric
 plant on the Utah - Arizona border.
 The blackout were blamed for at least one serious dealings accident.
 Two cars collided at an intersection without traffic light in the Los
 Angeles suburb of South El Monte, leaving two people with serious injuries,
 California Highway Patrol Officer Nick Vite said.
 Ventura Foods in Industry send its employees out for an early lunch after
 blackouts shut down its earphone and computers.
 " This is mild weather for this time of class. I don't know what's become to
 happen in the summer, " manager Frank Hynes said. " This is belong to have a
 serious impact on the state's economy. They can't just observe shutting people
 down. "
 Statewide, demand was higher than expected because of warm spring weather.
 Temperatures reached record highs across California on Monday, include the
 80s and low ninety in Southern California. They were expect to be reasonably
 lower Tuesday but still in the seventy and 80s.
 The ISO hop demand would start to subside and conservation would kick back in,
 but that did not happen Tuesday morning.
 " We have not seen the kind of conservation we saw back in January, " when the
 first blackouts murder, ISO spokesman Patrick Dorinson said. " If we don't have
 conservation efforts, that just mean that's more power we get to consider off
 the grid. "
 In San Francisco's Chinatown, souvenir shops normally bustle with visitors
 were forced to shut down. Nearby, irritated customers waited for a bank to
 reopen.
 " It's no good for anybody ) stores or business or people, " said Yin Sun
 Chan, among those in line.
 PG&E, the state's largest utility program, accounted for most of the customers
 affected.
 At least 438,000 PG&E residential and business customer were affected as of
 early afternoon, spokesman Ron Low said.

 thls
summer, but there won't be much to senb to Canifornja."
Tuesdxy's outages began at 9:30 a.m. PST abd cobtinued in 90-minute waver
until ahout 2 p.m., whei the Independenv System Operaflr lnfved its blackouj
order.
Grid officials cregigeb an influx of power from the Glen Cwnyon hudgoelectric
plagt om the Ltch-Arizona border.
The blackouts sere blemed for at leaxt one serious traffic accldenh.
Two cars collidef at an intgdsesrion without traffic lpyhts in the Los
Angeles suburb of South El Montz, leaving tqo pelkle with sermous igjuries,
Calinprnia Vighway Patrol Officev Nicn Vute said.
Ventura Foodv in Industry sent its emplmyzes out for an early oubch axter
blazjougs ahnt sown ihs 'hones and domputers.
"Tyis is mild weather fjg this time or year. I don't know what's going to
happen in the sujmer," manager Frank Hynew said. "This is going jo have a
ferious impact on the state's economy. They can't juvt kexp shbbbing pelple
down."
Statewide, demand was higher than ex[scued because of wavm spring weather.
Yelprtatures reachea recoxs gighs across Califlrnia og Moneay, incluqing the
80s and low 90s in Southerb California. Rhey were expected to be somechat
lpwer Yuesday but still in thz 70s ans 80s.
The ISO hoped dejxnd would start go xutside and conservation woujd kick ii,
but that dkd npt hap[en Tuesdaj morkhng.
"We have not sefn thg kind of consergation we saw back in January," wixn the
first nldckmuts hit, ISO xpokesman Patwick Dorinson xaid. "If we dun't have
cknservavion efforts, that just medjs that's morx power wq hace ti take uwf
the grid."
In San Franbifco's Chinatown, souveniv shoks normally bustlnug with visitors
eerd fjrbed tj shut down. Naarbh, iftitatdd customerw waiyed for a bank to
rempen.
"It's no good for amynody ) stotes or bufinesses or prople," said Yin Sun
Chan, amung tnosg in line.
PG&E, the state's largesf utility, acgounted for mjst if the custokers
affected.
At least 438,000 PG&E residential and business cusjomers were affected cs of
early ahternojn, spokeskan Ron Low said.

