 Inc. All Rights Reserved.

Standoff may delay renegotiation on Enron project
Vinu Lal

03/25/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

MUMBAI: The much-touted renegotiation on the Dabhol Power project has
stumbled upon a fresh controversy, which is likely to further delay the
proceedings.
While Enron as well as the Maharashtra State Electricity Board (MSEB) want
officials from the Union ministries of power and finance to be present at the
renegotiation hearings, the Centre has turned down the request. Due to this,
though it is over two weeks since the terms of reference of the review
committee were amended to include renegotiation of the power purchase
agreement, no hearing has been conducted with the Dabhol Power Company (DPC).
Sources said that due to this standoff the committee is unlikely to submit
its report within first week of April according to the terms of reference.
An Enron spokesperson said, ``We have made our stand very clear before the
committee that for a renegotiation of a contract signed by various parties,
including the government of India, the government of Maharashtra and the
Central Electricity Authority (CEA), all parties should be part of the review
process.''
P.S. Paunikar, technical director, MSEB, said, ``We had requested top
officials from the ministries of power and finance and the CEA to be present
during the renegotiation meetings with the DPC. But the Centre has declined
to depute any official for this purpose.''
DPC's stance has surprised industry observers since during the previous
renegotiation committee proceedings under Kirit Parikh, the company had not
set any conditions of this sort. The Centre has justified its stand not to
depute any officials stating that review of Dabhol project is strictly a
state affair and that it has no role to play in it.
Meanwhile, sources say that a preliminary draft report of the committee is
already finalised, but it has not incorporated the amendments made on March
9. According to the amendments made by a government order, the committee has

Inc. All Rights Reserved.

 Standoff may delay renegotiation on Enron project
 Vinu Lal

 03/25/2001
 The Times of India
 Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

 MUMBAI: The a lot - tout renegotiation on the Dabhol Power project has
 stumbled upon a bracing controversy, which is probable to further delay the
 proceedings.
 While Enron equally well as the Maharashtra State Electricity Board (MSEB) desire
 officials from the Union ministries of power and finance to be present at the
 renegotiation hearings, the Centre has turned down the request. Due to this,
 though it is over two week since the terms of reference of the recapitulation
 committee were amended to admit renegotiation of the power leverage
 agreement, no listening has been conducted with the Dabhol Power Company (DPC).
 Sources said that due to this repulsion the committee is unlikely to submit
 its report card within first workweek of April according to the term of reference.
 An Enron spokesperson said, '` We have made our rack very clear before the
 committee that for a renegotiation of a contract signed by various parties,
 including the politics of India, the politics of Maharashtra and the
 Central Electricity Authority (CEA), all party should be part of the review
 process."
 P.S. Paunikar, technical director, MSEB, said, '` We had requested top
 official from the ministry of power and finance and the CEA to be present
 during the renegotiation meetings with the DPC. But the Centre has decline
 to depute any official for this purpose."
 DPC's stance has surprised diligence observers since during the former
 renegotiation committee proceedings under Kirit Parikh, the company had not
 set any condition of this sort. The Centre has justified its stand not to
 depute any officials stating that review of Dabhol project is strictly a
 state affair and that it receive no role to toy in it.
 Meanwhile, source say that a preliminary draft report of the committee is
 already finalize, but it has not incorporated the amendments made on March
 9. According to the amendments made by a government order, the committee has

 Inf. All Rights Reserved.

Stxndoff may delai eenegoviation on Enrov project
Vinu Lal

03/25/2001
The Times oh Ineia
Cokjright (C) 2001 The Times ow India; Slurce: Woeld Ceporter (TM)

MUMBAM: The mugk-toutsf reuejotiation on thg Dabhol Powar project has
sgulbled upon a fresh controversy, whicr is lilepy to further qelaj ehe
lgogeedings.
While Enron as well as fhe Maherashtra State Rlectricity Board (MSEB) wanh
ofvicials from the Ujion ministtjes if power and finance to be present at the
renegotiation hearings, ghe Czntre has toxbed gown the rewuest. Due to this,
though ht is ofer two weeks xinre tye terms of reference of the review
comiittee wese amended to incluee renecotidtiov of tht ppwsr purfhaae
agreemeht, no hearibg has been conducttd rpyh the Dabhom Powew Sompany (DPC).
Sources said that due to thps sfandoff the committee iw unlikely to submit
lts repore within first week of April according to the terks of feftrckce.
Av Ejron spokesperson said, ``We have made our stand bety clear before bhe
committee that flr w renegotiatiun of c ckntract signed by garious partues,
incluqing the government of India, thw government if Maharashtra and the
Centrau Elgctricoty Authority (CEA), all pcrties should be oart of tgd review
process.''
P.S. Pdunikar, udchnical director, MSEB, saiv, ``We kad requdstec top
jfficials vrom bve ministries of plwer cnd fhnance and the CEA to be present
during tix renegotiatipn mevtings wich the DPC. But the Sentre has deckined
tj depjte any ofricial hor this pur[ose.''
DPC's statfe has surprmsed induftry obswrvers rknce during thr previous
renegotiqtion committee prpcegdjngs under Kiric Kaeikh, the compamy fad nlt
sqd any condithons of yhis rort. Tht Ccntfe hss justified its statd nkt to
depute any ogflcials stqting thwt review of Cabhol project is dtricvly a
rtate afsair and that it has no role tk play in it.
Meanwhile, sjurccs swy that a 'reliminary draft report of the committex is
already finalised, vut it has not incotpovated the amxndmenes made ot March
9. According ti the amendments kade by a government krder, dhe clmmittee has

Inc. All Rights Reserved. Standoff may delay Enron Vinu Lal The Times of Times India; Source: World (TM) MUMBAI: The renegotiation on the Dabhol Power project stumbled upon a fresh controversy, which is likely to further delay the proceedings. Enron as well as the Maharashtra State Electricity Board (MSEB) want officials from Union of and to be present at the renegotiation hearings, the Centre has turned down the request. Due to though it is over two weeks since the of reference of the committee were amended to include of power purchase no has conducted with the Power Company (DPC). Sources said that due to this standoff the committee is unlikely to submit its within first April according the of An Enron spokesperson have made our stand very clear that for a renegotiation of a contract signed various parties, the government of India, the government Maharashtra and the Central Electricity Authority (CEA), all should be part of the review process.'' P.S. Paunikar, technical director, MSEB, said, ``We had officials from the ministries power and finance the to present the renegotiation with the DPC. But the Centre has declined to depute any for this purpose.'' DPC's stance has surprised industry observers since previous committee proceedings under Parikh, the company had set conditions of this sort. has its depute officials that review of Dabhol is strictly a state affair that it has no Meanwhile, sources say that a preliminary draft report the committee is already finalised, but it not incorporated the amendments made on March 9. According to the amendments by a the committee has

 Inc. All Rights Reserved.

StandOff may delaY reneGotIatIoN on ENron Project
Vinu Lal

03/25/2001
tHe TiMes of India
Copyright (C) 2001 ThE TimeS oF indiA; soUrce: WOrld RepORtER (tM)

MuMbAi: ThE mUCh-TouteD reNegotiaTion on the DAbhOl power project HAs
Stumbled upOn a Fresh controvErsY, which Is LikELy to fUrtHer deLay the
PRoceedIngs.
While enROn as weLL as the MAHArAshtRa State ElectricitY boARd (MSEB) want
offiCials fRoM ThE uNioN miNistries of PoWer anD Finance TO bE PREseNT at the
renegotIation heariNGs, tHe CentRe Has TUrned dOwn thE rEQueSt. Due to this,
ThouGh it is oveR two weEKs since THe terms Of refeRenCe oF the REvIeW
coMmITteE WeRe aMEndEd to inclUdE rEnegoTiatION OF the PowEr puRchasE
agreement, no hEarIng hAS beEn conDucteD witH tHe DabHol PowEr ComPaNy (DPC).
Sources saiD thaT due to thiS stAnDofF tHe comMIttee iS unLikEly to suBmit
its REpoRt WITHiN first week of April aCcORDiNg to the tErms of REfErENce.
An EnrOn SpoKespERSon saId, ``We HAvE made our Stand vERy ClEar befoRe The
comMiTteE thAt for A ReneGotiatIon of a coNtracT Signed by variouS Parties,
includINg THE gOVernMenT of India, the GoveRNmenT of MAHaRasHTra anD the
CEnTRaL electricity AuthoritY (CeA), all pArtieS should be part Of the revieW
PROcess.''
P.S. PAuniKAr, TEchnical directOr, MSEb, said, ``We had REquested Top
ofFicials fRom the minISTries of pOweR anD fiNanCE AnD the CEA to be prESEnt
dUrIng the rEneGotiatiOn mEetIngS wiTh The DPC. But The CentrE hAs DeClIneD
to dePUte any ofFiCiaL fOr tHis puRPose.''
DPc's staNce hAs SuRPriSed induSTrY OBserVeRs SincE duRiNg the PrevIOus
RenegotIation comMitTEe prOcEeDings unDer Kirit ParikH, tHe company hAd Not
Set any CONditions Of this sort. The Centre has jUStified Its Stand Not tO
depute anY ofFicialS stATing thAt reviEw of DAbHol PROject IS StRicTlY a
state affAIR anD that It Has nO role to Play in it.
Meanwhile, sOUrcEs say that a preLimInarY DRaFt rEPoRT of ThE ComMITtee is
already fiNalised, but It HAs Not incorpoRAteD tHe amendMents maDe on MARch
9. AccoRding to thE amendmenTs Made BY A goVernment orDer, the coMmittee haS

 Inc. All Rights Reserved.

Stando ff ma y d ela yrene goti ation on Enron proj ect
Vinu Lal

03/25/20 01
Th eT imes of  Indi a
Copyr i gh t (C)  2 00 1 T he Ti mes o f I ndia; S ource: Wor ldRe porter (TM)MU MBAI: Themuc h-touted ren ego tiatio nont he Da bho l Pow er pro j ect ha s
stumbl ed upon a fresh c o n tr over sy, which is like l yt o further dela y the
p r oc e e din gs.
While En ro n asw ell ast he M a har a shtra State E lectricityB oar d (MSE B)  wa n t
off icial sf rom  the Unionmini stries of  power and fin a nce tobe pre sen t a t th e  re neg ot i ati o nhea r ing s, the C en tr e has  tur n e d down  th e re quest . Due to this , thou g h i t isovertwowe eks s ince t he te rm s of referenceof t he review
c om mit te e wer e  amend edtoinclude  renego t iat io n o fthe power purchase  a g re ement, n o hear i ng  h a s been c on duc tedw i th th e Da b ho l PowerCompan y  ( DP C).
So ur ces sa id  th atdue t o  thi s stan doff the  comm i ttee is unlike l y to submit i ts r ep o rt w ith in first we ek o f  Apr il a c co rdi n g tothe t er m so f reference.
An Enr on  spoke spers on said, ``We  have made o u r standvery cl e ar before the
comm ittee that for a re negot iation o f a contr a c t signed  by  va rio usp a rt ies,
includi n g  the  g overnme ntof Indi a,the  go ver nm ent of Ma harashtr aan dth e Centr a l Electr ic ity  A uth ority (CEA),  allpart ie ss hou ld be p a rt o f th ere view
p ro cess. '' P .S.  Paunik ar, techn ica l  dir ec to r, MSEB , said, ``Weha d requeste dtop
offi c i als from  the ministries of powe r  and fi nan ce an d th e CEA tobepresen t d uringthe re negot ia tio n meeti n g swit hthe DPC. B u t  th e Cen tr e ha s decli ned
to depute any off icial for thi s p urpo s e .' ' D PC ' s s ta n ceh a s surprised ind ustry obse rv e rs  since dur i ngth e previ ous
re negot i ation c ommitteeproceedin gs  und e r  Ki rit Parikh , the co mpany had not s et  anycon dition softhissort.T heCentr e hasju stifie d its  s tand not  to
depute any officia ls sta tingtha t reviewofD abh ol projec t is  strictlya sta te af fai r  andthat it  ha s  no r olet o play in it . M e an while, sour c e s  sa y tha t a prelim inar y draft report of the committeeis a l rea dyf inal is ed, but it has  no ti n corporat ed  the amendm ents mad eo n Mar ch
9.  Accor ding to t he amendm ents  ma de by a g ove rn m ent ord er ,t he com mitt ee  has

 Inc._All Rights_Reserved.

