 ,
 Here it is
-----Original Message-----
From: Watson, Ann [mailto:anw@cpuc.ca.gov]
Sent: Tuesday, August 28, 2001 1:22 PM
To: 'smara@enron.com'
Subject: FW: MOTION SEEKING ORDER OR STAY CANCELING OR SUSPENDING CALIFORNIA DEPARTMENT OF WATER RESOURCES LONG-TERM ENERGY CONTRACTS AND ASSOCIATED I OU RATE SCHEDULES FOR LACK OF PROPER NOTICE UNDER THE FPA





Ann Watson 
Advisor to Commissioner Bilas 
California Public Utilities Commission 
(415) 703-1175 
fax: (415) 703-5091 
email: anw@cpuc.ca.gov 


-----Original Message----- 
From: Boyd, Mike [ <mailto:Mike.Boyd@Aspect.com>] 
Sent: Tuesday, August 28, 2001 11:22 AM 
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Subject: MOTION SEEKING ORDER OR STAY CANCELING OR SUSPENDING CALIFORNIA 
DEPARTMENT OF WATER RESOURCES LONG-TERM ENERGY CONTRACTS AND ASSOCIATED 
I OU RATE SCHEDULES FOR LACK OF PROPER NOTICE UNDER THE FPA 




> MOTION SEEKING ORDER OR STAY CANCELING OR SUSPENDING CALIFORNIA DEPARTMENT 
> OF WATER RESOURCES LONG-TERM ENERGY CONTRACTS AND ASSOCIATED IOU RATE 
> SCHEDULES FOR LACK OF PROPER NOTICE UNDER THE FPA 
> 
> Pursuant to Rules 212 of the Rules and Practices and Procedures of the 
> Federal Energy Regulatory Commission ("FERC"), 18 C.F.R. 385.212, 
> CAlifornians for Renewable Energy, Inc. ("CARE"), moves for the 
> Commission's consideration and action to remedy the illegal execution of 
> long-term energy contracts by the California Department of Water Resources 
> ("DWR") in regards to the CARE and other party's complaints in EL00-95 
> et.al. Under section 205(c) of the Federal Power Act (49 Stat. 851; 16 
> U.S.C. 824d(c)) the DWR long-term energy contracts recently disclosed 
> through legal action by the California legislature and press requires that 
> these contracts "shall be tendered for filing with the Commission and 
> posted not less than sixty days nor more than one hundred-twenty days 
> prior to the date on which the electric service is to commence." We 
> contend that DWR has failed to comply with the requirements of the FPA in 
> this matter. The remedy CARE seeks is for the Commission to issue an Order 
> or Stay canceling or suspending such long-term energy contracts and 
> associated IOU rate schedules (yet to be submitted to the Commission) 
> pursuant to FPA section 205 (c). 
> 
> DWR disputes its requirements to provide proper notice prior to execution 
> of said long-term contracts to all the parties to this case and to the 
> public who have in a statutory and constitutional right to comment on 
> expenditures of the public's funds in this manner by DWR. In response to 
> CARE's CPRA request DWR  states the "Department's purchases and sales of 
> power are exempt from the Federal Power Act because DWR is a state agency. 
> Section 201(f). To the extent that the Department engages in purchases or 
> sales with counterparties who are subject to Federal Power Act 
> jurisdiction, any obligation to file with FERC or otherwise comply with 
> the Act lies with the counterparty to the contract, and not the 
> department." 
> 
> CARE contends that DWR is acting as an "designated representative" for the 
> Investor Owned Utilities ("IOUs") in the purchase of energy in California, 
> pursuant to 18 CFR 35.1 (a), without authorization by the Commission. 
> 
>       "In cases where two or more public utilities are required to file 
> rate schedules or certificates of concurrence such public utilities may 
> authorize a designated representative to file upon behalf of all parties 
> if upon written request such parties have been granted Commission 
> authorization therefore." 
> 
> CARE contends these actions by DWR violated the requirements of 18 CFR 
> 35.1 (4)(e). 
> 
>       "No public utility shall, directly or indirectly, demand, charge, 
> collect or receive any rate, charge or compensation for or in connection 
> with electric service subject to the jurisdiction of the Commission, or 
> impose any classification, practice, rule, regulation or contract with 
> respect thereto, which is different from that provided in a rate schedule 
> required to be on file with this Commission unless otherwise specifically 
> provided by order of the Commission for good cause shown." 
>     
> CARE contends that ample evidence of DWR's acting as the California IOU's 
> "designated representative" is provided by DWR's request to the California 
> Public Utilities Commission ("PUC") for a Revised Revenue Requirement and 
> Power Purchase Costs Pursuant to Water Code Section 80110 and Public 
> Utilities Code Section 451 , which is further illustrated by the PUC's 
> Administrative law Judge's Ruling on the August 7, 2001 Revenue 
> Requirement of the DWR regarding the IOU S.D.G. & E. applications 
> 01-10-044, and 01-01-0045 to the PUC , which states: 
> 
>       "SDG&E shall present alternative calculations of the required system 
> average rate increases that (1) collect the DWR-related rate increases 
> over the remaining 5 quarters of the revenue requirement period set forth 
> in Table A-6 (i.e., the fourth quarter of 2001 and the four quarters of 
> 2002), (2) collect the DWR-related rate increases over the next 8 quarters 
> (i.e., the fourth quarter of 2001, the four quarters of 2002, and the 
> first three quarters of 2003), and (3) collect the DWR-related rate 
> increases over the  period from September 1, 2001 through December 31, 
> 2002." 
> 
> Clearly it is the intent of the DWR to act as the IOU's "designated 
> representative" to seek approval from the PUC "to collect the DWR-related 
> rate increases". 
> 
> CARE reiterates, it is the public policy that public agencies exist to aid 
> in the conduct of the people's business and that the proceedings of public 
> agencies be conducted openly so that the public may remain informed. It is 
> the intent of the law that actions of public agencies be taken openly and 
> that their deliberation be conducted openly. The people do not yield their 
> sovereignty to those agencies that serve them.  The people, in delegating 
> authority, do not give their public servants the right to decide what is 
> good for the people to know and what is not good for them to know.  The 
> people insist on remaining informed so that they may retain control over 
> the instruments they have created. DWR has breached its public duties by 
> failing to provide for myself, CARE, its members, and other members of the 
> public, our statutory and constitutional right to comment or protest these 
> long-term energy contracts executed by DWR, the associated expenditures of 
> the public's funds, and associated rate increases to California energy 
> consumers. 
> 
> In conclusion the Remedy CARE seeks is for the Commission to issue an 
> Order or Stay canceling or suspending such long-term energy contracts and 
> associated IOU rate schedules (yet to be submitted to the Commission) 
> pursuant to FPA section 205 (c), or under what ever statutory authority as 
> you deem appropriate. 
> 
> Respectfully submitted,                
>                       Michael E. Boyd President, CARE 8-28-01 (408) 
> 325-4690 
>  <<...OLE_Obj...>>             
>
jeff.dasovich@enron.com, d..steffes@enron.com, richard.shapiro@enron.com, 