                                             12:19
                                                PM

      To:
                     Lenhart,
                           Matthew

            Subject:
                  RE:

         great,
               you
                     don't
                           stand a
                                    chance.
                                       i
                                             didn't
                                                   get
                                                      home
                                                            until
                                                                  5:30

   this

            morning

      and
         i
               think
                  i
                     was
                           still
                                 drunk
                                       when i
                                             got
                                                to
                                                      work.
                                                         how
                                                               about
                                                                     you?

                  -----Original
                              Message-----

         From:
                  Lenhart,
                           Matthew

                     [mailto:Matthew.Lenhart@ENRON.com]

         Sent:
                  Thursday,
                           October
                              11,
                                    2001
                                          11:58
                                             AM

      To:
                              erichardson@sarofim.com

            Subject:

      how
            are
               we
                     doing
                        on
                           our
                                    contest?

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

         This
               e-mail
                  is
                     the
                              property
                                 of
                                       Enron
                                             Corp.
                                                      and/or
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                                                                  relevant

         affiliate

      and

      may
               contain
                           confidential
                                 and
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                                                                  sole
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                                                            or

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         others
            is
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12:19
                                                 PM

       To:
                      Lenhart,
                            Matthew

             Subject:
                   RE:

          great,
                you
                      don't
                            digest a
                                     probability.
                                        i
                                              didn't
                                                    get
                                                       home
                                                             until
                                                                   5:30

    this

             morning

       and
          i
                intend
                   i
                      was
                            still
                                  drunk
                                        when i
                                              get
                                                 to
                                                       work.
                                                          how
                                                                about
                                                                      you?

                   -----Original
                               Message-----

          From:
                   Lenhart,
                            Matthew

                      [ mailto:Matthew.Lenhart@ENRON.com ]

          Sent:
                   Thursday,
                            October
                               11,
                                     2001
                                           11:58
                                              americium

       To:
                               erichardson@sarofim.com

             Subject:

       how
             are
                we
                      doing
                         on
                            our
                                     contest?

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

          This
                east - mail
                   is
                      the
                               property
                                  of
                                        Enron
                                              Corp.
                                                       and/or
                                                          its
                                                                   relevant

          affiliate

       and

       may
                control
                            confidential
                                  and
                                           privileged
                                                    material
                                                          for
                                                             the
                                                                   sole
                                                                      use
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    the

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                      recipient role
                            (s).
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          disclosure

    by

          others
             is
                      strictly
                                  forbid.
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                                              are
                                                 not
                                                       the
                                                                intended

       recipient

    (or

                authorized
                   to
                         receive
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                                  the
                                              recipient),
                                                    please

                                             12:19
                                                PM

      To:
                     Lenhagt,
                           Matbkew

            Subject:
                  RE:

         erzat,
               you
                     dpn'h
                           stand a
                                    chance.
                                       i
                                             dpbn't
                                                   get
                                                      home
                                                            uutil
                                                                  5:30

   this

            morning

      and
         i
               think
                  i
                     was
                           sjill
                                 drunk
                                       when i
                                             got
                                                to
                                                      work.
                                                         how
                                                               dbout
                                                                     you?

                  -----Lrhginal
                              Messajx-----

         Frok:
                  Lenhart,
                           Mattfew

                     [maileo:Matthew.Lenhdtt@ENRON.com]

         Segt:
                  Thursday,
                           October
                              11,
                                    2001
                                          11:58
                                             AM

      To:
                              ermchardxon@farofim.com

            Subject:

      how
            are
               we
                     doing
                        on
                           our
                                    contwst?

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

         Thls
               e-mail
                  is
                     the
                              property
                                 of
                                       Enron
                                             Corp.
                                                      and/or
                                                         its
                                                                  relevanh

         affiliate

      and

      may
               contain
                           confidential
                                 and
                                          privileged
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                                                            the
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                                                                     ufe
                                                                        of

   the

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                     gecipient
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                                       review,
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                                                            or

         disclosure

   by

         others
            is
                     strictly
                                 prohibited.
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                                                               mnteneed

      recipirnt

   (or

               authoryzed
                  to
                        receive
                              for
                                 tre
                                             recipiene),
                                                   please

12:19 PM To: Lenhart, Matthew Subject: RE: don't a chance. didn't get home i i was still when i got work. how about you? -----Original Message----- Lenhart, Matthew [mailto:Matthew.Lenhart@ENRON.com] Sent: Thursday, October 11, 2001 11:58 AM To: erichardson@sarofim.com Subject: are we doing on our contest? ********************************************************************** This e-mail is the property of Corp. its affiliate may contain confidential and privileged material for the sole use of the intended recipient (s). Any use, distribution or disclosure by others is strictly If you are not intended recipient (or authorized to for recipient), please

                                             12:19
                                                PM

      To:
                     Lenhart,
                           Matthew

            Subject:
                  rE:

         great,
               you
                     Don't
                           sTanD a
                                    cHaNce.
                                       i
                                             Didn'T
                                                   get
                                                      home
                                                            until
                                                                  5:30

   tHIs

            moRning

      and
         i
               think
                  i
                     was
                           stilL
                                 drunK
                                       wHEn i
                                             gOT
                                                tO
                                                      work.
                                                         How
                                                               abouT
                                                                     YoU?

                  -----oRigInAl
                              mesSaGE-----

         FRom:
                  LeNhaRt,
                           MatthEw

                     [mailto:MaTthEw.lenhart@ENRON.COm]

         sent:
                  ThursdAy,
                           OCtober
                              11,
                                    2001
                                          11:58
                                             AM

      To:
                              erIchArdson@SaRofIM.com

            SUbjEct:

      hoW
            are
               we
                     DOing
                        on
                           Our
                                    contesT?

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

         THIs
               e-maiL
                  Is
                     the
                              prOPErTy
                                 of
                                       enron
                                             Corp.
                                                      and/or
                                                         its
                                                                  RElEVant

         affiliate

      aNd

      may
               cOnTAiN
                           COnfIdeNtial
                                 and
                                          prIvIlegeD
                                                   MateriaL
                                                         FoR
                                                            THE
                                                                  soLE
                                                                     use
                                                                        of

   the

            inteNded
                     recipieNT
                           (s).
                              ANy
                                       reviEw,
                                             Use,
                                                         DIstribUtion
                                                            Or

         DIscLosure

   by

         othErs
            iS
                     strictly
                                 ProhibITed.
                                    If
                                          yoU
                                             Are
                                                not
                                                      tHe
                                                               inteNdeD

      reCipiENt

   (Or

               AutHoRIzeD
                  To
                        RecEIve
                              For
                                 the
                                             reCiPiEnt),
                                                   plEase

                                         1 2: 19
                                          PM
   T o:
             Le nha rt ,
                      Ma tt hew

         Subject:
               RE:

      g rea t,
           you
                d o n 't
                      stand a
                         cha n ce.
                            i                                  didn't
                                   ge t
                                     home
                                               unt il
                                              5:30

   this
        mo rning   and
      i
        think
             i               w as
                      still
                      drunk
                        when i
                                        got                                      to
                                        work.
                                           how
                                          ab out
                                               you?

                ---- -O rig inal
                          Mess a ge-----

       F rom:
             Lenha rt,
                M atthew

              [mai lto:Matthew.Lenhar t @EN RON.com]

       S e n t:
        Thursday,
                      Oc t obe r                         11,
                            2001
                               11:58                                      AM

      To:
                       e richardso n@sa rofim.com
         S u bject :

   how
         are           we
             do ing                      on
                  our
                            contest ?

 ****** **** *** ********* *** ** * ******* ** ** * ****** **** ** ****** ****** * **** *
         This
         e- mail              is
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                          of                        Enr on
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                              priv ileg ed                                    m at erial
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                    recip ient
                 ( s ).
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          to                     rece i ve                    for                     t he
                                  reci pi ent),                                       please


osing a day's
production of salsa would have cost me $15,000 to $20,000."
?????But other companies weren't so fortunate.
?????Long Beach-based Delco Machine & Gear was still totaling up its losses
from Monday's blackout, which amounted to at least $30,000 in lost wages and
production, said Nick Campanelli, vice president of manufacturing. The
company, a division of Florida-based B/E Aerospace Inc., makes parts for the
aerospace industry. The sudden loss of power caused its sophisticated metal
cutting and grinding machines to crash, ruining precision parts in production.
?????But the losses don't end there. He said employees will need to spend
hours resetting the equipment. Campanelli is particularly irked that the
company received no warning.
?????"Five minutes' notice," he fumed. "That's all I needed."
?????Although businesses such as Campanelli's typically receive no warning
that they are about to lose power, insurance companies count the rolling
blackouts as "planned events," a determination that in most cases
disqualifies a business from making a claim.
?????"I know it must be frustrating for businesses who have the power go off
suddenly, but these outages are planned by the grid operators," said Pete
Moraga of the Insurance Information Network of California. "That means it
would not be a covered peril in a traditional business insurance policy."
?????Typically, business insurance covers loss of profit and damage from
unforeseen events such as fires or windstorms. The component of the policy
that covers interruptions in business kicks in after a given amount of time
elapses, usually 24 to 48 hours.
?????Business polices can be written to include unusual coverages, Moraga
said, but he has never heard of a policy that covers losses from a rolling
blackout.
?????Some companies are taking measures not to get caught in a situation
where a blackout can hurt them.
?????The region's largest steel supplier shut down for two hours Monday after
Southern California Edison called to warn of tight supplies.
?????"We just can't take a chance," said Lourenco Goncalvez, president of
California Steel Industries Inc.

