Info from the press conference today

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 02/08/2001 11:51 AM -----

	"Allen, Stevan" <stevan.allen@edelman.com>
	02/08/2001 10:39 AM
		 
		 To: "Beiser, Megan" <Megan.Beiser@edelman.com>, "''nplotkin@tfglobby.com' '" 
<nplotkin@tfglobby.com>, "'Aaron Thomas (E-mail) (E-mail) '" 
<athomas@newenergy.com>, "'Andrea Weller (E-mail) (E-mail) '" 
<aweller@sel.com>, "'andrew Chau (E-mail) (E-mail) '" <anchau@shellus.com>, 
"'Bill Chen (E-mail) (E-mail) '" <bchen@newenergy.com>, "'Douglas Oglesby 
(E-mail) (E-mail) '" <doao@chevron.com>, "Fairchild, Tracy" 
<tracy.fairchild@edelman.com>, "'Jeffrey Hanson (E-mail) (E-mail) '" 
<jeff.hanson@phaser.com>, "'jennifer Chamberlin (E-mail) (E-mail) '" 
<jnnc@chevron.com>, "'john Barthrop (E-mail) (E-mail) '" 
<jbarthrop@electric.com>, "'John Leslie (E-mail) (E-mail) '" 
<jleslie@luce.com>, "'Joseph Alamo (E-mail) (E-mail) '" <jalamo@enron.com>, 
"''Michael Nelson' (E-mail) '" <mnelson@electric.com>, "'Mona Petrochka 
(E-mail) '" <mpetroch@enron.com>, "'Peter Bray (E-mail) (E-mail) '" 
<pbray@newpower.com>, "'Rebecca Schlanert (E-mail) (E-mail) '" 
<rschlanert@electric.com>, "'Richard Counihan (E-mail) (E-mail) '" 
<rick.counihan@greenmountain.com>, "''Robert Morgan' (E-mail) '" 
<rmorgan@newenergy.com>, "'Sue Mara (E-mail) (E-mail) '" <smara@enron.com>
		 cc: "Warner, Jami" <jami.warner@edelman.com>, "Manuel, Erica" 
<Erica.Manuel@edelman.com>, "Fairchild, Tracy" <tracy.fairchild@edelman.com>, 
"Anderson, Kristin" <Kristin.Anderson@edelman.com>
		 Subject: AReM: Angelides News Conf

AReM Team:
The following is an overview from:

9 a.m., SACRAMENTO _ State Treasurer Phil Angelides
holds media briefing to discuss issuance of energy-related bonds, 915
Capitol
Mall, room 110. Contact: Colleen Beamish, 916-653-4052.

While we have not had time to analyze or digest in detail, here is what
Angelides said:

Angelides: Laid out what needs to be done for the Treasurer's office to
implement AB 1X and what is and isn't appropriate role of the state for
getting the IOUs solvent. 

Angelides: "These will be largest (amount of) municipal bonds issued in
nation's history."

Angelides: Estimated bonds would be in $10 billion range. (This echoes what
he said in Jan. 5 news conference)

Angelides: Goal is to arrange short-term external financing by beginning of
March. This would account for about $2 billion. If they don't get that
amount by March 1, 2001, the State will tap into the General Fund.   (NOTE:
This appears to be different from the $2 billion he talked about last month
for the renewable energy and conservation load program -- the reserve fund
he would use to reduce the intereset paid to the consumers.)

Angelides: It is "fortunate" that this is happening when State of California
currently has a $5.8 billion surplus.

Angelides: By passing AB 1X, the State has "provided for stability on a
going forward basis" for the utilities.

Angelides: "The next step is for the utilities." -- i.e. - the ball is in
their court because the IOUs aren't now in a position where they necessarily
are going to be insolvent, so they have decisions to make. Do they want to
sell off transmission assets or do they want to pursue the bankruptcy
option?

Angelides: "A buyout, not a bailout makes sense." because it "would give
liquidity to the utilities."

Angelides: Announced he was assembling full financing team which would be in
place by Friday. 

Angelides: Also said that before bonds could be issued, interim steps needed
to be taken. Specifically -- that DWR and PUC must reach an agreement on
what rates must be paid on power contracts.  

On the phone were: * Michael Kahn;  Laura Holson (sp?);  Debra Feinstone
(sp?) -- All three listened in and did not participate.

We will be faxing handouts and news releases of this and other news
conferences to the team. If you don't receive them, please contact Kristin
Anderson at 916/442-2331 to request a fax.

PS - The Connell news conference has been postponed.




-----Original Message-----
From: Beiser, Megan
To: 'nplotkin@tfglobby.com'; Aaron Thomas (E-mail) (E-mail); Andrea Weller
(E-mail) (E-mail); andrew Chau (E-mail) (E-mail); Bill Chen (E-mail)
(E-mail); Douglas Oglesby (E-mail) (E-mail); Fairchild, Tracy; Jeffrey
Hanson (E-mail) (E-mail); jennifer Chamberlin (E-mail) (E-mail); john
Barthrop (E-mail) (E-mail); John Leslie (E-mail) (E-mail); Joseph Alamo
(E-mail) (E-mail); 'Michael Nelson' (E-mail); Mona Petrochka (E-mail); Peter
Bray (E-mail) (E-mail); Rebecca Schlanert (E-mail) (E-mail); Richard
Counihan (E-mail) (E-mail); 'Robert Morgan' (E-mail); Sue Mara (E-mail)
(E-mail)
Cc: Allen, Stevan; Warner, Jami; Manuel, Erica; Fairchild, Tracy; Anderson,
Kristin
Sent: 2/8/01 11:40 AM
Subject: Several Press Briefings in Sacramento today

AReM-ers,

It's a busy day today for press briefings as you can see from the
schedule below.  We'll be covering these events this morning and will
get news releases, press materials from all as well. 

We will provide updates as soon as possible and get them out to you.

*********************

9 a.m., SACRAMENTO _ State Treasurer Phil Angelides
holds
media briefing to discuss issuance of energy-related bonds, 915 Capitol
Mall, room 110. Contact: Colleen Beamish, 916-653-4052.

9:30 a.m., SACRAMENTO _ Assembly Speaker Robert Hertzberg and others
discuss legislation to promote energy conservation and increase power
supplies, Capitol, room 317. Contact: Paul Hefner, 916-319-2408.

11:30 a.m., YUBA CITY _ Gov. Gray Davis discusses his plans to increase
electricity generating capacity in California, Sutter power plant
project,
5087-A South Township Rd. Contact: 916-445-4571.

Noon, SACRAMENTO _ Republican lawmakers hold news conference to discuss
failure of parent companies to keep their utility subsidiaries
sufficiently
solvent to serve the public interest, Capitol, room 1190. Contact: Wade
Teasdale, 916-445-3731.