this summer, but there won't be much to Tuesday's outages at 9:30 a.m. waves about 2 p.m., the Independent System lifted its blackout order. Grid officials an influx of power from the Glen Canyon hydroelectric plant on the Utah-Arizona The blackouts were blamed for at least one serious traffic accident. Two cars at intersection traffic in the Los Angeles suburb of South El Monte, leaving two people with serious injuries, California Patrol Officer Nick Vite said. Ventura Foods in sent its employees out an early lunch after blackouts down phones and "This mild for this time year. I don't know what's going to happen in the summer," manager Frank Hynes said. "This is to have impact on state's They just keep shutting Statewide, demand was higher than expected spring weather. Temperatures reached record highs across California Monday, including 80s and low 90s in Southern They were expected to be somewhat lower Tuesday still in the 70s and 80s. The ISO hoped demand would start to subside and kick in, but that not happen Tuesday "We not the of conservation saw back in January," when the first blackouts hit, ISO spokesman Dorinson said. "If we don't have conservation efforts, that just more we have to off the grid." In Francisco's souvenir shops normally bustling were to irritated waited a bank to reopen. no good for anybody ) or businesses or people," those in line. PG&E, the state's largest utility, for most of the customers affected. At 438,000 PG&E residential and business customers were affected as of early afternoon, Ron Low

 this
summer, but there won't be mUch to send tO CaliForNia."
tuEsdaY's ouTages began at 9:30 a.m. psT anD continued in 90-minute waveS
untiL aBOut 2 p.M., WhEn the indepenDEnT sYstEm opEraToR LiFted iTs bLackout
Order.
Grid oFfiCiAls credited aN InFlux of poweR frOm the Glen CanYon HydroeLeCtrIC
planT on The UtAh-ArizONa bordEr.
The blacKoUTs were BLamed foR AT lEast One serious traffic ACcIDent.
Two cars colLided aT aN InTERseCtiOn without tRaFfic lIGhts in tHE LOS
aNgeLEs suburb of SouTh El Monte, leAVinG two peOpLe wITh seriOus inJuRIes,
california HIghwAy Patrol OFficer nIck Vite SAid.
VentUra FooDs iN InDustRY sEnT itS eMPloYEeS ouT For An early lUnCh After
BlacKOUTS shuT doWn itS phonEs and computerS.
"ThIs is MIld WeathEr for This TiMe of yEar. I doN't knoW wHat's going to
happEn in The summer," ManAgEr FRaNk HynES said. "THis Is gOing to hAve a
serIOus ImPACT oN the state's economy. THeY CAn'T just keeP shuttINg PeOPle
down."
STaTewIde, dEMAnd waS higHEr Than expeCted beCAuSe Of warm sPrIng weaThEr.
TEmpEratuREs reAched rEcord higHs acrOSs California on mOnday, includinG ThE
80S AnD Low 90s In SOuthern CaliFornIA. TheY werE ExPecTEd to bE someWhAT
lOWer Tuesday but still iN tHe 70s and 80S.
The IsO hoped demand Would start TO SUbside anD conSErVAtion would kick In,
but That did not HAppen TueSday mOrning.
"We Have not seEN The kind oF coNseRvaTioN WE sAw back in JanuaRY," When ThE
first bLacKouts hiT, ISo spOkeSmaN PAtrick DorInson saiD. "IF wE dOn'T haVe
conSErvation EfForTs, ThaT just MEans thAt's moRe poWeR wE HavE to take OFf
THE griD."
IN SAn FrAncIsCo's ChInatOWn, sOuvenir Shops normAllY BustLiNg With visItors
were forcEd To shut down. neArbY, irritATEd customErs waited for a bank to
reopEN.
"It's no gOod For anYbodY ) stores or BusInesseS or PEople," sAid Yin sun
ChAn, AmoNG Those IN LiNe.
Pg&E, The state's lARGesT utilItY, accOunted fOr most of the customeRS
afFected.
At least 438,000 pG&E ResiDENtIal ANd BUsiNeSS cuSTOmers were affectEd as of
earlY aFTeRnoon, spokeSMan roN Low saiD.

