US-Based Enron Corp Expands Pulp And Paper Ops In Asia
Dow Jones Commodities Service, 03/29/01

COMMITTEE TO SUBMIT REPORT ON POWER SECTOR TO INDIAN STATE GOVT
Asia Pulse, 03/29/01

Life goes on...
The Times of India, 03/29/01

$10-m aid gives much-needed fillip
The Times of India, 03/29/01

ENRON'S TOKYO UNIT SUBMITS PLAN FOR AOMORI POWER PLANT
Asia Pulse, 03/29/01

Qantas Hones A Killer Instinct
Australian Financial Review, 03/29/01

MSEB to pay Rs 113 cr Feb bill `under protest'
Business Standard, 03/29/01

Lay Gets $7 Million Bonus.
The Oil Daily, 03/9/01

Enron Doing Great, Skilling Says.
The Oil Daily, 03/29/01
Houstonians receive e-commerce awards
Houston Chronicle, 03/29/01

COMPANIES & FINANCE THE AMERICAS: US climate exchange ready to start trading 
Financial Times; Mar 29, 2001

Power project may get a boost
The energy crisis may prompt a new state board to reverse its predecessor's 
ruling on a Southwest Riverside County line.




US-Based Enron Corp Expands Pulp And Paper Ops In Asia

03/29/2001
Dow Jones Commodities Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

SINGAPORE -(Dow Jones)- Enron Corp. (ENE), one of the world's leading energy 
and communications companies based in Texas, is expanding its pulp and paper 
operations in Asia. 
The power and energy giant is busy setting up offices in Asia that will 
provide price risk management tools for the Asian pulp and paper industry, a 
senior Enron official told Dow Jones Newswires Thursday, on the sidelines of 
an industry gathering in Singapore.
"Asia accounts for 30% of the (world's pulp and paper) market. You can't 
ignore it," he said. 
In January this year, Enron opened shop in Singapore and Japan. Japan is one 
of Asia's biggest paper producers and consumers. 
He said that Enron is eyeing to set up shop in India, China and South Korea 
as these countries have "big market potential." 
China and South Korea are among the top three biggest paper consumers in 
Asia. 
India is regarded by most analysts as one of the fastest growing newsprint 
consumers in the region. The official declined to comment further on specific 
expansion plans and targets. 
Meanwhile, he said that their customers in Singapore and Japan have logged on 
the www.clickpaper.com - a business-to-business portal for pulp, paper and 
wood products - that was built by Enron. 
Www.clickpaper.com is an Internet-based market for buying and selling pulp, 
paper and wood products. 
In the last three years, the company was able to establish a foothold in the 
American and European pulp and paper markets. 
While the company is well known as a major supplier of natural gas and 
electricity, it started to branch out to the pulp and paper business in 1997, 
as it is one of the biggest consumers of natural gas and electricity in the 
U.S. 
Aside from providing price risk management tools, Enron's offices in the U.S. 
are also involved in buying, selling and producing newsprint. 

-By Prime Sarmiento, Dow Jones Newswires; 65-4214803, 
prime.sarmiento@dowjones.com

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


COMMITTEE TO SUBMIT REPORT ON POWER SECTOR TO INDIAN STATE GOVT

03/29/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

MUMBAI, March 29 Asia Pulse - The Godbole Committee, set up to review Enron 
promoted Dabhol Power Company's (DPC) 2,184 MW power project and the entire 
power scenario in the western state of Maharashtra, will submit part one of 
its report on April 10 to the state government. 
"The committee will finalise its report on April nine and submit it to the 
government the next day," MSEB sources told PTI here today.
According to the committee's schedule, it would first submit the report on 
DPC's project and then commence on part two, comprising study and remedies to 
improve Maharashtra's entire power scenario. 
The sources also did not rule out a possibility of the report being tabled in 
the current session of the on-going state legistlature. 
The six-member committee, set up by the Maharashtra government last month, 
has almost finalised its report today and met financial institutions 
including International Develpoment Finance Corporation Ltd. 
In its over a month-long sittings, the committee discussed the state's review 
proposal with several energy experts including Abhay Mehta, author of the 
controversial book "Power Play", which depicted the alleged irregularities in 
the Enron deal. 
Another major presentation, made before the review panel was that by the 
Enron India Chief, K Wade Cline, and the DPC Managing Director, Neil 
McGregor. 
(PTI) 29-03 1941

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Life goes on...