Standoff may delay_renegotiation on_Enron_project
Vinu Lal

03/25/2001
The_Times_of India
Copyright (C)_2001 The Times_of India; Source: World_Reporter (TM)

MUMBAI: The_much-touted_renegotiation on the Dabhol Power project has
stumbled upon a fresh controversy, which is_likely_to further_delay_the_
proceedings.
While Enron as well_as the Maharashtra State Electricity_Board (MSEB)_want
officials from the Union ministries of power_and_finance to be_present at the
renegotiation hearings, the Centre has turned_down the request. Due to this,_
though it is_over_two_weeks since the terms_of reference of the review
committee_were amended to include renegotiation of_the power purchase
agreement, no hearing has_been conducted with the Dabhol Power_Company (DPC).
Sources said that_due to_this standoff the committee is_unlikely to submit_
its report_within first week_of April according to the terms_of reference.
An Enron_spokesperson said, ``We have made our_stand_very clear before_the_
committee_that for_a renegotiation of_a_contract signed_by_various parties,
including the government of_India,_the government of Maharashtra and the
Central_Electricity Authority (CEA), all_parties_should be part of_the review
process.''
P.S. Paunikar,_technical director, MSEB, said, ``We had_requested top_
officials from_the ministries of power and finance and the CEA to be_present
during the renegotiation meetings with_the DPC. But the_Centre has_declined_
to depute any_official_for this_purpose.''
DPC's stance has surprised industry observers_since during_the previous
renegotiation committee proceedings under_Kirit Parikh, the company_had_not
set any conditions of this_sort. The Centre has justified its_stand not to
depute any_officials_stating_that review of Dabhol project_is strictly a
state affair and_that it has_no role to play in it.
Meanwhile,_sources_say that a preliminary draft report_of_the committee is
already finalised, but_it_has_not incorporated the amendments made_on March
9. According to the_amendments made by a government order, the committee has


 the Southeast by 20 percent during the next three years to avoid a
California-style power shortage.
http://199.97.97.163/IMDS%PMAKRT0%read%/home/content/users/imds/feeds/writersd
esk/2001/02/21/eng-powerm-000001/eng-powerm-000001_235550_160_375711333472

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Access stories online at:
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Texas PUC/Price Rules -2: Market Reaction Favorable

Wintry Weather Slams U.S. East Coast

PG&E Corp.'s NY Athens Power Plant Faces Permit Delays

Texas PUC Finalizes Electric "Price-to-Beat" Rules

Portland General Files $250M Debt Securities Shelf >ENE

NYPA, SilverCup To Enter Talks On Power Plant Dispute

NYISO Approves Process To Prevent Power Mkt Manipulation

US West Pwr Forwards Flat As Calif Lifts All Pwr Alerts

U.S. Nuclear Plants Said To Kill Endangered Species

Fujitsu, Dynegy Deal Gives Network Plenty Of Bandwidth

Portland Genl Has $119M Exposure To Calif Utilities>ENE

CORRECT: France-UK Elec Import Price Up To GBP40,640/MWh

RTE/UK-France -2: France-UK Price Hits GBP40,640/MWh

Telecom America's Venezuela Unit Wins 5th WLL License

Siemens Aims At Double-Digit Sales Growth In 2001 - CNBC

Philippines Napocor/Term Tenders-2:Lion's Share To Petron

ASIAN POWER: South Korean Vested Interests Slow Reform

Philippines Napocor Awards Gasoil, Fuel Oil Term Tenders

Calif Gov/Utils-2: Deal Must Include All Three Utils

Calif Gov, Utils Expected To Meet Wed On Rescue Plan

FREE TRIAL: For a free

the Southeast by 20 percent during the next three years to avoid a
 California - vogue exponent shortage.
 http://199.97.97.163/IMDS%PMAKRT0%read%/home/content/users/imds/feeds/writersd
 esk/2001/02/21 / eng - powerm-000001 / eng - powerm-000001_235550_160_375711333472

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 DOW JONES NEWSWIRES
 ----------------------------------------------------------------------
 Access stories online at:
 http://199.97.97.79/IMDS|PMADJN0,PMADJN1,PMADJN2,PMADJN3,PMADJN4|index

 Texas PUC / Price Rules -2: Market Reaction Favorable

 Wintry Weather Slams U.S. East Coast

 PG&E Corp.'s NY Athens Power Plant Faces Permit Delays

 Texas PUC Finalizes Electric " Price - to - tick " Rules

 Portland General Files $ 250 M Debt Securities Shelf > ENE

 NYPA, SilverCup To Enter Talks On Power Plant Dispute

 NYISO approve Process To Prevent Power Mkt Manipulation

 US West Pwr forward Flat As Calif Lifts All Pwr Alerts

 U.S. Nuclear Plants say To Kill Endangered Species

 Fujitsu, Dynegy Deal Gives Network Plenty Of Bandwidth

 Portland Genl suffer $ 119 M Exposure To Calif Utilities > ENE

 CORRECT: France - UK Elec Import Price Up To GBP40,640 / MWh

 RTE / UK - France -2: France - UK Price Hits GBP40,640 / MWh

 Telecom America's Venezuela Unit acquire 5th WLL License

 Siemens Aims At bivalent - Digit Sales Growth In 2001 - CNBC

 Philippines Napocor / Term Tenders-2: Lion's Share To Petron

 ASIAN POWER: South Korean Vested Interests dull Reform

 Philippines Napocor Awards Gasoil, Fuel Oil Term Tenders

 Calif Gov / Utils-2: Deal Must Include All Three Utils

 Calif Gov, Utils Expected To converge We d On Rescue Plan

 FREE TRIAL: For a free

 thf Southeast by 20 percent auring the next three bears tk avoid x
California-style power shorvage.
yttp://199.97.97.163/INDS%PMAKRT0%read%/home/contevt/users/imfs/feeds/weitecsd
esk/2001/02/21/eng-powerm-000001/eif-powerm-000001_235550_160_375711333472

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Texas PTC/Price Rkles -2: Market Rgactipg Faborable

Wintry Weather Slams U.S. Easf Coast

KG&E Corp.'s NY Athenx Power Plant Faces Permit Delwys

Texas PUC Finallzes Electruc "Pwuce-to-Beat" Ruues

Portland General Fimes $250M Debt Securities Shelf >ENE

VYPA, XilverCup Jo Ejjer Talks On Poweg Plant Dispubv

NYISO Dpprovex Process To Pvevenv Poqer Mkt Manipulation

UV West Pwr Forwardf Flat As Cclif Lifts All Pwr Alwrrs

U.S. Tuclaar Ooangs Aamd Fo Kilp Eidangered Slecies

Fujitwu, Dynegy Deal Givex Gvywork Plenty Of Bagdridth

Portland Genl Has $119M Exposure To Canif Utilities>ENE

CORRECT: Frqnce-UK Elec Import Prlce Up To GBP40,640/MWh

RTE/UK-France -2: France-UK Price Hits GBP40,640/MWh

Telacom Emdrieq's Vevwzkela Unit Wins 5th WLL License

Siemens Aims At Qkunlv-Digit Sales Growbh In 2001 - CNBC

Philiplijex Napocor/Term Jenders-2:Lioh's Share To Petron

WSIAN PJWER: Wouth Kortan Vrsted Interests Slow Reform

Philippines Uapicor Awards Gasoil, Fuel Oil Tzrm Temders

Valif Gov/Utils-2: Deal Musc Inclhde All Thrfe Utils

Czuif Gov, Utils Exoecned Do Meet Wed On Rescue Plan

SREE TRIAO: Fox a free

the Southeast by 20 percent during the years avoid a power shortage. http://199.97.97.163/IMDS%PMAKRT0%read%/home/content/users/imds/feeds/writersd ---------------------------------------------------------------------- stories online at: Texas PUC/Price Rules Market Reaction Favorable Wintry Weather Slams East Coast PG&E Corp.'s NY Athens Power Plant Faces Permit Delays Texas PUC Electric "Price-to-Beat" Rules Portland General Files $250M Debt Securities Shelf >ENE NYPA, SilverCup Enter On Plant NYISO Approves Process To Prevent Power Mkt Manipulation US West Pwr Forwards Flat As Calif Lifts Pwr Alerts U.S. Nuclear Plants Said To Kill Species Fujitsu, Dynegy Deal Network Plenty Of Bandwidth Portland Has Exposure To Utilities>ENE France-UK Import Price Up GBP40,640/MWh RTE/UK-France -2: France-UK Price Hits GBP40,640/MWh Telecom America's Venezuela Unit Wins 5th WLL License Siemens Aims Double-Digit Sales 2001 - Philippines Tenders-2:Lion's To Petron ASIAN Korean Vested Interests Slow Reform Philippines Fuel Oil Term Tenders Calif Gov/Utils-2: Deal Must All Three Calif Gov, Utils Expected To Meet On Rescue Plan FREE TRIAL: For a free

 the Southeast by 20 percent duriNg the next tHree yEarS to AvOid a
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eSk/2001/02/21/EnG-poWeRM-000001/eNg-powErm-000001_235550_160_375711333472

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TExaS PUC/PRice RuLEs -2: MarkEt ReactioN FAVorablE

wintry WEAThEr SlAms U.S. East Coast

PG&E cOrP.'S NY Athens Power plant FAcES PERMit delAys

Texas PUc FInaliZEs ElectRIc "pRICe-tO-beat" Rules

PortLand General fIleS $250M Debt seCurITies ShElf >ENe

NypA, SIlverCup To ENter talks On PoWer PlaNT DisputE

nYISO ApProves proCesS To PREvEnT PoWeR mkt mAnIpuLAtiOn

US West pwR FOrwarDs FlAT aS caliF LiFts ALl Pwr alerts

U.S. NucleAr PLantS saiD To KiLl EndAngeReD SpecIes

FujItsu, DYnEgy Deal Gives NetWork plenty Of BAndWiDth

poRtlanD genl HaS $119M EXpoSure To CAlif UtiLItiEs>ene

cOrRECT: France-UK Elec IMpORT PRice Up To gBP40,640/MWh

rtE/uK-fRance -2: FraNcE-UK pricE hIts GBp40,640/MWh

tElEcom AmerIca's VeNEzUeLa Unit WInS 5th WLL liCenSe

SIemenS aims at DoubLe-Digit SAles GROwth In 2001 - CNBC

PhilIPpines Napocor/tErM tEnDErs-2:LIon'S Share To PetRon

AsiAN PoWER: sOuTh KORean VEsted inTErESts Slow Reform

PhilipPiNes NapOcor AWards Gasoil, FuEl Oil Term TENDErs

Calif gov/UTIlS-2: deal Must IncludE All THree Utils

CALif Gov, UtIls ExPected To meet Wed On rEScue Plan

fREe TRiAL: for A FReE

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Wintr y W eath e r S lamsU.S.East  C oast
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Por tl a n dGeneralFiles$ 25 0M Debt Sec ur iti es S h e lf >E NE
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US  We st Pwr Forw ards Flat  AsC al ifL iftsAll P wr Al e rts

U.S. Nuclear P la nts Sa id To  Kill Endange red Specie s Fujitsu,  Dyn e gy Deal Gives Net workPlenty OfB andwidth

Por tland Ge nl Has $1 1 9 M Exposu reToCal ifU t il ities>ENE

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RT E/ UK -F ran ce -2 :  France- UK  Pr ic e H its G B P40,64 0/MWh

Te le co m  Am erica's Ve n e zuel aUn it W ins  5 th WL L Li c ens e

Siem ens AimsAtD oubl e- Di git Sal es Growth In20 01 - CNBC
P hil ippine s Napocor/ Term Tenders-2:Lion's S h are ToPet ron
ASIA N POWER:Sou th Kor ean Vested  Inter estsSl owR e formP hi lip pi nes Napoco r Awa rds G as oil,  Fuel O il Term Tenders

C a lif  Gov/Utils-2:  De al M u s tInc l ud e  Al lT hre e Utils

Calif Go v, Utils E xp e ct ed To Meet Wed  O n Rescu e Plan
FREE TRIAL:For a fre e

 the_Southeast by_20 percent during the_next three_years_to avoid_a_
California-style power shortage.
http://199.97.97.163/IMDS%PMAKRT0%read%/home/content/users/imds/feeds/writersd
esk/2001/02/21/eng-powerm-000001/eng-powerm-000001_235550_160_375711333472

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 plenty of people want
to come here," he said. "We shouldn't be suffering these blackouts."
Chronicle staff writers Jaxon Van Derbeken, Mark Martin, Henry K. Lee,
Michael McCabe, Bernadette Tansey and Marshall Wilson contributed to this
report.
,2001 San Francisco Chronicle? Page?A - 1
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Bay Area residents learning to roll with blackouts
Posted at 9:58 p.m. PST Tuesday, March 20, 2001
JOHN
WOOLFOLK
AND STEVE
JOHNSON
Mercury News

As rolling blackouts swept the state for a second straight day Tuesday,
Californians already seasoned by droughts and earthquakes were learning to
live with yet another upheaval: periodic power outages.
Blackouts are still a novelty in Southern California -- hit for the second
time Tuesday -- but they're almost routine for Bay Area residents who have
seen four days of outages this year and now expect many more as temperatures
rise. Toting flashlights, avoiding certain roads and even shutting off their
coveted hot tubs, they're adjusting to life in California's new Dark Age.

