----- Forwarded by Jeff Dasovich/NA/Enron on 04/05/2001 12:17 PM -----

	Susan J Mara
	04/05/2001 11:43 AM
		 
		 To: Alan Comnes/PDX/ECT@ECT, Angela Schwarz/HOU/EES@EES, Beverly 
Aden/HOU/EES@EES, Bill Votaw/HOU/EES@EES, Brenda Barreda/HOU/EES@EES, Carol 
Moffett/HOU/EES@EES, Cathy Corbin/HOU/EES@EES, Chris H Foster/HOU/ECT@ECT, 
Christina Liscano/HOU/EES@EES, Christopher F Calger/PDX/ECT@ECT, Craig H 
Sutter/HOU/EES@EES, Dan Leff/HOU/EES@EES, Debora Whitehead/HOU/EES@EES, 
Dennis Benevides/HOU/EES@EES, Don Black/HOU/EES@EES, Douglas 
Huth/HOU/EES@EES, Edward Sacks/Corp/Enron@ENRON, Eric Melvin/HOU/EES@EES, 
Erika Dupre/HOU/EES@EES, Evan Hughes/HOU/EES@EES, Fran Deltoro/HOU/EES@EES, 
Gayle W Muench/HOU/EES@EES, Ginger Dernehl/NA/Enron@ENRON, Gordon 
Savage/HOU/EES@EES, Harold G Buchanan/HOU/EES@EES, Harry 
Kingerski/NA/Enron@ENRON, Iris Waser/HOU/EES@EES, James D 
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Region/The Bentley Company@Exchange, Jeff Messina/HOU/EES@EES, Jeremy 
Blachman/HOU/EES@EES, Jess Hewitt/HOU/EES@EES, Joe Hartsoe/Corp/Enron@ENRON, 
Karen Denne/Corp/Enron@ENRON, Kathy Bass/HOU/EES@EES, Kathy 
Dodgen/HOU/EES@EES, Ken Gustafson/HOU/EES@EES, Kevin Hughes/HOU/EES@EES, 
Leasa Lopez/HOU/EES@EES, Leticia Botello/HOU/EES@EES, Mark S 
Muller/HOU/EES@EES, Marsha Suggs/HOU/EES@EES, Marty Sunde/HOU/EES@EES, 
Meredith M Eggleston/HOU/EES@EES, Michael Etringer/HOU/ECT@ECT, Michael 
Mann/HOU/EES@EES, Michelle D Cisneros/HOU/ECT@ECT, mpalmer@enron.com, Neil 
Bresnan/HOU/EES@EES, Neil Hong/HOU/EES@EES, Paul Kaufman/PDX/ECT@ECT, Richard 
L Zdunkewicz/HOU/EES@EES, Richard Leibert/HOU/EES@EES, Richard 
Shapiro/NA/Enron@ENRON, Rita Hennessy/NA/Enron@ENRON, Robert 
Badeer/HOU/ECT@ECT, Rosalinda Tijerina/HOU/EES@EES, Sandra 
McCubbin/NA/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Scott 
Gahn/HOU/EES@EES, Scott Stoness/HOU/EES@EES, Sharon Dick/HOU/EES@EES, 
skean@enron.com, Susan J Mara/NA/Enron@ENRON, Tanya Leslie/HOU/EES@EES, Tasha 
Lair/HOU/EES@EES, Ted Murphy/HOU/ECT@ECT, Terri Greenlee/NA/Enron@ENRON, Tim 
Belden/HOU/ECT@ECT, Tony Spruiell/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, 
Vladimir Gorny/HOU/ECT@ECT, Wanda Curry/HOU/EES@EES, William S 
Bradford/HOU/ECT@ECT, Jubran Whalan/HOU/EES@EES, triley@enron.com, Richard B 
Sanders/HOU/ECT@ECT, Robert C Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, 
dwatkiss@bracepatt.com, rcarroll@bracepatt.com, Donna 
Fulton/Corp/Enron@ENRON, gfergus@brobeck.com, Bruno Gaillard/EU/Enron@Enron, 
Linda Robertson/NA/Enron@ENRON, Ren, Lazure/Western Region/The Bentley 
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Ngo/PDX/ECT@ECT, Ray Alvarez/NA/Enron@ENRON, Steve C Hall/PDX/ECT@ECT, David 
Leboe/HOU/ECT@ECT, Jay Zoellner/Western Region/The Bentley Company@Exchange, 
Fatimata Liamidi/HOU/EES@EES, Sonia Perez/HOU/EES@EES
		 cc: 
		 Subject: Davis makes statement in support of DA -- Understands State is 
Short of Power

Gov. Davis open to tax on electric generators' profits 

Updated: April 4, 2001 - 5:52 p.m. 

Gov. Gray Davis says he is open to supporting a windfall-profits tax being
proposed by lawmakers on electric generators that have made a fortune
selling power to California this year. 

He also broke with his appointees on the Public Utilities Commission in
saying private companies and other large users should be allowed to contract
directly for power with generators. 

. . . . 

For the first time, Davis also said the state should let companies buy their
power from generators instead of going through the utilities. 

A January law that allowed the state to begin buying power for two nearly
bankrupt utilities barred such side contracts. 

"That was done originally with the thought the state would have more power
and no one to sell it to if companies got off the grid," Davis said. "But
our problem is the opposite this summer. If companies want to get off the
grid, we should encourage, not discourage that." 

The Democratic governor's comments came after he met behind closed doors for
more than two hours with Assembly Republicans, who have sharply criticized
his handling of the energy crisis. 

"I think everyone agreed there are no political winners unless we resolve
this challenge," Davis said. "There were a lot of suggestions in there I'm
willing to adopt." 

. . . . 

Davis said he hasn't written the remarks he will make during a five-minute
address at 6:05 p.m. Thursday that he has asked California television
stations to carry live. 

However, he said he will "share with them (viewers) the progress that we've
made and what we have to get through." 

He is expected to talk about the more than 40 percent rate increases
approved last week by the PUC for customers of Pacific Gas and Electric Co.
and Southern California Edition Co. 

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854