03/29/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

SALAM MUMBAI/ Malavika SanghviAnd Pepsi fights with Coke and Coke fights with 
Thums Up and Sprite fights with all of them and what difference does it make 
in your life? As they say in Punjab, "Ki pharak painda?" 
And BPL fights with Orange and Videocon fights with Godrej and Bbujbal with 
Thackeray and Sonia with Vajpayee and how on earth does it affect you? Amar 
Singh versus Mani Shankar Aiyer, Ram Jethmalani versus Soli Sorabjee and 
Justice Anand, Rohit Bal versus Abu and Sandeep and what did it matter, what 
was changed or as the kids say these days, what goes of your dad?
O & M fights with Lintas, Brajesh Mishra fights with J K Jain, and MTV fights 
with Channel V. In the end, does it make a whit of difference to your life? 
Star versus Zee and Sony versus Nine Gold and who cares in the long run? Who 
gives a damn? 
And Jaya Jaitley versus Aniruddha Bahal and Mamta versus Jyoti Basu, and the 
CBI versus Vincent George and what difference? India versus Pakistan, Tamil 
Nadu versus Karanataka, MG Damani versus Anand Rathi, Gavaskar versus Raj 
Singh Dungarpur, Azharuddin versus Manoj Prabjhakar versus Kapil Dev, and 
Sushma versus FTV and Sharad Yadav versus Laloo Yadav and Ramkrishna Hegde 
versus Deve Gowda, and IBM versus Macintosh... and where does it all lead? 
Hotmail against Yahoo and Ted versus Rupert and India versus Pakistan and so 
many words of attrition and reams of newsprint and Mamta versus everyone and 
who cares... What is it really but phookat entertainment, or as they say in 
the trains, timepass? 
Enron versus MSEB, Time versus Newsweek, Hrithik versus Shah Rukh, Scindia 
versus Angre -- and your life goes on, not enhanced by any of this. Oh no, 
possibly even worsened, but only a little. 
Yashwant against NK Singh, MF Husain against Sabavala, Thapar against 
everyone shouting in the well of the House and in the end what does the man 
on the street gain from any of this? Dominos versus Smokin' Joe's, Delhi 
versus Mumbai, Dom Perignon versus Veuve, Dior versus Gucci, Oberoi versus 
Taj, Jayalalitha versus Karunanidhi, the BJP versus the Congress, Philips 
versus Aiwa where does it all lead? 
Calcutta traders against Mumbai punters, Mallya against Chabbria, Vilasrao 
against Govindrao, Jayaprada against Renuka has it made any difference any 
difference at all to the man on the street? 
Gladiator versus Crouching Tiger, the police versus Bharat Shah, Salman 
versus Subhash Ghai -- did it really matter? Olive versus Indigo, Wranglers 
versus Lee, Nike versus Reebok. 
The rich get richer, the poor get poorer, the multinationals line their 
pockets and the man on the street. His life doesn't change, it doesn't matter 
one way or the other, it just goes on and on...