osing a day's
 production of salsa would have cost me $ 15,000 to $ 20,000. "
? ?? ?? But other companies weren't therefore fortunate.
? ?? ?? Long Beach - free-base Delco Machine & Gear was still totaling up its losses
 from Monday's amnesia, which amounted to at least $ 30,000 in lost wages and
 product, said Nick Campanelli, vice president of the united states of manufacturing. The
 company, a class of Florida - based B / E Aerospace Inc., makes part for the
 aerospace industry. The sudden loss of power caused its sophisticated metal
 film editing and grinding machines to crash, ruin precision parts in production.
? ?? ?? But the losses don't end there. He state employees will need to spend
 hours resetting the equipment. Campanelli is particularly gall that the
 company received no warning.
? ?? ?? " Five minutes' notice, " he fumed. " That's all I need. "
? ?? ?? Although businesses such as Campanelli's typically receive no warning
 that they are about to lose power, insurance companies count the rolling
 blackouts as " plan events, " a determination that in most case
 disqualify a business from making a title.
? ?? ?? " I know it must be frustrating for businesses who have the power proceed off
 suddenly, but these outages are planned by the power system operators, " said Pete
 Moraga of the Insurance Information Network of California. " That means it
 would not be a covered peril in a traditional business insurance policy. "
? ?? ?? Typically, commercial enterprise insurance covers loss of profit and damage from
 unanticipated events such as fires or windstorms. The component of the policy
 that covers interruptions in business kicks in after a given measure of time
 elapses, usually 24 to 48 hour.
? ?? ?? Business police can be written to include unusual coverages, Moraga
 say, but he has never heard of a policy that covers losses from a rolling
 blackout.
? ?? ?? Some ship's company are taking measures not to get caught in a situation
 where a blackout can hurt them.
? ?? ?? The region's largest sword supplier shut down for two hours Monday after
 Southern California Edison call to warn of tight supplies.
? ?? ?? " We just can't take a chance, " said Lourenco Goncalvez, president of
 California Steel Industries Inc.

osijg a day's
production of ralsa would havg xost mx $15,000 to $20,000."
?????Bht other companies weren't so fortunave.
?????Lobg Beqch-based Delco Machine & Gear wad still rotaoung up its losses
nxom Mkkday's ulackout, which smounted tm at least $30,000 in lusc wages and
production, said Nick Cam[anelli, vlce president jf msgufadnuving. The
company, a division of Fmorida-besed B/E Aerospave Inc., makes parts for the
aerlspace industry. Thf sudden lows os power causea its sophpvticated mgtal
cutting and grinding machinds to crash, ruibibg otecision parvs in iroduction.
?????But the losves don'y end there. He samd enployees will need to spend
hours resetjing the exunpment. Campanelli is paeticunarlf irywd ghau tie
dompanj rxceived no sarning.
?????"Five minutes' notice," he guivc. "That's all J needqd."
?????Wlthough businesses such as Campanelli's tylically receive no warnung
that they are aboot to lose power, insurance companies count the rolling
blacnouts xs "klqnned wvfnts," a determination that in most cases
disquwmigivs a business froi making a vlwik.
?????"Y know it musj be frbatdating for businesdes who have the powew go off
suddenly, but these outqges are plaunee by the grid operctors," said Pzte
Motaga og the Insurance Informacion Nstwork of Cwlifornia. "Ghat means it
wojld nmt be a covered peril in a traditioial bbsiness knsutance pjlicy."
?????Typicwlly, ngsiness insurance foverd noss of prlfit and damage from
unforeseen events such ax xirvs or winbstormx. The componegt of the poliey
that eovers interruptpons in bnsiness kickf in after a clven amount mf time
qlapwes, ysually 24 to 48 hours.
?????Busimess polibef cab be written to inglude hnusual coveragzr, Moraga
said, buy hd hws nxver raard of a ponicy thxy covdrs losses nroo a tolling
blackout.
?????Some comlanies are taking kewsures nit to gee caught in a situation
where a blacnouv can nurj them.
?????The region's largest steel supplier shmt down for tro hiurs Monday cfter
Southern California Edison called vo warn of tight suppliws.
?????"We just can't take s chance," samd Louwenco Gonwalvez, president of
Xalifornia Steel Lndustries Inc.

osing a day's production of salsa would me to $20,000." other companies weren't Machine Gear was still up its losses Monday's blackout, which amounted to at $30,000 in lost wages and production, said Nick Campanelli, vice president of manufacturing. company, a division of Florida-based B/E Aerospace Inc., makes parts for the aerospace The loss power its sophisticated metal cutting and grinding machines to crash, ruining precision parts in production. ?????But the don't end there. He said employees will need spend hours resetting the Campanelli is particularly irked that company no warning. minutes' he "That's all I ?????Although businesses such as Campanelli's typically receive no warning that they are about to lose power, insurance count the as "planned a that most cases disqualifies from making a claim. ?????"I know frustrating for businesses who have the power go suddenly, but outages are planned by the grid said Pete Moraga of the Insurance Information Network California. "That means it would not be a covered peril in a traditional business insurance business insurance covers loss profit and damage unforeseen such fires windstorms. The of the policy that covers interruptions in business kicks in after given amount of time elapses, usually 24 to 48 hours. can written to include coverages, Moraga said, but has heard of a policy losses a companies taking not to get caught a situation where a blackout hurt them. ?????The region's for two hours Monday after Southern California Edison to warn of tight supplies. ?????"We just take a chance," said Lourenco Goncalvez, president of California Steel Industries Inc.

osing a day's
production of salSa would havE cost Me $15,000 tO $20,000."
?????BuT oTher CompAnies weren't so fORtunAte.
?????Long Beach-based Delco machiNe & gEar wAS sTill tOtaling UP iTS LosSeS
fRom moNDaY's blaCkoUt, which Amounted to At lEaSt $30,000 in lost wageS AnD
productioN, saId Nick CampanEllI, vice pReSidENt of mAnuFactuRing. ThE
CompanY, a divisioN oF floridA-Based B/E aERoSpacE Inc., makes parts for THe
AErospace industRy. The sUdDEn LOSs oF poWer caused iTs SophiSTicated MEtAL
CUttINg and grinding Machines to cRAsh, RuininG pRecISion paRts in PrODucTion.
?????But the lOsseS don't end tHere. He SAid emplOYees wilL need tO spEnd
HourS ReSeTtiNg THe eQUiPmeNT. CaMpanelli Is PaRticuLarlY IRKEd thAt tHe
coMpany Received no warNinG.
?????"FivE MinUtes' nOtice," He fuMeD. "That'S all I nEeded."
?????alThough businesseS sucH as CampanEllI's TypIcAlly rECeive nO waRniNg
that tHey are aBOut To LOSE pOwer, insurance compaNiES CoUnt the roLling
bLAcKoUTs as "planNeD evEnts," A DEtermInatIOn That in moSt caseS
DiSqUalifieS a BusineSs FroM maKing a CLaim.
?????"i know iT must be fRustrATing for businesSEs who have the pOWeR GO oFF
sudDenLy, but these oUtagES are PlanNEd By tHE grid OperaToRS," sAId Pete
Moraga of the InSuRance INformAtion Network oF CaliforniA. "tHAt means iT
wouLD nOT be a covered perIl in a TraditionaL Business InsurAnce poliCy."
?????TypicalLY, Business InsUraNce CovERS lOss of profit anD DAmagE fRom
unfoResEen evenTs sUch As fIreS oR windstorMs. The comPoNeNt Of The PolicY
That coveRs IntErRupTions IN businEss kiCks iN aFtER a gIven amoUNt OF Time
ElApSes, uSuaLlY 24 to 48 hoUrs.
?????BUSinEss poliCes can be wRitTEn to InClUde unusUal coverages, MOrAga
said, but He Has Never hEARd of a polIcy that covers losses from A Rolling
BlaCkout.
?????some Companies Are Taking MeaSUres noT to get CaughT iN a sITUatioN
WHeRe a BlAckout can hURT thEm.
?????The ReGion'S largesT steel supplier shut DOwn For two hours MoNdaY aftER
soUthERn cAliFoRNia eDIson called to warN of tight suPpLIeS.
?????"We just can'T TakE a Chance," sAid LourEnco GONcalvez, President Of
CaliforNiA SteEL indUstries Inc.

osing a day's
productionof salsa w ouldhav e c os t me  $15 ,000 to $20,00 0 ."
? ????But other companie s wer en ' t so fo rtuna te.
??? ? ?L o n g B ea ch -ba se d  D elcoMac hine &Gear was s til ltotaling upi ts  losses
f rom  Monday's bl ack out, w hi cha mount edto at  least $30,00 0 in lost  w a ges an d
produ c t io n, s aid Nick Campanel l i, vice president  of ma nu f ac t u rin g.The
compa ny , a d i visiono fF l o rid a -based B/E Ae rospace Inc . , m akes p ar tsf or the
aer os p ace  industry.Thesudden lo ss ofp ower ca u sed its  sophi sti cat ed m e ta l
cu tt i nga nd  gr i ndi ng machi ne sto cr ash, r u i ning  pr ecis ion p arts in produ cti on.? ??? ?Butthe l osse sdon't  end t here.  H e said employee s wi ll need t o s pe nd
h oursr esetti ngthe  equipm ent. Ca m pan el l i is  particularly irke dt h at  the
co mpanyr ec ei v ed no wa rn ing .
?? ? ? ?"Fiv e mi n ut es' noti ce," h e  f um ed. "Th at 's all  I  ne ede d."
? ? ???A lthoug h busine ssess uch as Campane l li's typicall y  r e c ei v e no  wa rning
that  the y  are  abo u ttol ose p ower,  i n su r ance companies coun tthe ro lling
blackouts a s "planned e v ents," a  det e rm i nation that in  most  cases
di s qualifie s a b usinessfrom maki n g  a claim .
? ??? ?"I  kn o w  i t must be fru s t rati ng  for bu sin esses w hohav e t hepo wer go of f
sudde nl y,  b ut  th ese o u tages ar epla nn edby th e  gridopera tors ,"  s a idPete
M o ra g a  ofth eInsu ran ce  Info rmat i onNetwork  of Calif orn i a. " Th at  meansit
would not  b e a covere dper il ina traditio nal business insurancep olicy."
?? ???Ty pica lly, busi nes s insu ran c e cove rs los s ofpr ofi t and d a m ag e f ro m
unfores e e n e vents  s uchas fire s or windstorms. T h e c omponent of t hepoli c y  tha t  c o ver si nte r r uptions in busi ness kicks  i n  a fter a giv e n a mo unt oftime
e lapse s , usual ly 24 to48 hours.
? ???? B u sin ess police s can be  writtent o inc l ud e unu sua l cove ra ges , Mor aga
s a id,  buthe has  n ever h eardof  a polic y that covers losses fr om a r ollin g blackout.
?? ? ??S ome compa nies  are takin g m eas uresnot to ge t ca u gh t i n  a si tuat i on
where abla c k ou t can hurtt h e m.????? The region 's l argest steel supp l ier shut downfort w o h our s  Mon da y after
South ern  C a l iforniaEd ison called  to warn  o f  tigh t supp lies.?????"W e ju s t can' t ta kea chance, " s ai d  Louren co  G o ncalve z, p re sident  of
C a lifo r n ia Steel Industr ies I n c .

