FYI...
---------------------- Forwarded by Karen Denne/Corp/Enron on 12/01/2000 
03:04 PM ---------------------------


"sandra" <SYamane@marathon-com.com> on 11/30/2000 10:25:51 AM
Please respond to "Sandra Yamane" <SYamane@marathon-com.com>
To: <karen.denne@enron.com>
cc: Windows@marathon-com.com, Windows@marathon-com.com 

Subject: Debra Bowen Meeting


Last night, Debra Bowen held a community meeting to discuss electricity
deregulation.  Carl Wood, Art Rosenfeld, Henry Martinez and Don Cunningham
of DWP, and Gary Shurman (sp?) of SCE were speakers.

All speakers emphasized the importance of demand side management.  There was
little discussion anything else.

Mr. Wood stated that deregulation was fatally flawed, that the wholesale
market had failed and that generators had figured out how to game the
market.

Bowen indicated that one element of the Governor's plan will focus on energy
conservation.  She reviewed specifics of AB 970.

The SCE representative said that the state needed to regain oversight
control of the market.  He stated that the market was dysfunctional and that
market manipulation has caused extreme prices.  He also stated that it was
unlikely that the state would prevail in receiving refunds from generators.

Commissioner Wood agreed saying that generators made incredible profits and
siphoned them out of California.  Regarding the uncollected debt, Wood said
that the debt belongs to Edison but that the PUC cannot allow the utility
companies to go bankrupt. Wood said that Edison and ratepayers would
probably repay debt.  He indicated that the State may be able to recover
some of the profit from marketers and generators but that this may not be
able to be achieved through the courts.

SCE representative stated that it is easier to talk about price gouging than
it is to put together a lawsuit.  He reminded the audience that generators
are all out of state and that it has been difficult to obtain information
from generators.

Bowen said that it was important to remember that it was not just the
generators but also brokers that overcharged for electricity.

When asked about how California got into this situation, who was to blame,
and what could be done to punish generators, Bowen responded that she would
rather focus on things that can be done in the short term to prepare
residents for higher electricity costs.