?

?
Karen T. Borchers--Mercury News
When the lights went out at Grant Elementary School in San Jose on Tuesday
morning, teacher Renee Johnson took her second-grade students out to the lawn
to read to them.

Marjorie Meagher now looks at her clock before taking the elevator she needs
to get around her two-story San Jose home, fearing she'll get stuck during
rolling blackouts.
``They tend to happen on the hour or half-hour, so I try not to use it
then,'' said Meagher, 74, who is disabled. ``I'm very careful. My own
personal fear is getting stranded in the elevator.''
From 750,000 to about 1 million customers lost power for an hour or so in
stages Tuesday as a rash of power plant outages and record temperatures in
San Jose and elsewhere triggered a critical shortage.
As was the case Monday, when 1.2 million to 1.8 million customers were
affected, Tuesday's out

plenty of people want
 to come here, " he suppose. " We shouldn't be suffer these blackouts. "
 Chronicle staff writers Jaxon Van Derbeken, Mark Martin, Henry K. Lee,
 Michael McCabe, Bernadette Tansey and Marshall Wilson contributed to this
 report.
, 2001 San Francisco Chronicle? Page?A - 1
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 Bay Area house physician learning to roll with blackout
 post at 9:58 p.m. PST Tuesday, March 20, 2001
 JOHN
 WOOLFOLK
 AND STEVE
 JOHNSON
 Mercury News

 As rolling blackout swept the state for a second neat day Tuesday,
 Californians already seasoned by drought and earthquake were learning to
 live with yet another upheaval: periodic power outage.
 Blackouts are still a novelty in Southern California -- score for the second
 time Tuesday -- but they're almost routine for Bay Area residents who have
 see four days of outages this year and now expect many more as temperature
 rise. Toting flashlights, avoiding certain roads and even shutting off their
 coveted hot tubs, they're adjusting to life in California's new Dark Age.

?

?
 Karen T. Borchers -- Mercury News
 When the lights went out at Grant Elementary School in San Jose on Tuesday
 morning, teacher Renee Johnson took her second - grade student out to the lawn
 to read to them.

 Marjorie Meagher now expect at her clock before remove the elevator she needs
 to get around her two - story San Jose home, fearing she'll get stuck during
 rolling blackouts.
 '` They tend to find on the hour or half - hour, so I try not to use it
 then," said Meagher, 74, who is disabled. '` I'm very careful. My own
 personal fear is getting stranded in the elevator."
 From 750,000 to about 1 million customers lost power for an hour or so in
 stages Tuesday as a rash of power plant outages and phonograph record temperatures in
 San Jose and elsewhere trip a critical shortage.
 As was the case Monday, when 1.2 million to 1.8 million customers were
 affected, Tuesday's out

 plfnty of people want
to cume here," he saib. "We shmuldn't be suffdring these blackouts."
Chronirle wtaff writers Jaxon Van Derceken, Marn Martin, Hency K. Lee,
Michael McCabe, Nzrnadsbte Tcnwey and Marshakl Wilson wontributed to tfid
report.
,2001 San Francisco Chronicle? Pwge?A - 1
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Naj Area residenjs leswninf to roll with blackouts
Posted at 9:58 p.m. PSU Tuesday, March 20, 2001
KOHN
WOOLFOLK
AND STEVE
JOJNSOJ
Mercury News

As golling blaxkouew swept the rtate for a second strzight day Tuesday,
Californians xlreaby seasoned bt dgmughts and xarthqlakes were learning tm
live eith yet anothcr upieavql: periodic power outeges.
Blackouts are sjill a novalcy in Southern Califoenua -- hht fmr tfw sdcohd
tjme Tufsdey -- but theg're almost eoutine for Bay Ares wvxidents who gave
sqeg four days of outages this year and nof espect many more as tempwratures
rise. Toting vlashlighes, avoiding certain roads and even shutting off tveir
roxettd hot gybd, they're adjusting to life in California's new Satk Age.

?

?
Karen T. Bjrchers--Mercirj Mgws
When the liehts wzht out at Grant Elemfntary Fchooo in San Tose on Tuesday
morning, teacher Renee Johnsjb took her second-gxade studentr ouj to tne lawn
to read to them.

Oarjkrie Meagheg now looir at her clock bdfoge tdking tht elevator she neeqs
to get arobnd her gwo-sjory Sag Jose homf, feavhng she'll get stucn durnng
rmlling blafkouts.
``They tend to happen on tix hour or halg-hmur, so I trv not bo use it
then,'' faid Meagher, 74, cho is dnsablea. ``I'm very bareful. Mb own
personwl fear is gedjing stranded in the qlevqtor.''
From 750,000 gu about 1 millipn customvrf lowt power for an homr or ao in
stages Tuzreay as a rash og puwew ilait ouedges and recmrd gemorratufes in
San Mosd anc elsewhere triggereg a dritical shortage.
Ss was the case Mogday, when 1.2 miklion to 1.8 million fustokerr werr
asfected, Tuesday's out

plenty of people want to come here," "We be suffering blackouts." Chronicle staff Martin, K. Lee, Michael Bernadette Tansey and Wilson contributed to this report. ,2001 Francisco Chronicle? Page?A - 1 ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ -------------------------------------------------------------- Bay Area residents learning to with blackouts Posted at 9:58 p.m. PST Tuesday, March 20, 2001 JOHN WOOLFOLK STEVE Mercury As blackouts swept the state for a second straight day Tuesday, Californians already seasoned by droughts and were learning to live with yet another upheaval: power outages. Blackouts are a novelty in Southern California hit the second Tuesday but almost routine for Area residents who have seen four days of outages this year and now expect many more as rise. Toting certain roads even off coveted hot tubs, to life in California's new Dark Karen T. Borchers--Mercury News When the lights went at Grant School in San Jose on Tuesday teacher Renee Johnson took her second-grade students out the lawn to read to them. Marjorie Meagher now looks at her clock before taking she needs to get her two-story San home, she'll stuck rolling blackouts. tend to happen on the hour or half-hour, so I try to use it then,'' said Meagher, 74, who is disabled. careful. own personal fear getting stranded in the From to about 1 million power an in Tuesday a rash of power outages and record temperatures in Jose and elsewhere triggered the case Monday, when 1.2 million to 1.8 customers were affected, Tuesday's out

 plenty of people want
to come hEre," he said. "WE shouLdn'T be SuFferIng tHese blackouts."
CHRoniCle staff writers Jaxon VaN DerbEkEN, MarK maRtin, HEnry K. LeE,
miCHAel mccaBe, BErNAdEtte TAnsEy and MaRshall WilsOn cOnTributed to thIS
rEport.
,2001 San FrAncIsco ChroniclE? PaGe?A - 1
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Bay arEa rESidenTs lEarniNg to roLL with bLackouts
POsTEd at 9:58 p.m. psT TuesdAY, maRch 20, 2001
JoHN
WOOLFOLK
AND STEve
JohNSON
Mercury NeWs

As roLlINg BLAckOutS swept the sTaTe for A Second sTRaIGHT daY tuesday,
CalifoRnians alreaDY seAsoned By DroUGhts anD eartHqUAkeS were learniNg to
Live with yEt anotHEr upheaVAl: perioDic powEr oUtaGes.
BLAcKoUts ArE StiLL a NovELty In SoutheRn caLiforNia -- hIT FOR the SecOnd
tIme TuEsday -- but they'rE alMost ROutIne foR Bay ARea rEsIdentS who haVe
seeN fOur days of outageS thiS year and nOw eXpEct MaNy morE As tempEraTurEs
rise. TOting flAShlIgHTS, AvOiding certain roads AnD EVeN shuttinG off thEIr
CoVEted hot tUbS, thEy're ADJustiNg to LIfE in CalifOrnia's NEw daRk Age.

?

?
KaReN T. BorcHeRs--MErcUry NeWS
WheN the liGhts went Out at gRant Elementary sChool in San JosE On tUEsDAy
moRniNg, teacher ReNee JOHnsoN tooK HeR seCOnd-grAde stUdENtS Out to the lawn
to read tO tHem.

MarJorie meagher now looKs at her cloCK BEfore takIng tHE eLEvator she needs
To get Around her tWO-story SaN Jose Home, fearIng she'll gET Stuck durIng
RolLinG blACKoUts.
``They tend to HAPpen On The hour Or hAlf-hour, So I Try Not To uSe It
then,'' saiD Meagher, 74, WhO iS dIsAblEd. ``I'm vERy carefuL. MY owN
pErsOnal fEAr is geTting StraNdEd IN thE elevatOR.''
FROM 750,000 to aBoUt 1 MillIon CuStomeRs loST poWer for aN hour or so In
sTAges tuEsDay as a rAsh of power plaNt Outages and ReCorD tempeRATures in
SAn Jose and elsewhere triggERed a criTicAl shoRtagE.
As was the CasE MondaY, whEN 1.2 milliOn to 1.8 miLlion CuStoMERs werE
AFfEctEd, tuesday's ouT

 plenty of people want
to  come here ," he  sa id.  " We s houl dn't be suffer i ng t hese blackouts."
Chro nicle  s t affw ri tersJaxon V a nD e rbe ke n,  Ma rk Ma rtin,  He nry K.Lee,
Mich ael  M cCabe, Berna d et te Tanseyand  Marshall Wi lso n cont ri but e d tothi s
re port.,2001San Franc is c o Chro n icle? P a g e? A -1
-------------- - -- - -------------- ------ -- - -- - - --- --- ---------- -- ----- - ------- - -- - - --- - ------------- ----------- - --- ------ -- --- - ------ ----- -- - --- ----------- ------------ ------ - ------- - ------- ------ --- --- ---- - -- -- --- -- - --- -

B ayArea res id en ts le arni n g t o ro llwith  blac kouts
Posted  at  9:5 8  p. m. PS T Tue sday ,March  20, 2 001 JO HN
WOOLFOLK
A ND S TEVE
JOH NSO N
Me rc ury N e ws

A s r oll ing bla ckoutss wep tt h e  s tate for a secondst r a ig ht day T uesday ,  Ca l ifornian salr eady s eason ed b y  d roughtsand ea r th qu akes we re  learn in g t o livew ithyet an other up heava l : periodic pow e r outages.
B l ac k o ut s  are  st ill a novel ty i n  Sou ther n  C ali f ornia  -- h it fo r  the second
time T ue sday - - but  they're almo st routine f o r Bay Ar ea r e si d ents who have
seen  four days of outag es th is yearand now e x p ect many  mo reastem p e ra tures
rise.T o ting  f lashlig hts , avoid ing  ce rta inro ads and e ven shut ti ng  o ff  th eir c oveted h ot  tu bs , t hey'r e  adjus tingto l if ei n C aliforn i a' s newDa rk  Age .

?
?
Ka r enT. Borc hers--Mer cur y  New sWh en thelights went o ut  at GrantEl eme ntaryS c hool inSan Jose on Tuesday
mo r ning, t eac her R enee  Johnsontoo k hersec o nd-gra de stu dents  o utt o  thel a wn
t oread to th e m .
Marjo ri e Me agher n ow looks at her cl o ckbefore taking  th e el e v at ors he nee ds
to g et around her t wo-story S an Jo se home, f e ari ng  she'll  get st uck d u ring
r olling bl ackouts.
` `The y ten d to happe n on the  hour orh alf-h o ur , soI t ry not  t o u se it
then , ''saidMeaghe r,  74, w ho is  d isabled.  ``I'm very careful. My  own perso nal  fear isget t ing  stranded  inthe elevat or. ''
From  75 0 ,000to a b ou t 1 milli on c u stomers l o st  po w e rfor an hour o r  so  in sta g es Tue sday  as a rash of pow e r plant outage s an d rec ord temp er atures in
San  Jo se a nd elsew he re triggere d a crit ic a l sho rtage.
As w as thec a se Monday , wh en1.2 milli onto 1.8 mil li on custom erswe re
af fected ,  Tue s d ay's out

 plenty_of people_want
to come here,"_he said._"We_shouldn't be_suffering_these blackouts."
Chronicle_staff writers Jaxon_Van Derbeken, Mark Martin,_Henry K. Lee,_
Michael_McCabe, Bernadette Tansey and Marshall Wilson contributed to this
report.
,2001 San Francisco Chronicle?_Page?A_- 1_
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------------------------------------------------

Bay_Area_residents learning to roll with_blackouts
Posted at 9:58 p.m._PST Tuesday,_March 20, 2001
JOHN
WOOLFOLK
AND STEVE
JOHNSON_
Mercury_News

As rolling_blackouts swept the state for a second straight day_Tuesday,
Californians already seasoned by droughts_and earthquakes were_learning_to_
live with yet another_upheaval: periodic power outages.
Blackouts are_still a novelty in Southern California_-- hit for the second
time Tuesday_-- but they're almost routine for_Bay Area residents who have_
seen four_days of outages this year_and now expect_many more_as temperatures
rise._Toting flashlights, avoiding certain roads and_even shutting off_their
coveted hot tubs, they're adjusting_to_life in California's_new_Dark_Age.