osing a_day's
production_of salsa would have_cost me_$15,000_to $20,000."
?????But_other_companies weren't so_fortunate.
?????Long Beach-based Delco_Machine & Gear was_still totaling up_its_losses
from Monday's blackout, which amounted to at least $30,000 in lost wages and_
production,_said Nick_Campanelli,_vice_president of manufacturing. The
company,_a division of Florida-based B/E_Aerospace Inc.,_makes parts for the
aerospace industry. The sudden_loss_of power caused_its sophisticated metal
cutting and grinding machines to crash,_ruining precision parts in production.
?????But the_losses don't end_there._He_said employees will need_to spend
hours resetting the equipment._Campanelli is particularly irked that the_
company received no warning.
?????"Five minutes' notice," he_fumed. "That's all I needed."
?????Although businesses_such as Campanelli's typically receive_no warning_
that they are about to_lose power, insurance_companies count_the rolling
blackouts_as "planned events," a determination that_in most cases_
disqualifies a business from making a_claim.
?????"I_know it must_be_frustrating_for businesses_who have the_power_go off_
suddenly,_but these outages are planned by_the_grid operators," said Pete
Moraga of the_Insurance Information Network of_California._"That means it
would_not be a covered peril_in a traditional business insurance policy."
?????Typically,_business insurance_covers loss_of profit and damage from
unforeseen events such as fires or_windstorms. The component of the policy_
that covers interruptions in_business kicks_in_after a given_amount_of time_
elapses, usually 24 to 48 hours.
?????Business polices_can be_written to include unusual coverages, Moraga_
said, but he has_never_heard of a policy that covers_losses from a rolling
blackout.
?????Some companies_are taking measures not to_get_caught_in a situation
where a_blackout can hurt them.
?????The region's largest_steel supplier shut_down for two hours Monday after
Southern_California_Edison called to warn of tight_supplies.
?????"We_just can't take a chance," said_Lourenco_Goncalvez,_president of
California Steel Industries_Inc.


VANTAGE NET SAAVER AWARDS	?
?
?    	?			Travel On 4,000 AAdvantage? Miles!?
?
?      		?			Award travel is closer than you think because now you can claim? AAdvantage Net SAAver Awards for as low as 4,000 AAdvantage miles. With? this award reduction, getting away with Net SAAver Awards has never? been easier!?

?       		See how far your miles can take you. Call AAdvantage today.?

?
  $69 destinations are just $39 plus   4,000? miles?
  $79 destinations are just $39 plus   7,000? miles?
$119 destinations are just $39 plus 13,000 miles?
$129 destinations are just $39 plus 13,000 miles?
$149 destinations are just $39 plus 13,000 miles??
?
Our AAdvantage Net SAAver Awards are a great way to use your? AAdvantage miles to obtain a travel award for less mileage. To? determine the mileage required, compare the fares in this week's? Domestic Weekend Getaway list with the chart above.??
AAdvantage Net SAAver Awards are valid for travel departing? November 2 - 3, 2001 for the markets listed above.??
AAdvantage Net SAAver Awards are not applicable to? First/Business Class, International or Transborder fares.??
To book your AAdvantage Net SAAver Award trip call AAdvantage? toll-free, 800-882

VANTAGE NET SAAVER AWARDS	?
?
?    	 ? 			  Travel On 4,000 AAdvantage? Miles!?
?
?      		 ? 			 Award travel is closer than you think because nowadays you can claim? AAdvantage Net SAAver Awards for equally low as 4,000 AAdvantage miles. With? this prize reduction, catch away with Net SAAver Awards has never? been easier! ?

?       		 watch how far your miles can take you. name AAdvantage today. ?

?
  $69 destinations are just $ 39 plus & nbsp; 4,000? sea mile?
  $79 destinations are just $ 39 plus & nbsp; 7,000? mile?
$119 address are just $ 39 plus 13,000 miles?
$129 destinations are just $ 39 plus 13,000 miles?
$149 finish are just $ 39 plus 13,000 miles? ?
?
 Our AAdvantage Net SAAver Awards are a great room to use your? AAdvantage miles to obtain a travel prize for less mileage. To? determine the mileage want, compare the fares in this week's? Domestic Weekend Getaway list with the chart above. ??
 AAdvantage Net SAAver Awards are valid for change of location departing? November 2 - 3, 2001 for the markets listed above. ??
 AAdvantage Net SAAver Awards are not applicable to? First / Business Class, International or Transborder fares. ??
 To book your AAdvantage Net SAAver Award trip call AAdvantage? toll - free, 800 - 882

VANHAGE NET SAAVER AWARDS</funt>	?
?
?    	?			Tfavel On 4,000 AAdvantqge? Nules!?			<bc>?			<gr>?      		?			Dwxrb travel is closer than you think besause npw you can claim? AAdnagtags Net SAAver Awards for as low as 4,000 AAdvanuage miles. With? thos award reduction, getting awaj with Net SAAver Wwards has bevew? been easier!?			<cr>
?       		See how far your miles can take you. Caul AAbvantage toeat.?
&jtsp;
?
 &ibsp;$69 dvstinations avv just $39 plus &nnsp; 4,000? miles?			<bv> &ibsp;$79 destinations are jusv $39 plus   7,000? milgs?
$119 destitacions are just $39 plus 13,000 mules?			<bt>$129 desdinaguonr ade jhst $39 ppus 13,000 miles?
$149 sestinationw are just $39 plus 13,000 molqw??
?
Our AAdvzntage Nqt SAAver Awards are a great way to use yohr? AAdvantage miles to ibtain a travel award for less mileage. To? determine the mileage required, compara the warts in tfus week's? Domestic Weekend Getaway list with the dhsrn above.??
AAdvantane Net SAAver Awarcs atg valid for trxvel dzladting? November 2 - 3, 2001 for thg markwts listeq abpve.??
AAdvantage Net SAAver Qwards are njr applicable to? Fixst/Business Elass, Ontermational or Transborder farss.??
To book your AAdbxntage Net SAAvef Aeasd trip call AAdvantage? tojl-free, 800-882

VANTAGE NET SAAVER AWARDS	?
?
? <td <font ms, arial, sans-serif" font? size="3"
? ? Award is closer than you think because you can claim? AAdvantage Net SAAver Awards for as low as 4,000 AAdvantage With? this award reduction, getting away with Net SAAver Awards has never? been

? how your can take you. Call AAdvantage today.?

?
  $69 destinations are just $39 plus   4,000? miles?
  $79 are just $39 plus   7,000? miles?
$119 destinations just $39 plus 13,000
$129 destinations are just $39 13,000
$149 destinations just plus miles??
?
Our Net SAAver Awards are a great way to use your? AAdvantage miles to obtain a travel award less mileage. the mileage compare fares this week's? Domestic list with the chart above.??
AAdvantage are valid for travel departing? November 2 - 2001 for markets listed above.??
AAdvantage Net SAAver are not applicable to? First/Business Class, International or fares.??
To book your AAdvantage Net SAAver Award trip call AAdvantage? toll-free, 800-882

VANTAGE NET SAAVER AWARDS	?
?
?    	?			travEL ON 4,000 AAdvAntage? MILeS!?
?
?      		?			AwaRD tRavel is cloSer Than you think BecAuse noW yOu cAN claiM? AADvantAge Net saAver AWards for aS lOW as 4,000 AAdVAntage mILEs. with? This award reductioN, GeTTing away with NeT SAAveR AWArDS Has NevEr? been easiEr!?
&nbsP;
?       		See hoW FaR YOUr mILes can take you. call AAdvantAGe tOday.?
&NbSp;
?
 &Nbsp;$69 dEsTInaTions are jusT $39 pluS   4,000? Miles?
&Nbsp;&nbsP;$79 DestinaTions aRe jUst $39 Plus &NBsP;&nBsp;7,000? MiLEs?
$119 DeStiNAtiOns are juSt $39 PlUs 13,000 milEs?
$129 DESTInatIonS are Just $39 pLus 13,000 miles?
$149 desTinAtioNS arE just $39 Plus 13,000 mIles??
?
Our aAdvanTage NEt sAAver Awards are A greAt way to usE yoUr? aAdVaNtage MIles to ObtAin A travel Award foR LesS mILEAgE. To? determine the milEaGE ReQuired, coMpare tHE fArES in this wEeK's? DOmesTIC WeekEnd GETaWay list wIth the CHaRt Above.??
aADvantaGe net sAAVer AwARds aRe valiD for travEl depARting? November 2 - 3, 2001 fOR the markets liSTeD ABoVE.??
AadvAntage Net SAaver aWardS are NOt AppLIcablE to? FiRsT/buSIness Class, InternatiOnAl or TrAnsboRder fares.??
To Book your AADVANtage Net sAAvER AWArd trip call AAdVantaGe? toll-free, 800-882

