----- Forwarded by Jeff Dasovich/NA/Enron on 01/26/2001 07:35 PM -----

	"Julee Malinowski-Ball" <jmball@ns.net>
	01/26/2001 07:30 PM
	Please respond to "Julee Malinowski-Ball"
		 
		 To: "Jan Smutny Jones" <smutny@iepa.com>, "Steven Kelley" <steven@iepa.com>, 
"Katie Kaplan" <kaplan@iepa.com>
		 cc: "William Hall" <wfhall2@duke-energy.com>, "Tony Wetzel" 
<twetzel@thermoecotek.com>, "Sue Mara" <smara@enron.com>, "Steven Kelley" 
<steven@iepa.com>, "Steve Ponder" <steve_ponder@fpl.com>, "Stephanie Newell" 
<stephanie-newell@reliantenergy.com>, "Roger Pelote" 
<roger.pelote@williams.com>, "Robert Lamkin" <rllamkin@seiworldwide.com>, 
"Richard Hyde" <rwhyde@duke-energy.com>, "Paula Soos" 
<paula_soos@ogden-energy.com>, "Nam Nguyen" <nam.nguyen@powersrc.com>, "Marty 
McFadden" <marty_mcfadden@ogden-energy.com>, "Lynn Lednicky" 
<lale@dynegy.com>, "kent Palmerton" <kent.palmerton@williams.com>, "Ken 
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<kgough@calpine.com>, "Jonathan Weisgall" <jweisgall@aol.com>, "John Stout" 
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<chudson@iepa.com>
		 Subject: Legislative Status Report Week Ending 1/26


Date: 1/26/01
To: Jan Smutny-Jones, Steven Kelly, Katie Kaplan
From: Julee Malinowski-Ball, Edson + Modisette
RE: Legislative Status Report Week Ending 1/26


RECENT EVENTS:

-- AB 1x (Keeley), which would authorize DWR to procure power for California
utilities and consumers, passed out of the Senate Energy Committee this
week.  The language which stated that any entity supplying power to DWR
would be considered a public utility was deleted from the bill.  After the
bibding information came in from the DWR RFP, the 5.5 cent cap was also
deleted from the bill.  In its place was inserted language stating the goal
of DWR was to procure power at the lowest price possible per kWh.  The
author and committee chair agreed this bill would not address any broader
issues associated with undercollections and stranded costs.  The measure was
heard in the Senate Appropriations today, but will not be voted on until
Monday when the committee meets again at 10 am.  The amended version is
still not in print.

-- AB 18x (Hertzberg) was introduced this week that would take the issues
addressed in AB 1x further.  This measure would also authorize DWR to enter
into contracts for the purchase or sale of electricity for California
utilities and consumers.  Additionally, however, the measure addresses
undercollections and going-forward costs.  Much of the debate in today,s
Assembly Energy Cost and Availability Committee was focused on whether or
not the utility has reasonable costs that should be recovered.  The
committee agreed after a lengthy debate that this bill may want to sent up a
mechanism for answering this question.   The most shocking statement made
during the debate was when PG&E estimated their &net8 undercollections was
$8.2 billion.

IEP member company generators have drafted comments and amendments on AB 18x
and have submitted them to the committee for consideration.  The crux of
these comments is the concern that the bill explicitly excludes amounts owed
by SCE and PG&E to suppliers.  Committee staff assures us they intend to
address that issue in future amendments.  I will have these comments
available electronically for your information on Monday.

-- In question still at this time is whether AB 18x or AB 1x would be the
vehicle for the product of negotiations between the QFs and the utilities;
or, if another bill all together would carry the water.

-- Asm. Rod Wright has been holding nightly forums with energy stakeholders,
primarily generators, marketers and the utilities, as a general data dump to
keep these groups abreast of what the ECA committee and legislative
leadership is doing and planning on doing.  Edson + Modisette has been
participating in these meetings as has many of the IEP members companies and
their lobbyists.

-- Asm. Wright,s office is continuing to collect siting proposals.  They
have indicated that they intend to keep repower, peakers and new generation
issues separate, in separate bills.  Their immediate interest at this time
is on proposals that benefit repowers.  There is no indication what the
timeframe is on any bill, but proposals should get into his office as soon
as possible.  IEP members that have proposals separate from the IEP package
should also provide IEP a copy.

-- Attached is the most recent tracking report which includes all the
special session bills introduced to date.

UPCOMING EVENTS:

-- The Assembly ECA committee will continue debate on AB 18x on Monday and
Tuesday, hopefully concluding on Wednesday for a vote on the final package.
Time, TBA.

-- The Senate Appropriations Committee will meet and vote on AB 1x on Monday
at 10 am.

--end--

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



 - 2001 Tracking Report.doc