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


$10-m aid gives much-needed fillip

03/29/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

VADODARA: The Kalpasar project, Gujarat's dream project to turn Gulf of 
Khambhat into a huge fresh water lake, received a major fillip with the 
Netherlands-based Nadeco Company committing $10 million (about Rs 46 crore) 
in aid. 
The state government, in turn, has agreed in principle to accept the aid. 
Chief Minister Keshubhai Patel is sending a four-member team comprising 
Kalpasar Core Committee chairman and chief co-ordinator of the project C C 
Patel, project conceiver Anil Kane, additional secretary U K Sarvaiya and 
secretary Narmada and major irrigation projects M I Mehta to the Netherlands 
in May.
Simultaneously the state government is also setting up a Kalpasar Development 
Authority to administer the funds. Already Rs 18 crore have been poured into 
the project since its conception in mid 1980's. The total project cost is 
estimated at Rs 25,000 crore. 
"This is a major boost to Kalpasar. The Netherlands is known for great dam 
building and if a company of that country has shown interest in our project 
it means big", Kane told 'The Times of India'. 
He said Kalpasar envisages bridging the Gulf of Khambhat with a 24-km-long 
dam that will connect Bharuch and Bhavnagar. Besides providing drinking and 
irrigation water to the entire Saurashtra and Kutch, Kalpasar will generate 
6000 mega watts of power, Kane said. 
"Saline water will be replaced by fresh water. About 400,000 hectares of land 
that is of no use today will be reclaimed. This fresh water lake than will 
have fantastic harbours and flourishing fisheries," Kane said. 
Till date five exhaustive volumes on feasibility of Kalpasar project and six 
survey studies have been put out by the Kalpasar core committee. 
Kane said that Reliance Industries, Larsen and Tubro, Tata Hydel and Tata 
Housing Development have appreciated the 6000 mw power generation aspect of 
the project. "They have shown keen interest. Some of these companies are even 
enthusiastic to manufacture and supply us turbines against the kind of power 
generation we estimate through Kalpasar," Kane said. 
Nadeco, on the other hand, is interested in the building part of the dam. 
"They specialise in building big dams. Holland has one of the world's best 
dams in Islemeher through which they have reclaimed land submerged under the 
sea and converted it into a world floriculture centre. In Kalpasar also they 
see good business opportunity and hence are offering the aid", Kane observed. 
Nadeco has suggested to the state government that its aid should be used in 
institutional strengthening of the Kalpasar cell. This deals with procuring 
equipment, technology exchange or transfer and manpower. Nadeco has also 
suggested for a GIS, data base on environment baseline, project regime 
modelling and association with Central Water and Power Resources Centre 
(CWPRC) in Pune has also been demanded. The CWPRC's intervention is sought to 
study the impact of Kalpasar on sedimentation, salinity, currents and other 
technical aspects. National Institute of Oceanography's involvement has also 
been sought. 
When asked about the astronomical cost of the project Kane said that the 
major expenditure was on power generation. "However the power we would 
generate here will be less than Rs 2 a kW for an hour. And unlike Enron, in 
Kalpasar there is no need for foreign exchange", Kane remarked. He added that 
the other benefits of Kalpasar was that there was no displacement of people 
or inviting natural disasters by disturbing earth's crust. 
"Even if Narmada dam is built to the height of 138 metres, 90 percent of 
Saurashtra and 95 per cent of Kutch would not get water. Kalpasar is a 
feasible alternative and in five years can change the face of Saurashtra and 
Kutch," Kane said.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 

ENRON'S TOKYO UNIT SUBMITS PLAN FOR AOMORI POWER PLANT

03/29/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

TOKYO, March 29 Asia Pulse - Japanese Enron subsidiary E Power Corp said it 
has submitted preliminary plans for the construction of a new power plant to 
Aomori prefecture governor Morio Kimura. 
The electricity retailer plans to construct a 2 million kilowatt liquefied 
natural gas (LNG) plant in Rokkasho, Aomori Prefecture by 2007, and sell the 
energy to locations in the northeastern region of Japan and the Kanto region 
around Tokyo.
The company now plans to begin negotiations to acquire land for the plant. 
Its efforts mark the full-scale start of the Enron group's power generation 
operations in Japan. 
E Power is researching other locations for the construction of power plants, 
including Ube in Yamaguchi Prefecture. 
(Nikkei) 29-03 1314

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Chanticleer
Qantas Hones A Killer Instinct
John Durie

03/29/2001
Australian Financial Review
36
Copyright of John Fairfax Group Pty Ltd