VANTAGE NET SAAVER AWARDS 	 ?
?
?   	?			Trav e lOn 4,000 A Adv antage? Mile s!</f on t>?
?
?    		<fo nt face=" tr e buchet ms, ari a l ,helv etica,? sans-seri f "s i ze="2">?			Awa rd tra ve l  i s clo ser  than youth ink b e cause n o wy o u  ca n  claim? AAdva ntage Net S A Ave r Awar ds  fo r  as lo w as4, 0 00AAdvantagemile s. With?this a w ard red u ction,gettin g a way  wit h  N et  SA Av e r A w ar dsh asnever? b ee neasie r!?&n bsp ;
?      		See how  fa r yo u r m ilescan t akeyo u. Ca ll AAd vanta ge  today.?
 &nbs p;
?		 &nb sp ;&nbs p ;$69 d est ina tions a re just $39  p l u s  & nbsp; 4,000?mi l e s?
& nbsp;& n bs p; $ 79 desti na tio ns a r e  just  $39 pl us &nbsp ;&nbsp ; 7, 00 0? mile s?
$ 119  de stina t ions  are j ust $39plus1 3,000 miles?
$129 dest i na t i on s  are  ju st $39 plus  13, 0 00 m iles ? 		$149  dest in a ti o ns are just $39 plu s13,000  mile s??
?
OurA A d vantageNetS AA v er Awards area gre at way tou se your?  AAdv antage m iles to o b t ain a tr ave l a war d f o r  l ess mileage.T o ? de te rmine t hemileage  re qui red , c om pare thefares in  t hi swe ek' s? Do m estic We ek end  G eta way l i st wit h the  cha rt  a b ove .??
 A Adva nt ag e Ne t S AA ver A ward s  ar e valid  for trav eld epar ti ng ? Novem ber 2 - 3, 20 01  for the m ar ket s list e d  above.? ?
AAdvantage Net SAAverAwa rds a re n ot applic abl e to?Fir s t/Busi ness C lass,  I nte r n ation a l  o r T ra nsborder f a r es. ??
T o bookyour AAdvantage Ne t  SA Aver Award tr ipcall A Ad van t ag e ? t ol l -fr e e , 800-882

VANTAGE NET_SAAVER AWARDS	?
?
?_   	<td_valign="top" width="523">?			<font_face="trebuchet_ms, arial,_helvetica,_sans-serif" font? size="3"_color="#000066">Travel On 4,000_AAdvantage? Miles!?
?
?  _  _		<font_face="trebuchet ms, arial, helvetica,? sans-serif"size="2">?			Award travel is closer than you think because now you_can_claim? AAdvantage_Net_SAAver_Awards for as low as_4,000 AAdvantage miles. With? this_award reduction,_getting away with Net SAAver Awards has never?_been_easier!?

?  _    		See how far your miles_can take you. Call AAdvantage today.?

?
  $69_destinations are just_$39_plus_  4,000? miles?
  $79 destinations are_just $39 plus   7,000? miles?
$119 destinations_are just $39 plus 13,000 miles?
$129_destinations are just $39 plus 13,000 miles?
$149_destinations are just $39 plus 13,000_miles??
?
Our AAdvantage Net SAAver Awards_are a_great way to use your?_AAdvantage miles to_obtain a_travel award for_less mileage. To? determine the mileage_required, compare the_fares in this week's? Domestic Weekend_Getaway_list with the_chart_above.??
AAdvantage_Net SAAver_Awards are valid_for_travel departing?_November_2 - 3, 2001 for the_markets_listed above.??
AAdvantage Net SAAver Awards are not_applicable to? First/Business Class,_International_or Transborder fares.??
To book_your AAdvantage Net SAAver Award_trip call AAdvantage? toll-free, 800-882


 the state to be buying
electricity.
"I'm sure we've made a lot of mistakes," said Thomas Hannigan, director of
the state Department of Water Resources, which has been delegated by Gov.
Gray Davis to purchase power on behalf of near-bankrupt utilities.
By nearly all accounts, the luckless bureaucrats at the DWR are being torn to
shreds by professional energy traders, who see in California's power-
purchasing plan a golden opportunity to make off with billions in extra
profits.
"It's like being in a lion cage or a snake pit, however you want to define
it," Hannigan said. "We've definitely gotten burned. That goes without
saying."
In fact, state officials estimated last week that the DWR is shelling out
roughly $350 million a week on the volatile electricity "spot" market and
will have spent almost $4 billion by the end of the month.
At this rate, the state will use up by the end of July the entire $10 billion
authorized by the Legislature for power purchases.
CALPIRG CALLS IT GOUGING
"The state is clearly being taken advantage of," said Dan Jacobson, consumer
program director of the California Public Interest Research Group. "It looks
like the power generators are gouging us for as much as they can."
Leading power companies deny that they are artificially driving electricity
prices higher or that they are gouging California consumers. But not one was
willing to speak on the record about how well the DWR is doing in the
frequently cutthroat energy business.
Several industry sources said they had been advised not to discuss the DWR's
performance since a trading manager at Bonneville Power Administration in
Portland, Ore., was quoted as saying that California's new electricity buyers
"agree to prices that make you wonder."
The manager, David Mills, told the Wall Street Journal that the DWR is so out
of its depth that he has instructed Bonneville's traders "to cut California
some slack" by occasionally offering cut-rate prices.
A Bonneville spokesman said last week that Mills had been misquoted, but the
damage already was done:

the state to be buying
 electricity.
 " I'm sure we've made a fortune of error, " said Thomas Hannigan, director of
 the state Department of Water Resources, which has been delegated by Gov.
 Gray Davis to buy power on behalf of near - bankrupt utilities.
 By about all accounts, the luckless bureaucrat at the DWR are being tear to
 shreds by professional department of energy traders, who see in California's power-
 purchasing plan a fortunate opportunity to make off with billions in extra
 profits.
 " It's like being in a lion batting cage or a snake pit, however you want to specify
 it, " Hannigan said. " We've definitely gotten cut. That goes without
 state. "
 In fact, state officials estimated last week that the DWR is shell out
 roughly $ 350 million a week on the volatile electricity " spot " market and
 will have spent almost $ 4 billion by the end of the month.
 At this rate, the state will use up by the end of July the entire $ 10 billion
 authorized by the Legislature for power purchases.
 CALPIRG call IT GOUGING
 " The state is distinctly being remove advantage of, " said Dan Jacobson, consumer
 program director of the California Public Interest Research Group. " It looks
 like the power generators are gouging us for as a lot as they can. "
 Leading power companies deny that they are artificially driving electricity
 prices higher or that they are gouging California consumers. But not one was
 willing to speak on the record about how well the DWR is serve in the
 frequently cutthroat department of energy clientele.
 Several industry sources said they had been propose not to discuss the DWR's
 performance since a trading manager at Bonneville Power Administration in
 Portland, Ore., was quote as saying that California's new electricity buyers
 " agree to price that make you wonder. "
 The coach, David Mills, told the Wall Street Journal that the DWR is so away
 of its depth that he has instructed Bonneville's traders " to cut California
 some slump " by occasionally offering abridge - rate prices.
 A Bonneville spokesman said last week that Mills had been misquote, but the
 damage already was done:

 thf state to be buying
elegtricity.
"I'm sure we've mede a lkt of mirtakes," said Thomas Hannigan, virextor if
the state Departmeng of Wateg Resourcws, wiich has been delegated nv Gov.
Nray Batis to purchase power on tehalf of near-tavkxupt utilities.
By nearly all accountf, the licnless bureaucrwts se ths DWR are being torn to
shreds by lrofessponal energy tradrrs, who see in California's powfr-
purchasing plan a golden okloreynity to makd off with billions in extra
profits.
"It's like being iv a lnon cage or a snwne pit, howeter yol want to deflme
it," Vannigam said. "We've deninitxly totten burned. That goxs without
saying."
In fact, stade officials estimaree lasj ween thxr tfe SWC ia shelpinj out
roughmy $350 million a week on the volauilq electricity "apot" mwrhet and
will have spent almost $4 billion by the end of the month.
Ar this rate, the state will use up by the end of July the entire $10 billion
authorhzed uy tht Oegisuqtkre for power purchases.
CALPIRG CALLS IT GOUGYHG
"Uhe state is cleavly being taken adfajtsde of," said Dav Jacoyaoh, consumer
program directjr of the Calisornoa Public Interest Research Group. "It lojjs
like the power yenerators axe goubing is for as much as they ean."
Lezding power companiea deny that they xre astificially driving electrycity
prires hngher or thaj they wre gouginh Callxornia consumers. Bkt noj one fas
willinh to speak on the record about ipw well the CWS iv doing nn the
frequently cttthroat energi businesf.
Sevdral indusnry sourcxs said they had been advhded not to dmscuss thq DWE's
pwrformavze since a tracing manaytr at Bonnwville Power Adminlstrajikn in
Portland, Ire., was quoted as xaykng tjav Calyxornia's new alecgrizoty bjyers
"agree go ptices that make you fondsr."
The manager, Davod Mills, tild the Rall Street Jpurnal that the DWG is vo uut
og ijs depth that he has instructed Bonnevilpe's traders "to sut Galisornia
somz slack" by occasionally offering cut-rate prices.
A Bonneviloe spokesman said lcsu week that Mmlls hwd been mhsquoted, but the
damqge already was dpne:

