fw high speed regulation california cera alert original message webmaster cera com enron sent friday january 19 2001 5 17 pm messages cera com subject high speed regulation california cera alert title high speed regulation california url http www 20 cera com eprofile u 35 2208 feverish pitch pace regulatory political events california taken feverish pitch energy market crisis important decisions regarding wide range market structure issues made quickly california public utilities commission cpuc state legislature increasing level uncertainty market participants already perceive quickly evolving california market sudden changes made market structure changes used require years california complex regulatory legislative proceedings rolling blackouts rippled urban centers northern california january 17 18 including portions downtown san francisco sacramento silicon valley state officials scrambling set appropriate credit mechanisms ensure continued delivery scarce western energy supplies california two largest utilities even prices near 800 per megawatt hour mwh california department water resources cdwr attempting buy power behalf pacific gas electric pg e southern california edison sce unable secure enough keep lights mean time legal actions energy suppliers threaten tip utilities bankruptcy held bay direct intervention california governor summary various state actions pursued concurrently california governor california governor gray davis continues attempt act behalf pg e sce secure long term contracts supply merchant generation owners marketers california front governor negotiating generators attempt keep seeking compensation courts energy delivered utilities court ordered reimbursement could prompt bankruptcy legislature bills approved authorize continued power purchases behalf pg e sce cdwr restructure independent system operator iso governing board consist five members appointed governor restrict ability iso enter broader interstate regional transmission organization rto without explicit approval california electricity oversight board prohibit divestiture investor owned utilities remaining generating assets 2006 vehicle pursuing authorization state bond financing acquisition transmission assets construction new generation facilities still developed california public utilities commission january 18 cpuc adopted decision prohibiting sale sce mohave generating station aes voids sale announced closed cpuc also delayed decisions regarding sce application end rate freeze prudency criteria utilities entering long term supply contracts issues continue evolve progress along respective sometimes intersecting paths need pass multiple review bodies rapid erratic evolution helped decrease either financial risk associated supplying energy california two largest utilities level uncertainty developing new generation supply california future iso anticipates call stage 3 emergencies reserves less 1 5 percent january 19 likely continue curtail interruptible customers weekend western energy supplies strained recent heavy usage hydroelectric facilities water supplies already much 25 percent average owing low precipitation continued plant outages near 9 000 mw california gravity financial condition california two largest utilities exemplified need creditworthy intermediaries including california municipal utilities state agencies unregulated energy suppliers act temporary guarantors acquisition energy behalf pg e sce end follow url full report come shoot rapids us ceraweek 2001 shooting rapids strategies risks energy future houston february 12 16 2001 information register please visit http www 20 cera com ceraweek e mail category alert cera knowledge area western energy make changes cera com account go forgot username password go http www 20 cera com client forgot electronic message attachments contain information cambridge energy research associates inc cera confidential may privileged unauthorized disclosure copying distribution use contents message attachments whole part strictly prohibited terms use http www 20 cera com tos questions comments webmaster cera com copyright 2000 cambridge energy research associates