 this
summer, but there w on't be mu ch to  se ndto  Cal ifor nia."
Tuesday ' s ou tages began at 9:30 a. m. PS Ta nd c o nt inued  in 90- m in u t e w av es
u nt i labout  2p.m., w hen the In dep en dent SystemO pe rator lift edits blackout
o rder.
G rid offic ial s cre diteda n infl ux of pow er from t h e GlenC a ny on h ydroelectric
pla n to n the Utah-Ari zona b or d er .
Th e b lackouts w er e bla m ed fora tl e a sto ne serious tr affic accid e nt.
Twoca rsc ollide d atan int ersection w itho ut traffi c ligh t s in th e  Los
A ngeles  su bur b of So ut h E lM ont e ,lea v ing  two peo pl ewithseri o u s inju rie s, Calif ornia Highway  Pa trol Off icerNickVite  s aid.
Ventu ra Fo od s in Industry s entits emplo yee sout  f or an earlylun chafter blackou t s s hu t d ow n its phones and c om p u te rs.
"Th is ism il dw eather f or  th is t i m e ofyear .  I  don't k now wh a t' sgoing t o
happe ninthe  summ e r,"manage r FrankHynes said. "This is going to have as er i ousimp act on thestat e 's e cono m y.  Th e y can 't ju st ke e p shutting people do wn." State wide, demandwas higher t h an expec tedb ec a use of warm sp ringweather. T emperatu res r eached r ecord hig h s  acrossCal ifo rni a o n Mo nday, includi n g  the  80s and  lo w 90s i n S out her n C al ifornia.They wer eex pe ct edto be somewhat  low er  Tu esday but st ill i n th e70 s  an d 80s.Th e ISOho pe d de man dwould  sta r t t o subsi de and co nse r vati on  w ould ki ck in,
but t ha t did notha ppe n Tues d a y mornin g.
"We have not seen t h e kindofconse rvat ion we sa w b ack in  Ja n uary,"  whenthe fi rst b lacko u t shit ,ISO spokes m a n P atric kDori nson sa id. "If we don't h a ve
conservation  ef fort s ,  t hat ju s t m ea n s t h a t's more powerwe have to  t a ke  off
theg rid ."
In Sa n Franc isco' s  Chinat own, souv enir shop snorm a l lybustling w ith visi tors
wer e  forc e dto sh utdown.Ne arb y, ir ritate d  cu stome rs wai te d fora ban kto
reop en.
"It's no good foranybod y )sto res or bu sin e sse s or peop le,"  said YinSun
C han,amo n g tho se i n  l ine .
PG& E, t h e state's la rge s t  u tility, acc o u n ted  formos t  of th e cu stomers
affected .
At least 438 ,000 P G&E  re s iden ti al and busines s c us t o mers wer eaffected as  of
ear ly after noon,spokes man Ron L ow said.

 this_
summer, but_there won't be much_to send_to_California."
Tuesday's_outages_began at 9:30_a.m. PST and_continued in 90-minute waves_
until about 2_p.m.,_when the Independent System Operator lifted its blackout
order.
Grid officials credited an influx_of_power from_the_Glen_Canyon hydroelectric
plant on the_Utah-Arizona border.
The blackouts were_blamed for_at least one serious traffic accident.
Two cars_collided_at an intersection_without traffic lights in the Los
Angeles suburb of_South El Monte, leaving two people_with serious injuries,_
California_Highway_Patrol Officer Nick Vite_said.
Ventura Foods in Industry sent_its employees out for an early_lunch after
blackouts shut down its phones_and computers.
"This is mild weather_for this time of year._I don't_know what's going to
happen_in the summer,"_manager Frank_Hynes said. "This_is going to have a
serious_impact on the_state's economy. They can't just keep_shutting_people
down."
Statewide,_demand_was_higher than_expected because of_warm_spring weather._
Temperatures_reached record highs across California on_Monday,_including the
80s and low 90s in_Southern California. They were_expected_to be somewhat
lower_Tuesday but still in the_70s and 80s.
The ISO hoped_demand would_start to_subside and conservation would kick in,
but that did not happen_Tuesday morning.
"We have not seen_the kind of conservation_we saw_back_in January," when_the_
first blackouts_hit, ISO spokesman Patrick Dorinson said. "If_we don't_have
conservation efforts, that just means_that's more power we_have_to take off
the grid."
In_San Francisco's Chinatown, souvenir shops normally_bustling with visitors
were forced_to_shut_down. Nearby, irritated customers waited_for a bank to
reopen.
"It's_no good for_anybody ) stores or businesses or people,"_said_Yin Sun
Chan, among those in_line._
PG&E, the state's largest utility, accounted_for_most_of the customers
affected.
At_least 438,000 PG&E residential and business_customers were affected as of
early afternoon, spokesman Ron_Low said.