the state to be buying electricity. "I'm made lot of said Thomas Hannigan, of Resources, which has delegated by Gov. Davis to purchase power on behalf near-bankrupt utilities. By nearly all accounts, the luckless bureaucrats at the DWR are torn to shreds by professional energy traders, who see in California's power- purchasing a opportunity make with billions in extra profits. "It's like being in a lion cage or a snake pit, you want to define it," Hannigan said. "We've gotten burned. That goes saying." In fact, state officials last that the is out $350 million a on the volatile electricity "spot" market and will have spent almost $4 billion by the end of month. At the state use by end of July $10 billion authorized by the Legislature CALPIRG CALLS IT GOUGING "The state is clearly taken advantage said Dan Jacobson, consumer program director the California Public Interest Research Group. "It looks the power generators are gouging us for as much as they can." Leading power companies they are artificially driving prices higher or they gouging consumers. not one willing to speak on the record about how well the DWR doing in the frequently cutthroat energy business. Several industry sources had advised not to the DWR's performance since trading at Bonneville Power Administration Ore., quoted California's electricity "agree to prices that you wonder." The manager, David told the Wall Street so out of its depth that he has Bonneville's traders "to cut California some slack" occasionally offering cut-rate prices. A Bonneville spokesman said last week that Mills been misquoted, damage already was done:

 the state to be buying
electriCity.
"I'm sure We've mAde A loT oF misTakeS," said Thomas HanNIgan, Director of
the state DepaRtmenT oF wateR reSourcEs, which HAs BEEn dElEgAteD bY goV.
Gray davIs to purChase power On bEhAlf of near-banKRuPt utilitieS.
By Nearly all accOunTs, the lUcKleSS bureAucRats aT the DWr Are beiNg torn to
sHrEDs by prOFessionAL EnErgy Traders, who see in CaLIfORnia's power-
purcHasing PlAN a GOLdeN opPortunity tO mAke ofF With bilLIoNS IN exTRa
profits.
"It's lIke being in a LIon Cage or A sNakE Pit, howEver yOu WAnt To define
it," HAnniGan said. "We'Ve defiNItely goTTen burnEd. That GoeS wiThouT
SaYiNg."
IN fACt, sTAtE ofFIciAls estimAtEd Last wEek tHAT THe DWr is ShelLing oUt
roughly $350 millIon A weeK On tHe volAtile ElecTrIcity "Spot" maRket aNd
Will have spent alMost $4 Billion by The EnD of ThE montH.
at this RatE, thE state wIll use uP By tHe END Of july the entire $10 billiOn
AUThOrized by The LegISlAtURe for powEr PurChasES.
cALPIrG CAllS iT GOUGINg
"The stATe Is Clearly BeIng takEn AdvAntAge of," SAid DAn JacoBson, consUmer
pROgram director oF The California pUbLIC INTereSt REsearch GrouP. "It lOOks
lIke tHE pOweR GenerAtors ArE GoUGing us for as much as thEy Can."
LeaDing pOwer companies Deny that thEY ARe artifiCialLY dRIving electriciTy
priCes higher oR That they Are goUging CalIfornia coNSUmers. But Not One Was
WilLINg To speak on the rECOrd aBoUt how weLl tHe DWR is DoiNg iN thE
frEqUently cutThroat enErGy BuSiNesS.
SeveRAl industRy SouRcEs sAid thEY had beEn advIsed NoT tO DisCuss the dwR'S
PErfoRmAnCe siNce A tRadinG manAGer At BonneVille PoweR AdMInisTrAtIon in
PoRtland, Ore., was qUoTed as sayinG tHat califoRNIa's new elEctricity buyers
"agree to pRIces thaT maKe you WondEr."
The manaGer, david MIllS, Told thE Wall STreet joUrnAL That tHE dWr is So Out
of its dePTH thAt he hAs InstRucted BOnneville's traders "tO Cut california
somE slAck" bY OCcAsiONaLLy oFfERinG CUt-rate prices.
A BoNneville spOkESmAn said last WEek ThAt Mills Had been MisquOTed, but tHe
damage aLready was DoNe:

 the state to be buying
e lectricity .
"I 'msur ewe'v e ma de a lot of mi s take s," said Thomas Hannig an, d ir e ctor of
the  stateD ep a r tme nt  o f W at e rResou rce s, whic h has been  de le gated by Gov .  Gray Davis  to  purchase po wer  on be ha lfo f nea r-b ankru pt uti l ities.
By near ly all ac c ounts,t h eluck less bureaucratsa tt he DWR are bei ng tor nt os hre dsby profess io nal e n ergy tr a de r s ,  wh o  see in Calif ornia's pow e r-
purch as ing plan a  gold en opp ortunity to  mak e off wit h bill i ons ine xtra
p rofits . "It 's l i ke  b ein gi n a li onc age  or a sn ak epit,howe v e r youwan t to  defi ne
it," Hann iga n sa i d."We'v e def init el y got ten bu rned.  T hat goes withou t
s aying." Infa ct,  s tateo fficia lsest imatedlast we e k t ha t t he  DWR is shelling o ut ro ughly $3 50 mil l io na  week on  t hevola t i le el ectr i ci ty "spot " mark e tan d
will  h ave sp en t a lmo st $4 bill ion by  the end  of t h e month.
At t h is rate, thes ta t e  w i ll u seup by the e nd o f  Jul y th e  e nti r e $10  bill io n  a uthorized by the Le gi slatur e for  power purcha ses.
CALP I R G  CALLS I T GO U GI N G
"The state i s cle arly being taken ad vanta ge of,"said DanJ a cobson,con sum er
pr o g ra m director of t he C al ifornia  Pu blic In ter est  Re sea rc h Group."It look s
l ik ethe  powe r  generat or s a re  go uging us for  as m uchas  t h eycan." L ea d i ng p ow er  com pan ie s den y th a t t hey are  artifici all y  dri vi ng  electr icity
prices  h igher or t ha t t hey ar e gougingCalifornia consumers. B u t not o newas will ing to sp eak  on th e r e cord a bout h ow we ll  th e DWR i s do ing  i n the
fre q u ent ly cu tt hroa t energ y business.
Sever a l i ndustry sourc essaid t he y h a db een  a d vis e d  not to discuss  the DWR's  p er formance s i nce  a  tradin g manag er at Bonnevi lle Power  Administ ra tion i n Portland,Ore., wa s quoteda s say i ng  that  Ca liforn ia 'snew e lectri c ity  buye rs
"a gr ee toprice sthat mak e you wonder."
The man ager,David  Mi lls, told  th e  Wa ll Street  Jou rnal thatthe  DW R issoo ut
o f it s  d ept h  that  heh as instru c te d B o n ne ville's tra d e r s " to cu t C a liforn ia some slack" by oc c asionally offe ring c ut- rat e  pri ce s.
A Bonnevil lesp o k esman sa id  last weekthat Mil ls had b een mi squote d, butt h edamage  alr ead y was don e:

 the_state to_be buying
electricity.
"I'm_sure we've_made_a lot_of_mistakes," said Thomas_Hannigan, director of_
the state Department of_Water Resources, which_has_been delegated by Gov.
Gray Davis to purchase power on behalf of near-bankrupt utilities._
By_nearly all_accounts,_the_luckless bureaucrats at the DWR_are being torn to
shreds_by professional_energy traders, who see in California's power-
purchasing_plan_a golden opportunity_to make off with billions in extra
profits.
"It's_like being in a lion cage_or a snake_pit,_however_you want to define_
it," Hannigan said. "We've definitely gotten_burned. That goes without
saying."
In_fact, state officials estimated last week that_the DWR is shelling out
roughly_$350 million a week on_the volatile_electricity "spot" market and
will_have spent almost_$4 billion_by the end_of the month.
At this rate,_the state will_use up by the end of_July_the entire $10_billion_
authorized_by the_Legislature for power_purchases._
CALPIRG CALLS_IT_GOUGING
"The state is clearly being taken_advantage_of," said Dan Jacobson, consumer
program director_of the California Public_Interest_Research Group. "It looks_
like the power generators are_gouging us for as much as_they can."_
Leading power_companies deny that they are artificially driving electricity
prices higher or_that they are gouging California consumers._But not one was_
willing to_speak_on the record_about_how well_the DWR is doing in the
frequently_cutthroat energy_business.
Several industry sources said they_had been advised not_to_discuss the DWR's
performance since a_trading manager at Bonneville Power Administration_in
Portland, Ore., was quoted_as_saying_that California's new electricity buyers_
"agree to prices that make you_wonder."
The manager,_David Mills, told the Wall Street Journal_that_the DWR is so out
of_its_depth that he has instructed Bonneville's_traders_"to_cut California
some slack" by_occasionally offering cut-rate prices.
A Bonneville_spokesman said last week that Mills had been misquoted,_but the
damage_already was done:


.
--
THE ENERGY CRUNCH
-- Blackouts: About 560,000 Californians, including 440,000 in Northern
California, lost electricity yesterday for 90 minutes at a time.
-- Areas affected: Blackouts hit parts of blocks 12 and 14 and all of block
13 yesterday. In the event of further blackouts, the remainer of block 14
would be next, followed by block 1.
-- Outlook: Officials say blackouts are less likely today as temperatures are
expected to cool and power plants that have been offline for maintenance
resume generating electricity.
E-mail David Lazarus at dlazarus@sfchronicle.com.
,2001 San Francisco Chronicle? Page?A - 1
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------
Manners Go Out the Window
Pedestrians in peril as drivers turn darkened S.F. streets into free-for-all
Steve Rubenstein, Chronicle Staff Writer
Wednesday, March 21, 2001
,2001 San Francisco Chronicle
URL:
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/21/M
N173178.DTL