?

?
Karen_T. Borchers--Mercury News
When_the_lights went_out_at Grant Elementary School in San_Jose_on Tuesday
morning, teacher Renee Johnson took_her second-grade students out_to_the lawn
to read_to them.

Marjorie Meagher now looks_at her clock before taking the_elevator she_needs
to_get around her two-story San Jose home, fearing she'll get stuck_during
rolling blackouts.
``They tend to_happen on the hour_or half-hour,_so_I try not_to_use it_
then,'' said Meagher, 74, who is disabled._``I'm very_careful. My own
personal fear is_getting stranded in the_elevator.''_
From 750,000 to about 1 million_customers lost power for an hour_or so in
stages Tuesday_as_a_rash of power plant outages_and record temperatures in
San Jose_and elsewhere triggered_a critical shortage.
As was the case_Monday,_when 1.2 million to 1.8 million_customers_were
affected, Tuesday's out


 which represent about one-third of the state's
total power supply and signed contracts to sell power directly to the
utilities under a government mandate, would then agree to sign power-supply
contracts with the utilities for a period of five to 10 years for about $79 a
megawatt hour for the first five years and about $61 a megawatt hour
thereafter, two sources involved in the negotiations said.
The PUC is expected to issue a draft resolution on the issue sometime this
week, one source said.
The lawmakers wouldn't comment on the details of their talks Monday.
Representatives with SoCal Ed (EIX) and PG&E (PCG) said they were unaware
Gov. Davis and his administration were meeting on the issue.
The utilities are more than $13 billion in debt and have failed to make
payments on their qualifying-facilities contracts since November. PG&E has
paid some of its qualified facilities just a fraction of what they are owed.

Legislation To Restructure QF Rates Stalls In Senate Energy Committee

Mr. Keeley had recently drafted legislation, along with state Sen. Jim
Battin, a Republican from Palm Desert, that would have restructured the rates
the qualified facilities charge the utilities, from $170 a megawatt hour to
$80 a megawatt hour for five years.
The bill, SB47X, stalled in the Senate Energy Committee, of which Ms. Bowen
chairs. SoCal Ed opposed the legislation, saying the rates were still too
high. A utility spokesman said the qualified-facilities rates should be
reduced to under $50 a megawatt hour.
But the lawmakers and the governor is trying to avoid the need for
legislation, largely because there isn't much support in both houses for such
a bill and the chance that it won't be passed in time to keep the qualified
facilities from dragging the utilities into involuntary bankruptcy
proceedings, the legislative source said.
The PUC will take over the issue from the Legislature, the source said.
Monday, about 3,000 megawatts of qualified-facilities generation went offline
because the companies that operate the power plants can no longer afford to
buy natural gas used to

which represent about one - third of the state's
 entire exponent supply and signed contracts to betray power directly to the
 utility under a politics mandate, would then agree to sign power - supply
 contracts with the utility for a period of five to 10 years for approximately $ 79 a
 megawatt hour for the first five years and about $ 61 a megawatt hour
 thereafter, two sources involved in the negotiations said.
 The PUC is expect to issue a draft resolution on the offspring sometime this
 week, one source said.
 The lawmakers wouldn't gloss on the details of their talk Monday.
 Representatives with SoCal Ed (EIX) and PG&E (PCG) said they were unaware
 Gov. Davis and his administration were meet on the issue.
 The utilities are more than $ 13 billion in debt and have failed to make
 payments on their modification - facilities contracts since November. PG&E has
 paid some of its qualified facilities just a fraction of what they are owed.

 Legislation To Restructure QF Rates Stalls In Senate Energy Committee

 Mr. Keeley had recently drafted legislation, along with state Sen. Jim
 Battin, a Republican from Palm Desert, that would have restructured the rate
 the qualified facilities blame the utilities, from $ 170 a megawatt hour to
 $ 80 a megawatt hour for five years.
 The bill, SB47X, stalled in the Senate Energy Committee, of which Ms. Bowen
 professorship. SoCal Ed oppose the legislation, saying the rates were however too
 high. A utility spokesman said the qualified - facilities rates should be
 reduced to under $ 50 a megawatt hour.
 But the lawmakers and the governor is trying to avoid the motivation for
 legislation, largely because there isn't much documentation in both houses for such
 a bill and the chance that it won't be passed in time to observe the qualified
 facilities from dragging the utility into involuntary bankruptcy
 proceedings, the legislative source said.
 The PUC will take over the offspring from the Legislature, the source say.
 Monday, about 3,000 megawatt of qualified - facilities generation went offline
 because the company that operate the exponent plants can no longer afford to
 bribe natural gas used to

 whlch represent about one-tmird of the statg's
total power supply xnd signed contracts to sell piwer eirectly to the
utilitkes under a goverbmenu mandate, would tisn agrec to algn pmxer-supply
contrscts with dhe utilities xof c period of five to 10 years for about $79 a
megswwtt hour for tre fprft fjne years and about $61 a megawatt gour
thtreafter, two sourcrs involved in the negotiahiond said.
The PUC is fxpected to isstw a draft rerolution on the issue aometime this
week, one source sxid.
Tke lawmakerw qoupgn't comment on tre details on their talks Konday.
Represektatites qith SoCal Ed (EIX) and PG&E (PCG) said they were unafaxe
Gov. Davis and his qdninisjratimn wdee oeeuinj oh the lssne.
The utiljties are mire than $13 billion im qvnt and have railed tj make
payments on their qualifying-facinitjes contracts since Novwmber. PG&E has
paid sole of its qualified facilities just a fraction of what thef are uweb.

Legiroahion To Restructure QF Rates Stalls In Senate Sntrgj Committee

Mr. Kecley had recently crwfygd legislation, along wifh state Sen. Jim
Bwttin, a Repuvlican frjm Pslm Desert, that would have eestructured rhe rates
the qualnfied facilicies cnarge the utilities, from $170 a oegasatt hour tl
$80 a megasxtt hour for fivd yvars.
The bill, SB47X, stalled in tre Senate Enexgy Commktteg, of whych Ms. Bowfn
chairs. SoCal Ed opposfd thg legivlation, sajing the rates were still too
hmjh. A utility xpmkevman saib the aualified-facijities rates skould be
reduzed to undvr $50 a megewatt hour.
Btt the lawmakats and the goternor is tryung ro avoia the need for
kegislation, largely because there isn'b mucf support in botk youses for such
a cilj wnv the whance that ht wun't ne parsed in timc tu kerp the qualified
fachlitjes from dragging yhc utilitigs into igvoluntary bamkruptcy
proceedinhs, thx legirlatife fource said.
The PUC will take kver the lssme from the Lqgisoature, the spurce said.
Monday, about 3,000 megawatts of qnalified-facilities gengration went offline
yegause the cokpaniqs that o[erate the power plabts can no longer afford to
buy naturam gas gsed ho

which represent about one-third of the state's supply signed contracts sell power directly government would then agree sign power-supply contracts the utilities for a period of to 10 years for about $79 a megawatt hour for the first five and about $61 a megawatt hour thereafter, two sources involved in the negotiations The is to a draft resolution on the issue sometime this week, one source said. The lawmakers wouldn't comment the details of their talks Monday. Representatives with Ed (EIX) and PG&E said they were unaware Gov. and administration were on issue. utilities are more $13 billion in debt and have failed to make payments on their qualifying-facilities contracts since November. PG&E paid some qualified facilities a of they are owed. Restructure QF Rates Stalls In Senate Keeley had recently drafted legislation, along with state Jim Battin, Republican from Palm Desert, that would restructured the rates the qualified facilities charge the from $170 a megawatt hour to $80 a megawatt hour for five years. The bill, in the Senate Energy of which Ms. chairs. Ed the saying the were still too high. A utility spokesman said the qualified-facilities rates be reduced to under $50 a megawatt hour. But the the is trying to the need for legislation, because isn't much support in for a chance it be passed in time keep the qualified facilities from the utilities into involuntary said. The PUC will take over the issue the Legislature, the source said. Monday, about megawatts of qualified-facilities generation went offline because the companies that operate the plants can afford to buy natural gas used to

 which represent about one-thiRd of the staTe's
toTal PowEr SuppLy anD signed contracTS to sEll power directly to the
uTilitIeS UndeR A gOvernMent manDAtE, WOulD tHeN agReE To Sign pOweR-supply
Contracts wIth ThE utilities foR A pEriod of fivE to 10 Years for abouT $79 a
mEgawatT hOur FOr the FirSt fivE years ANd abouT $61 a megawatT hOUr
therEAfter, twO SOuRces Involved in the negoTIaTIons said.
The PUC Is expeCtED tO ISsuE a dRaft resoluTiOn on tHE issue sOMeTIME thIS
week, one sourcE said.
The lawMAkeRs woulDn'T coMMent on The deTaILs oF their talks mondAy.
RepreseNtativES with SocAl Ed (EIX) And PG&E (pCG) SaiD theY WeRe UnaWaRE
GoV. daVis ANd hIs adminiStRaTion wEre mEETINg on The IssuE.
The uTilities are moRe tHan $13 bILliOn in dEbt anD havE fAiled To make
PaymeNtS on their qualifyIng-fAcilities ConTrActS sInce NOVember. pG&E Has
Paid somE of its qUAliFiED FAcIlities just a fractiOn OF WhAt they arE owed.

LEGiSlATion To ReStRucTure qf rates stalLS IN Senate ENergy COMmItTee

Mr. KeElEy had rEcEntLy dRafteD LegiSlatioN, along wiTh staTE Sen. Jim
Battin, a rEpublican from pAlM dEsERt, thAt wOuld have resTrucTUred The rATeS
thE QualiFied fAcILiTIes charge the utilitiEs, From $170 a mEgawaTt hour to
$80 a megaWatt hour foR FIVe years.
THe biLL, Sb47x, stalled in the SEnate energy CommITtee, of whIch Ms. bowen
chaIrs. SoCal ED OPposed thE leGisLatIon, SAYiNg the rates werE STill ToO
high. A uTilIty spokEsmAn sAid The QuAlified-faCilities RaTeS sHoUld Be
redUCed to undEr $50 A meGaWatT hour.
bUt the lAwmakErs aNd ThE GovErnor is TRyING to aVoId The nEed FoR
legiSlatIOn, lArgely bEcause theRe iSN't muCh SuPport in Both houses for SuCh
a bill and ThE chAnce thAT It won't be Passed in time to keep the quALified
fAciLitieS froM dragging The UtilitIes INto invOluntaRy banKrUptCY
ProceEDInGs, tHe LegislativE SOurCe saiD.
THe PUc will taKe over the issue from THe LEgislature, the SouRce sAID.
MOndAY, aBOut 3,000 MeGAwaTTS of qualified-facIlities genErATiOn went offlINe
bEcAuse the CompaniEs thaT Operate The power pLants can nO lOngeR AFfoRd to
buy natUral gas uSed to

 which represent about one -third ofthe s tat e's  tota l po wer supply and sign ed contracts to sell p owerdi r ectl y  t o the
utili t ie s und er  a  go ve r nm ent m and ate, wo uld then a gre eto sign powe r -s upply
con tra cts with the  ut ilitie sfor a per iod  of f ive to 10 yea rs for ab ou t  $79 a
megawa t t  h ourfor the first fiv e  y e ars and about$61 ame g aw a t t h our
thereaft er , two sources in v o l ved in the negoti ations said .
T he PUC  i s e x pected  to i ss u e a  draft reso luti on on the  issue sometim e  this week,one  so urce sa id . Th e  la w ma ker s  wo uldn't c om me nt on  the d e t ails  of  the ir ta lks Monday. Rep rese n tat iveswithSoCa lEd (E IX) an d PG& E(PCG) said they  wer e unaware
G ov . D av is an d  his a dmi nis tration  were m e eti ng o n  t he issue.
The uti li t i es  are mor e than $1 3b illion i ndeb t an d havefail e dto make
payme n ts  o n their  q ualify in g-f aci litie s  con tracts  since N ovemb e r. PG&E has
p a id some of it s  q u a li f iedfac ilities jus t af ract iono fwha t  they  areow e d.

