FW: PX - SCE Contracts - PX Press Release ,
 ----- Forwarded by Richard B Sanders/HOU/ECT on 02/05/2001 02:30 PM -----

	"Fergus, Gary S." <GFergus@brobeck.com>
	02/05/2001 12:25 PM
		 
		 To: "Richard B. Sanders Esq. (E-mail)" <richard.b.sanders@enron.com>
		 cc: 
		 Subject: FW: PX - SCE Contracts - PX Press Release


FYI.
Especially the last paragraph.
Thanks
Gary

-----Original Message-----
From: Richard Josephson [mailto:rcjosephson@stoel.com]
Sent: Monday, February 05, 2001 10:36 AM
To: Andrew.Haller@Pacificorp.com; john.fryer@Pacificorp.com;
Karen.Clark@Pacificorp.com; JEHORAN@stoel.com; MWOOD@stoel.com;
PARAMFJORD@stoel.com; SCHALL@stoel.com; SJKAPLAN@stoel.com
Subject: PX - SCE Contracts - PX Press Release


Governor Davis Blocks Liquidation of Edison Contracts


FOR IMMEDIATE RELEASE   CONTACT: E. Jesus Arredondo
Friday, February 02, 2001
626.537.3155

Beth Pendexter

626.537.3154


Pasadena, CA- California Governor Gray Davis issued a last minute Executive
Order prohibiting the California Power Exchange from liquidating Southern
California Edison's forward positions.  The liquidation proceeding is an
attempt to recover approximately $250 million Edison is in default on to
CalPX market participants.

Davis' Executive Order nullifies a Los Angeles County Superior Court
decision that earlier today authorized CalPX to liquidate Edison's forward
market positions. The following is excerpt from Governor Davis' Executive
Order:

 It is ordered that the contracts and trades in the market for the
sales and purchases of forward contracts and trades for electricity (known
as the "Block Forward" market) for the delivery of electricity possessed by
Southern California Edison Company*is hereby commandeered by the State of
California to be held subject to the control and coordination of the State
of California.

CalPX will transfer the Edison contracts to the State of California. State
law requires that the state shall pay "the reasonable value thereof," and
based on competitive market conditions today, CalPX determined the value of
these contracts, for 2,846,000 megawatt hours, at over $651 million.


- 30 -

CalPX is a non-profit public benefit corporation established in 1998 with
the passage of AB1890, which restructured the electric utility industry
within the state of California.


Richard C. Josephson
Stoel Rives LLP
900 SW Fifth  Avenue, Suite 2600
Portland, OR 97204-1268
DD: 503-294-9537
Fax: 503-220-2480
email: rcjosephson@stoel.com


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