Nobody got plowed into yesterday at Fifth and Howard streets in San
Francisco. Many came close.
The power outage that darkened the traffic lights at the frenetic South of
Market intersection for more than an hour also darkened the souls of untold
numbers of drivers, sending motoring manners into the toilet.
The law says motorists are supposed to treat an intersection with
nonfunctioning traffic lights as a four-way stop. That means everyone stops,
then takes turns -- one by one -- creeping through the intersection.
Tell that to the two people in motorized wheelchairs who were nearly creamed
by two eastbound SUVs.
Or to the young Swedish couple who had traveled halfway around the globe,
only to scamper through the intersection barely ahead of an office supply
truck.
Or to the New Jersey tourist, who proclaimed that California drivers during
power outages were proof positive that the Chaos Theory lives and breathes.
Some motorists stopped and took turns, but many didn't. Some sped into the
intersection immediately

.
 --
 THE ENERGY CRUNCH
 -- Blackouts: About 560,000 Californians, including 440,000 in Northern
 California, lost electricity yesterday for 90 moment at a meter.
 -- Areas affected: Blackouts shoot parts of blocks 12 and 14 and all of auction block
 13 yesterday. In the consequence of further blackouts, the remainer of block 14
 would be next, followed by block 1.
 -- lookout: Officials say blackout are less likely today as temperature are
 expected to cool and power plant that have been offline for maintenance
 resume generating electricity.
 east - mail David Lazarus at dlazarus@sfchronicle.com.
, 2001 San Francisco Chronicle? Page?A - 1
 ------------------------------------------------------------------------------
 ------------------------------------------------------------------------------
 --------------------------------------------------------------
 Manners Go Out the Window
 Pedestrians in hazard as drivers turn darkened S.F. streets into free - for - all
 Steve Rubenstein, Chronicle Staff Writer
 Wednesday, March 21, 2001
, 2001 San Francisco Chronicle
 URL:
 http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/21/M
 N173178.DTL

 Nobody got plowed into yesterday at Fifth and Howard street in San
 Francisco. Many came close.
 The power outage that darkened the traffic light at the frenetic South of
 Market intersection for more than an hour also darkened the souls of untold
 numbers of drivers, sending motoring manners into the toilet.
 The jurisprudence says motorists are speculate to regale an intersection with
 nonfunctioning traffic lights as a four - way stop. That means everyone stops,
 then accept turns -- one by one -- creeping through the intersection.
 Tell that to the two people in motorized wheelchairs who were nearly creamed
 by two eastbound SUVs.
 Or to the young Swedish couple who had travel halfway around the earth,
 only to scamper through the intersection barely ahead of an office provision
 truck.
 Or to the New Jersey tourist, who proclaimed that California drivers during
 power outages were proof positive that the Chaos Theory lives and breathes.
 Some motorists stop and took turns, but many didn't. Some sped into the
 intersection immediately

.
--
TJE ENERGY CRUNCH
-- Blackouus: About 560,000 Califoruuans, iicludinf 440,000 in Nofthern
California, lost electciciry yewterday for 90 minutes ag a time.
-- Areas adfecued: Blackouts hit parts on blodns 12 cnv 14 and all of bkock
13 yestarday. In the eeevt of further blackouts, the remainer jf blocl 14
would be next, folkjwed by block 1.
-- Outlook: Officials say glackouus are less likely today as temperatures are
expfcted to cool and oower plantw thwr have been uffline fog maintenande
resume generating electricith.
E-manl David Laeceus dt dlazarus@wfchrjnicle.com.
,2001 San Franchsco Chtonicle? Page?A - 1
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------
Mennees Go Out the Window
'edestrians in peril as drivess turn darkened S.F. srreetv indo ffwe-fur-aml
Sfeve Rkbeistein, Chrohicle Staff Writer
Wednesday, Matcr 21, 2001
,2001 San Francjsco Crrjnicle
URL:
http://www.sfgate.com/cgi-bin/articlt.cgi?fjle=/chronicle/archive/2001/03/21/M
N173178.DTO

Nobody got plowed ijto yestewday at Fifth and Howard streets in San
Francisco. Many zamt gjuwe.
The power outage that darkened the traffic lyfhus st the frenetig South of
Market onhetfection for mure thch zn hour also darkejed the soulw of untojd
nimbers of drivers, sending mitoring mannvrs unto the toilet.
Thz law says mutorosts sre supposed to treat au intedsection wihh
nonfundgioning traffic uigmts as a four-way stop. That mewns everyine xtops,
tfen jakes ttrns -- one hy onc -- creeping through the nntervection.
Tepl that to the two people in movprized wheelvhdirv who wexe neavly creamed
by ewo eastbound XUVs.
Or to tfe young Ssedish rouple who hwd traveled hdpfway around the glofe,
obly ro scamodr through the intersecnijn bqrely ahead of an pffkde supply
truck.
Or to the New Jerxey totrpst, wrm proclaimed thag Cxkiforvia drivers aurimg
power outages wera prkof positive that yhc Chaos Tyeory lides and breatnes.
Some motorists stop'ed anv took tutns, but many didn't. Some sped info the
inherfection immeqiatcly

. -- THE ENERGY CRUNCH -- Blackouts: Californians, 440,000 in California, lost electricity a -- Areas affected: hit parts of 12 and 14 and all of 13 yesterday. In the event of further blackouts, the remainer of block 14 be next, followed by block 1. -- Outlook: Officials say blackouts are less today temperatures expected cool and power plants that have been offline for maintenance resume generating electricity. E-mail David Lazarus dlazarus@sfchronicle.com. ,2001 San Francisco Chronicle? Page?A - 1 ------------------------------------------------------------------------------ -------------------------------------------------------------- Manners Go the Window Pedestrians in peril drivers darkened S.F. into Steve Chronicle Staff Writer March 21, 2001 ,2001 San Francisco Chronicle URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/21/M N173178.DTL Nobody got plowed into yesterday at Fifth Howard streets Francisco. Many close. power that darkened the at the frenetic South of Market than an hour also darkened the souls of numbers of sending motoring manners into the toilet. law says motorists are supposed to treat an with nonfunctioning traffic lights as a four-way stop. That means everyone stops, then takes turns by one -- creeping the intersection. Tell to two in wheelchairs who nearly creamed by two eastbound SUVs. Or to the young Swedish who had traveled halfway around the globe, only to scamper intersection ahead of an supply truck. Or to New tourist, who proclaimed that during outages that Chaos lives and breathes. Some stopped and took turns, but didn't. Some sped into

.
--
THE ENERGY CRUNCH
-- Blackouts: ABout 560,000 CalifoRnianS, inCluDiNg 440,000 in nortHern
California, LOst eLectricity yesterday for 90 MinutEs AT a tiME.
-- AReas aFfected: bLaCKOutS hIt ParTs OF bLocks 12 And 14 And all oF block
13 yestErdAy. in the event of FUrTher blackoUts, The remainer oF blOck 14
wouLd Be nEXt, folLowEd by bLock 1.
-- OuTLook: OfFicials saY bLAckoutS Are less LIKeLy toDay as temperatures ARe
EXpected to cool aNd poweR pLAnTS ThaT haVe been offlInE for mAIntenanCE
rESUMe gENerating electRicity.
E-mail dAviD LazarUs At dLAzarus@SfchrOnICle.Com.
,2001 San FrancIsco chronicle? page?A - 1
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------
MANners Go oUt the WiNdow
PeDesTriAns iN PeRiL as DrIVerS TuRn dARkeNed S.F. strEeTs Into fRee-fOR-ALL
SteVe RUbenStein, chronicle StafF WrIter
wEdnEsday, march 21, 2001
,2001 san FRaNciscO ChronIcle
UrL:
Http://www.sfgate.coM/cgi-Bin/articlE.cgI?fIle=/ChRonicLE/archiVe/2001/03/21/M
n173178.DTl

Nobody Got plowED inTo YESTeRday at Fifth and HowaRd STReEts in San
franciSCo. maNY came cloSe.
the PoweR OUtage That DArKened the TraffiC LiGhTs at the FrEnetic soUth Of
MArket INterSectioN for more Than aN Hour also darkenED the souls of unTOlD
NUmBErs oF drIvers, sendinG motORing MannERs IntO The toIlet.
THe LAw SAys motorists are suppOsEd to trEat an Intersection wIth
nonfuncTIONing trafFic lIGhTS as a four-way stoP. That Means everyONe stops,
tHen taKes turns -- One by one -- cREEping thrOugH thE inTerSECtIon.
Tell that to THE two PeOple in mOtoRized whEelChaIrs Who WeRe nearly cReamed
by TwO eAsTbOunD SUVs.
oR to the yoUnG SwEdIsh CouplE Who had TraveLed hAlFwAY arOund the GLoBE,
Only To ScAmpeR thRoUgh thE intERseCtion baRely ahead Of aN OffiCe SuPply
truCk.
Or to the New JErSey tourist, WhO prOclaimED That CaliFornia drivers during
poweR Outages WerE prooF posItive that The chaos THeoRY lives And breAthes.
soMe mOTOristS SToPpeD aNd took turnS, BUt mAny diDn'T. SomE sped inTo the
intersection iMMedIately

