No problem.  Just refresh my memory what your fax number is.

----- Original Message -----
From: <Jeff.Dasovich@enron.com>
To: <Susan.J.Mara@enron.com>; <jmball@ns.net>
Sent: Tuesday, November 21, 2000 8:08 AM
Subject: Re: Peace Press Conference Notes



Julee:  Thanks very much for the info.  Could you please add me to your
distribution so I can get these up to the minute dispatches?  Thanks a lot.
Also could you forward along the press release materials you mention at the
end of your note?  Thank you very much.

Best,
Jeff



Susan J Mara
To:     James D
Steffes/NA/Enron@Enron, Paul
11/21/2000           Kaufman/PDX/ECT@ECT, Richard
09:46 AM             Shapiro/NA/Enron@Enron, Jeff
Dasovich/NA/Enron@Enron, Mona L
Petrochko/NA/Enron@Enron, Mary
Hain/HOU/ECT@ECT,
Joe Hartsoe/Corp/Enron@ENRON, Sarah
Novosel/Corp/Enron@ENRON, Sandra
McCubbin/NA/Enron@Enron,
rcarroll@bracepatt.com
cc:
Subject:     Peace Press Conference
Notes




This is pretty much an all-out attack against the positions that we and the
generators have taken.
----- Forwarded by Susan J Mara/NA/Enron on 11/21/2000 07:43 AM -----

"Julee
Malinowski-Ba        To:     "William Hall"
<wfhall2@duke-energy.com>,
ll"                  "Trond Aschehoug"
<taschehoug@thermoecotek.com>,
<jmball@ns.ne        "Tony Wetzel"
<twetzel@thermoecotek.com>, "Tandy
t>                   McMannes" <mcmannes@aol.com>, "Sue
Mara"
<smara@enron.com>, "Steven Kelley"
11/20/2000           <steven@iepa.com>, "Steve Ponder"
01:38 PM             <steve_ponder@fpl.com>, "Roger
Pelote"
Please               <roger.pelote@williams.com>,
"Robert Lamkin"
respond to           <rllamkin@seiworldwide.com>, "Paula
Soos"
"Julee               <paula_soos@ogden-energy.com>,
"Marty McFadden"
Malinowski-Ba        <marty_mcfadden@ogden-energy.com>,
"Lynn
ll"                  Lednicky" <lale@dynegy.com>, "Kent
Fickett"
<kfickett@usgen.com>, "Ken Hoffman"
<khoffman@caithnessenergy.com>,
"Jonathan
Weisgall" <jweisgall@aol.com>,
"John Stout"
<john_h_stout@reliantenergy.com>,
"Joe Ronan"
<joer@calpine.com>, "Joe Greco"
<joe.greco@uaecorp.com>, "Jim
Willey"
<elliottsa@earthlink.net>, "Jack
Pigott"
<jackp@calpine.com>,
<iep@iepa.com>, "Hap Boyd"
<rboyd@enron.com>, "Greg Blue"
<gtbl@dynegy.com>,
"Frank DeRosa"
<fderosa@sanfrancisco.usgen.com>,
"Ed Tomeo" <ed.tomeo@uaecorp.com>,
"Duane Nelson"
<dnelsen@msn.com>, "Dean Gosselin"
<dean_gosselin@fpl.com>, "David
Parquet"
<dparque@ect.enron.com>, "David
Keane"
<dnke@dynegy.com>, "Curtis Kebler"

<curtis_l_kebler@reliantenergy.com>, "Carolyn
Baker" <cabaker@duke-energy.com>,
"Bob Escalante"
<rescalante@riobravo-gm.com>, "Bob
Ellery"
<bellery@spi-ind.com>, "Bill Woods"
<billw@calpine.com>, "Bill Carlson"

<william_carlson@wastemanagement.com>, "Stephanie
Newell"
<stephanie-newell@reliantenergy.com>,
"Richard Hyde"
<rwhyde@duke-energy.com>,
"Kassandra Gough"
<kgough@calpine.com>
cc:     "Susan McCabe"
<sfmccabe@mindspring.com>,
"Scott Govenar"
<sgovenar@govadv.com>, "Ron Tom"
<thackbarth@govadv.com>, "Robert
Ross"
<robbiz@cwo.com>, "Phil Isenberg"
<Isenberg@HMOT.com>, "Mike Monagan"
<mrmonagan@aol.com>, "Maureen
OHaren"
<Oharen@HMOT.com>, "Marie Moretti"
<marie_moretti@msn.com>, "Kassandra
Gough"
<kgough@calpine.com>, "Hedy
Govenar"
<hgovenar@acom2.com>, "Delany
Hunter"
<dhunter@smithandkempton.com>, "Bev
Hansen"
<bhansen@lhom.com>, "Anne Kelly"
<kelly@hnks.com>, "Jenn Paulsen"
<paulsen@hmot.com>, "Jamie Parker"
<jparker@hmot.com>
Subject:     Peace Press Conference
Notes




Senator Steve Peace held a press conference today to discuss, as chair of
the Senate Budget Committee, the Senate Budget proposal with contain $2
billion for a special reserve for energy initiatives.

He stated that he is not proposing any uses for this money, that it is
designed to "preserve the options for the Governor" and other policy makers
in dealing with California's energy woes.  However, he proceeded to outline
some possible options, including the state taking over the transmission
system, condemning power plants and the state running them, condemning just
the output of the states power plants, or having the state build power
plants.  Again, he is not proposing these, they are just options for the
Governor.

Other comments of interest:

- Generators are only willing to build power plants if they can get 14
cents
kw/hr.  If that's the case, the state can build them for cheaper.

- He noted that today the CEC will release some data that calls into
questions there is a supply problem.  Independent energy producers have
"fabricated the supply problem."

- Criticized generators for pushing for retail solutions, saying that
"nothing would be more disastrous than opening the retail market before the
wholesale market is controlled."

- "Generators are extorting the law" and "running roughshod over
California'
s environmental law" in a "well-orchestrated political agenda."

- Generators are in a "full-scale attack on the balance sheets" of the
investor-owned utilities.

- He also said that the IOUs have indicated that they would be willing to
get back into the generation business if the state finances it.

- Generators are asking FERC to keep prices artificially high.

- He still insists that rates are outright market manipulation, and that
generators were holding back thousands of megawatts of power this summer.
Cites today's higher prices as an example.

Please contact me or our office if you would like a copy of the press
release or the other supporting materials, including his letter to Lynch
that urges the CPUC to deny the IOUs cost pass-through request, and asks
the
CPUC to order the IOUs "to exhaust their legal remedies to obtain refunds
from all parties who were the beneficiaries of the proceeds of the unlawful
wholesale charges the IOUs incurred."

--end--

Julee Malinowski-Ball
Associate
Edson+Modisette
916-552-7070
Fax- 552-7075
jmball@ns.net