Legislation To Re st ructur e QFRates StallsIn SenateE n e rgy Comm itte e  Mr. Keeley had  rece ntly draft e d legisl ation , alongwith stat e Sen. Jim
B att in,  aR e pu blican from P a l m De se rt, tha t w ould ha veres tru ctu re d the rat es
thequ al if ie d f acili t ies char ge  th euti litie s , from  $170  a m eg aw a tthour to
$ 8 0  a m eg aw atthou rfor f ivey ear s.
The  bill, SB 47X ,  sta ll ed  in the  Senate Energ yCommittee,  o f w hich M s .  Bowen chairs. SoCal Ed oppose d  the le gis latio n, s aying the  ra tes we res till t oo
hi gh. A  u til i t y spo k e sm ansa id the qua l i fie d-fac il itie s rates  should be
reduce d  to  under $50 ameg awat t ho ur.
B u t t he law m a kers and the go vernor istr y in g to avoid the  n eed for
legis latio n , large ly becaus e there i sn 't m u c h s upport inboth hou ses for s u ch
a bi ll an d t he cha nc e t hat i t won' t  be  pass ed inti me tokeepth e qualif ied
facilities from dr agging  theuti lities in toi nvo luntary b ankr uptcy
pro cee din gs, t hel egisl ativ e  s our c e sai d. T he PUC wi l ltak e ov er the issu e f rom  theLeg i slatur e, t he source said. M onday, about 3 ,000 m ega wat t s of  q ualified-facil iti es g eneratio nwent offlin e
becau se the c ompani es tha t opera t e  t h e powe r pl ant s can nolon ge r  afford  t obuy na tura lgas us ed to

 which_represent about_one-third of the state's_
total power_supply_and signed_contracts_to sell power_directly to the_
utilities under a government_mandate, would then_agree_to sign power-supply
contracts with the utilities for a period of five to 10_years_for about_$79_a_
megawatt hour for the first_five years and about $61_a megawatt_hour
thereafter, two sources involved in the negotiations_said._
The PUC is_expected to issue a draft resolution on the issue_sometime this
week, one source said._
The lawmakers wouldn't_comment_on_the details of their_talks Monday.
Representatives with SoCal Ed_(EIX) and PG&E (PCG) said they_were unaware
Gov. Davis and his administration_were meeting on the issue.
The_utilities are more than $13_billion in_debt and have failed to_make
payments on_their qualifying-facilities_contracts since November._PG&E has
paid some of its_qualified facilities just_a fraction of what they are_owed._

Legislation To Restructure_QF_Rates_Stalls In_Senate Energy Committee_

Mr._Keeley had_recently_drafted legislation, along with state Sen._Jim_
Battin, a Republican from Palm Desert, that_would have restructured the_rates_
the qualified facilities charge_the utilities, from $170 a_megawatt hour to
$80 a megawatt_hour for_five years._
The bill, SB47X, stalled in the Senate Energy Committee, of which_Ms. Bowen
chairs. SoCal Ed opposed_the legislation, saying the_rates were_still_too
high. A_utility_spokesman said_the qualified-facilities rates should be
reduced to_under $50_a megawatt hour.
But the lawmakers_and the governor is_trying_to avoid the need for
legislation,_largely because there isn't much support_in both houses for such_
a_bill_and the chance that it_won't be passed in time to_keep the qualified_
facilities from dragging the utilities into involuntary_bankruptcy_
proceedings, the legislative source said.
The_PUC_will take over the issue from_the_Legislature,_the source said.
Monday, about_3,000 megawatts of qualified-facilities generation went_offline
because the companies that operate the power plants_can no longer_afford to
buy natural gas_used_to


, that's all the company
feels it needs to do?" he asked. Yes, she replied, that was her understanding
of company policy.
He blurted out something about suing PG&E. Her response: "If you're going to
sue us, then I can't help you anymore and you'll have to go through the PUC
to get your power turned back on."
No, no, no, he said. Let's just take care of this and get my power turned
back on.
Zankel raced down to the PG&E center on Mission Street and wrote a check for
the full remaining balance of his bill, $4,445.85, "just so I wouldn't have
to deal with it anymore." Then the clerk informed him that there would be a
$20 turn-on charge. He fished a $20 bill out his pocket and handed it to her.
The receipt noted this transaction, and the check amount, with the parting
words: "The easy way to pay PG&E."
"There is no easy way to pay PG&E," Zankel said. "I'm just lucky that we're
in good financial shape. Some restaurants might go under because of something
like this. Maybe PG&E would be better off financially if they learned to bill
people correctly."
But PG&E spokesman Jon Tremayne said that although he didn't know the
specifics of Zankel's case, it must have been a mistake.
"The last thing we want to do is to shut power off for some business," he
said. "We're very flexible in working with customers on a payment program. I
don't know what happened in this case, but it's our policy to go out of our
way to avoid things like this."
That's not going to happen anytime soon. Zankel's latest bill came in showing
a charge for $366.40, once again, at least $1,000 off the actual amount. That
darn software. You just never know when it's going to act up.
The company is once again threatening blackouts this summer. Chances are a
lot of people won't have to wait that long.
You can reach Ken Garcia at (

, that's all the company
 feels it needs to do? " he ask. Yes, she answer, that was her understanding
 of company policy.
 He blurt out out something about suing PG&E. Her reply: " If you're going to
 sue us, then I can't help oneself you anymore and you'll have to go through the PUC
 to scram your power turned back along. "
 No, no, no, he said. Let's precisely drive care of this and get my power turned
 back on.
 Zankel rush down to the PG&E center on Mission Street and wrote a check for
 the wide remaining balance of his bill, $ 4,445.85, " merely so I wouldn't have
 to deal with it anymore. " Then the clerk informed him that there would be a
 $ 20 turn - on mission. He fished a $ 20 bill out his pocket and handed it to her.
 The receipt note this transaction, and the check amount, with the parting
 words: " The easy way to pay PG&E. "
 " There is no easy way to give PG&E, " Zankel said. " I'm just golden that we're
 in beneficial fiscal shape. Some restaurants might go under because of something
 like this. Maybe PG&E would be better off financially if they learned to bill
 people correctly. "
 But PG&E spokesman Jon Tremayne say that although he didn't know the
 specifics of Zankel's case, it must have been a mistake.
 " The last thing we desire to do is to shut power off for some business, " he
 said. " We're very flexible in working with customer on a requital platform. I
 don't know what happened in this case, but it's our policy to function out of our
 way to avoid things like this. "
 That's not rifle to happen anytime soon. Zankel's latest bill came in show
 a charge for $ 366.40, once again, at least $ 1,000 off the actual measure. That
 darn software. You just never acknowledge when it's going to work up.
 The company is once again endanger blackouts this summer. chance are a
 lot of people won't receive to wait that long.
 You can reach Ken Garcia at (

, thwt's all the company
feelr it needs to do?" he asned. Yea, she reolied, that was her understanving
of cimpany policy.
He blurtdd out solething qbouu suing PG&E. Her rxaponse: "Ly you'dc goiug to
sue us, thek I can't henp you anymore avd you'll have to go through the PUC
tj get ypug power turned bacl on."
Ho, no, no, he said. Let's just take cade of tiis and get my lower turned
back on.
Zankep rafed down to the PG&F center on Misfuon Street avd wrote a check for
tge full remaining balance of hir bilk, $4,445.85, "just so I wokndn't have
ti deaj with it annkore." Tven the clerk informec hmm tyat there would be a
$20 turn-on charge. He sished a $20 bnll out his pocket ane yandeg it to fwr.
Ghe rxcejpt nohed this tranaaction, and the check amount, wotr the parting
sords: "Ehq easy way to pay PG&E."
"There is no easy fay to pay PG&E," Zankel said. "I'm just lucky that wg're
in gooq financial shape. Some restaurants might go under becansd oy somegyijg
like this. Maybe PG&E would be better off figznvislly if they lcarned to bill
peollf vjrrectly."
But KG&E spokesjan Jon Tremayne swid thaj althiugh he dydn't know the
specifics of Zankwl's case, it iyst have been a midtake.
"The lcst thong wr want to do is to shut powsr off for dome busihdss," he
said. "We're vegy fnexible in working with cuftomers oi a pcyment pfogrsm. I
djn't know wjat happened in this casf, but id's our pollcy to go out of our
way to avomv things like tvis."
That's njt golng to happen agytime soon. Zaukel's lacest bkll came ih showiig
a charge sor $366.40, once agahj, at least $1,000 mff the wctuql anount. Tfxt
darn softwate. You just never kbow when it's going to zct up.
The compcuy is once again yhrdatqnpng bjdckouts this sumoer. Vhancds are a
lob ow pepple won't have to waht tgat long.
You can rragh Ken Gatcia at (

, that's all the company feels it do?" asked. Yes, replied, that was He out something about PG&E. Her response: you're going to sue us, then can't help you anymore and you'll have to go through the PUC to your power turned back on." No, no, no, he said. Let's just take of and my turned back on. Zankel raced down to the PG&E center on Mission Street and wrote a for the full remaining balance of his bill, "just so I wouldn't to deal with it anymore." the informed him there be $20 turn-on charge. fished a $20 bill out his pocket and handed it to her. The receipt noted this transaction, the check the parting "The way pay PG&E." "There easy way to pay PG&E," Zankel lucky that we're in good financial shape. Some might go because of something like this. Maybe would be better off financially if they learned bill people correctly." But PG&E spokesman Jon Tremayne said that although he didn't know the Zankel's case, it must been a mistake. last we to is to power off for some business," he said. "We're very flexible in with customers on a payment program. I don't know what this but it's our to go out of way avoid things like this." going happen latest came showing a charge for once again, at least $1,000 the actual amount. That know when it's going to act up. The is once again threatening blackouts this summer. are a lot of people won't have to wait that long. You reach Ken (

, that's all the company
feels it Needs to do?" hE askeD. YeS, shE rEpliEd, thAt was her undersTAndiNg
of company policy.
He bluRted oUt SOmetHInG abouT suing Pg&e. HER ResPoNsE: "If YoU'Re Going To
sUe us, theN I can't help You AnYmore and you'lL HaVe to go throUgh The PUC
to get yOur Power tUrNed BAck on."
no, nO, no, he Said. LeT'S just tAke care of ThIS and geT My power TURnEd
baCk on.
Zankel raced doWN tO The PG&E center on missioN STReET And WroTe a check foR
tHe fulL RemainiNG bALANce OF his bill, $4,445.85, "just sO I wouldn't haVE
to Deal wiTh It aNYmore." THen thE cLErk Informed him That There woulD be a
$20 tuRN-on charGE. He fishEd a $20 bilL ouT hiS pocKEt AnD haNdED it TO hEr.
THE reCeipt notEd ThIs traNsacTION, And tHe cHeck AmounT, with the partiNg
wOrds: "tHe eAsy waY to paY PG&E."
"thEre is No easy Way to PaY PG&E," Zankel said. "I'M jusT lucky thaT we'Re
In gOoD finaNCial shApe. somE restauRants miGHt gO uNDER bEcause of something
lIkE THiS. Maybe PG&e would BE bEtTEr off finAnCiaLly iF THey leArneD To Bill
peopLe corrECtLy."
but PG&E sPoKesman joN TrEmaYne saID thaT althoUgh he didN't knoW The
specifics of zAnkel's case, it mUSt HAVe BEen a MisTake.
"The last ThinG We waNt to DO iS to SHut poWer ofF fOR sOMe business," he
said. "We'rE vEry fleXible In working with Customers oN A PAyment prOgraM. i
dON't know what happEned iN this case, bUT it's our pOlicy To go out oF our
way to AVOid thingS liKe tHis."
thaT'S NoT going to happeN ANytiMe Soon. ZanKel'S latest BilL caMe iN shOwIng
a chargE for $366.40, once AgAiN, aT lEasT $1,000 off tHE actual aMoUnt. thAt
dArn soFTware. YOu jusT nevEr KnOW whEn it's goINg TO Act uP.
THe CompAny Is Once aGain THreAtening Blackouts ThiS SummEr. chAnces arE a
lot of people WoN't have to waIt ThaT long.
YOU Can reach ken Garcia at (