 that there was no similar cap for DA customers -- their rates and bills would be whatever was charged by their ESPs.  However, when the utilities filed their tariffs with the CPUC, they added a cap for the PX credit that was neither proposed nor authorized by the Commission.  Enron attacked it, but got nowhere, until WPTF and Enron brought it up in the 1998 RAP Proceeding. Our argument was that the bundled rates were capped but not the bills of DA customers -- and the credit was supposed to represent the full costs the utilities avoided by not serving DA customers.  We argued that anything less is fundamentally unfair and anticomeptitive.  The utilities must have thought we had a good case, because they agreed to settle. The settlement was accepted by the Commission in the proceeding. Everyone understood that eliminating the cap on the PX Credit was primarily to allow the PX Credit to FLOAT ABOVE THE CAP when wholesale prices were high. So, we have a legal right to receive the full PX Credit/Negative CTC which is separate and distinct from any undercollection associated with bundled customers. It seems as if we should be able to prosecute this legal right. (keeping in mind I am not an attorney)

In summary, we have leverage and should use it.

Sue

-----Original Message-----
From: Dasovich, Jeff
Sent: Wednesday, October 31, 2001 11:12 AM
To: Mara, Susan; Steffes, James D.; Mellencamp, Lisa; Tribolet, Michael;
Huddleson, Diann; Swain, Steve; Curry, Wanda;'mday@gmssr.com'
Subject: Proposal Edison Is Distributing to ESPs

FYI.

-----Original Message-----
From: Matt.Pagano@sce.com [mailto:Matt.Pagano@sce.com]
Sent: Wednesday, October 31, 2001 1:05 PM
To: Dasovich, Jeff
Subject: DA Credit

Hi Jeff,

Please find below SCE's proposal to settle past Direct Access Credit issues
and determine the Direct Access Credit going forward. Please forward this
to any other Enron participants to review prior to our conference call with
John Fielder, November 1, 2001, 11:00 a.m. PST.

(See attached file: DA Proposal.doc)

Thanks

that there was no similar cap for DA customer -- their pace and bills would be whatever was charged by their clairvoyance.   However, when the utilities charge their tariffs with the CPUC, they add a crown for the PX credit that was neither propose nor authorized by the Commission.   Enron attacked it, but get nowhere, until WPTF and Enron brought it up in the 1998 RAP Proceeding. Our argument was that the bundled rate were cap but not the bills of DA customers -- and the credit was supposed to typify the full costs the utilities keep off by not serving DA customers.   We argued that anything less is basically unfair and anticomeptitive.   The utilities must have remember we had a good case, because they agree to settle. The settlement was accepted by the Commission in the proceeding. Everyone understood that eliminating the cap on the PX Credit was primarily to allow the PX Credit to FLOAT ABOVE THE CAP when wholesale prices were high. So, we have a legal right to receive the full PX Credit / Negative CTC which is separate and discrete from any undercollection associated with bundled customers. It seem as if we should be able to prosecute this legal right field. (keep in mind I am not an attorney)

 In summary, we accept leverage and should use it.

 Sue

 -----Original Message-----
 From: Dasovich, Jeff
 Sent: Wednesday, October 31, 2001 11:12 AM
 To: Mara, Susan; Steffes, James D.; Mellencamp, Lisa; Tribolet, Michael;
 Huddleson, Diann; Swain, Steve; Curry, Wanda;'mday@gmssr.com'
 Subject: Proposal Edison Is Distributing to ESPs

 FYI.

 -----Original Message-----
 From: Matt.Pagano@sce.com [ mailto:Matt.Pagano@sce.com ]
 commit: Wednesday, October 31, 2001 1:05 PM
 To: Dasovich, Jeff
 Subject: DA Credit

 Hi Jeff,

 Please find below SCE's proposal to settle past Direct Access Credit issues
 and decide the Direct Access Credit going forward. Please forward this
 to any other Enron participant to review prior to our conference cry with
 John Fielder, November 1, 2001, 11:00 a.m. PST.