This time next year, new Qantas boss Geoff Dixon will be running either a $4 
billion or $2.5 billion company, depending almost entirely on factors outside 
his control. 
The higher figure, implying a stock price close to $3 a share, is still a 
long way down, of course, from its $5 billion in market capitalisation in 
August last year before the stock was hit with the combined ills of a 
plunging currency, slowing economy and, worst of worst fears for an airline 
boss competition.
Qantas's stock price is showing the strain considering that this year its 
shareholders have seen returns fall 28.2 per cent after a 9.8 per cent gain 
last calendar year and a 1999 year return of 22 per cent a share. 
All this has happened when more people are flying domestically than ever 
before. In January, 2.6 million people took to the air on 26,000 flights. 
Passenger traffic was up 17.5 per cent on year-ago figures and more planes 
were full, with loads up to 80.8 per cent capacity, the highest level 
recorded in some seven years of monthly data, on Merrill Lynch's reckoning. 
The top routes did even better, with Melbourne-Sydney up 27.6 per cent and 
Brisbane-Sydney up 64.3 per cent. 
Australia now has four domestic carriers, and Qantas's Dixon is about to make 
the problems flowing from increased capacity even worse when he brings in 
planes from routes being closed (to China and Canada). 
His aim is simple: to kill one or more of his competitors because he thinks 
the market cannot sustain four domestic carriers. 
The fact that new capacity is being added now when the money that airlines 
earn from each seat is falling simply raises the stakes, and Dixon has drawn 
a line in the sand. 
With the other major, Ansett, in the middle of its own problems, Dixon is 
working from a position of strength, which is why he has finally declared 
war. 
All these new passengers may look like good business, but if enough are not 
paying full fare, then airline profits fall, particularly if like the present 
market the airlines are hurting, with higher fuel costs and a slowing market. 
But Dixon's war will be a rough ride for his shareholders, as shown by the 
fact that yesterday the company issued its second profit warning in the space 
of a month. 
This sent Qantas's share price to a 21/2-year low and should send a shudder 
through the rest of the domestic market for what it says about general 
economic conditions. 
The only bright spot is that Dixon's warnings are the result of special 
airline industry issues such as massive increases in capacity, which are 
killing yields. 
In the space of seven months, Qantas has gone from a company worth $5.5 
billion to one worth $3.2 billion, a 42 per cent fall, and if Dixon is not 
successful in getting a competitor to close shop, then the stock price will 
head below $2 a share. 
Deutsche has already cut profit forecasts for this year by 20 per cent and 
will slice another 30 per cent after yesterday's warning, bringing this 
year's estimate closer to $302 million than the $392 million the market was 
looking for a couple of weeks ago. 
If Dixon's war campaign is successful, the economy shows more signs of life 
and the old Qantas management team reproduces past cost-control efforts, then 
the stock will be well above $3. 
Between now and then, each time someone takes a $37 flight between Sydney and 
Melbourne, consumer joy means more pain for Dixon and his shareholders. 
Today the BHP Billiton transition team headed by Brad Mills and Mike Salamon 
starts work in Melbourne on the transition arrangements for the new company, 
with the first job being to work out key staff issues and how to lock in 
personnel. 
The company is already well down the track on some operational issues: its 
Venezuelan HBI plant, for example, is expected to be shut; and for tax 
reasons, next year's $3.5 billion steel spin-off will mirror the OneSteel 
sale, with the trade sale option only tested if someone comes in the door 
with a cheque for billions more than book value. 
Two senior executives who won't be around by the end of next year will be Ron 
McNeilly, the BHP minerals boss, and steel man Kirby Adams, who has already 
said he would lead the soon-to-be spun-off company. 
McNeilly's position as an executive director (global markets) is seen more as 
a transitional role, one of ensuring clients are comfortable with the new 
team and aware of the new opportunities. 
Paul Anderson, of course, will also be gone by the end of next year, by which 
time he hopes all the hysteria over where head office really is will have 
died down. 
He didn't even bother testing Don Argus's view on the issue before telling 
Billiton's Brian Gilbertson that Melbourne would have to be the base or, for 
a whole lot of political issues now being aired, there would be no deal. 
Likewise, much of Anderson's time has been spent telling the Billiton board 
that the company will have enough senior executives to qualify still as a 
base for tax and other purchases in the UK, which explains why petroleum boss 
Phil Aiken will be doing time in London. 
In truth, from an operational standpoint, it doesn't matter much where 
Gilbertson spends his time, although he will probably make sure he spends 
fewer than 130 working days a year in Australia lest he be branded an 
Australian executive for tax purposes. 
Anderson, it seems, didn't even think tax was an issue when he did everything 
possible to be an Australian when he first landed, from declaring that he 
followed the St Kilda footy team to asking the Tax Office for a tax file 
number. 
When the combined company gets going, some early new endeavours are clear, 
starting with an energy-trading operation to exploit the fact that the 
company will go long on energy products on three continents through oil, gas, 
LNG and coal and short the product in its aluminium operations, also on three 
continents. 
Another move will be to cut out middle men in operations such as smelting 
where US-based Enron is the combined company's biggest copper producer, 
buying its high-concentrate output, and mixing it with other copper to get 
the lower-concentrate product demanded by the market. 
It would seem to make more sense if BHP Billiton did that job itself. 
While BHP shareholders are handing about $6 billion across to their 
soon-to-be partners at Billiton, in the premium paid for the asset, all will 
be quickly forgotten if, helped by such moves and by the increased liquidity 
from the London link, BHP's stock price climbs much higher. 
jdurie@mail.fairfax.com.au

