----- Forwarded by Jeff Dasovich/NA/Enron on 07/06/2001 03:50 PM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	07/06/2001 01:16 PM
		 
		 To: skean@enron.com, Richard Shapiro/NA/Enron@Enron, Wanda 
Curry/Enron@EnronXGate, Donald M Black/Enron@EnronXGate, Susan J 
Mara/NA/Enron@ENRON, Harry Kingerski/NA/Enron@Enron, Tim 
Belden/Enron@EnronXGate, Vicki Sharp/HOU/EES@EES, Jeremy 
Blachman/HOU/EES@EES, Phillip K Allen/Enron@EnronXGate, Alan 
Comnes/Enron@EnronXGate, Linda Robertson/NA/Enron@ENRON, Mike D 
Smith/HOU/EES@EES, Michael Tribolet/ENRON@enronXgate, Kristin 
Walsh/Enron@EnronXGate, Christopher F Calger/Enron@EnronXGate
		 cc: 
		 Subject: California Update--Legislative Push Underway


	


Hertzberg (speaker of the CA Assembly) called a meeting yesterday afternoon 
of the group of market participants that have been negotiating the 
"core/noncore" proposal in California.  The purpose of the meeting was to 
brief us on their activities and their gameplan for trying to find a solution 
for California.  Here's a summary of the meeting.  Please keep confidential.

Work will be done over the weekend to put the core/noncore proposal in 
legislative language.  (We will be in the room.)
Work done by the "Plan B" group in the Assembly (Joe Dutra and Joe Nation) 
will also be put into legislative language over the weekend.
Because no proposal is "comprehensive," a complete legislative package will 
be created from the various pieces that have been worked on thus far (i.e., 
core/noncore, "Plan B," Edison MOU)
In addition, there are Republican demands that Hertzberg will need to address 
(e.g., end the litigation) in order to achieve bi-partison support, which is 
what Hertzberg's shooting for. 
To move the legislation, the plan is to establish a "conference committee," 
comprised of an equal number of Democrats and Republicans.
The committe would begin work on Monday and would attempt to finish putting a 
comprehensive bill together, vote it out of the Legislature and send it to 
the Governor for signing by Monday, July 16th.
July 16th is the deadline because that is the date that the PUC will issue 
its proposed decision regarding, among other things, how DWR's revenue 
requirement will be put into rates, whether Direct Access needs to be 
suspended, etc.
The PUC is issuing the draft on the 16th in order to give everyone 30 days to 
review and comment before the Commission votes on a final order on August 
15th.  (The PUC will actually issue a "thought piece" on Monday the 9th and 
will use reactions to the "thought piece" to craft the develop the proposed 
decision it plans to issue on the 16th.)
All of this is still up in the air, however.  As of right now, the leader of 
the Senate (Burton) has not agreed to Hertzberg's gameplan and the 
Republicans, while interested, have not yet committed to join the process.