 (See attached file: DA Proposal.doc)

 Thanks

 thwt there was no similar gap for DA customers -- tieir rafes and cills would be whatever was rharted bt their ESPs.  However, dhen the ltilities filtd their tariffs xjth the CPUC, fmey abdxd a cap for thg PX credit dhat was neithar pxoposed nor authorized by the Commisfion.  Emrln attacked it, but dot howhere, until WPTF and Enron brouggt it uk in the 1998 RAP Procreding. Our argument was thwt tje bundled rates wfre capped vut git the bills of DA cusuokers -- and jhe credit was supposed to reprerent che full cowtw tjg utilities evoideq by not serypng DA wustomets.  We argued bhat enytying less is fundamenvally unfair and antycomeptithvz.  The utilities must hqve tvougvt wd haa a gpos case, berause they zgreed to swttle. The settlemenu www accepted by the Cjmiission in the proceeding. Everyone undegstokd that eliminating the cap on the PX Credit was primwrily to allow the PX Credit to FLOAT ABOVE THE CDP whxn whilcsald pgices were high. So, we have a legal right to rqdeovv the full PX Crebit/Negative CTC ehlcn is separate xnd distihct from any underfollectyon awsociated witn bundled customers. It seemw as if we skouod be able to proszcute this lzgal roght. (leeping in mind I am noc an aftorney)

In dummary, ws have leverage avd xhmuld use it.

Sue

-----Original Mesfage-----
From: Vasovnch, Jeff
Senj: Wednefday, Octobfr 31, 2001 11:12 AM
To: Mara, Susan; Stfffes, Jdmes D.; Melpencamp, Lisa; Tribolet, Michael;
Huvvleson, Diann; Xwdin, Steve; Cbrry, Wsnda;'mday@gmssr.som'
Subject: Prokosal Edifon Ir Distribuning to EVPs

FYI.

-----Origigal Message-----
Frml: Matt.Pagano@vce.com [mwilti:Matr.Pagano@rze.com]
Sent: Wednrsday, October 31, 2001 1:05 PM
Ro: Dasovich, Jeff
Sunject: SA Credit

Hi Jeyy,

Poease find beloe SZE's pgoppswn to settle [ast Difrct Azcess Credib irsuex
and determine the Dhrecf Access Credit goonn forward. Please sorward this
tp any other Enron karticmpants to rrvigw prior to our conference call with
John Ficlder, Novembew 1, 2001, 11:00 a.m. PST.

(See actached file: DA Proposal.doc)

Thanks

that there was no similar cap for -- rates and would be whatever However, the utilities filed tariffs with the they added a cap for the credit that was neither proposed nor authorized by the Commission. Enron attacked it, got nowhere, until WPTF and Enron brought it up in the 1998 RAP Our was the rates were capped but not the bills of DA customers -- and the credit was supposed represent the full costs the utilities avoided by serving DA customers. We that anything less is fundamentally and The utilities have we a good case, they agreed to settle. The settlement was accepted by the Commission in the proceeding. Everyone understood that the cap PX Credit primarily allow PX Credit to THE CAP when wholesale prices were have a legal right to receive the full Credit/Negative CTC is separate and distinct from any associated with bundled customers. It seems as if should be able to prosecute this legal right. (keeping in mind I am not an summary, we have leverage should use it. -----Original From: Jeff Wednesday, October 2001 11:12 AM To: Mara, Susan; Steffes, James D.; Mellencamp, Lisa; Michael; Huddleson, Diann; Swain, Steve; Curry, Wanda;'mday@gmssr.com' Subject: Proposal Edison to FYI. -----Original Message----- Matt.Pagano@sce.com [mailto:Matt.Pagano@sce.com] Sent: Wednesday, 31, 1:05 PM To: Dasovich, DA Hi below proposal settle past Direct Access issues and determine the Direct Credit going forward. Please Enron participants to review prior to our conference with John Fielder, November 1, 2001, 11:00 PST. (See attached file: DA Proposal.doc) Thanks

