I know we are addressing this on the state side.  I was wondering is there 
also a FERC angle we should prepare?  Sue and Joe: don't you think we should 
submit an RCR to have Ron do some research on the surrounding issues?  Here 
are a few that came to mind.
(1) What jurisdiction does FERC have over a state-owned transmission system 
(especially in light of Order No. 2000 and the governance of the Cal ISO on 
file at FERC)?
(2) Is there anything FERC can do to stop the conveyance (e.g., since the 
utilities would have to file a Section 203 filing for approval to convey the 
assets, what basis would be available to argue that conveyance was not in the 
public interest.)  Should Joe explore with Hebert the Commission's 
willingness to fight with the State about this?
(3) If the State had the utilities operate the transmission system, subject 
to the State's control, would that comply with Order No. 2000?  




Susan J Mara@ENRON
02/20/2001 01:32 PM
To: rcarroll@bracepatt.com, Joe Hartsoe/Corp/Enron@ENRON, Sarah 
Novosel/Corp/Enron@ENRON, Donna Fulton/Corp/Enron@ENRON, Mary Hain/HOU/ECT@ECT
cc:  
Subject: SBX 33 - Update

Comments on the floor in passing SBX 33, which allows the state to buy the 
IOUs transmission system.  CHeck out Peace's attack on FERC

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 02/20/2001 01:30 PM -----

	Scott Govenar <sgovenar@govadv.com>
	02/20/2001 08:43 AM
		 
		 To: Hedy Govenar <hgovenar@govadv.com>, Mike Day <MDay@GMSSR.com>, Bev 
Hansen <bhansen@lhom.com>, Jeff Dasovich <jdasovic@enron.com>, Susan J Mara 
<smara@enron.com>, Joseph Alamo <JAlamo@enron.com>, Paul Kaufman 
<paul.kaufman@enron.com>, Michael McDonald <Michael.McDonald@enron.com>, 
David Parquet <David.Parquet@enron.com>, Rick Johnson 
<rick.johnson@enron.com>, Marcie Milner <mmilner@enron.com>, Sandra McCubbin 
<Sandra.McCubbin@enron.com>, Tim Belden <Tim.Belden@enron.com>, Rick Shapiro 
<rshapiro@enron.com>, Jim Steffes <james.d.steffes@enron.com>, Alan Comnes 
<acomnes@enron.com>, Chris Calger <ccalger@enron.com>, Mary Hain 
<mary.hain@enron.com>, Joe Hartsoe <Joe.Hartsoe@enron.com>, Donna Fulton 
<Donna.Fulton@enron.com>, Steven Kean <Steven.J.Kean@enron.com>, Karen Denne 
<kdenne@enron.com>, Beverly Aden <beverly.aden@enron.com>, Bill Votaw 
<bill.votaw@enron.com>, Carol Moffett <carol.moffett@enron.com>, Debora 
Whitehead <debora.whitehead@enron.com>, Dennis Benevides 
<dennis.benevides@enron.com>, Don Black <don.black@enron.com>, Dorothy 
Youngblood <dorothy.youngblood@enron.com>, "dblack@enron.com" 
<dblack@enron.com>, "emelvin@enron.com" <emelvin@enron.com>, 
"ehughes2@enron.com" <ehughes2@enron.com>, "gweiss@enron.com" 
<gweiss@enron.com>, "gsavage@enron.com" <gsavage@enron.com>, 
"Harry.Kingerski@enron.com" <Harry.Kingerski@enron.com>, "kgustafs@enron.com" 
<kgustafs@enron.com>, Mike D Smith <msmith1@enron.com>, "ryang@enron.com" 
<ryang@enron.com>, "sgahn@enron.com" <sgahn@enron.com>, "vsharp@enron.com" 
<vsharp@enron.com>, "wcurry@enron.com" <wcurry@enron.com>, 
"William.S.Bradford@enron.com" <William.S.Bradford@enron.com>
		 cc: 
		 Subject: SBX 33 - Update

SBX 33 passed off of the Senate floor on a vote of 24-14.  The vote was
along straight party lines.  The following are some of the key comments
made during the debate.  Senators are identified by party affiliation.
The Senate did not take up SBX 6.

Sen. Morrow (R):  This bill is like a partial birth abortion  - we never
gave the market a chance to work right.  It,s the generators who are
getting the raw deal.

Sen. McClintock (R):  Of the all the choices the Administration could
choose to resolve this crisis, they are choosing two of the worst, to
raise rates and to ensure blackouts.  LADWP is the biggest price gouger
of them all so there is no reason to believe a public power authority
will be better.  I would support a public power authority only to build
new generation.

Sen. Kuehl (D) :  The free market works only if we can say &no8 to the
product ) can,t say no to energy.  Acquiring transmission lines gives
the state control over the provision of energy.

Sen. Scott (D) :  Reliant is spending $300 million to name a dome after
itself.  My district has 3 MUD,s who rejected deregulation and the
ratepayers are happy.

Sen. Bowen (D) The only question is how much of a premium we,ll have to
pay for bureaucracy to run the system.  Would you prefer to be gouged by
unbridled market power and name stadiums in faraway places or have
checks and balances?

Sen. Haynes (R):  If we don,t get more power, we,re just rearranging the
deck chairs on the Titanic.  Regulatory burdens prevent companies from
building in CA.  Do we want to use public dollars or private dollars to
build generation.  More government won,t get rid of the shortage while
letting more entrepreneurial money in will create a buyers market.

Sen. Peace (D):  The Houston cartel with their protectors at FERC are in
a wholesale attack on CA ratepayers.  Removing price caps, fixing the
ISO and PX and encouraging more retail competition won,t fix the
wholesale market.  Our constituents are threatened because FERC won,t do
its job.  Those who didn,t play by the rules are responsible for this.
Reliant insists that CA indemnify them from lawsuits ) these people know
they were charging illegal rates and they would lose lawsuits.  These
bills are the only choice the kidnapers have given us.  Vote for it or
raise the lone star flag over the Capitol.

Sen Alarcon (D):  When I was on the L.A. City Council some of these same
private companies wanted to buy LADWP.  Their goal is to eliminate all
public power.

Sen Burton (D):  If we have our own peaker power then Reliant and Enron
would gladly sell us the rest of our power needs.  They are robber
barons and we have no sympathy for them