Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 03/07/2001 09:37 AM -----

	"Daniel Douglass" <Douglass@ArterHadden.com>
	03/07/2001 08:40 AM
		 
		 To: <Barbara_Klemstine@apsc.com>, <Bob_Anderson@apses.com>, 
<Vicki_Sandler@apses.com>, <berry@apx.com>, <dcazalet@apx.com>, 
<billr@calpine.com>, <jackp@calpine.com>, <Ken_Czarnecki@calpx.com>, 
<gavaughn@duke-energy.com>, <rjhickok@duke-energy.com>, <gtbl@dynegy.com>, 
<jmpa@dynegy.com>, <jdasovic@enron.com>, <susan_j_mara@enron.com>, 
<Tamara_Johnson@enron.com>, <curt.Hatton@gen.pge.com>, <foothill@lmi.net>, 
<camiessn@newwestenergy.com>, <jcgardin@newwestenergy.com>, 
<jsmollon@newwestenergy.com>, <rsnichol@newwestenergy.com>, 
<nam.nguyen@powersrc.com>, <Curtis_L_Kebler@reliantenergy.com>, 
<rllamkin@seiworldwide.com>
		 cc: <Ken.E.Randolph@dynegy.com>
		 Subject: Important Filing - Read This



Attached is a document that WPTF members should read right away.? It  is a 
motion which?was filed by Michael Aguirre, supposedly on behalf of  UCAN 
(although UCAN is mentioned only in the cover letter and nowhere in the  
document itself).? It requests hearings by the Commission to determine the  
following:
?
"(1) the cause of the unjust and unreasonable prices being charged for  
electricity in California; (2) the utilities efforts to pursue lawsuits 
against  generators or marketers of electricity and natural gas."
?
The motion?further describes the following scenario which it claims  
justifies these hearings:
?
"Five companies operating out of Houston, Atlanta and Tulsa have controlled  
the power to set prices of electricity in California.? These companies are:  

(1) ?Williams Energy Services and Williams Gas Pipeline Company  and their 
subsidiaries, which operate out of Tulsa, Oklahoma and control the  
electricity generation in Orange County ("Williams"); 

(2) ?Southern Company Energy and Marketing, Southern Energy  California, and 
their affiliated companies, which operate out of Atlanta and  control 
electricity generation in parts of the San Francisco Bay Area consisting  of 
Contra Costa, Pittsburg, and Potrero ("Southern"); 

(3) ?Reliant Energy Services, Reliant Energy Power Generation and  their 
affiliated companies, which operate out of Houston and control electricity  
generation in parts of Los Angeles County, Ventura County, and San Bernadino  
County, consisting of Cool Water, Etiwanda, Ellwood, Mandalay and Ormond 
Beach  ("Reliant"); 

?(4) ?Duke Energy North America and Duke Trading &  Marketing and their 
affiliated companies, which control electricity generation  in parts of the 
San Francisco Bay area, the Central Coast, and Ventura and San  Diego 
counties, consisting of Oakland, Morro Bay, Moss Landing, and South Bay  San 
Diego ("Duke"); and 

(5) ?Dynergy Marketing and Trading and its affiliated companies,  which 
control electricity in parts of North County San Diego ("Dynergy").?  These 
companies will collectively be referred to as the "WSRD Cartel."

The members of the WSRD Cartel are each following the same fatally  flawed 
business plan, and each knows the others are following the same business  
plan.? The key defect in WSRD Cartel,s business plan is the impossibility  of 
raising and lowering the price at which electricity is sold.? In order  to 
push through deregulation of electricity in 25 states, the WSRD Cartel has  
lobbied state officials and the public with claims that they intended to use  
deregulated electricity rates to lower the prices consumers and businesses 
were  paying for electricity.? However, to raise capital from America,s 
capital  markets, the WSRD Cartel members have represented they would be 
using  deregulated generation to raise the prices consumers and businesses 
were to pay  for electricity.? (The "Fatal Flaw" in WSRD,s Business Plan.)

California,s rate payers and utilities are the most recent victims the  Fatal 
Flaw in WSRD Cartel,s Business Plan.? Members of the WSRD Cartel,  along with 
its other allies in the power and natural gas business, successfully  lobbied 
California to deregulate electricity.? In 1996, California adopted  
deregulation and thereafter California utiltiies sold off its control of the 
gas  driven electricity generation to the WSRD Cartel. 
The members of the WSRD  Cartel have collusively and unlawfully used their 
control of the generation  units in California,s to unlawfully raise the cost 
of electricity to  unconscionable levels, to amounts greater than four times 
the amount electricity  sold for before deregulation. The WSRD Cartel has 
used systematic unlawful,  fraudulent and unfair business practices to raise 
the prices to their current  excessive levels.? 

The WSRD Cartel has withheld electricity from the market in order to  drive 
up prices. The WSRD Cartel has used its position of control over natural  gas 
to unlawfully and fraudulently inflate electricity prices by increasing the  
costs natural gas used to generate electricity.? The WSRD Cartel members  
have engaged in collusive practices aimed at shifting large volumes of  
electricity out of the forward markets and into the real time markets in 
order  to drive up prices.? The WSRD Cartel members have under bid into the  
replacement and other ancillary services markets in order to circumvent the  
price caps and to create out of market calls which resulted in exorbitant 
and  unconscionable prices for electricity."
As mentioned above, UCAN is mentioned in the cover letter but not named in  
the filing.? I have written to Michael Shames to confirm whether or not  
Aguirre was authorized to file this on UCAN's behalf.
?
Dan
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Date: Tue, 6 Mar 2001 18:06:21 EST
Subject: Request for Hearing - for filing - WordPerfect
To: jbushee@sablaw.com, kmccrea@sablaw.com, rogerberliner@bcjlaw.com,   
rcsstl@cdmnet.com, mbrubaker@consultbai.com, anchau@shellus.com,   
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fmo@sdcity.sannet.gov, jleslie@luce.com, Julesan@aol.com, mshames@ucan.org,   
jparrott@sempra.com, kmelville@sempra.com, bill.mccallum@ci.fresno.ca.us,   
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askaff@energy-law-group.com, hf@energy-law-group.com, PJPowerLaw@aol.com,   
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pjmuller@ricochet.net, berry@apx.com, jbradley@svmg.org,   
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cmkehrein@ems-ca.com, jweil@aglet.org, abb@eslawfirm.com,   
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LKristov@energy.state.ca.us, randy.chinn@senate.ca.gov, 
firmiyas@dof.ca.gov,   rtavares@energy.state.ca.us, 
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To: ?All Parties - A.00-11-038, et al. 

FROM: ?Michael J. Aguirre, Attorney for UCAN and Ratepayers 

UCAN AND RATEPAYERS' REQUEST FOR HEARING - WORDPERFECT FORMAT 

Please respond to Julesan@aol.com (Michael Aguirre) with any questions or  
comments. 



 - REQHRNGEMAIL.wpd