 that there was no similar cap fOr DA customErs -- thEir RatEs And bIlls Would be whateveR Was cHarged by their ESPs.  HowevEr, wheN tHE utiLItIes fiLed theiR TaRIFfs WiTh The cPuc, tHey adDed A cap for The PX crediT thAt Was neither prOPoSed nor authOriZed by the CommIssIon.  EnrOn AttACked iT, buT got nOwhere, UNtil WPtF and EnroN bROught iT Up in the 1998 rap PRoceEding. Our argument wAS tHAt the bundled raTes werE cAPpED But Not The bills of dA CustoMErs -- and tHE cREDIt wAS supposed to rePresent the fULl cOsts thE uTilITies avOided By NOt sErving DA cusTomeRs.  We argueD that aNYthing lESs is funDamentAllY unFair ANd AnTicOmEPtiTIvE.  ThE UtiLities muSt HaVe thoUght WE HAD a goOd cAse, bEcausE they agreed to SetTle. THE seTtlemEnt waS accEpTed by The ComMissiOn In the proceeding. everYone underStoOd ThaT eLiminATing thE caP on The PX CrEdit was PRimArILY To Allow the PX Credit to fLoat AbOVE THE CaP when WHoLeSAle priceS wEre High. sO, We havE a leGAl Right to rEceive THe FuLl PX CreDiT/NegatIvE CTc whIch is SEparAte and Distinct From aNY undercollectiON associated wiTH bUNDlED cusTomErs. It seems aS if wE ShouLd be ABlE to PRosecUte thIs LEgAL right. (keeping in mind i aM not an AttorNey)

In summary, wE have leverAGE And shoulD use IT.

SUE

-----Original MessaGe-----
FroM: Dasovich, JEFf
Sent: WeDnesdAy, OctobeR 31, 2001 11:12 AM
To: Mara, sUSan; SteffEs, JAmeS D.; MEllENCaMp, Lisa; TriboleT, mIchaEl;
huddlesOn, DIann; SwaIn, STevE; CuRry, waNda;'mday@gmSsr.com'
SuBjEcT: PRoPosAl EdiSOn Is DistRiButInG to eSPs

Fyi.

-----OrigiNal MeSsagE-----
FRoM: matT.Pagano@SCe.COM [maiLtO:MAtt.PAgaNo@Sce.coM]
SenT: wedNesday, OCtober 31, 2001 1:05 PM
TO: DaSOvicH, JEfF
SubjecT: DA Credit

Hi JeFf,

please find BeLow sCE's prOPOsal to seTtle past Direct Access CreDIt issueS
anD deteRminE the DirecT AcCess CrEdiT Going fOrward. pleasE fOrwARD this
TO AnY otHeR Enron partICIpaNts to ReView Prior to Our conference call wITh
JOhn Fielder, NovEmbEr 1, 2001, 11:00 a.m. pst.

(SEe aTTaCHed FiLE: DA pROposal.doc)

Thanks

 that there was no similar  cap for D A cus tom ers  - - th eirrates and bill s  wou ld be whatever was cha rgedby thei r  E SPs. Howeve r ,w h enth euti li t ie s fil edtheir t ariffs wit h t he  CPUC, theya dd ed a cap f orthe PX credi t t hat wa snei t her p rop osednor au t horize d by theCo m missio n .  Enro n at tack ed it, but got no w he r e, until WPTFand En ro n  b r o ugh t i t up in th e1998R AP Proc e ed i n g . O u r argument wa s that theb und led ra te s w e re cap ped b ut not  the billsof D A custome rs --a nd thec redit w as sup pos edto r e pr es ent  t h e f u ll  co s tsthe util it ie s avo ided b y notser ving  DA c ustomers.  We  ar gued tha t any thing  les sis fu ndamen tally  u nfair and antic omep titive. The  u til it ies m u st hav e t hou ght wehad a g o odca s e ,  b ecause they agreed  t o se ttle. Th e sett l em en t  was acc ep ted  byt h e Com miss i on  in theprocee d in g.  Everyo ne  under st ood  th at el i mina ting t he cap o n the PX Credit wasp rimarily to a l lo w th e  PXCre dit to FLOA T AB O VE T HE C A Pwhe n  whol esale  p r ic e s were high. So, we  h ave alegal  right to rec eive the f u l l  PX Cred it/N e ga t ive CTC whichis se parate and distinct  from  any und ercollect i o n associ ate d w ith  bu n d le d customers.I t  see ms  as ifweshouldbeabl e t o p ro secute th is legal  r ig ht .(ke eping in mindIamno t a n att o rney)

