----- Forwarded by Jeff Dasovich/NA/Enron on 06/22/2001 07:10 PM -----

	Tom Ross <tross@mcnallytemple.com>
	06/22/2001 05:02 PM
		 
		 To: Jean Munoz <jmunoz@mcnallytemple.com>, "'Andy Brown (E-mail)'" 
<ABB@eslawfirm.com>, "'B Brown Andy (E-mail)'" <andybrwn@earthlink.net>, 
"'Baker Carolyn (E-mail)'" <cabaker@duke-energy.com>, "'Bob Escalante 
(E-mail)'" <rescalante@riobravo-gm.com>, "'Bob Weisenmiller (E-mail)'" 
<rbw@mrwassoc.com>, "'Curtis Kebler (E-mail)'" 
<curtis_l_kebler@reliantenergy.com>, "Dean. Nistetter (E-mail)" 
<Dean.Nistetter@dynegy.com>, "'Douglas Kerner (E-mail)'" <DKK@eslawfirm.com>, 
"'Greg Blue (E-mail)'" <gtbl@dynegy.com>, "'Jan Smutny-Jones (E-mail)'" 
<smutny@iepa.com>, "'Jeff Dasovich (E-mail)'" <Jeff.Dasovich@enron.com>, 
"'Joe Ronan (E-mail)'" <joer@calpine.com>, "'John Larrea (E-mail)'" 
<john.g.larrea@williams.com>, "'Julee Malinowski-Ball (E-mail)'" 
<jmball@ns.net>, "'Kassandra Gough (E-mail)'" <kgough@calpine.com>, "'kent 
Palmerton (E-mail)'" <kent.palmerton@williams.com>, "'Lynn Lednicky 
(E-mail)'" <lale@dynegy.com>, dpeters@mccabeandcompany.net, "'Marty Wilson 
(E-mail)'" <mwilson@pstrategies.com>, "'McNally Ray (E-mail)'" 
<rmcnally@mcnallytemple.com>, "''Nam Nguyen' (E-mail)'" 
<nam.nguyen@powersrc.com>, "'Norton Kelli (E-mail)'" 
<knorton@mcnallytemple.com>, "'Paula Hall-Collins (E-mail)'" 
<paula.hall-collins@williams.com>, "'Pigott Jack (E-mail)'" 
<jackp@calpine.com>, "'Richard Hyde (E-mail)'" <rwhyde@duke-energy.com>, 
"'Roger Pelote (E-mail)'" <roger.pelote@williams.com>, "'Stephanie-Newell 
(E-mail)'" <stephanie-newell@reliantenergy.com>, "'Sue Mara (E-mail)'" 
<smara@enron.com>, "Tom Williams (E-mail)" <tcwillia@duke-energy.com>, "'Alex 
Sugaoka (E-mail)'" <alex.sugaoka@uaecorp.com>, "'Bill Carlson (E-mail)'" 
<william_carlson@wastemanagement.com>, "'Bill Woods (E-mail)'" 
<billw@calpine.com>, "'Bob Ellery (E-mail)'" <bellery@spi-ind.com>, "'Bob 
Gates (E-mail)'" <bob.gates@enron.com>, "'Cody Carter (E-mail)'" 
<cody.carter@williams.com>, "'Curt Hatton (E-mail)'" 
<Curt.Hatton@gen.pge.com>, "'David Parquet'" <david.parquet@enron.com>, 
"'Dean Gosselin (E-mail)'" <dean_gosselin@fpl.com>, "'Doug Fernley (E-mail)'" 
<fernley.doug@epenergy.com>, "'Duane Nelsen (E-mail)'" 
<dnelsen@gwfpower.com>, "'Ed Tomeo (E-mail)'" <ed.tomeo@uaecorp.com>, 
"'Eileen Koch (E-mail)'" <eileenk@calpine.com>, "'Eric Eisenman (E-mail)'" 
<eric.eisenman@gen.pge.com>, "'Frank DeRosa (E-mail)'" 
<frank.derosa@gen.pge.com>, "Frazier Blaylock (E-mail)" 
<frazier_blaylock@ogden-energy.com>, "'Hap Boyd (E-mail)'" 
<Hap_Boyd@enron.com>, "'Hawks Jack (E-mail)'" <jack.hawks@gen.pge.com>, "'Jim 
Willey (E-mail)'" <elliottsa@earthlink.net>, "'Joe Greco (E-mail)'" 
<jgreco@caithnessenergy.com>, "'Jonathan Weisgall (E-mail)'" 
<jweisgall@aol.com>, "'Kate Castillo (E-mail)'" <CCastillo@riobravo-gm.com>, 
"'Kelly Lloyd (E-mail)'" <kellyl@enxco.com>, "'Ken Hoffman (E-mail)'" 
<khoffman@caithnessenergy.com>, "'Kent Fickett (E-mail)'" 
<kfickett@usgen.com>, "'Lynn Lednicky (E-mail)'" 
<lynn.a.lednicky@dynegy.com>, "'Marty McFadden (E-mail)'" 
<marty_mcfadden@ogden-energy.com>, "'Paula Soos'" 
<paula_soos@ogden-energy.com>, "'Randy Hickok (E-mail)'" 
<rjhickok@duke-energy.com>, "Rick S. Koebbe (E-mail)" 
<rskoebbe@powerworksinc.com>, "'Rob Lamkin (E-mail)'" 
<rllamkin@seiworldwide.com>, "'Ross Ain (E-mail)'" <ain@worldnet.att.net>, 
"'Steve Iliff'" <siliff@riobravo-gm.com>, "'Steve Ponder (E-mail)'" 
<steve_ponder@fpl.com>, "'Tony Wetzel (E-mail)'" <twetzel@thermoecotek.com>, 
"'William Hall (E-mail)'" <wfhall2@duke-energy.com>, 
trusso@mcnallytemple.com, sadlersa@earthlink.net, mstultz@epsa.org, 
rtemple@mcnallytemple.com, tracy.fairchild@edelman.com, 
megan.beiser@edelman.com, deborah.fiorito@dynegy.com, lchurch@epsa.org, Katie 
Kaplan <kaplan@iepa.com>, tcwillia@duke-energy.com, rwhyde@duke-energy.com, 
tmcmorrow@manatt.com, Suzy.L.Rodriguez@dynegy.com, ppitts@wiredworld1.com, 
mnobili@cal-lobby.com, sscsus@aol.com, kvellandi@pstrategies.com, 
kelly@hnks.com, kirk@cea.com, jbkinney@duke-energy.com
		 cc: 
		 Subject: Smutny Letter to Senator Dunn