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


MSEB to pay Rs 113 cr Feb bill `under protest'
S Ravindran MUMBAI

03/29/2001
Business Standard
7
Copyright (c) Business Standard

The Maharashtra State Electricity Board (MSEB) has decided to pay the Rs 113 
crore February bill to the Enron-promoted Dabhol Power Company (DPC) "under 
protest". The bill had become due on March 25. 
MSEB has protested primarily about how much power was despatched by DPC on 
demand. "We have decided to pay the bill but we have disputed the despatch 
figures given by DPC," said a highly placed MSEB official.
The decision comes even as the Union law ministry has lobbed the ball back in 
the MSEB-DPC court over the disputed Rs 102-crore December 2000 bill. 
The electricity board had to pay about Rs 102 crore to DPC as the unpaid 
portion of its December bill. DPC first invoked the state government 
guarantee and then the Central government's counter guarantee. 
MSEB had retaliated by slapping a claim of Rs 400 crore on DPC for non supply 
of power at various points between October 2000 and January 28, 2001. 
The state government and MSEB had told the Centre to adjust the December bill 
from the Rs 400 crore (claim) as this was allowed under the power purchase 
agreement (PPA). Their contention was that payment disputes spread over a 
four-month period on non-despatch of power can be adjusted in the December, 
2000 bill. 
DPC contended that the four month period expired on January 25, 2001, when 
the December, 2000 bill fell due. MSEB on the other hand was claiming damages 
primarily for non-despatch of power on January 28, 2001. 
The finance ministry has now referred the matter to the law ministry. It is 
now learnt that attorney-general Soli Sorabjee has contended that there is 
merit in the argument of both sides. If the two parties cannot come to a 
mutually acceptable solution, they can go in for arbitration as stipulated in 
the PPA.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Lay Gets $7 Million Bonus.

03/29/2001
The Oil Daily
(c) 2001 Energy Intelligence Group. All rights reserved.

Electricity and natural gas marketing company Enron, coming off an "extremely 
strong" 2000, rewarded Chairman Kenneth Lay with a 79% boost to his bonus, 
Enron said Tuesday. 
Lay's 2000 bonus shot up to $7 million from $3.9 million in 1999, the 
Houston-based company said in its annual proxy statement filed with the 
Securities and Exchange Commission.
Enron determined the figure by taking into account the pay level for the head 
of a company of comparable revenue size as well as increases in total 
recurring net income and earnings per share, according to the proxy. 
Lay's base salary last year was $1.3 million, unchanged from 1999. He also 
received $7.5 million in restricted stock awards as well as options for 
782,830 shares that could be valued at $35 million if Enron's stock 
appreciates 10% annually over the life of the options. 
Most of the options expire Jan. 10, 2007, and can be exercised at 
$47.31/share. 
(c) Copyright 2001. The Oil Daily Co. 
For more infomation, call 800-999-2718 (in U.S.) or 
202-662-0700 (outside U.S.).

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Enron Doing Great, Skilling Says.

03/29/2001
The Oil Daily
(c) 2001 Energy Intelligence Group. All rights reserved.

If the stock market is going to assign lower share-price-to-earnings ratios, 
then Enron will simply boost its stock price to its former level the 
old-fashioned way - by increasing earnings, President and Chief Executive 
Jeffrey K. Skilling said Wednesday. 
"The stock got hurt quite badly for no apparent reason," Skilling said about 
the recent dive in Enron's common-share price. "The company is doing great. 
In all our businesses, we're seeing some really, really good results," he 
told investors at the annual Howard Weil energy conference in New Orleans.
Enron's stock price weakened in the fourth quarter last year along with many 
other high-tech issues after reaching a 52-week high of $90.75 in August. As 
recently as early February the price was about $80. 
Then, Enron was hit with a spate of bad news starting in mid-March (OD 
March22,p6). A bandwidth content arrangement with video distribution giant 
Blockbuster was terminated at the same time the whole high-tech sector was 
collapsing. At one point last week, its price fell to $51.51/share. The price 
recovered to above $60 for a couple of days, but Wednesday it closed at 
$58.10, down $2.36, or 3.9%, on the day. 
The Enron chief executive cited other factors having a negative impact on the 
stock - the overall market revaluation of high price-to-earnings multiples 
and the likely termination of the pending sale of its Portland General 
electric utility subsidiary to Sierra Pacific (OD March27,p8). 
Skilling said Enron will work on improving profitability to achieve its 
previous stock price highs in a market that pays multiples of 30-35 times 
earnings, not the 55 times of 2000, he said. 
(c) Copyright 2001. The Oil Daily Co. 
For more infomation, call 800-999-2718 (in U.S.) or 
202-662-0700 (outside U.S.).