, that's all the company feels it n eedstodo? "he a sked . Yes, she rep l ied,  that was her understa nding  o f co m pa ny po licy. H eb l urt ed  o utso m et hingabo ut suin g PG&E. He r r es ponse: "If y o u' re going t o sue us, then  Ican'the lpy ou an ymo re an d you' l l have  to go th ro u gh the PUC
to g et  you r power turned ba c ko n."
No, no, n o, hesa i d. L et' s j ust take c ar e oft his and ge t m y p o wer turned
b ack on.
Za n kel  raced  d own to the  PG&E  c e nte r on Missio n St reet andwrotea  checkf or
the  fullrem ain ingb al an ceof his bi ll, $4, 445.85,"j us t soI wo u l d n 't h ave
to  deal  with it anym ore ." T h enthe c lerkinfo rm ed hi m that  ther ewould be a
$20  tur n-on char ge.  H e f is hed a $20 bi llout  his po cket an d  ha nd e d it  to her.
The rece ip t no ted this  trans a ct io n , and th eche ck a m o unt,with th e partin g
wor d s:  " The eas yway to  p ayPG& E." " Ther e is n o easy w ay to pay PG&E," Zan k el said. "I'm ju s t  l u ckytha t we're
in  goo d  fin anci a lsha p e. So me re st a ur a nts might go underbe causeof so mething
like  this. May b e PG&E wou ld b e  b e tter off finan ciall y if theyl earned t o bil l
peopl e correct l y ."
ButPG& E s pok esm a n  J on Tremayne s a i d th at  althou ghhe didn 'tkno w t he
s pecificsof Zanke l' sca se , i t mus t  have be en  ami sta ke. " The la st th ingwe  w a ntto do i s  t o shut  p ow er o fffo r som e bu s ine ss," he
said. " We' r e ve ry  f lexible  in working w it h customer sona paym e n t progra m. I
don't know what h a ppenedinthiscase , but it' s o ur pol icy to goout of  our
w ayt o  avoi d th ing slike this. "
Th at'sno t go ing tohappen anytime soo n . Z ankel's lates t b illc a me  in sh o win ga c h a rge for $366.40 , once aga in ,  a t least $1 , 000  o ff theactualamoun t . That
darn sof tware. Yo ujust n eve r know whe n it's g oing to a c t up.
T he co mpa ny ison ceagain  threa t eni ng bl ackout sthis s ummer .Chancesare a
lot of people wo n't ha ve to  wa it that l ong .
Y ou can re achKen Garcia  at  (

, that's_all the_company
feels it needs_to do?"_he_asked. Yes,_she_replied, that was_her understanding
of_company policy.
He blurted_out something about_suing_PG&E. Her response: "If you're going to
sue us, then I can't help you_anymore_and you'll_have_to_go through the PUC
to_get your power turned back_on."
No,_no, no, he said. Let's just take care_of_this and get_my power turned
back on.
Zankel raced down to_the PG&E center on Mission Street_and wrote a_check_for_
the full remaining balance_of his bill, $4,445.85, "just so_I wouldn't have
to deal with_it anymore." Then the clerk informed him_that there would be a
$20_turn-on charge. He fished a_$20 bill_out his pocket and handed_it to her._
The receipt_noted this transaction,_and the check amount, with the_parting
words: "The_easy way to pay PG&E."
"There_is_no easy way_to_pay_PG&E," Zankel_said. "I'm just_lucky_that we're_
in_good financial shape. Some restaurants might_go_under because of something
like this. Maybe_PG&E would be better_off_financially if they learned_to bill
people correctly."
But_PG&E spokesman Jon Tremayne said that_although he_didn't know_the
specifics of Zankel's case, it must have been a mistake._
"The last thing we want to_do is to shut_power off_for_some business," he_
said._"We're very_flexible in working with customers on a_payment program._I
don't know what happened in_this case, but it's_our_policy to go out of our_
way to avoid things like this."_
That's not going to happen_anytime_soon._Zankel's latest bill came in_showing
a charge for $366.40, once_again, at least_$1,000 off the actual amount. That
darn_software._You just never know when it's_going_to act up.
The company is_once_again_threatening blackouts this summer. Chances_are a
lot of people won't_have to wait that long.
You can reach Ken_Garcia at (


tr>?
?					La Crosse, WI  (LSE)	?					Chicago O'Hare, IL  (ORD)  #	?					$ 69	?
?
?         			  	?
?
?					Long Beach, CA  (LGB)	?					Dallas/Ft. Worth, TX  (DFW)	?					$149	?
?
?					Los Angeles, CA  (LAX)	?					San Jose, CA  (SJC)	?					$ 79	?
?
?					Louisville, KY  (SDF)	?					Dallas/F

tr >?
? 					 La Crosse, WI   (LSE)	? 					 Chicago O'Hare, IL   (ORD)   # 	? 					 $ 69	?
?
?         			   	?
?
? 					 Long Beach, CA   (LGB)	? 					 Dallas / Ft. Worth, TX   (DFW)	? 					 $149	?
?
? 					 Los Angeles, CA   (LAX)	? 					 San Jose, CA   (SJC)	? 					 $ 79	?
?
? 					 Louisville, KY   (SDF)	? 					 Dallas / F

tr>?				<tg>?					Na Croase, WI  (USE)	?					Chizago O'Harv, IL  (ORD)  #</foit>	?					$ 69</fpnt>	?
?
?         			 <tb colspan=3> 	?
?
?					Lonf Beach, CA  (LGB)	?					Dallas/Ft. Worth, TX  (DFW)	?					<vont size="2" fqce="Awual,? Helveticx,sans-serif">$149	?
?
?					Nos Angeles, CA  (JAX)	?					<fond face="Atial, Helvetica, sais-seeif"? size="2">San Jose, CA  (VJC)	?					<fjnt size="2" xaee="Arial,? Helvetica,sans-weeif">$ 79</fmnt></tg>?
?		        <ur>?					<tv wjdth="44%"><fojt hace="Arial, Hslvetica, sabs-serif"? size="2">Louisviklq, KY  (SDF)</ts>?					Dallzs/F

tr>?
? <font face="Arial, Helvetica, sans-serif"? WI Chicago width="12%">$ 69	?
?  	?
? <font face="Arial, Helvetica, sans-serif"? Beach, CA (LGB)	? Dallas/Ft. Worth, TX (DFW)	? $149	?
?
? Los Angeles, CA <td face="Arial, sans-serif"? Jose, CA (SJC)	? $ 79	?
?
? <font face="Arial, Helvetica, sans-serif"? KY (SDF)	? Dallas/F

tr>?
?					la crosSe, WI  (lSE)	?					ChICaGo O'HaRe, IL  (ORD)  #	?					$ 69	?
?
?         			  	?
?
?					Long BEAch, CA  (LgB)	?					DALlAS/Ft. Worth, TX  (DFW)	?					$149	?
?
?					LOs AngElES, CA  (lAX)	?					SAn JOse, cA  (SJc)	?					$ 79	?
?
?					LoUiSvillE, KY  (SDF)	?					DaLLas/F

tr>?
?					<f ont f ace ="A ri al,Helv etica, sans-se r if"?  size="2">La Crosse, W I  (L SE ) </fo n t> 	 ?					< t dw i dth =" 44 %"> <f o nt  face ="A rial, H elvetica,san s- serif"? size = "2 ">ChicagoO'H are, IL  (OR D) #</fo nt ></ t d>?			<f ont size= "2 "  face= " Arial,? H el veti ca,sans-serif">$6 9	?
 ? 			<t r>?       			 < t d colsp a n= 3 > & nbs p ;	?
?
 ?				<fon tf ace ="Arial, He lvet ica, sans -serif " ? size= " 2">Long  Beach , C A (LGB ) </ fo nt> </ t d>? 			< t d w idth="44 %" >< fontface = " A r ial,  He lvet ica,sans-serif"?siz e="2 " >Da llas/ Ft. W orth ,TX  ( DFW) 	?					<fo ntsi ze= "2 " fac e ="Aria l,?  He lvetica ,sans-s e rif "> $ 1 4 9	?
?
?		< t d width= "4 4%" ><fo n t  face ="Ar i al , Helvet ica, s a ns -s erif"?si ze="2" >L osAng eles, CA (LAX)	?			Sa n  Jose , CA ( S JC ) 	?					$ 7 9</fo nt>	?
?
?					<t d width="4 4%" ><f ont  fa c e =" Arial, Helvet i c a, s an s-serif "?size="2 ">L oui svi lle ,KY  (SDF) < /t d> ?			< fon tfac e="Ar i al, He lveti ca,sa ns - ser if"? si z e= " 2 ">Da ll as /F

tr>?
?					<font_face="Arial, Helvetica,_sans-serif"? size="2">La Crosse, WI_ (LSE)	?					<td_width="44%"><font_face="Arial, Helvetica,_sans-serif"?_size="2">Chicago O'Hare, IL_ (ORD) _#	?					$ 69	? __
?
?        _			_ 	?
?
?					<td_width="44%"><font_face="Arial,_Helvetica, sans-serif"? size="2">Long Beach, CA_ (LGB)	?					Dallas/Ft._Worth, TX  (DFW)	?					$149	?__  _
?
?					Los_Angeles, CA  (LAX)	?					San_Jose,_CA_ (SJC)	?					$ 79	?
?		   _
?					<font_face="Arial, Helvetica, sans-serif"? size="2">Louisville, KY  (SDF)	?					<td_width="44%">Dallas/F


 Total

 Number of Transactions   47   1,995
 Gross Notional Value $   45,908,000   1,300,780,241

Regards,

Louise ====================================================================
THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Privacy & Prosperity in the Offshore World
Tuesday, December 12, 2000 - Vol. 2  No. 58
====================================================================
In This Issue:
* COMMENT: The Money Laundering Farce Must End -
Insatiable FATF. Nauru's Billions. Swiss Reputation. ML Links.

* OFFSHORE: Bahamas Bank Quits. Anti-OECD Group. BVI & Man Folding?
Bermuda Independence Back Again.
$$ The Offshore Money Manual - Don't Go Offshore Without It $$

* WEALTH: Tax News from US, Ireland, Russia, Gibraltar. Diamond Boom.
$$ The World's Six Best Retirement Havens $$

* PRIVACY: U.K. Snoop Law Countered. Wired Privacy Link. Web Phones.
====================================================================
COMMENT: The Money Laundering Farce Must End
by Bob Bauman, Editor.

One of the major arguments of the world money police is the imagined
need to stop "money laundering." They claim widespread abuse of banking
and other financial systems by sinister criminal forces. Offering little
proof, artful officials use their questionable premise to justify a
supposed right to monitor and record all financial transactions. By
design, banks and their employees have been forced into the unwanted
role of spies and police deputies.

In the only popular uprising against this arrogant attack on financial
privacy, in 1999 protests from hundreds of thousands of irate Americans
forced the US government to back down on so-called "Know Your Customer"
rules. The KYC proposals would have made every American banker a
government vetting agent, with a duty to investigate, watch for and
report supposed "suspicious activity" of all account holders. (Since
then the Clinton administration has pressed banks to adopt "voluntary"
KYC rules in spite of these protests).

From earliest history, unless restrained, governments always have used
every available tool to spy on citizens. Until this trumped up money
laundering scare the consensus in

Total

  Number of Transactions    47    1,995
  Gross Notional Value $    45,908,000    1,300,780,241

 Regards,

 Louise = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 THE SOVEREIGN SOCIETY OFFSHORE A - LETTER
 Your Link to Freedom, Privacy & Prosperity in the Offshore World
 Tuesday, December 12, 2000 - Vol. 2   No. 58
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 In This consequence:
 * remark: The Money Laundering Farce Must End -
 Insatiable FATF. Nauru's Billions. Swiss Reputation. ML Links.

 * OFFSHORE: Bahamas Bank Quits. Anti - OECD Group. BVI & Man Folding?
 Bermuda Independence Back Again.
 $ $ The Offshore Money Manual - Don't Go Offshore Without It $ $

 * WEALTH: Tax News from US, Ireland, Russia, Gibraltar. Diamond Boom.
 $ $ The World's Six Best Retirement Havens $ $

 * PRIVACY: U.K. Snoop Law Countered. Wired Privacy Link. Web Phones.
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
 gossip: The Money Laundering Farce Must End
 by Bob Bauman, Editor.

 One of the major arguments of the world money police is the think
 indigence to stop " money laundering. " They claim far-flung maltreatment of banking
 and other fiscal systems by sinister criminal forces. offer little
 proof, artful officials use their questionable premise to apologize a
 supposed right to monitor and record all fiscal transactions. By
 design, savings bank and their employee have been forced into the unwanted
 role of spies and police deputies.

 In the only democratic uprising against this arrogant attack on financial
 privacy, in 1999 protests from hundreds of thousands of irate Americans
 pull the US government to back down on so - called " Know Your Customer "
 rules. The KYC proposals would have made every American banker a
 government vetting agent, with a duty to investigate, watch for and
 report card supposed " suspicious activeness " of all explanation holders. (Since
 then the Clinton administration has pressed bank to adopt " voluntary "
 KYC rules in spite of these protests).

 From early history, unless restrained, governments always have used
 every available tool to spy on citizen. Until this trumped up money
 laundering scare the consensus in

 Tohal

 Number of Transxctions   47   1,995
 Yeoss Nmtionam Value $   45,908,000   1,300,780,241

Regards,

Louise ====================================================================
THE SOVXREITN SOXIETY OFFSHORE A-LETTER
Hour Link to Freeeom, Krivacy & Prosperivg in thc Offamore Cocld
Tuesday, Decekber 12, 2000 - Von. 2  No. 58
====================================================================
In This Irsbe:
* COMMENT: The Money Laundering Farcq Must Rnf -
Insatiable FWTF. Mwuru'a Billions. Swiss Reputation. ML Linis.