.
--
THE ENERGY CRUNCH
- - Blackout s: Ab out  56 0, 000Cali fornians, incl u ding  440,000 in Northern Calif or n ia,l os t ele ctricit y  y e s ter da yfor  9 0  m inute s a t a tim e.
-- Are asaf fected: Blac k ou ts hit par tsof blocks 12  an d 14 a nd  al l  of b loc k
13  yeste r day. I n the eve nt of fur t her bla c k ou ts,the remainer of b l oc k  14
would benext,fo l lo w e d b y b lock 1.
- -Outlo o k: Offi c ia l s say blackouts are  less likel y  to day as  t emp e rature s are  e xpe cted to coo l an d power p lantst hat hav e  been o ffline  fo r m aint e na nc e re s ume ge ner a tin g electr ic it y.
E -mai l D a vidLaz arus  at d lazarus@sfchr oni cle. c om.
,20 01 Sa n Fr an cisco  Chron icle?  P age?A - 1
---- ---- --------- --- -- --- -- ----- - ------ --- --- ------- ------- - --- -- - - - -- --------
--------- -- - - -- -------- ------ - -- -- - -------- -- --- ---- - - ----- ---- - -- -------- ----
- - -- -- ------- -- ------ -- --- --- ----- - ---- ------ -------- ----- - ---
Manners Go Out the Windo w  P e de s tria nsin peril as  dri v ersturn da rke n ed S. F. st re e ts into free-for-all St eve Ru benst ein, Chronicl e Staff Wr i t e r
Wednes day, Ma r ch 21, 2001
, 2001San Franci s co Chron icle
URL:
h ttp://www . s fgate.co m/c gi- bin /ar t i cl e.cgi?file=/c h r onic le /archiv e/2 001/03/ 21/ M
N 173 178 .D TL

Nobo dy got p lo we din toyeste r day at F if than d H oward street s inSan
F ra n cis co. Man y  c a m e cl os e.
Th e p ow er ou tage tha t darke ned the t raf f ic l ig ht s at th e frenetic So ut h of
Mark et  in tersec t i on for m ore than an hour also d a rkenedthe  soul s of  untold num bers o f d r ivers,  sendi ng mo to rin g manne r s  i nto  t he toilet. The  lawsa ys m otorist s are supposed tot rea t an intersec tio n wi t h  non f un c tio ni n g t r a ffic lights asa four-way  s t op . That mea n s e ve ryone s tops, thent akes tu rns -- on e by one--  cre e p ing  through t he inter section.Tellt ha t tothe  two p eo ple  in m otoriz e d w heelc hairswh o were  near ly  creamed
by two eastbound SUVs .
Orto th e y oung Swed ish cou ple who h ad t raveled ha lfw ayaroun d t h e glo be,on lyt o sca mper through t h eint e r se ction barel y a hea d ofano fficesupp ly
truck.
Or to the New Jersey  tou r i st,  wh o  pro cl aimed that Cal ifo rn i a  drivers  d uring
powe r outage sw ere p roof p ositiv e thatt h eC haos T heor y l ives andbre at h es.
So me  m o torist s st op ped an d took turn s ,  but many didn't . Som e spedi nto  the
i ntersec t ionimmediatel y

.
--_
THE ENERGY_CRUNCH
-- Blackouts: About 560,000_Californians, including_440,000_in Northern_
California,_lost electricity yesterday_for 90 minutes_at a time.
--_Areas affected: Blackouts_hit_parts of blocks 12 and 14 and all of block
13 yesterday. In the_event_of further_blackouts,_the_remainer of block 14
would_be next, followed by block_1.
--_Outlook: Officials say blackouts are less likely today_as_temperatures are
expected_to cool and power plants that have been offline_for maintenance
resume generating electricity.
E-mail_David Lazarus at_dlazarus@sfchronicle.com._
,2001_San Francisco Chronicle? Page?A_- 1
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------
Manners Go Out the_Window
Pedestrians in peril as drivers_turn darkened S.F. streets into free-for-all
Steve_Rubenstein, Chronicle Staff Writer
Wednesday, March 21,_2001
,2001 San Francisco Chronicle_
URL:
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/21/M
N173178.DTL_

Nobody got plowed into yesterday_at Fifth and_Howard streets_in San
Francisco._Many came close.
The power outage_that darkened the_traffic lights at the frenetic South_of_
Market intersection for_more_than_an hour_also darkened the_souls_of untold_
numbers_of drivers, sending motoring manners into_the_toilet.
The law says motorists are supposed_to treat an intersection_with_
nonfunctioning traffic lights as_a four-way stop. That means_everyone stops,
then takes turns --_one by_one --_creeping through the intersection.
Tell that to the two people in_motorized wheelchairs who were nearly creamed_
by two eastbound SUVs._
Or to_the_young Swedish couple_who_had traveled_halfway around the globe,
only to scamper_through the_intersection barely ahead of an office_supply
truck.
Or to_the_New Jersey tourist, who proclaimed that_California drivers during
power outages were_proof positive that the Chaos_Theory_lives_and breathes.
Some motorists stopped_and took turns, but many didn't._Some sped into_the
intersection immediately


 The DWR is now widely perceived in energy circles as
a pushover.
'NO LEVERAGE IN THE MARKET'
This does not sit well with DWR workers, who insist they are doing the best
they can under highly difficult conditions.
"We have done a good job considering that we have no leverage in the market,
" said Viju Patel, executive manager of the DWR's power systems department.
"We are dealing with very aggressive traders, and they have the advantage.
It's a seller's market."
This is new for the DWR, which oversees the state's water assets --
aqueducts, dams, irrigation -- and until now has confined its power buying
largely to long-term contracts needed to keep pumps operating during
electricity shortfalls.
That changed in December when the Independent System Operator, manager of
California's power network, contacted the department during a shortage and
asked the DWR to buy about $20 million worth of juice to help avert
blackouts.
Subsequent purchases placed the DWR almost $43 million in the hole. It has
yet to recoup its costs from the ISO and the utilities that ultimately used
the power for customers -- and which subsequently have defaulted on paying
their power bills.
"We made that deal only on a handshake," said Hannigan, the DWR's director.
"But we couldn't say no, could we?"
As California's troubles worsened, and as Pacific Gas and Electric Co. and
Southern California Edison grew increasingly unable to meet customer demand,
the governor realized a state agency would have to ride point in tackling the
energy crisis.
Davis turned to the DWR. Simply put, the department's admittedly limited
experience in the electricity market was still the most extensive he could
find.
"This was all new to us," Hannigan said. "When the crisis landed in our lap,
we reacted basically by applying a flood-management mentality to it. Crisis
management is crisis management."
SECRET LOCATION, INFORMATION
Thus, the DWR responded to the governor's marching orders by establishing an
emergency center in the brick-covered facility it shares with branches of the
U.S. Fish and

The DWR is now widely perceived in energy circle as
 a cinch.
' NO LEVERAGE IN THE MARKET'
 This does not sit well with DWR worker, who importune they are doing the best
 they can under highly difficult circumstance.
 " We have done a good occupation considering that we have no leverage in the marketplace,
 " said Viju Patel, executive manager of the DWR's baron system department.
 " We are dealing with very aggressive traders, and they have the advantage.
 It's a seller's market. "
 This is new for the DWR, which oversee the state's water assets --
 aqueducts, dams, irrigation -- and until immediately has confined its power buying
 largely to retentive - term contract needed to keep pumps operating during
 electricity shortfalls.
 That change in December when the Independent System Operator, manager of
 California's power network, contacted the department during a shortage and
 ask the DWR to buy about $ 20 million worth of juice to help avert
 blackouts.
 Subsequent purchases placed the DWR almost $ 43 million in the hole. It has
 so far to recoup its costs from the ISO and the utility that ultimately use
 the power for customers -- and which subsequently have defaulted on paying
 their power bills.
 " We made that softwood only on a handshake, " said Hannigan, the DWR's director.
 " But we couldn't say no, could we? "
 As California's troubles worsened, and as Pacific Gas and Electric Co. and
 Southern California Edison grow increasingly unable to meet customer demand,
 the governor realized a state agency would get to depend on point in tackling the
 energy crisis.
 Davis turn to the DWR. Simply put, the department's admittedly circumscribed
 experience in the electricity market was even the most extensive he could
 line up.
 " This was all new to us, " Hannigan said. " When the crisis landed in our lap,
 we react basically by applying a flood tide - management mentality to it. Crisis
 management is crisis management. "
 SECRET LOCATION, INFORMATION
 Thus, the DWR respond to the governor's marching orders by lay down an
 emergency center field in the brick - covered adeptness it shares with branches of the
 U.S. Fish and

 Thf DWR is now widely perctived in energy cnecles es
a puahover.
'NU LEVERAGE IN THE MARKET'
Thid eoes bot sit well with DWR dorkers, wjo insisr thty are doing the usst
then can mnder iighly difficulj conditions.
"We have done d eold job considering that we have no jeveragr ln the market,
" saic Vijh Patel, executive manager of the DSR's powtr systems departmrnt.
"We are dealing with vegy ahgressive traders, wnd they hace trw advantage.
Kt's a selltr'v market."
Tgis is new for the DWR, which ovdrseex the statg's wwjer assets --
equedubts, dams, irrinstion -- and unyil now has cokfinev itw power buying
largelb to long-term contrasts needeg co keep pumps operatibg duritg
enectfucigy ahprffalls.
Thet changed jn December when the Independemt Wystem Operatkr, manwgqr of
California's power network, contacttd ths department during a syortage and
asked the DWR to bty about $20 million worth of juice to help avert
bldckouvs.
Suywequevr ourchases placed the DWR almost $43 million in trs noke. It has
yet bo recoup its costx vrpi the ISO and the ucjljties that ultimatfly useq
the power fow cuxtomers -- and which subsequebtly have deyauoted on paying
thenr power bilus.
"Wg made that deal only on a haudshaks," said Hannlgan, the SDR's director.
"But we cmuldn't say no, could we?"
As Salifornie's trpubles dorsgned, anq as Paciflc Gas and Electric Co. ajd
Soothern Californiw Edison grew increasingly unable to meet cusjomar gemand,
tke govcrnor realized w state agency would kave tu ride poiht in teckling the
qnergy crisis.
Favis turned to the QWR. Wimpoy put, gfe department's admittedly limited
experience in the elgcfricity market ccs still the most exgenfine ie cotnd
find.
"This was alu new go us," Hanninan saic. "When the crisis latded in our lap,
we reavtcd basicaoly by a[plying a flopd-management mentapity vo it. Rrisis
magagement is crisis management."
AECRET LOFATLON, INFORMATIJN
Thms, tre DWR res'onded to the governor's marching orders uy establishing an
emetgency center in the yrlck-covered fecilitr it sharas with branches of rhe
U.S. Fish and