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 






March 29, 2001
Houston Chronicle
Briefs: Houston & state 
Houstonians receive e-commerce awards
Several Houstonians were among the 10 Texans recognized by the Texas eComm 
Association this week for their contributions to the state's Internet 
economy. 
EComm Ten Award winners at the event, held at the Aerial Theater on Saturday 
night, included: Rod Canion, former CEO of Compaq Computer and chairman of 
Questia Media; Doug Erwin, president and CEO of PentaSafe Security 
Technologies; Eric Pulaski, chief technology officer and co-founder of 
BindView Development Corp.; Jeff Skilling, president and CEO of Enron Corp.; 
and Janet Wejman, senior vice president and chief information officer of 
Continental Airlines. 
The Texas eComm Association promotes e-commerce business throughout the 
state. This is the second year for the Texas eComm Ten awards. 



		
		
		
		
		COMPANIES & FINANCE THE AMERICAS: US climate exchange ready to start trading 
Financial Times; Mar 29, 2001
By NIKKI TAIT

		The Chicago Climate Ex-change, a voluntary carbon-dioxide emissions trading 
platform which is being developed on a pilot basis in the Midwest, could 
start trading late this year or early in 2002. 
		Richard Sandor, who is spearheading the project, is expected to tell a US 
Senate committee today that a range of potential participants have expressed 
interest in the exchange - from power utilities to agricultural 
co-operatives. 
		The latter could benefit because they would have carbon dioxide "offsets" to 
sell - to the extent that farmers' land-management practices resulted in 
carbon sequestration (the capture and storage of carbon dioxide in the soil). 
		Mr Sandor said yesterday that four co-operatives were discussing 
participation in the exchange, including Midwest-based Growmark. "Farmers are 
going to be able to produce two crops," said Mr Sandor, arguing that 
traditional crop income could be augmented by the environmental credit sales. 
		The Senate committee hearings come at a time when there are some signs of 
increased interest in using emissions trading to help reduce greenhouse gases 
- BP, for example, has instituted an internal carbon- emissions trading 
regime - but the idea remains controversial. 
		The United Nations conference on climate change at the Hague last November 
failed to agree on a legal framework for international emissions trading. 
		Separately, the Chicago Board of Trade, which handles an annual auction of 
sulphur dioxide emissions allowances for the US Environmental Protection 
		Agency, yesterday ann-ounced the second-highest proceeds to date. A total of 
128,388 spot allowances were sold, with an average winning price of Dollars 
174.97 and a clearing price of Dollars 173.57. 
		Enron, the US utility, was the biggest purchaser. The auction of seven-year 
advance allowances produced a clearing price of Dollars 105.72, and an 
average winning price of Dollars 110.75. Proceeds, at Dollars 36.4m, were 
second only to the 1999 figure. 
		Copyright: The Financial Times Limited
		
		

Power project may get a boost
The energy crisis may prompt a new state board to reverse its predecessor's 
ruling on a Southwest Riverside County line.
March 29, 2001