June 22, 2001


The Honorable Joseph Dunn
Chair, Senate Select Committee
California State Senate
Room 2080
California State Capitol
Sacramento, CA 95814

Dear Senator Dunn:

Earlier this year, you met individually with IEP and various other parties to 
explain the purpose of the Senate Select Committee?s hearing and the process 
under which they were to be conducted.  You made it very clear that you were 
planning to have fact-finding hearings based upon fundamental fairness and 
due process.  You made a further commitment that there would be no 
surprises.  Prior to today, the hearings have been conducted consistent with 
that representation.

Unfortunately, today it appears that the Committee has set a new course that 
radically departs from these previous commitments.  Today, the Committee is 
hearing testimony from several surprise witnesses.  These witnesses are 
former employees of San Diego Gas and Electric (SDG&E) under contract with 
Duke Energy for an interim period during which Duke Energy operated the 
facilities in San Diego.   It is our understanding that these former contract 
employees are alleging that the company failed to properly maintain these 
facilities, and they are alleging that Duke Energy cycled these facilities 
differently than the former owner, SDG&E.  It is also our understanding that 
Duke Energy will not be afforded the opportunity to contemporaneously 
challenge these allegations and/or provide an explanation as to the 
operational behavior of the facilities.  In short, the hearings are being 
reduced to a media event, giving credence to the unsustainable allegations of 
disgruntled ex-employees.

Respectfully, it would appear that the Committee has wandered far afield of 
its stated goals.  These hearings have the potential of identifying what went 
wrong with California?s energy policy and how to fix it.  However, this will 
only occur if this inquiry is based on informal facts and complete 
information, not innuendo and unsubstantiated allegations.  It is the pursuit 
of facts, not headlines, which will solve California?s energy crisis.  These 
facts will be revealed only in a fair process, where allegations made are 
subject to contemporaneous response.  

It is our hope that today?s process is an aberration, and not a departure 
from your commitments.  The Committee is at a crossroads.  It can choose to 
engage in fact-finding and analysis, or it can be reduced to a witch-hunt in 
pursuit of headlines.  For the benefit of all Californian?s, the Committee 
should focus on fact-finding and analysis.

Sincerely,



Jan Smutny-Jones
Executive Director