2 e-mails attached
---------------------- Forwarded by Richard Shapiro/NA/Enron on 07/06/2001 03:37 PM ---------------------------


Pat Shortridge
07/06/2001 01:18 PM
To:	John Shelk/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Chris Long/Corp/Enron@ENRON, Richard Shapiro/NA/Enron@Enron, Mark Palmer/Corp/Enron@ENRON, Carolyn Cooney/Corp/Enron@ENRON
cc:	 

Subject:	Davis & Company -- incompetence personified

You hate to say that someone can't do anything right, but THESE GUYS CAN'T DO ANYTHING RIGHT.

   California Power-Buying Data Disclosed in Misdirected E-Mail By Daniel Taub  Sacramento, California, July 6 (Bloomberg) -- California Governor Gray Davis's office released data on the state's purchases in the spot electricity market -- information Davis has been trying to keep secret -- through a misdirected e-mail.  The e-mail, containing data on California's power purchases yesterday, was intended for members of the governor's staff, said Davis spokesman Steve Maviglio. It was accidentally sent to some reporters on the office's press list, he said.  Davis is fighting disclosure of state power purchases, saying it would compromise negotiations for future contracts. This week, Davis appealed a state judge's order to release spot-market invoices, purchase orders and confirmation sheets for power contracts signed through June 27. The state is buying electricity on behalf of utilities, which are burdened by debt.  ``It's an internal document,'' Maviglio said of the e-mail. ``We have a meeting every morning where we discuss issues of the day.'' The e-mail contained minutes of today's meeting, he said.  According to the e-mail, the state bought 283,000 megawatt- hours of electricity for $37.4 million yesterday. One megawatt- hour is enough electricity to light 750 typical California homes for an hour. Prices ranged from $25 to $149.99 a megawatt-hour. Maviglio said the information in the e-mail is accurate.  Power for next-day delivery during peak-use hours averaged $79.67 a megawatt-hour on the California-Oregon border yesterday, according to Bloomberg Energy Service. California paid an average of $132 on the spot market, according to the e-mail. Prices on the spot market tend to be higher than on the day-ahead market.  The governor has proposed releasing data on spot-market purchases once a quarter, arguing that the state uses power-buying strategies tailored to each season. Lawyers for the media and Republican legislators say state law requires disclosure of contracts within seven days after they are signed.  	


---------------------- Forwarded by Richard Shapiro/NA/Enron on 07/06/2001 03:37 PM ---------------------------


Ban Sharma@ENRON_DEVELOPMENT
07/06/2001 01:27 PM
To:	Mark Palmer@ENRON
cc:	Richard Shapiro@Enron 

Subject:	DWR Contracts Summary Website

Mark,

Your site is finally activated. Real interesting. Worth a look

Link to the DWR Contracts. 

http://www.sco.ca.gov/power_page/contract_info.htm

Ban


An interesting article too:

Connell: Power cost twice Davis' figure 
July 6, 2001 
By JOHN HOWARD
The Orange County Register 
SACRAMENTO -- The average cost of electricity purchased under $43 billion of worth of state contracts is actually more than double the amount reported by Gov. Gray Davis' administration, state Controller Kathleen Connell said Thursday. 
Connell said her staff's analysis put the per-megawatt average at $170, compared with $69 to $79 estimated by Davis. 
Connell stopped short of suggesting that the higher cost could drive another increase in rates, although consumer groups said the higher amount likely would require some future increase. 
The controller, who writes the state's checks, said her figures assume fixed prices for natural gas over the duration of the contracts, which range from a few months to 20 years. 
The administration, noting that nearly half its contracts are pegged to the fluctuating market price of natural gas, said costs on many of the contracts would decline over time. 
Consumer groups were skeptical of the administration's numbers. 
"You could cut these numbers in various ways and make different averages, long-range or short-range contracts, peak power or nonpeak, and probably either average could be defended mathematically," said Nettie Hoge of The Utility Reform Network. "We can't tell you whether it's $69 or $170 - the contracts are very convoluted and complex."