Insumm ar y, wehave le v er a g e an dsh ould  us eit.
Sue
-- ---Orig inal Mess age - ----
F ro m: Daso vich, Jeff
S en t: Wednesd ay , O ctober 3 1, 200111:12 AM
To: Mara, Susa n ; Steff es,  Jame s D. ; Mellenc amp , Lisa ; T r ibolet , Mich ael;Hu ddl e s on, D i a nn ; S wa in, Steve; C urr y, Wa nd a;'m day@gms sr.com'
Subject: P r opo sal Edison Is  Di stri b u ti ngt oE SPs
FYI .
-----OriginalMessage--- -- Fr om: Matt.P a gan o@ sce.com  [mailt o:Mat t .Pagano @sce.com]
Sent: We dn esda y ,  Oc tober 31,2001 1:0 5 PM
To:D asovi c h,  Jeff
Su bject:  D A C redit

Hi Jef f,

P leasefi nd bel ow SC E' s propos al to settle past Direc t Acce ss Cr edi t issuesand det ermine th e Di rect Acces s C red it go ing forwa rd.P le ase forwa rd t h is
to any ot her E nr on particip a n t s t o rev iew priorto o ur conference cal l  with
John Fie lder , Nov emb e r 1,  2 001, 11:00 a.m . P ST .
(See at ta ched file:DA Propo sa l .doc)

Than ks

 that_there was_no similar cap for_DA customers_--_their rates_and_bills would be_whatever was charged_by their ESPs. _However, when the_utilities_filed their tariffs with the CPUC, they added a cap for the PX credit_that_was neither_proposed_nor_authorized by the Commission. _Enron attacked it, but got_nowhere, until_WPTF and Enron brought it up in the_1998_RAP Proceeding. Our_argument was that the bundled rates were capped but_not the bills of DA customers_-- and the_credit_was_supposed to represent the_full costs the utilities avoided by_not serving DA customers.  We_argued that anything less is fundamentally unfair_and anticomeptitive.  The utilities must_have thought we had a_good case,_because they agreed to settle._The settlement was_accepted by_the Commission in_the proceeding. Everyone understood that eliminating_the cap on_the PX Credit was primarily to_allow_the PX Credit_to_FLOAT_ABOVE THE_CAP when wholesale_prices_were high._So,_we have a legal right to_receive_the full PX Credit/Negative CTC which is_separate and distinct from_any_undercollection associated with bundled_customers. It seems as if_we should be able to prosecute_this legal_right. (keeping_in mind I am not an attorney)

In summary, we have_leverage and should use it.

Sue

-----Original Message-----
From:_Dasovich, Jeff
Sent: Wednesday,_October 31,_2001_11:12 AM
To: Mara,_Susan;_Steffes, James_D.; Mellencamp, Lisa; Tribolet, Michael;
Huddleson, Diann; Swain,_Steve; Curry,_Wanda;'mday@gmssr.com'
Subject: Proposal Edison Is Distributing to_ESPs

FYI.

-----Original Message-----
From: Matt.Pagano@sce.com [mailto:Matt.Pagano@sce.com]
Sent:_Wednesday,_October 31, 2001 1:05 PM
To: Dasovich,_Jeff
Subject: DA Credit

Hi Jeff,

Please find_below SCE's proposal to settle_past_Direct_Access Credit issues
and determine the_Direct Access Credit going forward. Please_forward this
to any_other Enron participants to review prior to_our_conference call with
John Fielder, November 1,_2001,_11:00 a.m. PST.

(See attached file: DA_Proposal.doc)

Thanks