Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 06/27/2001 02:52 PM -----

	"McMorrow, Thomas" <TMcMorrow@manatt.com>
	06/27/2001 02:28 PM
		 
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		 cc: 
		 Subject: FYI:  TWO PRESS RELEASES TODAY FROM GOVERNOR DAVIS...


FYI, more of the same from the Governor's office.  Also, I have received a
couple of calls about whether it is true that Senator Dunn rescheduled the
generator hearing this week that had previously been cancelled.  The rumor
is true, but it is my understanding that the discussion has been occurring
directly between Dunn's office and individual lawyers for involved
generators, so I can't really add anything substantive to the mix.

______________________________________________ 

> OFFICE OF THE GOVERNOR 
> PR01:309
> FOR IMMEDIATE RELEASE
> 06/27/2001 
> GOVERNOR DAVIS PUSHES FOR HOUSE VOTE ON WHOLESALE POWER PRICE RELIEF
> Oregon, Washington State Governors Support Drive for Vote on Price Relief
> Legislation 
> SACRAMENTO 
> Governor Gray Davis, joined by the governors of Oregon and Washington,
> today urged their Congressional delegations to sign a petition that would
> force a vote in the U.S. House of Representatives on legislation to
> provide temporary electricity price relief to the western states.
> "I stand with my fellow Californians in the congressional delegation who
> have so strongly advocated for legislation to ensure just and reasonable
> electricity prices in our state; it is important that that advocacy
> continue through efforts to discharge H.R. 1468 from the Energy and
> Commerce Committee," wrote Gov. Davis in a letter to House Democratic
> Leader Richard Gephardt. "I continue to believe that cost-of-service based
> rates as imposed under H.R. 1468 are preferable to the market clearing
> price formula adopted by the FERC...While we all hope for good results
> from recent FERC actions, we need to be prepared if they come up short."
> If signed by a majority of House members, the "discharge petition" would
> free price cap legislation from the House Commerce Committee, where it has
> been bottled up for nearly two months. Rep. Jay Inslee (D-Wash.) is the
> sponsor of the petition effort. 
> "I continue to believe that cost-of-service based rates as imposed under
> H.R. 1468 are preferable to the market clearing price formula adopted by
> the FERC," Gov. Davis continued in his letter. "If the market mitigation
> scheme implemented by FERC on June 19 fails to rein in wholesale prices,
> it is essential that something stronger be considered. After a year of
> inaction, the focus and pressure brought to bear on FERC by Senate and
> House Members and Western governors resulted in the positive steps that
> the Commission has taken."
> Governor John Kitzhaber (D-Ore.) sent a similar letter. "The exorbitant,
> unlawful prices our utilities have paid to a handful of power marketers
> have already hit Oregon households and businesses hard. Energy supplier
> suppliers should refund overcharges to all Western utilities - not just
> California utilities - that have paid unjust and unreasonable prices for
> spot wholesale power over the past year."
> Governor Gary Locke (D-Wash.) also noted that "I recognized that the
> FERC's actions to provide relief for Western consumers is largely due to
> political pressure from western Governors and Members of Congress. I
> believe we must be prepared to further exert political pressure on the
> FERC and the Administration should this price cap scheme fail to protect
> Washington State consumers."
> 
> 
OFFICE OF THE GOVERNOR 
PR01:308
FOR IMMEDIATE RELEASE
06/27/2001 
GOVERNOR DAVIS SWITCHES ON NEW ERA IN CALIFORNIA'S ENERGY HISTORY 
Governor Opens First Major Power Plant in CA Since '88 
KERN COUNTY 
With the flick of a switch, Governor Gray Davis launched on a new era in
California's energy history by ceremoniously switching on the 320 megawatt
Sunrise Power Project in Kern County. Sunrise is the first major power plant
to come on line in California since 1988. 
"We are taking control of our energy destiny," Governor Davis said. "This is
the first major power plant built in California since 1988. It's clean,
efficient and it was built in record time."
The Sunrise Power Project is jointly owned by Edison Mission Energy and
Texaco Power and Gasification. Edison Mission Energy has agreed to sell the
power generated at the Sunrise plant to California's Department of Water
Resources under a long-term contract at a reasonable rate. By the summer of
2003, the plant is expected to produce 585 megawatts.
"We're building more new power plants than at any other time in our
history," Governor Davis said. "Next week, I will be cutting the ribbon on
the 500 megawatt Sutter power plant near Yuba City. It will be the largest
gas-fired power plant built in California in a generation. Over the next two
weeks, we'll be bringing a combined total of more than 1,300 MW on line -
enough to power the entire city of San Jose." 
In the 12 years before Governor Davis took office, not a single major power
plant was licensed in California. Under Governor Davis' leadership,
California has licensed 16 major power plants and 10 "peaker" plants.
Sunrise is the first of four scheduled to come on line this summer. 
The combination of these new power plants, with additional renewables,
distributed generation, and re-rates of existing power plants, will bring
more than 4,000 new megawatts online by the end of September. At no other
time in the history of California have so many new power plants been under
construction and in the pipeline.
Construction began on the Sunrise Power Project on December 7, 2000, making
it operational in a record 6 and a half months. The construction force
worked 18 hour days, six days a week, and the plant was brought on 32 days
ahead of schedule. Because the plant was completed before July 1, it is
eligible for more than $1 million in construction incentive payments under
the Governor's Executive Order (D-32). 
"None of this would have been possible without the commitment of Edison
Mission Energy, Texaco, and a dedicated construction force," Governor Davis
said. "I would like to commend Black and Veatch, ARB and the State Building
and Construction Trades Council for moving heaven and earth to bring this
project on line ahead of schedule. If not for your Herculean efforts, we
would not be here today."