----- Forwarded by Jeff Dasovich/NA/Enron on 03/13/2001 05:46 PM -----

	Jean Munoz <jmunoz@mcnallytemple.com>
	03/13/2001 05:47 PM
		 
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		 Subject: CA Secretary of State Bill Jones Denounces "Free-Wheeling Energy 
Spending Spree"


JONES DENOUNCES LACK OF OVERSIGHT AND ACCOUNTABILITY
OVER MONTHS OF FREE-WHEELING ENERGY SPENDING SPREE
CALLS FOR STATE CONTROLLER TO AUDIT ALL ENERGY-RELATED EXPENSES AND 
CONTRACTS; URGES GOVERNOR TO BEGIN MONTHLY BRIEFINGS WITH LEGISLATIVE 
BI-PARTISAN LEADERSHIP ON PROGRESS OF POWER PLANT CONSTRUCTION AND DETAILS OF 
LONG-TERM CONTRACTS

LOS ANGELES - Denouncing the fact that there is currently no oversight or 
accountability for the billions of taxpayers' dollars that are being spent by 
the Governor and his administration, Secretary of State Bill Jones totals 
called on State Controller Kathleen Connell to begin an immediate full and 
complete audit of all energy-related financial transactions. As chief 
financial of officer for the state, the controller has the sole 
responsibility to "provide sound fiscal control over both receipts and 
disbursements of public funds and to determine legality and accuracy of every 
claim against the state."

"There is no oversight and no accountability to ensure that the taxpayers'  
money is being spent wisely," Jones sad. "The enormous outlays of money to 
purchase energy on a daily basis as well as these binding long-terrn 
contracts will have a tremendous fiscal impact on the state for years to come 
- I believe essentially, mortgaging our future for our children and 
grandchildren."

Additionally, Jones called on Governor Davis to immediately meet with 
legislative bi-partisan leaders to brief them fully as to the terms and costs 
of all contracts and purchases on the spot market just as the President's 
team meets with congressional leaders to discuss issues of
national security.

Jones also strongly urged the Governor to begun monthly briefings immediately 
wth legislative leaders to provide on-going updates on the progress of new 
power plant construction and an up-to-date report of California's power 
supplies to ensure adequate resources for the upcoming summer months

"The Governor believes that the solution to our energy crisis lies in the 
state getting into the power business - I do not. As a result, Davis has 
created a de-facto state Power Authority that's spending cash at an alarming 
rate, some $45 million a day; $1.5 billion a month," said Jones. "And he's 
just signed the state up for some $43 billion in long-tern contracts for 
which we don't know the terms, length or total energy supply secured." 

Jones noted that when the utility companies were regulate the Public 
Utilities Commission (PUC) had the responsibility to look over their shoulder 
and ensure that the ratepayers were protected and fairly treated. Yet all the 
governmental agencies that should be looking into the energy spending spree 
are now controlled or appointed by the govemor, including the PUC, the Little 
Hoover Commission, the Electricity Oversight Board, the Department of 
Finance, the Resources Agency, the Department of Water Resources, the Energy 
Commissions the Independent Systems Operator and the now-defunct Power 
Exchange.

According to a recent Wall Street Journal article (3/08/01), David Mills, 
trading floor manager of the Bonneville Power A.dndnistation questioned 
Califomia's purchases on the spot market, saying that the water agency 
[California Departnent of Water Resources] has at times offered to pay $50 to 
$100 per megawatt hour more than the available market price." Mills added 
that power buyers for the state "agree to prices that make you wonder ? you?d 
at least think they?d check to see what the prevailing price is before 
throwing out their offer." 

"As President Bush has said so often, it's not the government's money, it's 
the people's money" Jones sad.  "The people of California deserve to know 
what the terms of this high-stakes energy game are since it's being played 
with taxpayers' money."

Jones criticized the governor?s repeated refusal to fulfill numerous Public 
Records Act requests from Assemblyman Tony Strickland (R-Thousand Oaks), 
several news media and other organizations, calling his denial for 
information based on a government code provision regarding protection of the 
"public interest " an assault on the public's common sense.

"I believe that the real @public interest' lies in a full accounting to the 
public of how the Governor has spent their money - and what kind of a deal 
we're actually getting," Jones concluded.

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