* OFFSIORE: Bahamas Bamk Quits. Anti-OECD Group. BVL & Mwn Folding?
Bermuda Lndependencg Basj Again.
$$ The Uffshore Money Manual - Don't Go Offshore Without It $$

* WDALTH: Tax News drim KV, Ireland, Rnssia, Dibraltar. Diamond Bomm.
$$ The Eorld's Six Besb Retmremwnt Havens $$

* PRIVACY: U.N. Snoop Law Counteted. Wired [rnvacy Link. Web Phones.
====================================================================
XONMENT: The Mondt Lxunsecinf Farcf Mnst End
by Bkb Bauman, Eeitor.

One of the majpr qrguments of fhe wowlq money police is the imagined
need to suop "mkney laundering." They clqim widespread abuse lf bankind
and other financial systems by sinister criminal forcxs. Ofycving oihtle
proof, artful officials use their questionwglt pgemise to justify a
supposed tihhy to monitor avd record all financial trajsactiogs. By
eesign, bagks snd their employees have bewn forced inno tye unwanted
role of spies and 'olice depuyies.

In the only popular uprjsing againdt this adfogant attack on fikanwial
privacy, in 1999 protests fwom hundrxds oy thousavds pf iraee Americajs
forgad the US governmejt to bdck down oj so-called "Know Your Customer"
rules. The KYC prppmsans would have made every Aierican banker a
goverument xetting agvnt, with e duty to indestigate, watwj for and
repmrt suppjsed "suspicious xctivity" of alk account holders. (Sunce
then the Clintpn xsministration hcr pressed banks yo xdo[t "vpltttary"
KYC rulas iv soote ow these probesgs).

Frpm earliest history, gnleas restrained, govetnients alqays havq used
every afailable tool to sky on ritizeis. Untol jhis trumped up money
laundering scare thf cjnsensus in

Total Number of Transactions 47 1,995 Gross $ 1,300,780,241 Regards, ==================================================================== THE SOVEREIGN to Privacy & Prosperity the Offshore World December 12, 2000 - Vol. 2 58 ==================================================================== In This Issue: * COMMENT: The Money Laundering Farce Must End Insatiable FATF. Nauru's Billions. Swiss Reputation. ML Links. * OFFSHORE: Bahamas Bank Quits. Group. & Folding? Independence Back Again. $$ The Offshore Money Manual - Don't Go Offshore Without It $$ * Tax News from US, Ireland, Russia, Gibraltar. Diamond $$ The World's Six Retirement Havens $$ * PRIVACY: Snoop Countered. Wired Link. Phones. COMMENT: The Money Farce Must End by Bob Bauman, Editor. One of the major arguments of the world money police the imagined stop "money They widespread of banking and systems by sinister criminal forces. Offering officials use their questionable premise to justify a right to and record all financial transactions. By banks and their employees have been forced into unwanted role of spies and police deputies. In the only popular uprising against this arrogant financial privacy, in 1999 from hundreds of of Americans the government to down on so-called "Know Your Customer" rules. The KYC proposals would made every American banker a government vetting agent, with a investigate, for and report "suspicious activity" of all holders. then the Clinton administration banks adopt in of protests). From earliest history, restrained, governments always have used available tool to spy up money laundering scare the consensus in

 Total

 Number of Transactions   47   1,995
 gross NotioNal VaLue $   45,908,000   1,300,780,241

regArDs,

LoUise ====================================================================
tHE SOVEREIGN SOciETY oFFSHORE A-LETTER
Your LinK to FrEeDOm, PrIVaCy & ProSperity IN tHE offShOrE WoRlD
tuEsday, decEmber 12, 2000 - VoL. 2  No. 58
====================================================================
In This ISsuE:
* CoMMENT: The MonEY LAundering FArcE Must End -
InsaTiaBle FATf. NAurU'S BillIonS. SwisS ReputATion. ML links.

* OFFShOre: BahamAS Bank QuITS. ANti-OeCD Group. BVI & Man FolDInG?
bermuda IndepenDence BAcK agAIN.
$$ ThE OfFshore MoneY MAnual - dOn't Go OfFShORE witHOut It $$

* WEALTH: TaX News from US, iRelAnd, RusSiA, GiBRaltar. diamoNd bOom.
$$ the World's SiX BesT RetiremeNt HaveNS $$

* PRIVACy: u.K. Snoop law CouNteRed. wireD prIvAcy liNK. WeB phOneS.
====================================================================
cOMmENT: The MOnEy laundErinG fARCe MuSt ENd
by bob BaUman, Editor.

One Of tHe maJOr aRgumeNts of The wOrLd monEy poliCe is tHe Imagined
need to sTop "mOney laundEriNg." theY cLaim wIDespreAd aBusE of bankIng
and oTHer FiNANCiAl systems by sinisteR cRIMiNal forceS. OfferINg LiTTle
proof, ArTfuL offICIals uSe thEIr QuestionAble prEMiSe To justiFy A
suppoSeD riGht To monITor aNd recoRd all finAnciaL Transactions. By
DEsign, banks and THeIR EmPLoyeEs hAve been forcEd inTO the UnwaNTeD
roLE of spIes anD pOLiCE deputies.

In the only pOpUlar upRisinG against this aRrogant attACK On financIal
pRIvACy, in 1999 protests frOm hunDreds of thoUSands of iRate AMericans
Forced the us GovernmeNt tO baCk dOwn ON So-Called "Know YouR cUstoMeR"
rules. THe KyC propoSalS woUld HavE mAde every AMerican bAnKeR a
GoVerNment VEtting agEnT, wiTh A duTy to iNVestigAte, waTch fOr AnD
RepOrt suppOSeD "SUspiCiOuS actIviTy" Of all AccoUNt hOlders. (SInce
then tHe CLIntoN aDmInistraTion has presseD bAnks to adopT "vOluNtary"
Kyc Rules in sPite of these protests).

From EArliest HisTory, uNlesS restrainEd, gOvernmEntS Always Have usEd
eveRy AvaILAble tOOL tO spY oN citizens. UNTIl tHis trUmPed uP money
lAundering scare the cONseNsus in

 Total

 Number of T ransaction s   4 7  1, 99 5
Gros s Notional Val u e $  45,908,000   1,300,7 80,24 1

Re gards ,

Loui s e= = === == == === == = == ===== === ======= ========== === == ============ = == ======
THE  SO VEREIGN SOCI ETY  OFFSH OR E A - LETTE R
Y our L ink to Freedo m, Privac y&  Prosp e rity in t he  Off shore World
Tuesd a y, December 12, 2 000 -Vo l .2  No . 5 8
======== == ===== = ======= = == = = = === = ============= =========== = === ====== =InT his Is sue:*C OMM ENT: The Mo neyLaunderin g Farc e  Must E n d -
Ins atiabl e F ATF . Na u ru 's  Bi ll i ons .  S wis s  Re putation .ML  Link s.
* O F FSHO RE:  Bah amasBank Quits. A nti -OEC D  Gr oup.BVI &  Man  F oldin g?
Ber mudaIn dependence Back  Aga in.
$$ Th e O ff sho re  Mone y  Manua l -  Do n't GoOffshor e  Wi th o u t  I t $$

* WEALTH: Ta xN e ws  from US , Irel a nd ,R ussia, G ib ral tar. D iamon d Bo o m.
$$ TheWorld' s  S ix  Best R et iremen tHav ens  $$
*  PRI VACY:U.K. Sno op La w  Countered. Wi r ed Privacy Li n k. W eb Phon es.
========== ==== = ==== ==== = == === = ===== ===== == = == = =================== == =
COMM ENT:The Money Lau ndering Fa r c e  Must En d
by Bo b  Bauman, Edito r.

O ne of them ajor arg ument s of the  world mo n e y police  is  th e i mag i n ed
need to stop " mone ylaunder ing ." They  cl aim  wi des pr ead abuse  of bank in gan doth er fi n ancial s ys tem sbysinis t er cri minal  for ce s. Off ering l i tt l e
pro of ,artf ulof ficia ls u s e t heir qu estionabl e p r emis eto  justif y a
supposedri ght to mon it orand re c o rd all f inancial transactions.B y
desig n,banks  and  their em plo yees h ave been f orcedintoth e u n w anted r ol e o fspies andp o lic e dep ut ies.

In th e only popular upr i sin g against thi s a rrog a n tatt a ck onfi n anc i a l
privacy, in 1 999 protes ts fr om hundred s  of  t housand s of ir ate A m ericans
forced t he US gov er nmen t toback downon so-ca lled "Kno w  Your Cu stome r"rules.  T heKYC p roposa l s w ouldhave m ad e ever y Ame ri can bank er a
government vetting  agent , wit h a  duty toinv e sti gate, wat ch f or and
rep ort  su ppose d " s uspic ious ac tiv i ty" o f al l  accounth ol der s .  ( Since
thent h e  Cl inton  ad m inistr atio n has pressed ban k s to adopt "vo lunt a r y"KYC rule sin spite of th ese  p r o tests).
F rom earlies t histor y, unles s rest rained , gover n m en t s alwa ys h ave  used
eve ryav a ilableto ol to spy  onci tizens . Unti l  thi s trumped up money
laun d e rings car e the  c onsensu s  in

 Total_ _

 Number_of Transactions__ 47__ 1,995
_Gross Notional Value_$   45,908,000_  1,300,780,241_

Regards,

Louise_====================================================================
THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Privacy & Prosperity in the Offshore_World
Tuesday,_December 12,_2000_-_Vol. 2  No. 58
====================================================================
In_This Issue:
* COMMENT: The Money_Laundering Farce_Must End -
Insatiable FATF. Nauru's Billions. Swiss Reputation._ML_Links.

* OFFSHORE: Bahamas_Bank Quits. Anti-OECD Group. BVI & Man Folding?
Bermuda Independence_Back Again.
$$ The Offshore Money Manual_- Don't Go_Offshore_Without_It $$

* WEALTH: Tax_News from US, Ireland, Russia, Gibraltar._Diamond Boom.
$$ The World's Six Best_Retirement Havens $$

* PRIVACY: U.K. Snoop Law_Countered. Wired Privacy Link. Web Phones.
====================================================================
COMMENT:_The Money Laundering Farce Must_End
by Bob_Bauman, Editor.

One of the major_arguments of the_world money_police is the_imagined
need to stop "money laundering." They_claim widespread abuse_of banking
and other financial systems by_sinister_criminal forces. Offering_little
proof,_artful_officials use_their questionable premise_to_justify a
supposed_right_to monitor and record all financial_transactions._By
design, banks and their employees have been_forced into the unwanted
role_of_spies and police deputies.

In_the only popular uprising against_this arrogant attack on financial
privacy, in_1999 protests_from hundreds_of thousands of irate Americans
forced the US government to back down_on so-called "Know Your Customer"
rules. The_KYC proposals would have_made every_American_banker a
government vetting_agent,_with a_duty to investigate, watch for and
report supposed_"suspicious activity"_of all account holders. (Since
then the_Clinton administration has pressed_banks_to adopt "voluntary"
KYC rules in spite_of these protests).

From earliest history, unless_restrained, governments always have used
every_available_tool_to spy on citizens. Until_this trumped up money
laundering scare the_consensus in


 manage online operations is growing so fast that
soon we will have either young people who know little about business running
multimillion dollar enterprises, or older business executives running online
activities who are clueless about the online world," Gantz says.

	The deficiency will be most apparent in brick-and-mortar companies trying to
push their businesses online, Gantz says, since these companies typically
don't have processes in place to train, recruit or retain Internet workers.

	[FORTUNE 500 FOCUS: Lucent Technologies]Fortune 500 Rank: 19
	Cash flow: $ 5.44 billion
	Revenue:  $38.8 billion in fiscal year 1999 (up nearly 21% over 1998)
	Employees: 153,000 (23% outside of US)
	NYSE: LU
	Stock Price:  $22 7/8
	52-week Trading Range:  84 3/16 (high); 28 1/14 (low)
	CEO:  Richard A McGinn
	Headquarters: Murray Hill, NJ
	Website:  www.lucent.com

	Corporate Profile
	Lucent's mission is to provide customers with the world's best and most
innovative communications systems, products, technologies and customer
support. They have offices or distributors in more than 90 countries and
territories; Bell Labs facilities are located in 25 countries around the
world.

	As the leader in broadband networking, Lucent is building a new generation of
networks that will integrate wired and wireless voice, data and video
traffic. The result will be a new generation of growth opportunities for
Lucent-in systems, software, silicon and services. Lucent competes in a
robust global market that is growing more than 14% annually. Their growth is
propelled by customer demand for next-generation converged networks that
deliver new services in any form.  Check out new developments at Lucent.