By Sandy Stokes and Thomas Buckley
The Press-Enterprise
Citing renewed debate over the state's energy future, the staff of a state 
power system board says it may be time to reaffirm the need for a new 
electric power line through southern Riverside County. 
If approved by the Independent System Operator board Friday, the 
recommendation would be a setback for power-line opponents who last fall 
thought they had won a round. In October the board ordered that San Diego Gas 
Electric explore alternatives to the high-voltage line before the board 
endorsed the project. 
Also on Friday, the board -- keeper of the state's electric transmission grid 
-- may encourage another look at a second proposal that has caused angst 
among hilltop dwellers on the western edge of the county. 
Last week, SDGE formally applied to the California Public Utilities 
Commission for permission to tap into Southern California Edison's grid by 
building a 31-mile, 500,000-volt transmission line through Riverside County 
to Rainbow, just south of Temecula. The opinion of the board carries weight 
with the PUC. 
The proposed route for SDGE's Valley Rainbow Interconnect slices through 
French Valley horse ranches and crosses Temecula's scenic wine country, 
drawing fire from the area's vintners, residents and some politicians. 
"I'm definitely opposed to that route," said Temecula City Councilman Ron 
Roberts. "It affects everybody." 
The city and others opposed to the route have until April 22 to lodge 
protests with the PUC, which ultimately will decide whether SDGE can build 
the line. 
Last year, after intense lobbying by Save Southwest Riverside County, the 
grass-roots group opposed to the Valley Rainbow project, the Independent 
System Operator board required SDGE to look for alternatives to the power 
line, including new generating plants. 
But in January, Gov. Davis disbanded the 28-member board and replaced it with 
five of his appointees. The new board Friday will review the previous board's 
decision. 
The agency's staff recommends reaffirming the need for a transmission line 
from Romoland to Rainbow while taking back the requirement that SDGE look for 
alternatives. 
"That's good news," said SDGE spokesman Art Larson. Construction on the line 
is scheduled to begin in the summer of 2004 and be completed two years later. 
When the project was first unveiled last summer, the utility's purpose for 
the line was to bring more electricity to its San Diego County customers, 
whom company officials said would begin experiencing blackouts by 2004 
without it. Since then, the energy crisis has spawned several proposals for 
new power plants. Sempra Energy, SDGE's parent company, has proposed two 
large plants in Escondido and Mexicali. 
Now the Independent System Operator staff has recommended that the Valley 
Rainbow project also be considered a vehicle to move new power from Mexico 
and San Diego County into the state's power grid. 
Power-line opponent Barbara Wilder of Save Southwest Riverside County said 
group representatives will attend the board meeting Friday. "We're going to 
ask them to hold the course they did in October," she said. 
Riverside County officials will also be there to ask the board to leave the 
previous decision intact, said management analyst Barbara Dunmore. 
Besides rescinding the previous board's decision, the new board could 
"encourage SDGE to continue to explore alternative routes including a route 
through Forest Service land," the agency staff's recommendation states. 
That route, proposed by a group seeking to build a hydroelectric plant near 
Lake Elsinore, would take the transmission line through remote areas of 
Cleveland National Forest. 
A major financial backer of that project, Texas-based Enron North America, 
pulled out, leading some of those who live in the area near the national 
forest to breathe a sigh of relief. 
During the past several months, SDGE told Enron that if the forest route was 
viable, "we would consider it," Larson said. But he said the feasibility of 
the route was never demonstrated. "Instead, they pulled out of the project," 
Larson said. "That should tell you something." 
Still, the Independent System Operator staff's recommendation to look at the 
forest route has made the area's residents worried again. 
Elin Motherhead of CAUTION (Citizens Against Unnecessary Transmission lines 
In Our Neighborhood) said the group will continue the fight against the route 
through Cleveland National Forest. 
Gene Frick, a vocal opponent of both the Lake Elsinore hydroelectric power 
plant and the power lines, blasted the agency staff proposal. 
He aimed his strongest criticism at a staff memo that stated: "The Lake 
Elsinore project is favored by the (U.S.) Forest Service. . . . 
The memo also suggests that in light of Enron's withdrawal, the "Forest 
Service might be persuaded that if the line is built" the hydroelectric 
project would become more feasible. 
"That's manifestly false," said Frick, pointing to a document the Forest 
Service filed with federal regulators in January calling the proposed Lake 
Elsinore power plant and transmission lines "inconsistent with the visual 
uality standards and guidelines" of the Cleveland National Forest. 
Independent System Operator spokesman Patrick Dorinson said the information 
about the Forest Service's alleged view came from Enron. Even so, he said, 
the power board wants SDGE to consider all possible alternatives. 
"I have no idea why the ISO staff put something in there without even 
checking to see if it's true," Frick said. "If this is the kind of stuff 
public servants do, it's no wonder we're in so much trouble." 
Sandy Stokes can be reached by e-mail at sstokes@pe.com or by phone at (909) 
587-3140. 
Thomas Buckley can be by e-mail at tbuckley@pe.com, or by phone at (909) 
245-2934. 



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