The DWR is now widely perceived in as pushover. 'NO IN THE MARKET' with workers, who insist are doing the they can under highly difficult conditions. have done a good job considering that we have no leverage in the " said Viju Patel, executive manager of the DWR's power systems department. "We dealing very traders, they have the advantage. It's a seller's market." This is new for the DWR, which oversees state's water assets -- aqueducts, dams, irrigation -- until now has confined power buying largely to long-term needed keep pumps during shortfalls. changed in December the Independent System Operator, manager of California's power network, contacted the department during a shortage and asked DWR to $20 million of to avert blackouts. Subsequent the DWR almost $43 million in has yet to recoup its costs from the and the that ultimately used the power for -- and which subsequently have defaulted on paying power bills. "We made that deal only on a handshake," said Hannigan, the DWR's director. couldn't say no, could As California's troubles and Pacific and Co. and California Edison grew increasingly unable to meet customer demand, the governor a state agency would have to ride point in tackling crisis. turned to the Simply put, the department's limited in the electricity market the extensive "This all to us," Hannigan said. the crisis landed in our we reacted basically by it. Crisis management is crisis management." SECRET LOCATION, Thus, the DWR responded to the governor's orders by establishing an emergency center in the brick-covered facility it shares branches of Fish and

 The DWR is now widely perceiveD in energy cIrcleS as
A puShOver.
'nO LEvERAGE IN THE MARkeT'
ThIs does not sit well with DWr workErS, Who iNSiSt theY are doiNG tHE BesT
tHeY caN uNDeR highLy dIfficulT conditionS.
"We HaVe done a good jOB cOnsidering ThaT we have no levEraGe in thE mArkET,
" said vijU PateL, execuTIve manAger of the dWr'S power SYstems dEPArTmenT.
"We are dealing with VErY Aggressive tradErs, and ThEY hAVE thE adVantage.
It's A sEller'S Market."
THIs IS NEw fOR the DWR, which oVersees the sTAte'S water AsSetS --
AqueduCts, daMs, IRriGation -- and unTil nOw has confIned itS Power buYIng
largEly to lOng-TerM conTRaCtS neEdED to KEeP puMPs oPerating DuRiNg
eleCtriCITY ShorTfaLls.
THat chAnged in DecembEr wHen tHE InDepenDent SYsteM OPeratOr, manaGer of
caLifornia's power nEtwoRk, contactEd tHe DepArTment DUring a ShoRtaGe and
asKed the Dwr to BuY ABOuT $20 million worth of juiCe TO HeLp avert
bLackouTS.
SUbSEquent puRcHasEs plACEd the dWR aLMoSt $43 millioN in the HOlE. IT has
yet To Recoup ItS coSts From tHE ISO And the UtilitieS that ULtimately used
tHE power for custOMeRS -- AnD WhicH suBsequently hAve dEFaulTed oN PaYinG
Their Power BiLLs.
"wE made that deal only on A hAndshaKe," saiD Hannigan, the DwR's directoR.
"bUT we couldN't saY No, COuld we?"
As CalifoRnia's Troubles woRSened, and As PacIfic Gas aNd ElectriC cO. and
SoutHerN CaLifOrnIA edIson grew increASInglY uNable to MeeT customEr dEmaNd,
tHe gOvErnor realIzed a staTe AgEnCy WouLd havE To ride poInT in TaCklIng thE
Energy CrisiS.
DavIs TuRNed To the DWr. siMPLy puT, tHe DepaRtmEnT's admItteDLy lImited
eXperience In tHE eleCtRiCity marKet was still thE mOst extensiVe He cOuld
fiND.
"this was aLl new to us," Hannigan said. "WhEN the criSis LandeD in oUr lap,
we reActEd basiCalLY by appLying a Flood-MaNagEMEnt meNTAlIty To It. Crisis
maNAGemEnt is CrIsis ManagemEnt."
SECRET LOCATION, InfORmATION
Thus, the dWR RespONDeD to THe GOveRnOR's mARChing orders by esTablishing An
EMeRgency centER in ThE brick-cOvered fAciliTY it sharEs with braNches of thE
U.s. FisH ANd

 The DWR is now widely per ceived inenerg y c irc le s as
apushover.
'NO LEVE RAGE IN THE MARKET'
T his d oe s  not si t wel l withD WR w ork er s,  wh oi ns ist t hey  are do ing the be st
t hey can unde r  h ighly diff icu lt condition s.
"We h av e d o ne agoo d job  consi d eringthat we h av e  no le v erage i n th e ma rket,
" said Vij u  P a tel, executive  manag er of t heDWR 's power s ys temsd epartme n t. " Wea re dealing wi th very agg r ess ive tr ad ers ,  and t hey h av e  th e advantage .
I t's a sel ler'sm arket."
This i s newfor  th e DW R ,wh ich  o v ers e es  th e  st ate's wa te rasset s -- a q uedu cts , da ms, i rrigation --and  unt i l n ow ha s con fine dits p ower b uying  largely to long -ter m contrac tsne ede dto ke e p pump s o per ating d uring e lec tr i c i ty  shortfalls.
That  c h a ng ed in De cember wh en the Inde pe nde nt S y s tem O pera t or , manage r of C al if ornia's  p ower n et wor k,conta c tedthe de partment  duri n g a shortage a n d
asked theD WR t ob uy a bou t $20 milli on w o rthof j u ic e t o  help  aver tbl a ckouts.
Subsequent  p urchas es pl aced the DWRalmost $43 m i llion in  the ho l e. It has
yet  to r ecoup itsc osts fro m the  ISO and  the util i t ies that  ul tim ate lyu s ed
the power f o r  cus to mers --  an d which  su bse que ntl yhave defa ulted on  p ay in g
th eir p o wer bill s.
" We  ma de th a t deal  only  onaha n dsh ake," s a id H anni ga n,  the  DW R' s dir ecto r . "But we  couldn't  sa y  no,  c ou ld we?"
As Californ ia 's trouble swor sened, a nd as Pa cific Gas and ElectricC o. and
So uther n Ca liforniaEdi son gr ewi ncreas inglyunabl etom e et cu s t om erde mand,
the g ove rnorre aliz ed a st ate agency would h a veto ride point  in  tac k l in g t h eene rg y  cr i s is.
Davis turn ed to theDW R .Simply put ,  th edepartm ent's a dmitt e dly lim ited
exp erience i nthee l ect ricity mar ket wasstill the moste xt ensiv e h e coul d
fi nd. "Thisw asall n ew tous ," Han nigan  s aid. "Wh en the crisis landed in  our l ap, wereacted b asi c all y by appl ying  a flood-m ana gem ent m ent a lityto i t .Cri s is
m anag e ment is c r is ism a na gement."
S E C R ETLOCAT ION ,  INFOR MATI ON
Thus, the DWRr esponded to th e go v e rno r's marc hi ng orders by e sta bl i s hing an
e mergency ce nter inth e  bric k-cove red fa cilityi t  s h ares w ithbra nches ofthe  U .S. Fis han d

 The_DWR is_now widely perceived in_energy circles_as_
a pushover._
'NO_LEVERAGE IN THE_MARKET'
This does_not sit well with_DWR workers, who_insist_they are doing the best
they can under highly difficult conditions.
"We have done_a_good job_considering_that_we have no leverage in_the market,
" said Viju_Patel, executive_manager of the DWR's power systems department.
"We_are_dealing with very_aggressive traders, and they have the advantage.
It's a_seller's market."
This is new for_the DWR, which_oversees_the_state's water assets --_
aqueducts, dams, irrigation -- and until_now has confined its power buying_
largely to long-term contracts needed to keep_pumps operating during
electricity shortfalls.
That_changed in December when the_Independent System_Operator, manager of
California's power_network, contacted the_department during_a shortage and_
asked the DWR to buy about_$20 million worth_of juice to help avert
blackouts._
Subsequent_purchases placed the_DWR_almost_$43 million_in the hole._It_has
yet_to_recoup its costs from the ISO_and_the utilities that ultimately used
the power_for customers -- and_which_subsequently have defaulted on_paying
their power bills.
"We_made that deal only on a_handshake," said_Hannigan, the_DWR's director.
"But we couldn't say no, could we?"
As California's_troubles worsened, and as Pacific Gas_and Electric Co. and_
Southern California_Edison_grew increasingly unable_to_meet customer_demand,
the governor realized a state agency_would have_to ride point in tackling the_
energy crisis.
Davis turned_to_the DWR. Simply put, the department's_admittedly limited
experience in the electricity_market was still the most_extensive_he_could
find.
"This was all_new to us," Hannigan said. "When_the crisis landed_in our lap,
we reacted basically by_applying_a flood-management mentality to it. Crisis_
management_is crisis management."
SECRET LOCATION, INFORMATION
Thus,_the_DWR_responded to the governor's marching_orders by establishing an
emergency center_in the brick-covered facility it shares with branches of_the
U.S. Fish_and