Senator Dunn conducted a press briefing earlier today in regards to his 
"Select Committee to Investigate Price Manipulation of the Wholesale Energy 
Market." ?

Following is a summary of what was discussed:

Today's hearing:
Where: ?Room 3191, 1pm
Who: Carol Coy, South Coast Air Quality Management District 
SCE was invited but unable to attend due to the bankruptcy issue which 
apparently ?????consumes all of ?their time and resources....
Topic: ?The "laundering" of air emissions credits. ??Apparently the cost of 
air emissions credits is pushed up due to the laundering of credits by 
generators, and as a result should not be used to justify high electricity 
prices. ?

Upcoming Hearings:
When: ?Friday, June 22
Topic: ?Plant operations
Who: ?TBD

When: ?Friday, June 29
Who: ??GENERATORS TESTIFY

Other items discussed:


Documents requests issued to LADWP and DWR. ?LADWP has apparently been very 
very very "very cooperative" with the request. ? 
Subpoenas have been issued to Duke, Dynegy, AES, NRG, Enron, Reliant, 
Williams 
A subpoena was issued to SCE requesting the following information: 
?1. ?Internal documents related to the surveillance of market 
competitiveness. ?2. ?Maintenance records and 3. ?Internal documents related 
to the sale of California generation assets. 
A subpoena was issued to Morgan Stanley, who was retained to prepare 
documents related to the sale of some of California's generation assets.

????????????? ?NOTE: ?The point is that the price paid for generation assets 
was "much higher" than many experts anticipated. ?The committee will be 
looking into whether generators purchased these assets at significantly 
higher prices because they knew they would have market power -- and the 
ability to set prices high.


Subpoenas will be issued to PG&E and SDG&E



Please feel free to call if you have any other questions. ?Thanks - Jean


-- 
Jean Munoz
McNally Temple Associates, Inc.
916-447-8186
916-447-6326 (fx)