----- Forwarded by Jeff Dasovich/NA/Enron on 01/20/2001 11:03 PM -----

	Scott Govenar <sgovenar@govadv.com>
	01/19/2001 03:58 PM
		 
		 To: Jeff Dasovich <jdasovic@enron.com>
		 cc: 
		 Subject: Notes

ABX1 1 (Keeley) Regarding long term contracts with DWR was heard in
Senate Energy today for the purpose of considering amendments.  The
following items were discussed:

The portion of the bill that would make entities who sell to the DWR
regulated utilities will be amended.  This was not the intent of the
author.

The $.5.5 will be amended as the author and committee acknowledged that
it was completely impractical.  No indication as to what the new number
would be, although it is likely that there will be a number versus being
silent on the issue.

The bill will be amended to allow for portfolio purchases.

The bill will be amended to eliminate the prohibition on the state
owning T&D.

The five year sunset review may be reduced to a hard three year sunset.

According to the author, it is not the intent of the bill to enable IOUs
to repay past debts with surplus revenue if the state is able to buy
inexpensive power and there was room under the existing cap.  Consumer
advocates believe under this scenario there should be a rate reduction.

QF contracts are a major stumbling block as they have not been paid by
the IOUs and would prefer to have contracts with the state.  Under this
scenario, the $400 million would be far too small a number to make up
the net short.  Current negotiations with the IOUs have ground to a
halt.

Several parties suggested that the DWR also be authorized to make gas
purchases.

The Calpine proposal of 2,500 mw at 5.5 was deemed insufficient due to
its complex structure, thereby reinforcing the notion that 5.5 is not
feasible.