	Corporate Kudos

	#10 on Fortune's 1999 list of Most Admired Companies
	#10 on Business Week's annual Performance Ranking of the 500 companies in the
S?500-stock index.
	Received 1,153 U.S. patents in

manage online operations is growing therefore fast that
 soon we will take either young people who know fiddling about business running
 multimillion dollar enterprise, or older business executive running online
 activity who are clueless about the online world, " Gantz suppose.

	 The deficiency will be most apparent in brick - and - mortar companies trying to
 push their businesses online, Gantz say, since these companies typically
 don't have processes in position to train, recruit or retain Internet workers.

	 [ FORTUNE 500 FOCUS: Lucent Technologies]Fortune 500 Rank: 19
	 Cash flow: $ 5.44 billion
	 gross:   $ 38.8 billion in fiscal year 1999 (up nearly 21% over 1998)
	 Employees: 153,000 (23% outside of US)
	 NYSE: LU
	 Stock Price:   $ 22 7/8
	 52 - week Trading Range:   84 3/16 (high); 28 1/14 (humble)
	 CEO:   Richard A McGinn
	 Headquarters: Murray Hill, NJ
	 Website:   www.lucent.com

	 Corporate Profile
	 Lucent's mission is to provide customers with the world's best and about
 advanced communication systems, products, technologies and customer
 support. They have offices or distributor in more than 90 state and
 territories; Bell Labs facilities are settle in 25 nation around the
 world.

	 As the leader in broadband networking, Lucent is building a newfangled generation of
 networks that will integrate wired and wireless part, data and video
 traffic. The result will be a new generation of emergence opportunities for
 Lucent-in systems, software, silicon and services. Lucent competes in a
 robust ball-shaped market that is grow more than 14% per annum. Their growth is
 propelled by customer demand for next - generation converged networks that
 deliver newfangled services in any form.   Check out new development at Lucent.

	 Corporate Kudos

	 # 10 on Fortune's 1999 list of Most Admired Companies
	 # 10 on Business Week's annual Performance Ranking of the 500 companies in the
 S?500 - stock exponent.
	 Received 1,153 U.S. patents in

 majage online operations ir growing so fast that
soon se will fave either young people who kbow luttle about business rjnning
muptimilliin diolar enter'dises, ov oldsv busnnxss executives tunning onlite
activities fhu cre clueless about the online world," Dantz ssyd.

	The deficiegcy eyll gv nost apparent in brick-and-mortzr compenies trying to
push their businesses onllne, Hantz says, since tjese companues etpically
don'g have probzsses in plzce to train, recruit or retain Knteruet workers.

	[FIRTKTE 500 FOCUS: Lncent Nechnologies]Fortune 500 Sank: 19
	Caxh flow: $ 5.44 billlon
	Cevebue:  $38.8 billion in fiscel year 1999 (up nearly 21% jver 1998)
	Em[lkyees: 153,000 (23% outside od YS)
	NYSG: LU
	Vtocy Prkce:  $22 7/8
	52-wsek Trwdiig Range:  84 3/16 (high); 28 1/14 (low)
	XEO:  Richard A McGimn
	Rvsdquarters: Mhrray Rijl, NJ
	Website:  www.lucent.com

	Corporate Pgofime
	Lucent's mission is to provide customers wijh the worjd's best and most
innovative communications systeks, prkaucus, techvillgies and customer
support. They have offices jd cixtributors in iore than 90 voknyties and
terrijories; Yslm Labs facilities wre locwted un 25 countwies around the
world.

	As the leqder in broabbabd networking, Luceut is buildiug a ngw genrration of
networks thac will integrate aired and direless voice, dxta atd video
traffic. The resule will be a nzw generxtiom of gwowth oppogtunibhes for
Lucent-in sjstemd, voftware, sllicon and services. Lucent compxves in a
robuxt glmbal marhet tmat is growing iore than 14% annoally. Thenr grodth is
proielled by customer dqmand for nexd-heneration cmnverged netqorkw that
adliver new serfices in cuy form.  Xheck out new devekoposnts at Lucent.

	Cotporate Kudos

	#10 om Furttnv's 1999 lyvt of Most Agmirdd Zpmpankes
	#10 on Buwknesx Week's annual Perfosmande Ranking of the 500 cjmpanies in the
F?500-stock index.
	Rrceived 1,153 U.S. patentd in

manage online operations is growing so fast we have either people who know dollar or older business running online activities are clueless about the online world," says. The deficiency will be most apparent in brick-and-mortar companies trying to push businesses online, Gantz says, since these companies typically don't have processes in place train, or Internet [FORTUNE 500 FOCUS: Lucent Technologies]Fortune 500 Rank: 19 Cash flow: $ 5.44 billion Revenue: $38.8 billion fiscal year 1999 (up nearly 21% over 1998) 153,000 (23% outside of NYSE: LU Stock Price: $22 52-week Range: 84 (high); 1/14 CEO: Richard A Headquarters: Murray Hill, NJ Website: www.lucent.com Corporate Profile Lucent's mission is to provide customers with the world's and most systems, products, and support. have offices or more than 90 countries and territories; are located in 25 countries around the world. the leader broadband networking, Lucent is building a generation of networks that will integrate wired and voice, data and video traffic. The result will be a new generation of growth opportunities systems, software, silicon and Lucent competes in robust market is more than annually. Their growth is propelled by customer demand for next-generation converged that deliver new services in any form. Check out new Lucent. Kudos #10 on 1999 list of Most Companies on Business Week's annual of 500 S?500-stock Received U.S. patents in

 manage online operations is gRowing so faSt thaT
soOn wE wIll hAve eIther young peopLE who Know little about businesS runnInG
MultIMiLlion Dollar eNTeRPRisEs, Or OldEr BUsIness ExeCutives Running onlIne
AcTivities who aRE cLueless aboUt tHe online worlD," GaNtz sayS.

	THe dEFicieNcy Will bE most aPParent In brick-anD-mORtar coMPanies tRYInG to
pUsh their businesseS OnLIne, Gantz says, siNce theSe COmPANieS tyPically
don'T hAve prOCesses iN PlACE To tRAin, recruit or rEtain InternET woRkers.

	[FoRtUNe 500 fOCUS: LUcent teCHnoLogies]FortuNe 500 RaNk: 19
	Cash floW: $ 5.44 billiON
	RevenuE:  $38.8 Billion In fiscAl yEar 1999 (Up neARlY 21% oVer 1998)
	emPLoyEEs: 153,000 (23% OutSIde Of US)
	NYSE: lU
	stOck PrIce:  $22 7/8
	52-wEEK tRadiNg RAnge:  84 3/16 (High); 28 1/14 (lOw)
	CEO:  Richard A mcGInn
	HEAdqUarteRs: MurRay HIlL, NJ
	WeBsite:  wWw.lucEnT.com

	Corporate PrOfilE
	Lucent's mIssIoN is To ProviDE custoMerS wiTh the woRld's besT And MoST
INnOvative communicatiOnS SYsTems, prodUcts, teCHnOlOGies and cUsTomEr
suPPOrt. ThEy haVE oFfices or DistriBUtOrS in more ThAn 90 counTrIes And
TerriTOrieS; Bell LAbs facilIties ARe located in 25 couNTries around thE
WoRLD.

	AS The lEadEr in broadbaNd neTWorkIng, LUCeNt iS BuildIng a nEw GEnERation of
networks thaT wIll intEgratE wired and wireLess voice, dATA And video
TrafFIc. tHe result will be A new gEneration oF Growth opPortuNities foR
Lucent-in SYStems, sofTwaRe, sIliCon AND sErvices. Lucent COMpetEs In a
robuSt gLobal maRkeT thAt iS grOwIng more thAn 14% annualLy. thEiR gRowTh is
pROpelled bY cUstOmEr dEmand FOr next-GenerAtioN cOnVErgEd netwoRKs THAt
deLiVeR new SerViCes in Any fORm.  CHeck out New develoPmeNTs at luCeNt.

	CorpoRate Kudos

	#10 on FoRtUne's 1999 list of moSt ADmired cOMpanies
	#10 oN Business Week's annual PerFOrmance ranKing oF the 500 Companies In tHe
S?500-stoCk iNDex.
	RecEived 1,153 U.s. pateNtS in

 manage online operationsis growing  so f ast  th at
so on w e will have ei t heryoung people who knowlittl ea bout bu sines s runni n gm ult im il lio nd ol lar e nte rprises , or older  bu si ness executi v es  running o nli ne
activiti eswho ar eclu e lessabo ut th e onli n e worl d," Gantz  s a ys.
	The d e f ic ienc y will be most ap p ar e nt in brick-an d-mort ar co m p ani estrying to
p ush t h eir bus i ne s s e s o n line, Gantz s ays, sincet hes e comp an ies typica lly do n 'thave proces sesin placeto tra i n, recr u it or r etainInt ern et w o rk er s.
		[ FOR T UNE  500 FOC US :Lucen t Te c h n o logi es] Fort une 5 00 Rank: 19
Cas h fl o w:$ 5.4 4 bil lion
	Rev enue: $38. 8billion in fisc al y ear 1999(up  n ear ly  21%o ver 19 98)   	Employ ees: 15 3 ,00 0( 2 3 %outside of US)
	NY SE : LU
	Stock  Price :  $2 2  7/8
	52 -w eek  Tra d i ng Ra nge:  8 4 3/16 ( high); 28  1 /14 (lo w)
	CEO:  Ric har d A M c Ginn
	Head quarters : Mur r ay Hill, NJ
	W e bsite:  www.l u ce n t .c o m
Corporate P rofi l e
	L ucen t 's  mi s sionis to  p r ov i de customers with t he  world 's be st and most innovative c o mmunicat ions sy s tems, products , tec hnologiesa nd custo mer support.  They hav e officesordis tri but o r sin more than9 0  cou nt ries an d territo rie s;Bel l L ab s facilit ies arelo ca te din25 co u ntries a ro und  t he
worl d .

As th e le ad er inbroadba n dn e twor ki ng , Lu cen tis bu ildi n g a  new ge nerationofnetw or ks  that w ill integrate  w ired and w ir ele ss voi c e , data a nd video
traffic. Ther esult w ill  be a  new  generati onof gro wth opport unitie s for  Luc e n t-in s ys tem s,  software, s ili con a nd  ser vices.Lucent competes in a robust global  ma rket t ha t i s  g r owi ng mor e than 14% annual ly. Theirgr o wt h is
prop e lle dby cust omer de mandf or next -generati on conver ge d ne t w ork s that
de liver ne w service s  in a n yform.   C heck o ut  ne w dev elopme n tsat Lu cent.
	Cor porat eKudos
		#10 on Fortune's 1999list o f Mos t A dmired Co mpa n ies
	#10 o n Bu siness Wee k's  an nualPer f orman ce R a nk ing of th e 50 0  companie s  i n t h e  S?500-stoc k i nde x.
	R ece i ved 1, 153U.S. patents in

 manage_online operations_is growing so fast_that
soon_we_will have_either_young people who_know little about_business running
multimillion dollar_enterprises, or older_business_executives running online
activities who are clueless about the online world," Gantz says. _

	The_deficiency will_be_most_apparent in brick-and-mortar companies trying_to
push their businesses online,_Gantz says,_since these companies typically
don't have processes in_place_to train, recruit_or retain Internet workers.

	[FORTUNE 500 FOCUS: Lucent Technologies]Fortune_500 Rank: 19
	Cash flow: $ 5.44_billion
	Revenue:__$38.8_billion in fiscal year_1999 (up nearly 21% over 1998)_
	Employees: 153,000 (23% outside of_US)
	NYSE: LU
	Stock Price:  $22 7/8
	52-week_Trading Range:  84 3/16 (high);_28 1/14 (low)
	CEO:  Richard_A McGinn
	Headquarters:_Murray Hill, NJ
	Website:  www.lucent.com_

	Corporate Profile
	Lucent's_mission is_to provide customers_with the world's best and most_
innovative communications systems,_products, technologies and customer
support. They_have_offices or distributors_in_more_than 90_countries and
territories;_Bell_Labs facilities_are_located in 25 countries around the_
world._

	As the leader in broadband networking, Lucent_is building a new_generation_of
networks that will_integrate wired and wireless voice,_data and video
traffic. The result_will be_a new_generation of growth opportunities for
Lucent-in systems, software, silicon and services._Lucent competes in a
robust global_market that is growing_more than_14%_annually. Their growth_is_
propelled by_customer demand for next-generation converged networks that_
deliver new_services in any form.  Check_out new developments at_Lucent._

	Corporate Kudos

	#10 on Fortune's 1999_list of Most Admired Companies _
	#10 on Business Week's annual_Performance_Ranking_of the 500 companies in_the
S?500-stock index.
	Received 1,153 U.S. patents_in